Caritas Communities Inc.

“There are no committees with authority to act on behalf of the governing body.”

“The outside CPA firm who performs an audit of the financial statements prepares the form 990 with input provided by the Caritas Chief Financial Officer. The complete form 990 is then reviewed by the Chief Financial Officer and is made available to the executive director and the board of directors for review. A copy will be furnished to each director.”

“The sign off of the potenital conflict of interest form is generally made each year by each member of the Caritas Communities Board of Directors and Senior management and is then reviewed by the Chief Financial Officer.”

“At the December meeting each year the full board of directors meets with the audit and finance committee to consider the planned compensation of the executive director and the treasurer/chief financial officer with both individuals absent from the meeting. Prior thereto the chairman of the finance and audit committee discusses salary information obtained from our independent auditing firm regarding salaries paid to executive directors and treasurers in comparable organizations. The audit and finance committee then makes a recommendation to the full board who discusses and votes on the compensation of these two individuals for the coming year.”

“Each year Caritas Communities Inc. prepares a consolidated annual report which includes Bedford Veterans Quarters inc and Sean Brook House Inc. Approximately 2500 copies of this annual report are mailed to supporters and lenders of Caritas Communities Inc. and subsidiaries. This report includes the names of the members of the Board of Directors, names of office and site personnel, annual income and expense summary, status of projects, and listing of the rooming houses and lending organizations. In addition, each year the audited consolidated financial statements of Caritas Communities Inc. and subsidiaries are examined by a CPA firm and are distributed to over 20 lending institutions. Other governance documents and conflict of interest reporting forms are generally considered to be internal documents and are not usually distributed to the general public but may be available upon request.”