2022-05-13T12:58:40-05:00 2021-06-30 450250958 EIDE BAILLY LLP 2355 E CAMELBACK RD STE 900 PHOENIX AZ 850169065 990 2020-07-01 813137336 HEALTH FIRST FOUNDATION-NORTHERN ARIZONA HEAL 9282239250 1030 N SAN FRANCISCO ST STE 103 FLAGSTAFF AZ 86001 SANDRA KOWALSKI PRESIDENT AND CEO 9282239250 2022-05-11 1 SANDRA KOWALSKI 999009999 BRENDA ANN BLUNT CPA P00075126 4803151040 2022-05-11 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z X X SANDRA KOWALSKI 1030 N SAN FRANCISCO ST STE 103 FLAGSTAFF AZ 86001 8637039 0 X WWW.HEALTHFIRSTFORALL.ORG X 2016 AZ HEALTH FIRST FOUNDATION PROVIDES LEADERSHIP, FORGES PARTNERSHIPS, AND SUPPORTS (CONT'D ON SCH O) INNOVATION TO ADVANCE HEALTH AND WELL-BEING ACROSS NORTHERN ARIZONA'S DIVERSE POPULATION AND GEOGRAPHY. WE INSPIRE DONORS TO SUPPORT INNOVATIVE COMMUNITY HEALTH INITIATIVES OF NONPROFIT ORGANIZATIONS, HOSPITALS, AND MEDICAL CENTERS. OUR COLLABORATIONS AND INVESTMENT ALLIANCES STRIVE TO BRING HEALTH AND WELL-BEING TO THE GREATEST NUMBER OF PEOPLE POSSIBLE WITH MAXIMUM IMPACT. WE EVALUATE COMMUNITY HEALTH NEEDS ASSESSMENTS TO DETERMINE PRIORITY NEEDS AND USE QUANTITATIVE MEASUREMENTS TO ASSESS THE SUSTAINABLE IMPACT HEALTH FIRST FUNDED PROGRAMS HAVE ON HEALTH AND WELL-BEING FOR ALL AND PROMOTING VIBRANT COMMUNITIES. 10 9 0 9 0 0 3573426 3220217 7493 0 1211974 2068631 -96316 3410 4696577 5292258 6094979 2247002 0 0 2015862 1715517 0 0 1007639 664167 1050913 8775008 5013432 -4078431 278826 42473817 53020022 1044016 1612322 41429801 51407700 X WE ADVANCE COMMUNITY HEALTH AND WELL-BEING THROUGH LEADERSHIP, PARTNERSHIPS, AND INNOVATION. 0 1 2069645 1798155 THE FOUNDATION GENERATES FUNDS TO SUPPORT THREE HEALTH PRIORITIES IN NORTHERN ARIZONA: IMPROVED BEHAVIORAL HEALTH, MITIGATION OF CHRONIC CONDITIONS, AND ACCESS TO HEALTH CARE. DURING THE 2020 TAX YEAR, THE FOUNDATION MADE GRANTS TO NORTHERN ARIZONA HEALTHCARE AND 15 OTHER NONPROFIT AND GOVERNMENTAL ORGANIZATIONS THAT ADVANCE THESE COMMUNITY HEALTH PRIORITIES AND SUPPORT THE HEALTH AND WELL-BEING OF PEOPLE THROUGHOUT THE NORTHERN ARIZONA COMMUNITY. (SEE SCHEDULE I) IN ADDITION, THE FOUNDATION AWARDED GRANTS TO MORE THAN 100 EMPLOYEES OF NORTHERN ARIZONA HEALTHCARE TO ASSIST WITH FINANCIAL HARDSHIPS DIRECTLY CAUSED BY THE COVID-19 PANDEMIC. THE FOUNDATION'S EFFORTS IMPACTED MORE THAN 92,000 LIVES. 415658 361134 DURING THE 2020 TAX YEAR, THE FOUNDATION PROVIDED FUNDING TO OR ON BEHALF OF NORTHERN ARIZONA HEALTHCARE, FLAGSTAFF MEDICAL CENTER, AND VERDE VALLEY MEDICAL CENTER FOR VARIOUS DEPARTMENT INITIATIVES, INCLUDING BEHAVIORAL HEALTH, CANCER CARE, CHILDREN'S HEALTH, CLINICAL SERVICES, EMPLOYEE ASSISTANCE AND RECOGNITION, FACILITIES, NATIVE AMERICAN INTERPRETERS, PALLIATIVE AND HOSPICE CARE, AND PATIENT AND FAMILY ASSISTANCE. 52762 45841 DURING THE 2020 TAX YEAR, THE FOUNDATION CONDUCTED FOUR SPECIAL EVENTS THAT RAISED MONIES FOR DEPARTMENTS OF NORTHERN ARIZONA HEALTHCARE, FLAGSTAFF MEDICAL CENTER, AND VERDE VALLEY MEDICAL CENTER. THESE EVENTS WERE HELD VIRTUALLY DUE TO PANDEMIC RESTRICTIONS. THE FOUNDATION CANCELED OTHER, LONG-STANDING ANNUAL SPECIAL EVENTS DUE TO PANDEMIC-RELATED RESTRICTIONS, WHICH ALSO LIMITED THE EVENT ACTIVITY OF OTHER NONPROFIT ORGANIZATIONS. AS A RESULT, THE FOUNDATION PROVIDED SPONSORSHIP SUPPORT TO JUST ONE NONPROFIT ORGANIZATION IN NORTHERN ARIZONA DURING THE 2020 TAX YEAR. 48194 41872 DURING THE 2020 TAX YEAR, THE FOUNDATION DISTRIBUTED GIFTS-IN-KIND CONTRIBUTIONS TO DEPARTMENTS OF NORTHERN ARIZONA HEALTHCARE, FLAGSTAFF MEDICAL CENTER, AND VERDE VALLEY MEDICAL CENTER. 48194 41872 2586259 1 1 0 0 0 1 0 0 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 314 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 X 10 9 0 0 1 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X KARLA AMBLER JACOBSEN 9282239250 1030 N SAN FRANCISCO ST STE 130 FLAGSTAFF AZ 86001 RICHARD A SMITH EDD PRESIDENT/CEO/DIRECTOR 40.00 X X 429455 0 6448 CHRIS BAVASI CHAIR/DIRECTOR 1.00 X X 0 0 0 DEIRDRE MELDRUM PHD VICE CHAIR/DIRECTOR 1.00 X X 0 0 0 JAMES OUSLEY SECRETARY/DIRECTOR 1.00 X X 0 0 0 WAYNE FOX CPA TREASURER/DIRECTOR 1.00 X X 0 0 0 WILLIAM HICKS III ESQ DIRECTOR 1.00 X 0 0 0 ALICE GAGNAIR DIRECTOR 1.00 X X 0 0 0 RICHARD KRUSE CPA DIRECTOR 1.00 X 0 0 0 OLIVER HARPER MD DIRECTOR 1.00 X 0 0 0 WILLIAM RILEY PHD DIRECTOR 1.00 X 0 0 0 KARLA JACOBSEN CPA MANAGER OF FINANCIAL OPERATIONS 40.00 X 137224 0 2184 MATTHEW BRASMER VP OF DEVELOPMENT 40.00 X 211376 0 1303 SANDRA KOWALSKI OPERATIONS MANAGER 40.00 X 121656 0 615 899711 0 10550 4 0 1 0 MITCHELL STEIN CAREY CHAPMAN 2600 NORTH CENTRAL AVENUE SUITE 10 PHOENIX AZ 85004 LEGAL SERVICES 151294 NORTHERN ARIZONA HEALTHCARE CORPORATION 1200 N BEAVER STREET FLAGSTAFF AZ 86001 HUMAN RESOURCES, PAYROLL, IT, ACCOUNTS P 117569 2 65529 3154688 2585354 3220217 1357292 1357292 29739 4126 25613 25613 25613 4016000 3304661 711339 711339 711339 13742 65529 35994 -22252 -22252 MISCELLANEOUS 900099 49 49 49 5292258 0 0 2072041 2125108 2125108 121894 121894 773565 158202 362539 252824 651978 100238 174520 377220 112030 21589 44014 46427 91511 16119 33483 41909 86433 15643 32506 38284 462351 462351 47500 47500 16014 16014 133954 18401 61902 53651 26553 8555 17998 15055 11370 3685 100153 22850 77303 94263 8049 18740 67474 1065 1065 5719 5719 OTHER 115873 1016 103000 11857 BOARD EXPENSE 13406 13406 EVENT EXPENSE 9621 9621 DONOR CULTIVATION 9386 9386 5013432 2586259 1419534 1007639 60168 125560 4580576 1077776 1187699 933581 886 84551 21227 2599920 36851 0 2563069 36545823 48282923 15000 15000 42473817 53020022 657527 1251117 147970 344705 238519 16500 1044016 1612322 X 6722093 9465751 34707708 41941949 41429801 51407700 42473817 53020022 278826 9699073 0 X 0 1 X 1 0 X 38031508 10600391 3143076 3573426 3220217 58568618 38031508 10600391 3143076 3573426 3220217 58568618 47623083 10945535 484941 731174 1282949 1211974 1387031 5098069 9195 9195 4136 49 4185 63680067 24150 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME - 2017 AMOUNT: $ 4,136. 2020 AMOUNT: $ 49. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 0 312300 34117086 1 1 0 26640220 0 8487464 312300 698298 34117086 27201322 212792 1047402 1281961 539335 26640220 25708936 1384435 1668446 936144 624351 27201322 23136444 1159950 2134416 616515 105359 25708936 21700507 2211007 775070 23136444 0.00000 0.70550 0.29450 0 0 2220000 2220000 310000 310000 69920 36851 33069 2563069 REFUNDABLE ADVANCES 16500 16500 X 15003625 9699073 1190 27118 9727381 5276244 16014 16014 5292258 5025726 1190 27118 28308 4997418 16014 16014 5013432 PART X, LINE 2: MANAGEMENT BELIEVES THAT THE FOUNDATION HAS APPROPRIATE SUPPORT FOR ANY TAX POSITIONS TAKEN AFFECTING ITS ANNUAL REQUIREMENTS, AND AS SUCH, DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EVENT EXPENSES 22,992. RENTAL EXPENSES 4,126. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EVENT EXPENSES 22,992. RENTAL EXPENSES 4,126. SCHEDULE D, PART V, LINE 4 THE NORTHERN ARIZONA HEALTHCARE ENDOWMENT FUND WAS ESTABLISHED TO SUPPORT NORTHERN ARIZONA HEALTHCARE CORPORATION AND TO SUPPORT BOTH THE DELIVERY OF QUALITY HEALTH CARE AND TO INCREASE THE IMPACT ON HEALTH IN POSITIVE, COLLABORATIVE WAYS. VIRTUAL GALA 47923 39421 8502 11212 615 600 16222 VIRTUAL RUN 20555 17255 3300 2707 1 10793 8853 1940 502 4136 79271 65529 13742 11714 615 600 23065 35994 -22252 1 ARIZONA'S CHILDREN ASSOCIATION 3716 E COLUMBIA STREET TUCSON AZ 85714 860096772 501(C)(3) 200000 GRANT TO SUPPORT THE EXPANSION OF BEHAVIORAL HEALTH SERVICES FOR CHILDREN AND FAMILIES IN LAKE HAVASU CITY AND MOHAVE COUNTY BY LAUNCHING A NEW OUTPATIENT BEHAVIORAL HEALTH SERVICES PROGRAM THAT SPECIALIZES IN THE TREATMENT AND SUPPORT OF CHILDREN AND THEIR FAMILIES. CREEK VALLEY HEALTH CLINIC 20 S COLVIN STREET 418 COLORADO CITY AZ 86021 833039533 501(C)(3) 137000 GRANTS TO SUPPORT BEHAVIORAL AND MENTAL HEALTH SERVICE PROGRAM AND CHRONIC DISEASE PREVENTION AND MANAGEMENT PROGRAM. FLAGSTAFF MEDICAL CENTER 1200 N BEAVER STREET FLAGSTAFF AZ 86001 860110232 501(C)(3) 389574 24322 DONOR REPORTED AND FAIR MARKET VALUE COVID-RELATED MASKS, GOWNS, GLOVES, ETC & HOUSEHOLD GOODS; TOYS; GIFT CARDS GRANTS TO SUPPORT HOSPITAL DEPARTMENT INITIATIVES INCLUDING PALLIATIVE CARE, PEDIATRIC TRAUMA, CHILDREN'S HEALTH, NATIVE AMERICAN INTERPRETER PROGRAM, PANDEMIC MITIGATION AND OTHER PATIENT SUPPORT. FLAGSTAFF SHELTER SERVICES 4185 E HUNTINGTON DRIVE FLAGSTAFF AZ 86004 204921369 501(C)(3) 200000 GRANTS TO SUPPORT THE HOUSING AS HEALTHCARE PROGRAM JERRY AMBROSE VETERANS COUNCIL PO BOX 4463 KINGMAN AZ 86402 461967830 501(C)(3) 35000 GRANT TO SUPPORT HOMELESS VETERANS MENTAL/BEHAVIORAL HEALTH PROGRAM MANZANITA OUTREACH PO BOX 371 COTTONWOOD AZ 86326 274446452 501(C)(3) 50000 GRANT TO SUPPORT NUTRITIONAL FOOD PACKS PROGRAM FOR VERDE VALLEY CHILDREN NORTH COUNTRY COMMUNITY HEALTH CENTER INC PO BOX 3630 FLAGSTAFF AZ 860033630 860663432 501(C)(3) 25000 GRANT TO SUPPORT NORTHERN ARIZONA CARE AFTER SEXUAL ASSAULT (NACASA) PROGRAM NORTHERN ARIZONA HEALTHCARE 1200 N BEAVER STREET FLAGSTAFF AZ 86001 742410946 501(C)(3) 228276 9980 DONOR REPORTED AND FAIR MARKET VALUE CLOTHING & HOUSEHOLD GOODS AND TOYS GRANTS TO SUPPORT SPECIAL CARE NURSERY DEPARTMENT FAMILY INTEGRATED CARE PROGRAM AND ONE NAH SPIRITUAL CARE PROGRAM AND GRANTS TO SUPPORT HOSPITAL DEPARTMENT INITIATIVES INCLUDING PATIENT EDUCATION & NAH COLLEAGUE SUPPORT. NORTHERN ARIZONA UNIVERSITY FOUNDATION PO BOX 4094 FLAGSTAFF AZ 86011 860193726 501(C)(3) 216000 CONTRIBUTION TO SUPPORT A NURSING SCHOLARSHIP PROGRAM AND GRANTS TO SUPPORT NAU HEALTHCARE THEATRE PROGRAM - IMPROVING BEHAVIORAL HEALTH THROUGH STANDARDIZED PATIENTS. RED FEATHER DEVELOPMENT PO BOX 907 BOZEMAN MT 59771 911632134 501(C)(3) 10000 GRANT TO PROVIDE PANDEMIC MITIGATION SEDONA INTERNATIONAL FILM FESTIVAL PO BOX 162 SEDONA AZ 86339 200351857 501(C)(3) 5000 SPONSOR ANNUAL AWARDS BRUNCH STEPS TO RECOVERY HOMES 516 E STATE ROUTE 89A SUITE 113 COTTONWOOD AZ 86326 463225513 501(C)(3) 200000 GRANT TO SUPPORT IMPROVE ACCESS TO RECOVERY SERVICES IN RURAL AREAS UNITED STATES VETERANS INITIATIVE 800 WEST 6TH STREET SUITE 1505 LOS ANGELES CA 90017 954382752 501(C)(3) 46547 GRANT TO SUPPORT ADVANCING TELEHEALTH FOR VETERANS PROGRAM UNITED WAY OF NORTHERN ARIZONA 1515 E CEDAR AVENUE SUITE D-1 FLAGSTAFF AZ 86004 860211666 501(C)(3) 130000 GRANT TO SUPPORT THE STRONGER AS ONE COALITION VERDE VALLEY MEDICAL CENTER 1200 N BEAVER STREET FLAGSTAFF AZ 86001 860100882 501(C)(3) 86002 1500 DONOR REPORTED AND FAIR MARKET VALUE HOUSEHOLD GOODS GRANTS TO SUPPORT TO SUPPORT HOSPITAL DEPARTMENT INITIATIVES INCLUDING PALLIATIVE AND COMPLEMENTARY PATIENT CARE. WEST YAVAPAI GUIDANCE CLINIC 3343 WINDSONG DRIVE PRESCOTT VALLEY AZ 86314 860206928 501(C)(3) 86000 GRANT TO SUPPORT TRANSFORMING LIVES THROUGH ACCESSIBLE QUALITY CARE 16 0 ASSISTANCE FOR COVID-19 RELATED FINANCIAL HARDSHIPS 160 105394 RECOGNITION AWARDS TO NORTHERN ARIZONA HEALTHCARE EMPLOYEES AND ADVANCED PRACTICE PROFESSIONALS 16 12000 FINANCIAL ASSISTANCE TO INJURED EMERGENCY MEDICAL TECHNICIANS AND/OR THEIR SURVIVORS 2 4500 PART I, LINE 2: THE FOUNDATION HAS A ROBUST OVERSIGHT PROGRAM THAT INCLUDES REQUIRING MID-TERM AND ANNUAL REPORTING BY THE GRANTEE AND ON-SIGHT INSPECTIONS BY FOUNDATION PERSONNEL. GRANTS OF FINANCIAL ASSISTANCE AND RECOGNITION AWARDS TO INDIVIDUAL EMPLOYEES OF NORTHERN AZ HEALTHCARE CORPORATION ("NAHC") AND EMERGENCY TECHNICIANS AND THEIR FAMILIES ARE AWARDED BASED ON PROCEDURES ESTABLISHED BY NAHC. THE FOUNDATION RELIES ON NAHC'S GOVERNANCE PRACTICES TO ENSURE COMPLIANCE WITH NAHC'S POLICIES AND PROCEDURES. X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 RICHARD A SMITH EDD PRESIDENT/CEO/DIRECTOR 306242 0 58049 0 65164 0 0 0 6448 0 435903 0 0 0 MATTHEW BRASMER VP OF DEVELOPMENT 188849 0 19823 0 2704 0 0 0 1303 0 212679 0 0 0 PART I, LINE 1A THE ORGANIZATION PAYS DUES FOR MEMBERSHIPS IN TWO LOCAL PRIVATE GOLF CLUBS, ONE OF WHICH IS OWNED BY THE ORGANIZATION AND THE OTHER OF WHICH IS OWNED BY ITS CEO. BY VIRTUE OF THESE MEMBERSHIPS, THE ORGANIZATION IS ALLOWED TO HOST THREE OF ITS ANNUAL FUNDRAISING EVENTS AND TO ENTERTAIN CURRENT AND PROSPECTIVE DONORS FOR ACQUISITION AND CULTIVATION PURPOSES AT THESE CLUBS. PERSONAL USE OF SOCIAL MEMBERSHIPS IS REPORTED AS COMPENSATION. PART I, LINE 3 CEO COMPENSATION IS DETERMINED BY NORTHERN ARIZONA HEALTHCARE CORPORATION, BASED ON A MARKET COMPENSATION STUDY PERFORMED BY A THIRD-PARTY CONSULTANT. A COMPENSATION AND INCENTIVE PACKAGE IS STRUCTURED BY THE COMPENSATION COMMITTEE OF THE ORGANIZATION'S BOARD OF DIRECTORS USING THE MARKET COMPENSATION STUDY, A WRITTEN CONTRACT, AND THE OPINION OF AN INDEPENDENT CONSULTANT. PART I, LINE 4B THE ORGANIZATION'S CEO PARTICIPATED IN A 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN ESTABLISHED BY THE ORGANIZATION EFFECTIVE AMENDED AND RESTATED AS OF JULY 1, 2016. THE CEO IS THE ONLY PARTICIPANT IN THIS PLAN. CUMULATIVE CONTRIBUTIONS TO THE PLAN TOTALING $130,930 WERE ACCRUED AS OF JUNE 30, 2021. THE ORGANIZATION'S VP OF DEVELOPMENT PARTICIPATED IN A 457(F) NONQUALIFIED DEFERRED COMPENSATION PLAN ESTABLISHED BY THE ORGANIZATION EFFECTIVE AS OF AUGUST 27, 2018. THE VP OF DEVELOPMENT IS THE ONLY PARTICIPANT IN THIS PLAN. CUMULATIVE CONTRIBUTIONS TO THE PLAN TOTALING $94,216 WERE ACCRUED AS OF JUNE 30, 2021. PART I, LINE 7 THE ORGANIZATION MAKES ANNUAL PAYMENTS, WHICH ARE BASED ON MEETING VARIOUS FINANCIAL AND OTHER ORGANIZATIONAL GOALS. X 2 5060 DONOR ESTIMATE X 15385 RETAIL VALUE/DONOR EST X 5 2530000 FAIR MARKET VALUE X 297 1050 RETAIL VALUE/DONOR EST X 13017 19475 DONOR ESTIMATE X TICKETS/ADMISSIONS 8 11917 RETAIL VALUE X ELECTRONICS 414 1847 RETAIL VALUE/DONOR E X GIFT CERTIFICATES 53 620 RETAIL VALUE 0 0 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF ITEMS RECEIVED IN COLUMN (B). FORM 990, PART III, LINE 3 FOR THE FIRST HALF OF ITS 2021 TAX YEAR, THE FOUNDATION'S STAFF WAS COMPRISED OF EMPLOYEES OF NORTHERN ARIZONA HEALTHCARE CORPORATION ("NAHC") WHO WERE SECONDED TO THE FOUNDATION. DURING THIS TIME, THE FOUNDATION REIMBURSED NAHC FOR ALL DIRECT PAYROLL COSTS. IT ALSO CONTRACTED WITH NAHC TO PROVIDE PAYROLL, HUMAN RESOURCE, IT, AND ACCOUNTS PAYABLE SERVICES TO THE FOUNDATION. EFFECTIVE JANUARY 1, 2021, THE FOUNDATION BECAME AN EMPLOYER AND HIRED THESE EMPLOYEES DIRECTLY. IT BROUGHT ALL HUMAN RESOURCES AND ACCOUNTS PAYABLE SERVICES IN-HOUSE AND ENGAGED INDEPENDENT CONTRACTORS TO PROCESS PAYROLL AND PROVIDE IT SERVICES TO THE COMPANY. FORM 990, PART VI, SECTION A, LINE 4 THE FOUNDATION'S BOARD OF DIRECTORS VOTED TO CHANGE THE NAME OF THE COMPANY FROM NORTHERN ARIZONA HEALTHCARE FOUNDATION TO HEALTH FIRST FOUNDATION - NORTHERN ARIZONA ON MAY 18, 2021. ARTICLES OF AMENDMENT TO THE AMENDED AND RESTATED ARTICLES OF INCORPORATION CHANGING THE COMPANY NAME WERE FILED WITH THE ARIZONA CORPORATION COMMISSION ON JUNE 4, 2021. FORM 990, PART VI, SECTION A, LINE 7A NORTHERN ARIZONA HEALTHCARE CORPORATION HAS THE RIGHT TO APPOINT 20% OF THE TOTAL NUMBER OF VOTING DIRECTORS, ROUNDED UP TO THE NEAREST WHOLE NUMBER. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY AN ACCOUNTING FIRM BASED ON DATA GATHERED BY THE FOUNDATION'S ACCOUNTING DEPARTMENT. THE BOARD OF DIRECTORS IS PROVIDED A COPY OF THE FORM 990 BEFORE IT IS FILED. THE FINANCE COMMITTEE, ACTING ON BEHALF OF THE FOUNDATION'S BOARD OF DIRECTORS, CONVEYS COMMENTS AND APPROVES THE FINAL DRAFT OF THE FORM 990 BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION REGULARLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY. BOARD MEMBERS AND OFFICERS ARE COVERED BY THE POLICY. COVERED INDIVIDUALS HAVE A DUTY TO DISCLOSE ALL MATERIAL FACTS IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS. THE DETERMINATION OF HOW TO PROCEED WITH A CONFLICT IS MADE BY THE MEMBERS OF THE GOVERNING BODY WHO ARE NOT AN INTERESTED PERSON WITH RESPECT TO THE PROPOSED TRANSACTION. AFTER DISCLOSURE OF ALL MATERIAL FACTS, THE INTERESTED PERSON LEAVES AND THE REMAINING MEMBERS OF THE GOVERNING BODY DELIBERATE AND VOTE ON THE EXISTENCE OF CONFLICT. WHEN A CONFLICT OF INTEREST IS IDENTIFIED, THE GOVERNING BODY, EXCLUDING THE INTERESTED PERSON, SHALL EXERCISE DUE DILIGENCE TO DETERMINE IF A MORE ADVANTAGEOUS TRANSACTION IS REASONABLY POSSIBLE UNDER THE CIRCUMSTANCES. THE GOVERNING BODY, EXCLUDING THE INTERESTED PERSON, VOTES WHETHER THE TRANSACTION IS IN THE ORGANIZATION'S BEST INTEREST, FOR ITS OWN BENEFIT, AND FAIR AND REASONABLE. FORM 990, PART VI, SECTION B, LINE 15A THE PRESIDENT AND CEO OF THE FOUNDATION IS EMPLOYED BY NORTHERN ARIZONA HEALTHCARE CORP (NAHC), AN UNRELATED TAX-EXEMPT ORGANIZATION, AND IS SECONDED TO THE FOUNDATION. THE FOUNDATION REIMBURSES NAHC FOR ALL PAYROLL COSTS ASSOCIATED WITH ITS EMPLOYMENT OF THE PRESIDENT AND CEO. NAHC HIRED WILLIS TOWERS WATSON TO PERFORM A MARKET COMPENSATION STUDY RELATED TO THIS EXECUTIVE POSITION. RELYING ON THE CONCLUSIONS OF THIS STUDY, THE FOUNDATION'S COMPENSATION COMMITTEE STRUCTURED A COMPENSATION PACKAGE UNDER A PERFORMANCE CONTRACT TIED TO THE FOUNDATION'S MISSION. FURTHER, THE COMPENSATION COMMITTEE HIRED EIDE BAILLY, LLP, AN INDEPENDENT CONSULTING FIRM, TO PROVIDE AN OPINION AS TO THE REASONABLENESS OF THE COMPENSATION PACKAGE FOR THIS EXECUTIVE POSITION. EIDE BAILLY'S OPINION, WAS THAT THE COMPENSATION PACKAGE WAS REASONABLE. THIS INFORMATION WAS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. THE MOST RECENT REVIEW WAS PERFORMED IN FISCAL YEAR 2019. THE NAHC HUMAN RESCOURCES DEPARTMENT DETERMINED THE COMPENSATION FOR ALL OTHER OFFICERS AND KEY EMPLOYEES THROUGH DECEMBER 2020, USING SALARY STUDIES OF COMPARABLE ORGANIZATIONS. STARTING IN JANUARY 2021, THE HEALTH FIRST HUMAN RESOURCES DEPARTMENT DETERMINED SALARIES AND USED THE SAME SALARY LEVELS FOR THE REST OF THE FISCAL YEAR. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST.