2017-05-18T12:44:19-05:00 2016-06-30 910189318 MOSS ADAMS LLP 101 SECOND STREET SUITE 900 SAN FRANCISCO CA 94105 990 2015-07-01 956105984 MEMORIAL MEDICAL CENTER FOUNDATION MEMO 5629334483 2801 ATLANTIC AVENUE LONG BEACH CA 90806 CECILIA BELEW PRESIDENT 5629334483 2017-05-18 1 RICHARD CROGHAN P00089862 4159561500 2017-05-12 2015 2021-01-29 14:40:06Z CECILIA BELEW 2801 ATLANTIC AVENUE LONG BEACH CA 90806 96186073 0 5661 X WWW.LBMMCF.ORG X 1964 CA TO PROVIDE THAT "EXTRA MEASURE OF CARE" FOR PATIENTS SERVED AT THE NOT-FOR-PROFIT LONG BEACH MEMORIAL, MILLER CHILDREN'S AND WOMEN'S HOSPITAL LONG BEACH, AND COMMUNITY HOSPITAL LONG BEACH, THROUGH PHILANTHROPIC GIFTS AND GRANTS FOR HEALTHCARE EDUCATION, CLINICAL RESEARCH, MEDICAL EQUIPMENT AND PATIENT CARE PROGRAMS. 31 27 0 27 0 0 11440257 6021497 0 0 7664012 3236869 -352057 -360529 18752212 8897837 5785664 8595025 0 0 2424729 2539517 0 0 1670384 2597675 1009593 10808068 12144135 7944144 -3246298 182325534 168166190 20885877 22998582 161439657 145167608 X TO PROVIDE THAT "EXTRA MEASURE OF CARE" FOR PATIENTS SERVED AT THE NOT-FOR-PROFIT LONG BEACH MEMORIAL, MILLER CHILDREN'S AND WOMEN'S HOSPITAL LONG BEACH, AND COMMUNITY HOSPITAL LONG BEACH, THROUGH PHILANTHROPIC GIFTS AND GRANTS FOR HEALTHCARE EDUCATION, CLINICAL RESEARCH, MEDICAL EQUIPMENT AND PATIENT CARE PROGRAMS. 0 0 8595025 8595025 0 A 29-MEMBER VOLUNTEER BOARD OF DIRECTORS, A FINANCE COMMITTEE, AND A GRANTS APPLICATION COMMITTEE MEET BI-MONTHLY. THE INVESTMENT COMMITTEEMEETS QUARTERLY AND THE NOMINATING COMMITTEE MEETS AT LEAST ANNUALLY. THE BOARD HAS HELPED RAISE PHILANTHROPIC GIFTS, GRANTS AND BEQUESTS. THEY PROVIDE OVERSIGHT OF INVESTMENT OF ASSETS ENTRUSTED AND STEWARD THE DISTRIBUTION IN SUPPORT OF RESEARCH, MEDICAL EDUCATION, CAPITAL EQUIPMENT AND BUILDINGS AND PATIENT PROGRAMS AT LONG BEACH MEMORIAL,MILLER & WOMEN'S HOSPITAL LONG BEACH AND COMMUNITY HOSPITAL LONGBEACH BY MATCHING THE NEED WITH DONORS' WISHES. THEIR WORK INCLUDES THE OF ALL ASSETS IN THE ENTIRE PORTFOLIO CONTAINING MORE THAN 150 CHARITABLE TRUSTS AND CHARITABLE GIFT ANNUITIES. SINCE ITS INCEPTION OVER 50 YEARS AGO, COMMUNITY MEMBERS HAVE GIVEN TIME, TALENT AND TREASURE TO OVERSEE THIS FOUNDATION. THOUSANDS OF PHILANTHROPIC FRIENDS GAVE OVER $340 MILLION IN PHILANTHROPIC GIFTS FOR: (1) MEDICAL EDUCATION, IN SUPPORT OF OUR TEACHING PROGRAM PROVIDINGIN-HOUSE 24 HOUR PHYSICIAN CARE FOR PATIENTS; (2) STAFF AND COMMUNITY HEALTH CARE EDUCATION; (3) PATIENT CARE INITIATIVES, CRITICAL CLINICAL EQUIPMENT AND CAPITAL SUPPORT FOR CONSTRUCTION AND RENOVATION; (4) SIGNIFICANT SUPPORT OF A CLINICAL RESEARCH PROGRAM THROUGH THE OFFICE OF RESEARCH AND RESEARCH ADMINISTRATION WITH OVER 360 ACTIVE PROJECTS; (5) A CENTER FOR HEALTH EDUCATION, INCLUDING AN ELECTRONIC MEDICAL LIBRARY, THEATER AND FORUM WHERE GRAND ROUNDS AND OTHER EDUCATION AND COMMUNITY BENEFIT PROGRAMS ARE HELD; (6) THE MILLER CHILDREN'S & WOMEN'S HOSPITAL LONG BEACH, THE LEAVY RADIATION ONCOLOGY CENTER, TODD CANCER INSTITUTE, THE MEMORIAL HEART AND VASCULAR INSTITUTE, ETC. FOUNDATION FUNDS HAVE BENEFITED AN UNTOLD NUMBER OF PATIENTS,COMMUNITY MEMBERS, AND HEALTH CARE PROFESSIONALS. 8595025 1 1 0 0 0 1 0 1 0 1 0 1 0 0 1 1 1 1 0 0 1 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 1 74 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 X 31 27 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 CA X BRIAN KRAWIEC 5629331663 2801 ATLANTIC AVENUE LONG BEACH CA 90806 PETER RIDDER BOARD MEMBER-CHAIR 1.00 X X 0 0 0 CHRISTINE WALKER-BOWMAN BOARD MEMBER-1ST VICE CHAIR 1.00 X X 0 0 0 GARY VAN ARNAM BOARD MEMBER-2ND VICE CHAIR 1.00 X X 0 0 0 DEBORAH MASSAGLIA BOARD MEMBER-TREASURER 1.00 X X 0 0 0 SANDY WELLS BOARD MEMBER-SECRETARY 1.00 X X 0 0 0 ALEX BELLEHUMEUR BOARD MEMBER 1.00 X 0 0 0 BEN ALVARADO BOARD MEMBER 1.00 X 0 0 0 BILL WEBSTER MD BOARD MEMBER 1.00 X 0 0 0 DAVID ERICKSON BOARD MEMBER 1.00 X 0 0 0 GARY COOPER BOARD MEMBER 1.00 X 0 0 0 GIL DODSON BOARD MEMBER 1.00 X 0 0 0 JEFFREY LUTHER MD BOARD MEMBER 1.00 X 0 0 0 JOE ZUCCHERO BOARD MEMBER 1.00 X 0 0 0 JOHN FIELDER BOARD MEMBER 1.00 X 0 0 0 JOHN MESSENGER MD BOARD MEMBER 1.00 X 0 0 0 JOHN WANG BOARD MEMBER 1.00 X 0 0 0 JON MASTERSON BOARD MEMBER 1.00 X 0 0 0 KATHY LINGLE BOARD MEMBER 1.00 X 0 0 0 KEVIN PETERSON BOARD MEMBER 1.00 X 0 0 0 LISA CHAPMAN BOARD MEMBER 1.00 X 0 0 0 LOUISE UKLEJA BOARD MEMBER 1.00 X 0 0 0 MARI HOOPER BOARD MEMBER 1.00 X 0 0 0 N JACK DILDAY BOARD MEMBER 1.00 X 0 0 0 R WHITNEY LATIMER BOARD MEMBER 1.00 X 0 0 0 RON PIAZZA BOARD MEMBER 1.00 X 0 0 0 SUSAN LAPUTZ BOARD MEMBER 1.00 X 0 0 0 JAMES EMSLIE BOARD MEMBER-PRESIDENT 1.00 X 0 0 0 JAMES NORMANDIN BOARD MEMBER-PRESIDENT 1.00 X 0 389715 38847 DIANA HENDEL BOARD MEMBER-CEO LBM (PARTIAL YEAR) 1.00 60.00 X 0 2561025 36716 JOHN BISHOP BOARD MEMBER-CEO LBM (PARTIAL YEAR) 60.00 X 0 454539 35698 CECILIA BELEW BOARD MEMBER-PRESIDENT (PARTIAL YEAR) 60.00 X X 0 383897 26882 LYNNE BOLEN VICE PRESIDENT FINANCE/CFO 60.00 X 0 210226 23951 IRIS QUIROZ DIR DEVELOPMENT-GRANTS MGT 60.00 X 0 136412 20806 THOMAS POOLE DIR DEVELOPMENT 60.00 X 0 157424 27331 0 4293238 210231 0 0 1 0 HIGHLAND ASSOCIATES INC 2545 HIGHLAND AVE S SUITE 200 BIRMINGHAM AL 35205 INVESTMENT CONSULTING 265736 1 1370819 4650678 91350 6021497 3663272 3663272 14384 14384 86152590 86578993 -426403 -426403 -426403 331714 1370819 709243 -377529 -377529 MISCELLANEOUS INCOME 900099 2616 2616 2616 8897837 0 0 2876340 8595025 8595025 798469 319387 479082 947871 379148 568723 60951 24380 36571 600929 240372 360557 131297 52519 78778 13457 13457 82048 82048 585942 585942 46925 2717 44208 54293 51680 2613 85233 40388 44845 8386 8386 11400 11400 26168 26168 21591 21591 BOOKS & SUBSCRIPTIONS 32115 26364 5751 DONOR DEVELOPMENT 27810 27810 PLAQUES & RECOGNITION 14225 1165 13060 12144135 8595025 1878726 1670384 3424296 6838108 1414059 795085 6149569 3215551 5768357 0 2756367 2621836 0 0 1017781 0 130948923 124248035 30611000 29804716 235182 642859 182325534 168166190 83295 51954 695517 668517 354602 342011 19752463 21936100 20885877 22998582 X 39440307 29576188 75923359 67505088 46075991 48086332 161439657 145167608 182325534 168166190 X -3246298 -7722539 -3558336 -1744876 X 0 1 X 1 0 X 9648238 8262371 10991800 11440257 6021497 46364163 9648238 8262371 10991800 11440257 6021497 46364163 6212791 40151372 3615512 3755796 3072083 4036917 3677656 18157964 155036 155036 114869 99446 34691 30728 2616 282350 64959513 0.61810 0.68170 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 6 0 0 0 80469 0 3231647 0 1 1 0 261107 0 0 X 0 1 1127843 1127843 113612000 1140754 -4869623 4294614 18104203 87484314 110754000 5385000 236000 2650145 112855 113612000 92502000 4017000 15599000 1268288 95712 110754000 85625114 153000 8278000 1473042 81072 92502000 86327932 2247799 -537527 2314764 98326 85625114 0.33960 0.51850 0.14190 0 0 0 ALTERNATIVE INVESTMENTS 29804716 F 29804716 DUE TO AFFILIATES 1034046 SPLIT INTEREST AGREEMENT LIABILITY 17343718 OTHER LIABILITIES - CHILDREN'S CLINIC 3558336 21936100 X -446622 -7722539 -1745221 -9467760 9021138 585942 -709243 -123301 8897837 12267434 709243 709243 11558191 585942 2 585944 12144135 PART III, LINE 4: THE COLLECTION OF ARTWORK CONSISTS OF A TOTAL OF 11 PAINTINGS. 3 PAINTINGS BY CONTEMPORARY ARTISTS ARE FOR PUBLIC DISPLAY IN THE HOSPITAL BUILDINGS,RADIATION ONCOLOGY, AND CARDIAC REHABILITATION FOR THE BENEFIT OF PATIENTS, STAFF, AND CLINICIANS. 6 ARE DISPLAYED IN THE BICKERSTAFF PEDIATRIC FAMILY CENTER AND 2 ARE DISPLAYED IN THE CHILDREN'S CLINIC AREA. PART IV, LINE 1B: MEMORIAL MEDICAL CENTER FOUNDATION ACTS AS THE CUSTODIAN AND ADMINISTRATOR OF CERTAIN ASSETS OF ONE SUPPORTING FOUNDATION WHICH SUPPORTS AND BENEFITS THE MEMORIAL MEDICAL CENTER FOUNDATION AND OTHER PUBLICLY SUPPORTED CHARITIES. THE MAIN RESPONSIBILITIES OF THE FOUNDATION ARE THE PROPER STEWARDSHIP AND ACCOUNTING OF THE FOUNDATION'S ASSETS IN ORDER TO ACCOMPLISH ITS PUBLIC MISSION. PART V, LINE 4: MEMORIAL MEDICAL CENTER FOUNDATION USES THE ENDOWMENT FUNDS TO GENERATE INCOME TO SUPPORT VARIOUS PROGRAMS, EDUCATION, RESEARCH AND EQUIPMENT AS DESIGNATED BY THE DONOR. THE VARIOUS ENDOWMENT FUNDS OF THE FOUNDATION AGGREGATING OVER $87 MILLION AS OF JUNE 30, 2016 ARE USED TO SUPPORT LONG BEACH MEMORIAL'S AREAS OF EXCELLENCE COVERING CLINICAL RESEARCH, MEDICAL STAFF CONTINUING EDUCATION, PATIENT CARE AND IN VARIOUS PROGRAMS WHERE THE NEED IS GREATEST. FOR THE YEAR ENDED JUNE 30, 2016, APPROXIMATELY $4 MILLION WAS SPENT ON THE AFOREMENTIONED PROGRAMS. PART X, LINE 2: ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES, CLARIFIES THE ACCOUNTING FOR INCOME TAXES BY PRESCRIBING A MINIMUM RECOGNITION THRESHOLD THAT A TAX POSITION IS REQUIRED TO MEET BEFORE BEING RECOGNIZED IN THE FINANCIAL STATEMENTS. ASC 740 ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, MEASUREMENT, CLASSIFICATION, INTEREST, AND PENALTIES, DISCLOSURE AND TRANSITION. THE GUIDANCE IS APPLICABLE TO PASS-THROUGH ENTITIES AND TAX-EXEMPT ORGANIZATIONS. NO SIGNIFICANT TAX LIABILITY FOR TAX BENEFITS, INTEREST OR PENALTIES WAS ACCRUED AT JUNE 30, 2016 AND 2015. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -1,745,223. AUDITED FINANCIAL STATEMENT ROUNDING 2. PART XI, LINE 4B - OTHER ADJUSTMENTS: RECLASSIFICATION OF FUNDRAISING EXPENSES -709,243. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASSIFICATION OF FUNDRAISING EXPENSES 709,243. PART XII, LINE 4B - OTHER ADJUSTMENTS: AUDITED FINANCIAL STATEMENT ROUNDING 2. CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 9274563 0 0 0 0 0 0 9274563 0 9274563 1 0 1 1 1 0 PART I, LINE 3: THE ACCRUAL METHOD OF ACCOUNTING WAS USED TO DETERMINE THE AMOUNT IN COLUMN (F). DANCING FOR OUR STARS 406767 346702 60065 4433 31599 91684 1450 104173 TOUR OF LONG BEACH 315989 201252 114737 5910 3629 613 2500 118072 6 979777 822865 156912 13737 74677 38954 2600 215212 1702533 1370819 331714 24080 109905 131251 6550 437457 709243 -377529 1 LONG BEACH MEMORIAL MEDICAL CENTER PO BOX 1428 LONG BEACH CA 908011428 953527031 501(C)(3) 8595025 PROGRAM SUPPORT 1 0 PART I, LINE 2: GRANTS FUNDING LONG BEACH MEMORIAL MEDICAL CENTER REQUIRE TRACKING OF DETAILED EXPENSES AND/OR DETAILED REPORTING TO MEMORIAL MEDICAL CENTER FOUNDATION BY THE RECIPIENTS WITHIN THE HOSPITAL. 0 1 0 0 0 0 0 0 0 JAMES NORMANDIN BOARD MEMBER-PRESIDENT 0 279487 0 57061 0 53167 0 26000 0 12847 0 428562 0 0 DIANA HENDEL BOARD MEMBER-CEO LBM (PARTIAL YEAR) 0 300493 0 116990 0 2143542 0 26000 0 10716 0 2597741 0 0 JOHN BISHOP BOARD MEMBER-CEO LBM (PARTIAL YEAR) 0 350351 0 78929 0 25259 0 16380 0 19318 0 490237 0 0 CECILIA BELEW BOARD MEMBER-PRESIDENT (PARTIAL YEAR 0 264304 0 71180 0 48413 0 15600 0 11282 0 410779 0 0 LYNNE BOLEN VICE PRESIDENT FINANCE/CFO 0 176989 0 13619 0 19618 0 9698 0 14253 0 234177 0 0 IRIS QUIROZ DIR DEVELOPMENT-GRANTS MGT 0 128381 0 1377 0 6654 0 10492 0 10314 0 157218 0 0 THOMAS POOLE DIR DEVELOPMENT 0 155732 0 0 0 1692 0 11258 0 16073 0 184755 0 0 PART I, LINE 4B MEMORIAL HEALTH SERVICES SPONSORS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) COVERING SELECTED EXECUTIVES AS APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD. THE SERP PROVIDES FOR A LUMP SUM PAYMENT TO EACH EXECUTIVE AT VESTING DATE AS DEFINED IN THE SERP AGREEMENT. THERE WERE NO PAYOUTS FROM THE SERP DURING THE CURRENT YEAR. DIANA HENDEL - MET REQUIREMENTS TO BE PAID SERP PAYMENT. SCHEDULE J, PART I, LINE 3 THE COMPENSATION OF THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER IS DETERMINED BY MEMORIAL HEALTH SERVICES (MHS), THE TAX-EXEMPT PARENT OF MEMORIAL MEDICAL CENTER FOUNDATION'S SOLE MEMBER, LONG BEACH MEMORIAL MEDICAL CENTER. SEE SCHEDULE O FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY MHS TO DETERMINE COMPENSATION. X 5 91350 STOCK VALUE OF GIFT 0 0 1 1 PART I, COLUMN (B): THE AMOUNTS REPORTED IN COLUMN B ARE THE NUMBER OF CONTRIBUTIONS RECEIVED BY MEMORIAL MEDICAL CENTER FOUNDATION. PART I, LINE 32B: THE ORGANIZATION USES THIRD PARTIES TO SELL THE FOLLOWING NON-CASH CONTRIBUTIONS: EQUITIES, BONDS, REAL ESTATE - RESIDENTIAL, VIA THIRD PARTY AGENTS OR BROKERS. FORM 990, PART VI, SECTION A, LINE 2 CHRISTINE WALKER AND JAMES NORMANDIN HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 LONG BEACH MEMORIAL (LBM) IS THE SOLE CORPORATE MEMBER OF MEMORIAL MEDICAL CENTER FOUNDATION (MMCF). FORM 990, PART VI, SECTION A, LINE 7A THE LONG BEACH MEMORIAL (LBM) BOARD APPOINTS THE MEMBERS OF THE MEMORIAL MEDICAL CENTER FOUNDATION (MMCF) BOARD. FORM 990, PART VI, SECTION A, LINE 7B THE EXERCISE OF THE FOLLOWING POWERS IS RESERVED TO THE CORPORATION'S SOLE MEMBER, LONG BEACH MEMORIAL: A. ADOPT MISSION, PHILOSOPHY AND VALUES STATEMENTS OF THE CORPORATION AND ANY AMENDMENTS OR SUPPLEMENTS TO SUCH STATEMENTS. B. AMEND OR RESTATE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. C. ELECT AND REMOVE DIRECTORS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. D. SELL, LEASE, EXCHANGE, MORTGAGE, PLEDGE OR OTHERWISE DISPOSE OF ALL OR SUBSTANTIALLY ALL THE PROPERTY AND ASSETS OF THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. E. MERGE, CONSOLIDATE, REORGANIZE OR VOLUNTARILY DISSOLVE THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. F. FORM OR ACQUIRE A SUBSIDIARY OR AFFILIATE ENTITY OR ENTER INTO AN AGREEMENT TO ACT AS A GENERAL PARTNER. G. RETAIN AN ATTORNEY OR FIRM OF ATTORNEYS TO PROVIDE LEGAL SERVICES FOR THE CORPORATION. H. AUTHORIZE THE PURCHASE OF INSURANCE PROVIDING COVERAGE FOR THE CORPORATION AND ITS PROPERTIES AS WELL AS THE ESTABLISHMENT AND OPERATION OF A PROGRAM OF RISK MANAGEMENT. I. RETAIN AN ACCOUNTANT OR FIRM OF ACCOUNTANTS TO PROVIDE ACCOUNTING AND AUDITING SERVICES FOR THE CORPORATION. J. ADOPT ANNUAL OPERATING AND CAPITAL BUDGETS FOR THE CORPORATION OR ANY SUBSIDIARY OR AFFILIATE. K. INCUR INDEBTEDNESS, IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. L. AUTHORIZE ANY UNBUDGETED EXPENDITURES IN EXCESS OF $150,000 FOR CAPITAL IMPROVEMENTS TO THE PROPERTIES OWNED BY THE CORPORATION AND NOT APPROVED BY THE BUDGET PROCEDURE. M. ADOPT A STRATEGIC LONG RANGE OR MASTER PLAN FOR THE CORPORATION AND ANY SUBSIDIARY OR AFFILIATE AND RETAIN ANY CONSULTANTS WITH RESPECT THERETO. N. ADOPTION OF QUALITY IMPROVEMENT POLICIES NOT IN CONFORMITY WITH POLICIES ESTABLISHED BY THE CEO OF LBM. O. APPROVAL OF MAJOR NEW PROGRAMS AND CLINICAL SERVICES OF THIS CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. THE CEO OF LBM SHALL FROM TIME TO TIME DEFINE THE TERM "MAJOR" IN THIS CONTEXT. P. CONTRACTING WITH ANY THIRD PARTY FOR ALL OR SUBSTANTIALLY ALL OF THE MANAGEMENT OF THE ASSETS OR OPERATIONS OF THIS CORPORATION OR ANY SUBSIDIARY OR AFFILIATE ENTITY. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WAS PREPARED BY THE ACCOUNTING DEPARTMENT WITH INFORMATION GATHERED FROM LEGAL AND UPPER MANAGEMENT. THE MEMORIAL MEDICAL CENTER FOUNDATION CFO REVIEWED THE FORM 990 FOR ACCURACY, THEN REVIEWED IT WITH THE CEO. WITH THE ASSISTANCE OF AN OUTSIDE ACCOUNTING FIRM, THE FORM 990 WAS PRESENTED TO THE GOVERNING BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE MEMORIAL HEALTH SERVICES (MHS) GENERAL COUNSEL'S OFFICE ANNUALLY SURVEYS EACH DIRECTOR AND OFFICER AND REQUIRES AFFIRMATION THAT THE CONFLICT OF INTEREST POLICY HAS BEEN READ AND UNDERSTOOD. THE RESULTS OF THE SURVEY ARE REPORTED TO THE GOVERNANCE COMMITTEE OF THE PARENT, MHS, WHICH IS RESPONSIBLE FOR GOVERNANCE OVERSIGHT AND NOMINATIONS. CONFLICTS ARE EVALUATED FOR BEING OCCASIONAL OR DISABLING IN NATURE. THE GENERAL COUNSEL MAKES THE INITIAL EVALUATION AND ADVISES THE GOVERNANCE COMMITTEE IN ITS DELIBERATIONS. IF AN OCCASIONAL CONFLICTIS IDENTIFIED, THE GENERAL COUNSEL ADVISES THE SUBJECT DIRECTOR AND GOVERNANCE IN A "REBUTTABLE PRESUMPTION" TYPE PROCESS. SHOULD A DISABLING CONFLICT BE IDENTIFIED, THE DIRECTOR RESIGNS OR IS REMOVED UPON THE RECOMMENDATION OF THE GENERAL COUNSEL, GOVERNANCE COMMITTEE AND BOARD. IN ADDITION, AN ANNUAL NOTICE IS SENT BY EMAILTO EACH EMPLOYEE HAVING EMAIL REGARDING THE ACCEPTANCE OF GIFTS. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR VICE PRESIDENTS AND ABOVE (INCLUSIVE OF CEO'S) IS REVIEWED BY AN EXTERNAL CONSULTANT WITH FINAL REVIEW AND APPROVAL BY THE MEMORIAL HEALTH SERVICES (MHS) BOARD OF DIRECTORS AND THEIR OUTSIDE COUNSEL. ALL MARKET DATA IS OBTAINED FROM THIRD PARTY SURVEY SOURCES. MARKET DATA REVIEWS ARE COMPLETED CONSISTENTLY ON AN ANNUAL BASIS. REVIEW OF MANAGERS, PROGRAM DIRECTORS, DIRECTORS AND EXECUTIVE DIRECTORS COMPENSATION IS CONDUCTED BY THE COMPENSATION MANAGER IN CONJUNCTION WITH THE COMPENSATION VALUE ADDED TEAM. FINAL APPROVAL IS OBTAINED FROM THE MHS COO AND MHS SVP PEOPLE AND CULTURE / LEGAL. SIMILAR TO 15A, ALL MARKET DATA IS OBTAINED FROM THIRD PARTY SURVEY SOURCES. MARKET DATA REVIEWS ARE COMPLETED CONSISTENTLY ON AN ANNUAL BASIS. THIS PROCESS WAS LAST COMPLETED IN 2014. THE PROCESS OF DETERMINING COMPENSATION IS DOCUMENTED IN THE MINUTES OF THE MEMORIAL HEALTH SERVICES BOARD. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE GENERAL PUBLIC (ITS ARTICLES ARE AVAILABLE FROM THE CALIFORNIA SECRETARY OF STATE). THE FINANCIAL STATEMENTS ARE AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -1,745,223. ROUNDING/ULD 347. AMERICAN INST FOR PHILANTHROPIC STUDIES 2801 ATLANTIC AVENUE LONG BEACH CA 90806 953756364 PHILAN. EDU. CA 501(C)(3) LINE 7 MMCF 1 ANAHEIM MEMORIAL MEDICAL CENTER 1111 WEST LA PALMA AVENUE ANAHEIM CA 92801 951966746 HEALTHCARE CA 501(C)(3) LINE 9 MHS 0 SEASIDE HEALTH PLAN 2801 ATLANTIC AVENUE LONG BEACH CA 90806 461870181 MEDICAL SVCS CA 501(C)(4) MHS 0 SADDLEBACK MEMORIAL FOUNDATION 24451 HEALTH CENTER DRIVE LAGUNA HILLS CA 92653 330011887 PHILANTHROPY CA 501(C)(3) LINE 7 SMMC 0 MEMORIALCARE SURGICAL CENTER AT ORANGE COAST LLC 9920 TALBERT AVENUE FOUNTAIN VALLEY CA 92708 261394069 HEALTHCARE CA N/A MEMORIALCARE HOME HEALTH LLC 23521 PASEO DE VALENCIA STE 100 FOUNTAIN VALLEY CA 92708 463056446 HEALTHCARE CA N/A BEACH SURGICAL HOLDINGS LLC 3000 RIVERCHASE GALLERIA STE 500 BIRMINGHAM AL 35244 371708521 HEALTHCARE CA N/A MEMORIALCARE INNOVATION FUND LP 320 GOLDEN SHORE AVENUE STE 120 LONG BEACH CA 90802 460791893 HEALTHCARE CA N/A BEACH SURGICAL HOLDINGS II LLC 17360 BROOKHURST ST FOUNTAIN VALLEY CA 92708 472083076 HEALTHCARE CA N/A SUMMATION HEALTH VENTURES 320 GOLDEN SHORE AVENUE STE 120 LONG BEACH CA 90802 465252681 INVESTMENTS DE N/A CHARITABLE REMAINDER TRUST (61) SUPPORT CA N/A T 1 CHARITABLE LEAD TRUST (1) SUPPORT CA N/A T 1 NATIONAL HEALTHCARE SERVICES 330 GOLDEN SHORE AVENUE LONG BEACH CA 90802 953496341 MEDICAL SERVICES CA N/A C 0 SADDLEBACK MEDICAL VENTURES 330 GOLDEN SHORE AVENUE LONG BEACH CA 90802 330308236 MEDICAL SERVICES CA N/A C 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 SCHEDULE R, PART II MEMORIAL MEDICAL CENTER FOUNDATION (MMCF) IS RELATED TO THE CENTRAL ORGANIZATION AND SUBORDINATE ORGANIZATIONS IN THE MEMORIAL HEALTH SERVICES GROUP EXEMPTION. MMCF AND THE SUBORDINATES ARE BOTH CONTROLLED BY THE CENTRAL ORGANIZATION, MEMORIAL HEALTH SERVICES (MHS). THE CENTRAL ORGANIZATION AND SUBORDINATE ORGANIZATIONS OF THE MEMORIAL HEALTH SERVICES GROUP EXEMPTION HAVE NOT BEEN INCLUDED IN SCHEDULE R, PART II, IN ACCORDANCE WITH THE IRS INSTRUCTIONS.