2020-07-15T18:36:09-05:00 2019-06-30 450250958 EIDE BAILLY LLP 2355 E CAMELBACK RD STE 900 PHOENIX AZ 850169065 990 2018-07-01 813137336 NORTHERN ARIZONA HEALTHCARE FOUNDATION NORT 9287732093 1030 N SAN FRANCISCO ST STE 103 FLAGSTAFF AZ 86001 RICHARD SMITH PRESIDENT AND CEO 9287732093 2020-07-15 1 BRENDA BLUNT CPA P00075126 6023810381 2020-07-15 65.140.217.66 2020-07-15 18:23:11 MS P DD42EB3109DED06EDD531521D01968A08CDB655C F00CC96B76A2F3735E6CAD70FDC6067CB22599C8 2018 2020-09-23 17:36:50Z RICHARD A SMITH 1030 N SAN FRANCISCO ST STE 103 FLAGSTAFF AZ 86001 4527545 0 X WWW.NAHEALTHFOUNDATION.ORG X 2016 AZ THE MISSION OF NORTHERN ARIZONA HEALTHCARE FOUNDATION ("NAHF") IS TO SUPPORT (CONT'D ON SCH O) NORTHERN ARIZONA HEALTHCARE CORPORATION ("NAHC"), WHILE ADVANCING COMMUNITY HEALTHCARE PRIORITIES. THE VISION IS A FUTURE WHERE EVERY PERSON IN OUR REGION HAS EQUAL ACCESS TO QUALITY HEALTHCARE AND OPPORTUNITY TO ACHIEVE THEIR HIGHEST LEVEL OF HEALTH. 10 9 0 141 0 0 10600391 3143076 0 16657 731174 1282949 -47701 -46785 11283864 4395897 2262920 4540342 0 0 1523605 1901601 0 0 1169231 654644 594163 4441169 7036106 6842695 -2640209 49210411 46889379 2614938 1736321 46595473 45153058 X THE MISSION OF NORTHERN ARIZONA HEALTHCARE FOUNDATION ("NAHF") IS TO SUPPORT NORTHERN ARIZONA HEALTHCARE CORPORATION ("NAHC"), WHILE ADVANCING COMMUNITY HEALTHCARE PRIORITIES. THE VISION IS A FUTURE WHERE EVERY PERSON IN OUR REGION HAS EQUAL (CONT'D ON SCHEDULE O) ACCESS TO QUALITY HEALTHCARE AND OPPORTUNITY TO ACHIEVE THEIR HIGHEST LEVEL OF HEALTH. 0 0 2671261 2574340 DURING THE 2018 TAX YEAR, THE FOUNDATION CONTINUED FUNDING THE CONSTRUCTION OF A NEW HEALTHCARE CENTER FOR THE WILLIAMS HOSPITAL DISTRICT OF COCONINO COUNTY THAT, WHEN COMPLETED, WILL PROVIDE ACCESS TO HEALTHCARE SERVICES TO RESIDENTS OF THE CITY OF WILLIAMS, ARIZONA AND OUTLYING AREAS, SUCH AS TUSAYAN, RED LAKE, ASH FORK, AND PARKS, ARIZONA. THE FOUNDATION HAS COMMITTED TO FUND UP TO $6 MILLION FOR THE CONSTRUCTION OF THIS FACILITY. 1086090 1046684 THE FOUNDATION GENERATES FUNDS TO SUPPORT THREE HEALTH PRIORITIES IN NORTHERN ARIZONA: INCREASED ACCESS TO HEALTHCARE, IMPROVED BEHAVIORAL HEALTH OUTCOMES, AND DECREASED INCIDENCE OF CHRONIC MEDICAL CONDITIONS. DURING THE 2018 TAX YEAR, THE FOUNDATION MADE GRANTS TO NORTHERN ARIZONA HEALTHCARE, FLAGSTAFF MEDICAL CENTER, VERDE VALLEY MEDICAL CENTER, AND 28 OTHER NONPROFIT ORGANIZATIONS THAT ADVANCE THE COMMUNITY HEALTH PRIORITIES OF NORTHERN ARIZONA HEALTHCARE AND SUPPORT THE HEALTH AND WELL-BEING OF PEOPLE THROUGHOUT THE NORTHERN ARIZONA COMMUNITY. MORE THAN 100,000 LIVES WERE IMPACTED BY THE FOUNDATION'S EFFORTS. 454254 437772 DURING THE 2018 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, CHILDREN'S HEALTH, CARDIOVASCULAR SERVICES, CANCER CARE, PALLIATIVE AND HOSPICE CARE, EMERGENCY CARE, RESEARCH AND DEVELOPMENT, AND PATIENT, FAMILY AND COLLEAGUE ASSISTANCE. 499676 481546 16657 THE FOUNDATION PROVIDED SPONSORSHIP SUPPORT TO JUST UNDER 50 NONPROFIT ORGANIZATIONS, GOVERNMENTS, AND INSTITUTIONS OF HIGHER LEARNING THROUGHOUT NORTHERN ARIZONA. 14,790 LIVES WERE IMPACTED BY THESE SPONSORSHIPS. THE FOUNDATION AWARDED SCHOLARSHIPS TO 30 INDIVIDUALS PURSUING HEALTHCARE EDUCATION, AND RECEIVED GIFTS IN KIND THAT WERE SUBSEQUENTLY CONTRIBUTED DIRECTLY AND INDIRECTLY TO VARIOUS DEPARTMENTS OF NORTHERN ARIZONA HEALTHCARE AND ITS RELATED NONPROFIT HOSPITALS. 499676 481546 16657 4711281 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 0 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 9287732093 1030 N SAN FRANCISCO ST STE 103 FLAGSTAFF AZ 86001 OLIVER HARPER MD DIRECTOR 1.00 X 0 0 0 WILLIAM HICKS III ESQ DIRECTOR 1.00 X 0 0 0 RICHARD KRUSE DIRECTOR 1.00 X 0 0 0 CHUCK MARR DIRECTOR 1.00 X 0 0 0 WILLIAM RILEY PHD DIRECTOR 1.00 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 DEIRDE MELDRUM PHD VICE CHAIR/DIRECTOR 1.00 X X 0 0 0 CHRIS BAVASI CHAIR/DIRECTOR 1.00 X X 0 0 0 RICHARD A SMITH EDD PRESIDENT/CEO/DIRECTOR 40.00 X X 347558 0 6138 KARLA JACOBSON CPA SENIOR ACCOUNTANT 40.00 X 82906 0 1989 430464 0 8127 1 0 1 1 0 471732 2671344 55352 3143076 GRANT ADMINISTRATION FEES 561110 16657 16657 16657 1282949 1282949 84863 471732 131648 -46785 -46785 4395897 16657 0 1236164 4515092 4515092 25250 25250 612588 71687 469214 71687 852652 51058 132937 668657 170040 14453 68016 87571 178101 16939 55185 105977 88220 7499 35288 45433 101807 101807 35905 35905 13811 13811 100823 94684 6139 19694 19694 25938 3243 11632 11063 65826 65826 54039 6004 16526 31509 4583 56 66 4461 5083 1050 4033 6661 6661 8454 8454 BOARD EXPENSE 82461 82461 DONOR CULTIVATION 57051 57051 OTHER 12027 2203 9824 7036106 4711281 1155594 1169231 892497 82906 10706698 6148400 3041799 3731907 0 103183 31133 31133 6661 0 34547756 36807983 15000 15000 49210411 46889379 414774 756475 206621 54822 51285 64273 1942258 860751 2614938 1736321 X 13601492 10981446 10239424 10101841 22754557 24069771 46595473 45153058 49210411 46889379 -2640209 1197794 0 X X 0 1 X 1 0 X 38031508 10600391 3143076 51774975 38031508 10600391 3143076 51774975 45639529 6135446 484941 731174 1282949 2499064 9195 9195 4136 4136 54287370 16657 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME - 2017 AMOUNT: $ 4,136. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2 1460668 1139935 27617643 1 1 0 25708936 1384435 1668446 936144 0 624351 27201322 23136444 1159950 2134416 1136971 415097 25708936 21700507 2211007 775070 23136444 0.00000 0.88490 0.11510 0 0 31133 31133 0 0 DUE TO NORTHERN ARIZONA HEALTHCARE CORPORATION 609664 457 EMPLOYER LIABILITY 251087 860751 X 5726499 1197794 14971 131648 1344413 4382086 13811 13811 4395897 7168914 14971 131648 146619 7022295 13811 13811 7036106 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 131,648. PART XII, LINE 2D - OTHER ADJUSTMENTS: DIRECT FUNDRAISING EVENT EXPENSES 131,648. SCHEDULE D, PART V, LINE 4 THE NORTHERN ARIZON 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. TURQUOISE BALL 244512 192887 51625 3476 1545 31950 5475 19093 COPPER BALL 85159 84647 512 4070 1500 3317 5 226924 194198 32726 2364 36065 2023 0 20770 556595 471732 84863 5840 41680 33973 6975 43180 131648 -46785 1 A NEW DAWN PO BOX 23872 FLAGSTAFF AZ 86002 475374777 501(C)(3) 22940 GRANT TO SUPPORT ORAL HEALTH FOR NORTHERN ARIZONA PROGRAM BETHANY'S GAIT PO BOX 12945 PRESCOTT AZ 86304 651295634 501(C)(3) 15000 GRANT TO SUPPORT EQUESTRIAN THERAPY FOR FEMALE VETERANS WITH PTSD BOYS & GIRLS CLUB OF FLAGSTAFF 301 S PASEO DEL FLAG FLAGSTAFF AZ 86001 860688398 501(C)(3) 20000 GRANT TO SUPPORT HEALTHY LIFESTYLES PROGRAM FOR CHILDREN AND YOUTH, AGES 6-17, IN THE BELOW POVERTYLEVEL/HOMELESS/UNEMPLOYED/WORKING POOR SOCIO-ECONOMIC GROUP AND LIVING IN COCONINO AND NAVAJO COUNTIES CANCER SUPPORT COMMUNITY ARIZONA 360 E PALM LANE PHOENIX AZ 85004 860897810 501(C)(3) 10000 GRANT TO SUPPORT ADVANCING CANCER SUPPORT SERVICES IN NORTHERN ARIZONA COCONINO COMMUNITY COLLEGE 2800 S LONE TREE ROAD FLAGSTAFF AZ 86005 860717956 501(C)(3) 103000 GRANT TO SUPPORT HOZHONI HEALTH AND HAPPINESS PROJECT AND EVENT SPONSORSHIPS COUNTY OF YAVAPAI COMMUNITY HEALTH SERVICES 1090 COMMERCE DRIVE PRESCOTT AZ 86305 866000561 GOVERNMENT 20000 GRANT TO SUPPORT AUTISM RESOURCE & EVALUATION PROGRAM COUNTY OF YAVAPAI HUMBOLDT UNIFIED SCHOOL DISTRICT #22 6411 N ROBERT ROAD PRESCOTT VALLEY AZ 86314 866003010 GOVERNMENT 17985 GRANT TO SUPPORT VISION 2020-FOCUS ON PLANNING FOR FUTURE STUDENT NEEDS PROGRAM FLAGSTAFF MEDICAL CENTER 1200 N BEAVER STREET FLAGSTAFF AZ 86001 860110232 501(C)(3) 485046 GRANTS TO SUPPORT HOSPITAL DEPARTMENT INITIATIVES INCLUDING PALLIATIVE CARE, PEDIATRIC TRAUMA, CHILDREN'S HEALTH, RESEARCH & EDUCATION AND OTHER COMMUNITY SUPPORT HOZHONI FOUNDATION 2133 N WALGREEN STREET FLAGSTAFF AZ 86004 860255127 501(C)(3) 17900 GRANT TO SUPPORT NURSING AND ALLIED HEALTH PROGRAM NORTH COUNTRY HEALTHCARE PO BOX 3630 FLAGSTAFF AZ 860033630 860663432 501(C)(3) 115900 GRANT TO SUPPORT DIABETIC RETINOPATHY SCREENING PROJECT, WELL WOMAN HEALTHCHECK TREATMENT PROGRAM AND NORTERN ARIZONA CENTER AGAINST SEXUAL ASSAULT PROGRAM NORTHERN ARIZONA ADAPTIVE SPORTS ASSOCIATION PO BOX 1903 FLAGSTAFF AZ 86002 813359695 501(C)(3) 15000 GRANT TO SUPPORT SNOWBOWL ADAPTIVE SPORTS PROGRAM TO TRAIN INSTRUCTORS AND PROVIDE SNOW EXPERIENCES TO INDIVIDUALS WITH DISABILITIES NORTHERN ARIZONA HEALTHCARE 1200 N BEAVER STREET FLAGSTAFF AZ 86001 742410946 501(C)(3) 116764 GRANTS TO SUPPORT DEPARTMENT INITIATIVES INCLUDING PALLIATIVE CARE, SPIRITUAL CARE, POPULATION HEALTH, RESEARCH & EDUCATION AND OTHER COMMUNITY SUPPORT NORTHERN ARIZONA UNIVERSITY PO BOX 122 FLAGSTAFF AZ 86002 866004791 501(C)(3) 45000 SUPPORT NAU PROGRAMS THAT PROVIDE HEALTHCARE, INCLUDING BEHAVIORAL HEALTH, TO NAU ATHLETES NORTHERN ARIZONA UNIVERSITY FOUNDATION PO BOX 4094 FLAGSTAFF AZ 86011 860193726 501(C)(3) 113346 CONTRIBUTION TO ESTABLISH A NURSING SCHOLARSHIP PROGRAM AND GRANT TO NAU SCHOOL OF NURSING TO SUPPORT ITS IMPROVING CONFIDENCE OF HEALTHCARE PROVIDERS PROGRAM NORTHLAND HOSPICE & PALLIATIVE CARE INC PO BOX 997 FLAGSTAFF AZ 86002 742385187 501(C)(3) 11400 GRANT TO SUPPORT HOSPICE ASSISTED LIVING CARE PLANNED PARENTHOOD ARIZONA INC 5651 N 7TH STREET PHOENIX AZ 85014 860146520 501(C)(3) 27400 GRANT TO SUPPORT PPAZ FLAGSTAFF HEALTH CENTER PROGRAM, ENSURING ACCESS TO HEALTHCARE FOR LOW-INCOME RESIDENTS POORE MEDICAL CLINIC 120 W FINE FLAGSTAFF AZ 86001 800751712 501(C)(3) 11900 GRANT TO ASSIST WITH PATIENT CARE TO UNINSURED AND UNDERINSURED PATIENTS RONALD MCDONALD HOUSE CHARITIES OF CENTRAL AND NORTHERN ARIZONA 501 E ROANOKE AVENUE PHOENIX AZ 85004 953526934 501(C)(3) 43000 GRANT TO SUPPORT HELP A FAMILY PROGRAM SEDONA INTERNATIONAL FILM FESTIVAL PO BOX 162 SEDONA AZ 86339 200351857 501(C)(6) 20000 EVENT SPONSORSHIP SONORAN PREVENTION WORKS 3201 N 16TH STREET SUITE 9 PHOENIX AZ 85016 300760098 501(C)(3) 75000 GRANT TO SUPPORT TRIBAL OVERDOSE PREVENTION IN NORTHERN ARIZONA PROGRAM SPECIAL OLYMPICS ARIZONA 2100 S 75TH AVENUE PHOENIX AZ 85043 680363121 501(C)(3) 6011 GRANT TO SUPPORT HEALTHY ATHLETES PROGRAM STEPS TO RECOVERY 516 E STATE ROUTE 89A SUITE 113 COTTONWOOD AZ 86326 463225513 501(C)(3) 46250 GRANT TO SUPPORT PROJECT EMPOWER PROGRAM-HELPING PERSONS RECOVERING FROM SUBSTANCE ABUSE & EVENT SPONSORSHIP TUBA CITY REGIONAL HEALTHCARE CORPORATION PO BOX 600 TUBA CITY AZ 860450600 043651340 501(C)(3) 78162 GRANT TO SUPPORT CANCER CARE CLOSER TO HOME PROGRAM VERDE VALLEY CAREGIVERS COALITION 299 VAN DEREN ROAD SUITE 2 SEDONA AZ 86336 860725787 501(C)(3) 60000 GRANT TO SUPPORT TAPESTRY OF CARING PROGRAM-CONNECTING HIGH-NEEDS NEIGHBORS WITH HEALTHCARE ACCESS VERDE VALLEY MEDICAL CENTER 1200 N BEAVER STREET FLAGSTAFF AZ 86001 860100882 501(C)(3) 140161 SUPPORT HOSPITAL DEPARTMENT INITIATIVES INCLUDING CHILDREN'S HEALTH, EMERGENCY SERVICES, PALLIATIVE/HOSPICE CARE, RESEARCH & EDUCATION AND OTHER COMMUNITY SUPPORT WILLIAMS HOSPITAL DISTRICT OF COCONINO COUNTY 301 S 7TH STREET WILLIAMS AZ 86046 866000441 GOVERNMENT 2574340 FUND CONSTRUCTION OF A NEW HEALTHCARE CENTER TO PROVIDE ACCESS TO HEALTHCARE SERVICES TO RESIDENTS OF THE CITY OF WILLIAMS AND OUTLYING AREAS SUCH AS TUSAYAN, RED LAKE, ASH FORK AND PARKS. WINSLOW INDIAN HEALTHCARE CENTER 500 N INDIANA WINSLOW AZ 86047 810549382 501(C)(3) 25000 GRANT TO SUPPORT MOBILE DENTAL PROGRAM YAVAPAI COUNTY EDUCATION SERVICE AGENCY 2970 CENTERPOINTE EAST DRIVE PRESCOTT AZ 86301 861018326 GOVERNMENT 30000 GRANT TO SUPPORT IN-SCHOOL MENTAL HEALTH CARE PILOT PROGRAM 27 1 SCHOLARSHIPS 30 25250 PART I, LINE 2: THE FOUNDATION ISSUES GRANTS TO TAX-EXEMPT ORGANIZATIONS AND, HISTORICALLY, HAS RELIED ON THE GOOD GOVERNANCE PRACTICES OF THESE ENTITIES. DURING FY18, THE FOUNDATION INSTITUTED A ROBUST OVERSIGHT PROGRAM TO MONITOR THE USE OF GRANT FUNDS THAT INCLUDES REQUIRING MID-TERM AND ANNUAL REPORTING BY THE GRANTEE AND ON-SIGHT INSPECTIONS BY FOUNDATION PERSONNEL. THE FOUNDATION CONTINUED TO IMPLEMENT THIS OVERSIGHT PROGRAM THROUGHOUT FY19. X X 0 1 X X X X 0 1 0 0 0 0 0 1 0 RICHARD A SMITH EDD PRESIDENT/CEO/DIRECTOR 253862 0 70200 0 23496 0 0 0 6138 0 353696 0 0 0 KARLA JACOBSON CPA SENIOR ACCOUNTANT 82242 0 0 0 664 0 0 0 1989 0 84895 0 0 0 PART I, LINE 1A BOARD MEMBERS ARE ENCOURAGED TO BRING COMPANIONS TO OUT-OF-TOWN BOARD MEETINGS AND IT IS CORPORATE PRACTICE TO REIMBURSE THOSE BOARD MEMBERS WHO REQUEST REIMBURSEMENT, MOST OF WHOM DO NOT. THE ORGANIZATION PAYS ANNUAL DUES FOR MEMBERSHIPS IN TWO LOCAL AREA PRIVATE GOLF CLUBS. BY VIRTUE OF THESE MEMBERSHIPS, ONE OF WHICH IS OWNED BY ITS CEO, THE ORGANIZATION IS ALLOWED TO HOST THREE OF ITS ANNUAL FUNDRAISING EVENTS AND TO ENTERTAIN CURRENT AND PROSPECTIVE DONORS FOR CULTIVATION AND ACQUISITION PURPOSES AT THESE SOCIAL CLUBS. PART I, LINE 1B BOARD MEMBERS' COMPANION TRAVEL EXPENSES ARE PAID AT BOARD DIRECTION. SOCIAL CLUB DUES ARE PAID BY THE ORGANIZATION IN ACCORDANCE WITH CEO'S EMPLOYMENT AGREEMENT, WHICH WAS APPROVED BY THE FOUNDATION BOARD OF DIRECTORS. 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 A COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE ORGANIZATION USING THE MARKET STUDY AND THE FOLLOWING METHODS: WRITTEN CONTRACT, ORGANIZATION MISSION, OPINION OF INDEPENDENT CONSULTANT, AND ORGANIZATION MISSION. PART I, LINE 4B (1) THE ORGANIZATION'S CEO PARTICIPATED IN A 457(F) NON-QUALIFIED DEFERRED COMPENSATION PLAN ESTABLISHED BY THE ORGANIZATION EFFECTIVE AS OF JULY 1, 2016. THE CEO IS THE ONLY PARTICIPANT IN THIS PLAN. ESTIMATED DISTRIBUTIONS OF $206,087 WERE ACCRUED AS OF JUNE 30, 2019. PER THE PLAN DOCUMENT, A DISTRIBUTION OF $212,578 (INCLUDING IMPUTED EARNINGS) WAS MADE TO THE CEO WITHIN 60 DAYS AFTER JUNE 30, 2019, AS REQUIRED BY THE PLAN DOCUMENT. PART I, LINE 7 NORTHERN ARIZONA HEALTHCARE FOUNDATION MAKES ANNUAL, DISCRETIONARY BONUS PAYMENTS, WHICH ARE BASED ON MEETING VARIOUS FINANCIAL AND OTHER ORGANIZATIONAL GOALS. X 14 1800 APPRAISAL X 473 RETAIL VALUE/DONOR EST X 23119 RETAIL VALUE/DONOR EST X EVENT FOOD 453 22314 RETAIL VALUE/DONOR E X OTHER 311 3523 RETAIL VALUE/DONOR E X GIFT CERTIFICATES 431 2190 RETAIL VALUE X ALCOHOL 96 1731 RETAIL VALUE/DONOR E X TOYS 29 202 RETAIL VALUE/DONOR E 0 0 0 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF ITEMS RECEIVED IN COLUMN (B) FORM 990, PART VI, SECTION A, LINE 4 THE FOUNDATION BOARD OF DIRECTORS VOTED TO AMEND ARTICLE II OF ITS BYLAWS, TO INCREASE THE MAXIMUM NUMBER OF DIRECTORS FROM 13 TO 15 AND TO ESTABLISH THREE GROUPS OF DIRECTORS WITH STAGGERED TERMS. 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 TTHE 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 FOUNDATION'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 SECUNDED 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 NAHF'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. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C THE FINANCE COMMITTEE HAS BEEN FORMED AND FILLS THE RESPONSIBILITY FOR OVERSIGHT OF THE SELECTION OF AN INDEPENDENT ACCOUNTANT AND OVERSIGHT OF THE AUDIT OF THE FOUNDATION'S FINANCIAL STATEMENTS.