2022-07-01T14:52:23-05:00 2021-08-31 251622758 MAHER DUESSEL CPA'S 3003 NORTH FRONT STREET SUITE 1010 HARRISBURG PA 17110 990 2020-09-01 251381800 THE PRIMARY HEALTH NETWORK PRIM 7243423002 100 SHENANGO AVENUE PO BOX 716 SHARON PA 16146 CARL A SIZER CHIEF FINANCIAL OFFICER 7243423002 2022-07-01 1 CARL SIZER XXX-XX-XXXX LISA RITTER P00168809 7172321230 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z CARL A SIZER 100 SHENANGO AVENUE PO BOX 716 SHARON PA 16146 98623271 0 X WWW.PRIMARY-HEALTH.NET X 1984 PA OPERATES FEDERALLY QUALIFIED HEALTH CENTERS IN UNDERSERVED AREAS. 13 13 657 0 0 0 13789263 20735058 71216742 74941348 -161904 16118 2355979 2607494 87200080 98300018 0 0 0 0 44656430 47023590 0 0 0 36786385 36809280 81442815 83832870 5757265 14467148 64443221 86929822 20077431 15412701 44365790 71517121 X PRIMARY HEALTH NETWORK, A FEDERALLY QUALIFIED HEALTH CENTER, PROVIDES PRIMARY CARE SERVICES AND ACCESS TO SPECIALTY CARE COMMENSURATE WITH THE NEEDS OF THE PEOPLE IN THE COMMUNITIES WE SERVE. SERVICES ARE OFFERED REGARDLESS OF AGE, RACE, CREED, SEX, NATIONAL ORIGIN, OR ABILITY TO PAY. 0 0 42098676 45590712 PROVIDE MEDICAL AND BEHAVIORAL HEALTH SERVICES REGARDLESS OF ABILITY TO PAY. SERVICES INCLUDE PRIMARY CARE, CHIROPRACTIC, PEDIATRICS, OBSTETRICS/GYNECOLOGY, PODIATRY, PSYCHIATRY, AMONG OTHERS. A SLIDING FEE IS UTILIZED AND ALL INSURANCES ARE ACCEPTED. 13644203 24903928 THE PHARMACY PROGRAM PROVIDES PRESCRIPTION MEDICINE TO LOW INCOME FAMILIES AND INDIVIDUALS FROM VARIOUS SITES THAT PHN MAINTAINS MEDICAL OFFICES. 4944752 3589389 PRIMARY DENTAL SERVICES INCLUDING ROUTINE EXAMINATIONS AND PROFILES, FILLING, ORAL SURGERY, AND DENTURES. SLIDING FEE IS UTILIZED. 857319 OTHER PROGRAMS. 857319 60687631 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 1 1 1 0 0 0 0 0 1 1 0 0 0 1 38 0 657 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 13 13 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X FINANCE DEPARTMENT 7243420126 118 VINE STREET SHARON PA 16146 JO ANNE CARRICK CHAIR 1.00 X X 0 0 0 ANTHONY KOS VICE CHAIR 1.00 X X 0 0 0 DOUGLAS NASCI TREASURER 1.00 X X 0 0 0 DAN BELL SECRETARY 1.00 X X 0 0 0 DANIEL BLOUGH DIRECTOR 1.00 X 0 0 0 NANDA CHUWAN DIRECTOR 1.00 X 0 0 0 KAVON WRIGHT DIRECTOR 1.00 X 0 0 0 PATRICK JONES DIRECTOR 1.00 X 0 0 0 REBEKAH FLANDERS DIRECTOR 1.00 X 0 0 0 LIZETTE OLSON DIRECTOR 1.00 X 0 0 0 THOMAS SCOTT DIRECTOR 1.00 X 0 0 0 JEFF BAUGHMAN DIRECTOR 1.00 X 0 0 0 BETH ANN WHITE DIRECTOR 1.00 X 0 0 0 THOMAS BURICH ACTING CEO 40.00 X 192844 0 0 CARL SIZER CFO 40.00 X 108741 0 7621 GEORGE GARROW CHIEF MEDICAL OFFICER 40.00 X 287826 0 43412 JENNIE SLABE CHIEF INFORMATION OFFICER 40.00 X 194869 0 12344 JOSEPH MONTONE CHIEF OPERATIONS OFFICER 40.00 X 188014 0 34135 RAMSEY AHMED MD PSYCHIATRIST 40.00 X 391840 0 35226 HARSHARD PATEL MD PSYCHIATRIST 40.00 X 869130 0 42512 NASIM SHAJIHAN PSYCHIATRIST 40.00 X 384452 0 44504 SUJATHA PANDIAN MD PSYCHIATRIST 40.00 X 423568 0 26000 KEVIN DUMPE PHYSICIAN 40.00 X 339577 0 41033 JAMES LAUER PHYSICIAN 40.00 X 339777 0 41033 3720638 0 327820 13 0 1 0 BRETTON WALBERG PO BOX 395 JAMESTOWN PA 16134 PHARMACY 4812989 FOX ROTHSCHILD LLP 500 GRANT STREET SUITE 2500 PITTSBURGH PA 15219 LEGAL SERVICES 1152040 RDI 4350 GLENDALE-MILFORD ROAD SUITE 2 CINCINNATI OH 45242 IT SERVICES 1094025 MEHAW INC 176 VIRGINIA AVENUE 3RD FLOOR ROCHESTER PA 15074 PHARMACY 939820 AMERICLEAN & SUPPLY LLC PO BOX 1172 HERMITAGE PA 16148 CLEANING SERVICES 867605 21 20735058 20735058 NET PATIENT SERVICE RE 900099 73961137 73961137 CONTRACTED SERVICES 900099 980211 980211 74941348 31488 31488 2278289 262257 2016032 2016032 2016032 45626 0 60996 45626 -60996 -15370 -15370 INSURANCE RECOVERIES 900099 505210 505210 MISCELLANEOUS 900099 86252 86252 591462 98300018 74941348 0 2623612 301585 301585 38575722 28974005 9601717 1007527 752262 255265 4471200 2609502 1861698 2667556 1971166 696390 1195022 1195022 84692 84692 101779 21754 80025 289161 129644 159517 5359868 1897310 3462558 245301 119066 126235 254928 254928 2404897 1768686 636211 217007 6294 210713 PHARMACY 15643154 15643154 CONTRACTED SERVICES 4341550 2149367 2192183 BAD DEBT 2694795 2694795 HOUSEKEEPING 1068905 816513 252392 2908221 1134113 1774108 83832870 60687631 23145239 0 8433334 18547237 13255596 10292166 8081313 10295025 464438 426273 403092 661729 38815346 16597612 23483483 22217734 2654681 16101614 7667284 8388044 64443221 86929822 6361224 5848937 4140667 3103041 2672505 6472499 6891259 20077431 15412701 X 44365790 71208726 308395 44365790 71517121 64443221 86929822 X 14467148 237148 12292854 154181 X X 0 1 X 1 1 1 X 10590821 10845642 10946067 13789263 20735058 66906851 10590821 10845642 10946067 13789263 20735058 66906851 66906851 27095 58319 195922 163358 31488 476182 -76724 -74597 -29635 -180956 75087 550585 451520 75262 591462 1743916 68945993 362479996 0.97040 0.97480 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2016 AMOUNT: $ 75,087. 2017 AMOUNT: $ 550,585. 2018 AMOUNT: $ 451,520. 2019 AMOUNT: $ 75,262. 2020 AMOUNT: $ 591,462. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 447120 447120 19643848 7233666 12410182 6108494 2670484 3438010 11288169 6028191 5259978 1327715 665271 662444 22217734 AGENCY FUND INVESTMENTS 68776 INVESTMENTS IN AFFILIATES 6759268 SHARON SINKING FUND 1560000 8388044 INTEREST RATE SWAP LIABILITY 35912 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 5295347 SHARON SINKING FUND 1560000 6891259 X 1 1 X X X X 1 0 0 0 0 0 0 0 0 HARSHARD PATEL MD PSYCHIATRIST 869130 0 0 0 0 0 24800 0 17712 0 911642 0 0 0 SUJATHA PANDIAN MD PSYCHIATRIST 423568 0 0 0 0 0 26000 0 0 0 449568 0 0 0 NASIM SHAJIHAN PSYCHIATRIST 384452 0 0 0 0 0 19500 0 25004 0 428956 0 0 0 RAMSEY AHMED MD PSYCHIATRIST 391840 0 0 0 0 0 19500 0 15726 0 427066 0 0 0 JAMES LAUER PHYSICIAN 339777 0 0 0 0 0 26000 0 15033 0 380810 0 0 0 KEVIN DUMPE PHYSICIAN 339577 0 0 0 0 0 26000 0 15033 0 380610 0 0 0 GEORGE GARROW CHIEF MEDICAL OFFICER 287826 0 0 0 0 0 26000 0 17412 0 331238 0 0 0 JOSEPH MONTONE CHIEF OPERATIONS OFFICER 188014 0 0 0 0 0 26000 0 8135 0 222149 0 0 0 JENNIE SLABE CHIEF INFORMATION OFFICER 194869 0 0 0 0 0 10519 0 1825 0 207213 0 0 0 THOMAS BURICH ACTING CEO 192844 0 0 0 0 0 0 0 0 0 192844 0 0 0 DONALD F PERRY BOARD MEMBER LEASE OF REAL PROPERTY AND RENOVATIONS TO SAME 0 DREW PIERCE FORMER CEO USE OF ORGANIZATION ASSETS TO RENOVATE PRIVATE RESIDENCES 0 JOHN D LAENG FORMER CEO USE OF COMPANY CREDIT CARD 0 ANN MARIE PIERCE WIFE OF FORMER CEO RENOVATIONS 0 LEGACY GIVING LLC ENTITY OWNED BY DISQUALIFED PERSON FUNDRAISING CONSULTING 0 COMPLIANCE ENVIRONMENTAL SERVICES ENTITY OWNED BY DISQUALIFED PERSON AIR QUALITY TESTING 0 TOPCOAT PLUS LLC ENTITY OWNED BY DISQUALIFED PERSON MISC. SERVICES 0 AMERICLEAN & SUPPLY LLC OPERATED BY A FORMER KEY EMPLOYEE'S FAMILY MEMBER 867605 HOUSEKEEPING 0 SCH L, PART 1, LINE 1 1. DONALD F. PERRY IN 2019, THE ORGANIZATION ENTERED INTO A COMMERCIAL LEASE AGREEMENT WITH DONALD F. PERRY TO LEASE THE WAREHOUSE LOCATED AT 7018 EAST STATE STREET, HERMITAGE, PA 16148. DONALD F. PERRY WAS A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS AT THE TIME THE COMMERCIAL LEASE AGREEMENT WAS EXECUTED. THE REMAINING MEMBERS OF THE ORGANIZATION'S BOARD OF DIRECTORS WERE UNAWARE OF THE COMMERCIAL LEASE AGREEMENT AND, UPON INFORMATION AND BELIEF, THE WAREHOUSE WAS NOT NECESSARY TO SUPPORT THE ORGANIZATION'S ACTIVITIES. THE CHARITY PAID TO MR. PERRY RENT IN THE AMOUNT OF $60,000 IN 2019 AND $60,000 IN 2020. ONE RENT PAYMENT OF $5,000 WAS MADE IN JANUARY 2021. BASED ON AVAILABLE COMPARABILITY DATA, THE RENT CHARGED UNDER THE COMMERCIAL LEASE AGREEMENT EXCEEDED FAIR MARKET VALUE BY $25,000 IN 2019 AND $30,000 IN 2020/EARLY 2021. THE COMMERCIAL LEASE AGREEMENT BEGAN ON JANUARY 1, 2019, AND WAS TERMINATED ON MARCH 26, 2021, ONCE THE POTENTIAL EXCESS BENEFIT ISSUE WAS DISCOVERED BY THE ORGANIZATION. IN ADDITION, DURING THE COURSE OF THE LEASE, THE ORGANIZATION PAID FOR WAREHOUSE IMPROVEMENTS (INCLUDING A NEW ROOF) IN THE AMOUNT OF $78,834.50; THE ORGANIZATION BELIEVES THESE IMPROVEMENTS MAINLY BENEFITTED DONALD F. PERRY, AS THE LESSOR. SCH L, PART 1, LINE 2 6. DREW PIERCE DREW PIERCE HAD ORGANIZATION EMPLOYEES PERFORM MANUAL LABOR ASSOCIATED WITH RENOVATIONS AT HIS PRIMARY RESIDENCE AND HIS VACATION HOME. THE WORK WAS PERFORMED DURING NORMAL WORKING HOURS WHEN SUCH EMPLOYEES SHOULD OTHERWISE HAVE BEEN DOING WORK ON BEHALF OF THE ORGANIZATION. IN ADDITION, ORGANIZATION FUNDS WERE USED TO PAY FOR MATERIALS AND EQUIPMENT NEEDED TO COMPLETE THE RENOVATIONS. THE ESTIMATED VALUE OF THE FREE LABOR, MATERIALS AND EQUIPMENT THAT DREW PIERCE RECEIVED IS $50,970. AT THE TIME THE CHARGES WERE INCURRED, DREW PIERCE WAS THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER AND, THEREFORE, A DISQUALIFIED PERSON. DREW PIERCE RECEIVED AN EXCESS BENEFIT FROM THE ORGANIZATION OF $50,970. THE ORGANIZATION'S BOARD OF DIRECTORS WAS UNAWARE OF THE FACT THAT IT HAD FUNDED THE RENOVATIONS AND ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS. SCH L, PART 1, LINE 3 7. JOHN D. LAENG JOHN D. LAENG USED HIS COMPANY CREDIT CARD, ISSUED AND PAID FOR BY THE ORGANIZATION, FOR PERSONAL EXPENSES TOTALING $18,074. JOHN D. LAENG WAS THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER UNTIL DECEMBER 1, 2014, AT WHICH TIME HE TRANSITIONED TO A CONSULTING ROLE WHEREBY HE CONTINUED TO RECEIVE COMPENSATION FROM THE ORGANIZATION AND HAVE SUBSTANTIAL INFLUENCE OVER THE ORGANIZATION'S OPERATIONS. THE CONSULTING SERVICES CEASED ON DECEMBER 31, 2016. THE PERSONAL USE OF THE COMPANY CREDIT CARD OCCURRED AFTER JANUARY 1, 2017, WHEN JOHN D. LAENG WAS NO LONGER AN EMPLOYEE OR CONTRACTOR OF THE CHARITY. GIVEN THESE FACTS, JOHN D. LAENG WAS A DISQUALIFIED PERSON WHO RECEIVED AN EXCESS BENEFIT FROM THE CHARITY OF $18,074. THE ORGANIZATION'S BOARD OF DIRECTORS WAS UNAWARE OF THE CHARGES AND ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS. SCH L, PART 1, LINE 5 2. LEGACY GIVING LLC THE ORGANIZATION HIRED LEGACY GIVING LLC ("LEGACY") TO PROVIDE CERTAIN FUNDRAISING CONSULTING SERVICES TO THE ORGANIZATION. ON DECEMBER 16, 2009, THE ORGANIZATION ENTERED INTO AN AGREEMENT WITH LEGACY WHEREBY LEGACY WOULD RECEIVE $60.00 PER HOUR PLUS 15% OF ALL FUNDS RAISED AS A RESULT OF LEGACY'S EFFORTS. LEGACY IS OWNED BY DONALD F. PERRY'S SONS, MATTHEW PERRY AND TYLER PERRY. DONALD F. PERRY SERVED AS A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS AT THE TIME THE AGREEMENT WAS EXECUTED. UPON INFORMATION AND BELIEF, THE ORGANIZATION'S BOARD OF DIRECTORS WAS UNAWARE OF THE AGREEMENT. THE ORGANIZATION HAS BEEN UNABLE TO DETERMINE WHAT SERVICES WERE ACTUALLY PROVIDED IN EXCHANGE FOR THE AMOUNTS PAID TO LEGACY PURSUANT TO THE AGREEMENT. THE ORGANIZATION PAID THE FOLLOWING AMOUNTS TO LEGACY: $33,210.87 IN 2010; $5,809.93 IN 2011; AND $2,640.00 IN 2013. ALL SUCH AMOUNTS ARE BELIEVED TO CONSTITUTE EXCESS BENEFITS TO LEGACY. THE ORGANIZATION ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS. SCH L, PART 1, LINE 6 COMPLIANCE ENVIRONMENTAL SERVICES THE ORGANIZATION HIRED COMPLIANCE ENVIRONMENTAL SERVICES ("CES") TO PROVIDE AIR QUALITY TESTING AND OTHER SERVICES TO THE ORGANIZATION. IN 2015, THE ORGANIZATION STOPPED PAYING CES ON A PER-SERVICES BASIS, AND BEGIN PAYING CES A $5,000 PER MONTH RETAINER. DONALD F. PERRY AND HIS SONS COLLECTIVELY OWN 100% OF CES. DONALD F. PERRY SERVED AS A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS AT THE TIME THE CES RETAINER BEGAN. THE RETAINER STRUCTURE WAS NOT APPROVED BY THE ORGANIZATION'S BOARD OF DIRECTORS. THE MONTHLY RETAINERS WERE PAID FROM MARCH 2015 TO APRIL 2020. IN TOTAL, THE ORGANIZATION PAID $310,000.00 IN MONTHLY PAYMENTS OF $5,000.00 EACH TO CES OVER THE FIVE-YEAR PERIOD. BASED ON THE SERVICES ACTUALLY RENDERED TO THE ORGANIZATION DURING THIS TIME, THE CHARITY BELIEVES THAT CES RECEIVED AN EXCESS BENEFIT OF $ $101,343.34. THE ORGANIZATION ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS." SCH L, PART 1, LINE 6 4. TOPCOAT PLUS, LLC THE ORGANIZATION HIRED TOPCOAT PLUS, LLC ("TOPCOAT") TO PERFORM CONSTRUCTION AND MAINTENANCE SERVICES FOR THE ORGANIZATION IN 2015 AND EARLY 2016. WHILE THE ORGANIZATION PAID $150,210 TO TOPCOAT, NO SERVICES WERE ULTIMATELY RENDERED BY TOPCOAT TO THE ORGANIZATION. UPON INFORMATION AND BELIEF, DREW PIERCE, THE ORGANIZATION'S THEN-CURRENT CHIEF EXECUTIVE OFFICER, AND MARK MARRIOTT, THE ORGANIZATION'S THEN-DIRECTOR OF FACILITIES, HIRED THIRD-PARTY CONTRACTORS TO PERFORM CONSTRUCTION AND MAINTENANCE SERVICES FOR THE ORGANIZATION AND, THEREAFTER, INTERCEPTED THE ASSOCIATED INVOICES FROM THE THIRD-PARTY CONTRACTORS. THEY THEN DRAFTED NEW INVOICES FROM TOPCOAT REFLECTING THAT THE WORK HAD BEEN PERFORMED BY TOPCOAT AND INCREASING EACH INVOICE PRICE BY APPROXIMATELY TWENTY PERCENT (20%). THE ORGANIZATION THEN PAID THE UP-CHARGED INVOICE AMOUNTS TO TOPCOAT, WHO PAID THE THIRD-PARTY CONTRACTORS AND RETAINED THE UPCHARGE AMOUNTS. TOPCOAT IS AND WAS, AT THE TIME, OWNED 50% BY MARK MARRIOTT AND 50% BY THREESDJ, LLC, WHICH IS AND WAS, AT THE TIME, EQUALLY OWNED BY STEVE MIRIZIO, DREW PIERCE AND JOHN D. LAENG. AT THE TIME OF THE TRANSACTIONS BETWEEN THE ORGANIZATION AND TOPCOAT, MARK MARRIOTT WAS THE DIRECTOR OF FACILITIES OF THE ORGANIZATION, DREW PIERCE WAS CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION AND JOHN D. LAENG WAS THE PRIOR CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION (THROUGH DECEMBER 1, 2014), OFFERING CONSULTING SERVICES THROUGH DECEMBER 31, 2016. GIVEN THE AFOREMENTIONED OWNERSHIP INTERESTS AND EACH INDIVIDUAL'S SUBSTANTIAL INFLUENCE OVER THE ORGANIZATION, TOPCOAT IS A DISQUALIFIED PERSON OF THE ORGANIZATION THAT HAS RECEIVED AN EXCESS BENEFIT. THE AMOUNT OF SUCH EXCESS BENEFIT IS UNKNOWN DUE TO THE ORGANIZATION'S INABILITY TO REVIEW PAPERWORK THAT IT BELIEVES WAS SHREDDED BY THE INVOLVED PARTIES. BASED ON THE DOCUMENTATION AVAILABLE TO THE ORGANIZATION, THE ORGANIZATION ESTIMATES THAT TWENTY PERCENT (20%) OF THE TOTAL AMOUNTS PAID TO TOPCOAT (OR APPROXIMATELY $30,000.00) REPRESENTS AN EXCESS BENEFIT TO TOPCOAT. THE ORGANIZATION'S BOARD OF DIRECTORS WAS UNAWARE OF THE TRANSACTIONS BETWEEN THE ORGANIZATION AND TOPCOAT AND ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS. SCH L, PART 1, LINE 4 5. ANNE MARIE PIERCE THE ORGANIZATION RENTS 379 PENN AVE (THE "SPACE") FROM AN UNRELATED THIRD PARTY. FROM AUGUST 2018 TO JANUARY 2020, ANNE MARIE PIERCE USED THE SPACE, WHICH INCLUDED A GYMNASIUM, TO PROVIDE PRIVATE BATON LESSONS TO HER STUDENTS. THE SPACE WAS RENOVATED AT A COST OF APPROXIMATELY $300,000 TO THE ORGANIZATION. OF THESE RENOVATION COSTS, WE BELIEVE THAT MOST, IF NOT ALL, IS ATTRIBUTABLE TO RENOVATIONS TO THE GYMNASIUM USED BY ANNE MARIE PIERCE TO PROVIDE PRIVATE BATON LESSONS TO HER STUDENTS. NO PORTION OF THIS RENOVATION EXPENSE WAS INCURRED FOR THE BENEFIT OF THE ORGANIZATION, WHICH DOES NOT EVEN OWN THE SPACE. INSTEAD, THESE EXPENSES WERE INCURRED FOR THE BENEFIT OF ANNE MARIE PIERCE. ANNE MARIE PIERCE IS THE WIFE OF DREW PIERCE, WHO WAS, AT THE TIME, THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER. ANNE MARIE PIERCE IS A DISQUALIFIED PERSON WHO RECEIVED AN EXCESS BENEFIT IN THE AMOUNT OF $300,000. THE ORGANIZATION'S BOARD OF DIRECTORS WAS UNAWARE OF THE RENOVATIONS COSTS PAID BY THE ORGANIZATION FOR THE BENEFIT OF ANNE MARIE PIERCE'S BUSINESS ACTIVITIES. THE ORGANIZATION ONLY DISCOVERED THESE EXCESS BENEFITS AS PART OF ITS COMPREHENSIVE REVIEW OF PAST CONDUCT BY MANAGERS AND BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 11B THE PRIMARY HEALTH NETWORK HAS A CPA FIRM PREPARE ITS FORM 990. THE FORM 990 IS REVIEWED BY MANAGEMENT AND THE BOARD OF DIRECTORS PRIOR TO SUBMISSION. THE FORM IS ALSO MADE AVAILABLE TO THE BOARD OF DIRECTORS AT ANY TIME UPON REQUEST. FORM 990, PART VI, SECTION B, LINE 12C CONFLICTS OF INTEREST STATEMENTS ARE REVIEWED ANNUALLY OR MORE FREQUENTLY, IF NECESSARY, BY THE CORPORATE COMPLIANCE OFFICER, THE CEO, AND THE AUDIT & RISK COMMITTEE OF THE BOARD. APPROPRIATE CHANGES ARE MADE, IF NECESSARY. FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE COMPENSATION IS DETERMINED BASED ON SURVEYS AND PUBLICATIONS FROM PRIMARY HEALTH NETWORK'S STATE AND NATIONAL ASSOCIATION, AND INDEPENDENT ASSOCIATIONS WITHIN THE HEALTH CARE INDUSTRY. COMPENSATION IS REVIEWED ANNUALLY BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 18 PRIMARY HEALTH NETWORK MAKES ITS FORM 990 AND FORM 1023 AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 AT THIS TIME PRIMARY HEALTH NETWORK DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC. FORM 990, PART XI, LINE 9: CHANGE IN FV OF SWAP 77,240. NET ASSET TRANSFER TO AFFILIATE 76,941. PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. PHN CHARITABLE FOUNDATION 123 EAST STATE STREET SHARON PA 16146 412188011 SUPPORT PROGRAMS THAT INCREASE ACCESS TO HEALTHCARE SERVICES PA 501(C)(3) LINE 3 THE PRIMARY HEALTH NETWORK 1 PUNXSUTAWNEY MSF LLC 100 SHENANGO AVE SHARON PA 16146 460584749 INVESTMENT COMPANY PA 92201 5067649 0 0 0.50000 SHARON MSF 100 SHENANGO AVE SHARON PA 16146 471604302 INVESTMENT COMPANY PA -63365 10049859 0 0 0.50000 PHN PHYSICIAN SERVICES 100 SHENANGO AVE SHARON PA 16146 204251617 MEDICAL SERVICES PA THE PRIMARY HEALTH NETWORK C 1.00000 1 PALU INVESTMENT GROUP LTD 81 VINE AVE SHARON PA 16146 271971298 INVESTMENT COMPANY PA THE PRIMARY HEALTH NETWORK C -173508 833452 1.00000 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 PUNXSUTAWNEY MSF LLC K 579600 FMV SHARON MSF LLC K 880000 FMV PHN CHARITABLE FOUNDATION K 202518 FMV PHN CHARITABLE FOUNDATION P 480547 FMV PHN CHARITABLE FOUNDATION P 2040 FMV