2024-05-07T15:56:39-05:00 2023-06-30 450250958 Eide Bailly LLP 1730 Burnt Boat Loop Ste 100 Bismarck ND 585030886 990 2022-07-01 363431210 Benefit Fund of McKenzie County Healthcare Systems BENE 7014448061 PO Box 1461 Watford City ND 58854 Daniel Kelly President 7014448061 2024-05-07 1 Daniel Kelly 999009999 1 Lisa Chaffee CPA P00193453 7012551091 2024-05-07 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z Daniel Kelly PO Box 1461 Watford City ND 58854 5380488 0 X www.mckenziehealth.com X 2006 ND To meet the needs of the McKenzie County Hospital, the Good Shepherd Home, the McKenzie County Clinic, and the Connie Wold Wellness Center, and to foster community participation and contributions to the healthcare system. 6 6 0 6 0 0 765451 1135180 0 0 291340 499725 4843221 3697791 5900012 5332696 2568265 1311551 0 0 271263 297687 159703 213803 221416 -921 113862 2998310 1936903 2901702 3395793 20997952 24980409 32159 95205 20965793 24885204 X The Benefit Fund of McKenzie County Healthcare Systems (MCHS) is a nonprofit organization that works cooperatively with MCHS to meet the ongoing needs of the McKenzie County Hospital, the Good Shepherd Home, the McKenzie County Clinic, and the Connie Wold Wellness Center. The staff of the Benefit Fund works closely with the residents of the County to foster community participation and contributions to the healthcare system. 0 0 1410805 1311551 The Benefit Fund works cooperatively with McKenzie County Healthcare System, Inc. to meet the ongoing needs of the facility and the residents served by McKenzie County Healthcare System, Inc. The Fund identifies appropriate federal, state and private funding sources and prepares proposals to secure the necessary infrastructure, equipment and programs vital to the delivery of quality, local healthcare to the residents of McKenzie County. The Benefit Fund hosts county-wide fundraising events designed to keep the communities of the County involved in the healthcare system. Social and print media are utilized to recognize donors and to provide information on new programs offered and needs of the Benefit Fund and McKenzie County Healthcare Systems, Inc. 1410805 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 6 6 0 1 1 0 0 0 0 1 0 0 0 1 1 1 1 0 0 1 0 0 X Daniel Kelly 7018423000 709 4th Avenue NE Watford City ND 58854 X Randy Quale Director (Jul-Dec)/Chair (Jan-Jun) 1.00 1.00 X X 0 0 0 Neal Shipman Vice Chair (Jan-Jun) 1.00 1.00 X X 0 0 0 Gary Brown Director Jul-Dec /Treasurer (Jan-Jun) 1.00 1.00 X X 0 0 0 Jan Dodge Secretary 1.00 1.00 X X 0 0 0 Larry Larsen Trustee 1.00 0.00 X 0 0 0 Gretchen Stenehjem Trustee (Jan-Jun) 1.00 0.00 X 0 0 0 Patsy Levang Vice Chair (Jul-Dec) 1.00 0.00 X X 0 0 0 Kelly Peterson Chair (Jul-Dec) 1.00 0.00 X X 0 0 0 Daniel Kelly President 10.00 10.00 X 0 254129 26554 Cheryl Batchelor MCHS Interim CFO 2.00 38.00 X 0 0 0 0 254129 26554 0 0 1 0 WelkerPR Inc 6226 Red Canyon Drive Apt A Highlands Ranch CO 80130 Fundraising 132965 1 1500 1133680 1135180 489005 489005 3672685 3672685 10720 0 10720 10720 10720 72898 47792 25106 25106 5332696 0 0 4197516 1311551 1311551 203868 203868 90192 90192 3627 3627 870 870 6125 6125 213803 213803 34153 34153 7613 7613 11509 11509 18175 18175 15077 15077 5293 5293 3328 3328 Staff Development 9133 9133 2586 2586 1936903 1410805 304682 221416 10629167 4197346 63166 45666 1431 3552 29273 50158 36607 16998 14746 19609 10260169 20664078 20997952 24980409 32159 95205 32159 95205 X 20535864 24166105 429929 719099 20965793 24885204 20997952 24980409 3395793 523618 0 X 0 1 X 1 0 X 1285051 1103151 299614 765451 1135180 4588447 1285051 1103151 299614 765451 1135180 4588447 92272 4496175 5117061 3188359 2333765 5112925 4161690 19913800 24452 16390 25106 65948 24568195 0.18300 0.21050 X Benefit Fund of the McKenzie County Healthcare System fails to meet the public support test for the years ended June 30, 2018 through June 30, 2022. However, based on the following facts and circumstances, the organization should continue to be recognized as a publicly supported organization under Internal Revenue Code Section 509(a)(1).Ten-Percent of Support:The total amount of public support for the organization during the above mentioned period is 18.30% which is greater than 10%. The organization does not pass the 33 1/3% public support test due partially to the organization receiving increased passive mineral rights income as a result of the exploration of the oil in western North Dakota.Attraction of Public Support:The organization does not receive more than 33 1/3% of its support from government units or from contributions from the general public due partially in fact to the organization receiving increased passive mineral rights income as a result of the exploration of oil in western North Dakota. However, the organization plans in the upcoming year to approach some of the organizations exploring oil and request donations be given to the organization. The Benefit Fund of the McKenzie County Healthcare System is set up so that donations received support the McKenzie County Healthcare Systems, Inc. McKenzie County Healthcare Systems, Inc. services the benefit of the general public.Sources of Support:Benefit Fund of the McKenzie County Healthcare System does not receive support from a single family; rather it receives support from members of the general public. The organization received a portion of its support from individuals in the community.Representative Governing Body:Benefit Fund of the McKenzie County Healthcare System is served by a governing body that represents the interest of the public; it does not represent the interests of the donors of Benefit Fund of the McKenzie County Healthcare System. The members of the governing body represent all of McKenzie County. These representatives ensure that the organization meets the needs of the healthcare community.Based on the above facts and circumstances, Benefit Fund of the McKenzie County Healthcare System should continue to be considered as publicly supported under Internal Revenue Code Section 509(a)(1). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 36607 16998 19609 19609 X 5904106 523618 523618 5380488 -47792 -47792 5332696 1984695 47792 47792 1936903 0 1936903 Part X, Line 2: The Benefit Fund believes it has appropriate support for any tax positions taken affecting the annual filing requirements, and as such, does not have any uncertain tax positions that are material to the consolidated financial statements. The Benefit Fund would recognize future accrued interest and penalties related to unrecognized tax liabilities in income tax expense if such interest and penalties are incurred. Part XI, Line 4b - Other Adjustments: COGS Included in Expenses on Financial Statements -47,792. Part XII, Line 2d - Other Adjustments: COGS Included in Revenue on Form 990 47,792. X X X X X 1 WelkerPR Inc DBA Welker and Fevol 6226 Red Canyon Dr Apt A Highlands Ranch CO 80130 Fundraising 0 901569 213803 687766 901569 213803 687766 1 McKenzie County Healthcare Systems Inc 709 4th Avenue NE Watford City ND 58854 770637498 501(c)(3) 1311551 0 Purchase Equipment 1 0 Part I, Line 2: The Organization is a controlled corporation of McKenzie County Healthcare Systems (MCHS) and was established to raise funds to support the mission of MCHS. The organization maintains records substantiating the amounts of grants and assistance given to MCHS and determines amounts awarded to MCHS based on the needs its needs in supporting its mission. 0 0 0 0 0 0 0 0 0 Daniel Kelly President 0 229014 0 24464 0 651 0 15468 0 11086 0 280683 0 0 Part I, Line 3 Compensation is determined by a related organization and the organization relied on the related organization, McKenzie County Healthcare Systems, Inc., to establish reasonable compensation using methods in Part I, line 3. The Benefit Fund of MCHS reimbursed MCHS for the President's compensation reported in Form 990 Part VII, Form 990 Part IX Schedule J. The compensation reported on Part VII, Part IX and Schedule J are for services provided to both the filing organization and the related organization. Form 990, Part VI, Section A, line 3 The Interim CFO, Cheryl Batchellor, is paid by an unrelated management company, American Consultants, for her services to both the Benefit Fund of McKenzie County Healthcare Systems and McKenzie County Healthcare Systems (MCHS). In calendar year 2022, MCHS paid $317,200 for her services. Form 990, Part VI, Section A, line 4 The bylaws were updated to remove the requirement of the Chairperson/President of Benefit Fund to be one of the directors of McKenzie County Healthcare Systems, Inc. Form 990, Part VI, Section A, line 8b No committee has authority to act on behalf of the Organization or Board of Directors. Form 990, Part VI, Section B, line 11b The President of the Benefit Fund will review a draft prior to the final filing. The Board of Directors will be provided a copy of the return before filing with the IRS. Form 990, Part VI, Section B, line 12c The conflict of interest policy defines any interested person as any director, principal officer and anyone who has a direct or indirect financial interest with respect to all entities in the healthcare system. An interested person must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors. It will be reviewed by the remaining board to decide if a conflict of interest exists after investigation. This is accomplished through annual review and a signed statement that each director receives annually. If a conflict exists the interested person must abstain from voting on the issue, and the remaining board members determine if the transaction is in the Foundation's best interest, for its own benefit, and if it is fair and reasonable. Form 990, Part VI, Section B, line 15a The Organization relied on the related organization, McKenzie County Healthcare Systems, Inc., to determine the compensation for the President and Interim CFO. The Benefit Fund reimbursed MCHS for the President compensation and benefits. Both the filing organization Board and the related orgnaization Board approved the employment agreement for the President. Form 990, Part VI, Section C, line 19 The governing documents, conflict of interest policy, and financial statements are available upon request. Part VII President Compensation and Part IX, Line 5 Officer Compensation MCHS pays the President directly for his services to both the Benefit Fund and MCHS. The Benefit Fund reimbursed the related organization for the services Dan Kelly provides to both the Benefit Fund and MCHS. Part VII, Part IX line 5 and Schedule J represent the reportable compensation and benefits paid by MCHS to the President for his services to the Benefit Fund, but then fully reimbursed by the Benefit Fund. McKenzie County Healthcare Systems Inc PO Box 548 Watford City ND 58854 770637498 Healthcare service provider ND 501(c)(3) Line 3 N/A 0 McKenzie County Healthcare Systems Properties 709 4th Ave NE Watford City ND 58854 462905447 Property management ND N/A C 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0