Carmel Terrace Inc.

“The sole member of the corporation is the carmelite system, inc.”

“The corporate member retains the right to appoint or remove members of the board of directors.”

“Form 990 is presented to the finance committe for review. The finance committee reports to the board of directors regarding the review, and a copy of form 990 is provided to the board before it is filed.”

“The conflict of interest disclosure policy requires all officers and board members to complete an annual disclosure statement. In addition, should an officer or board member assume new external interests that potentially conflict with his/her role with the organization, such individual is required to disclose in writing the nature of such external interests. The disclosure statement is provided to the board for review. Conflicts are resolved by making a required disclosure, and may result in restricting the officer or board member in any related activity or process as determined appropriate to the circumstances of the conflict. Failure to disclose a conflict of interest is in violation of the adopted policy and can result in disciplinary action or removal.”

“A compensation policy was developed by the board to govern the compensation arrangements between the organization and the covered individuals, defined as those in a position to exercise substantial influence over the affairs of the organization. The compensation committee consists of at least three independent individuals appointed by the board, who themselves are members of the board of directors. The committee recommends to the board the compensation for covered individuals based on relevant data including comparability compensation for similarly situated entities and independent compensation surveys compiled by independent firms as deemed necessary.”

“The organization makes its governing documents, conflict of interest policy, financial statements, and tax filings available to the public upon request. The organization's form 990 is available to the public on guidestar's website.”

“The organization has a corporate compliance policy in place, which includes a policy on whistleblower protection.”

“The organization has a formal record retention and destruction policy which complies with federal and state law and with the requirements of various regulatory agencies.”

“The carmelite system, inc. Approves the engagement of the independent auditors for the corporation. The system audit committee meets with the system's management and the independent auditors to review the engagement proposal, results of the audit, draft audit report and management letters. The audit committee may meet with the independent auditors in executive session before concluding its review and acceptance of the annual audit report. The audit committee reports its findings and makes its recommendation to the board of directors.”