Eger Harbor House Inc.

“Eger lutheran homes and services, inc. ("elhs") is the sole member of this organization. The board of trustees of elhs has the right to elect the members of this organization's board of trustees and has certain reserved powers as defined in this organization's bylaws.”

“THE ORGANIZATION IS A SUBSIDIARY WITHIN EGER LUTHERAN HOMES AND SERVICES, INC.; A TAX-EXEMPT HEALTHCARE SYSTEM COMPOSED OF A NURSING HOME AND OTHER ENTITIES WHOSE PURPOSE IS TO SERVE THE COMMUNITY ("SYSTEM"). EGER LUTHERAN HOMES AND SERVICES, INC. IS THE TAX-EXEMPT PARENT ENTITY OF THE SYSTEM. THIS ORGANIZATION'S FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF ITS GOVERNING BODY (ITS BOARD OF TRUSTEES) PRIOR TO THE FILING WITH THE INTERNAL REVENUE SERVICE ("IRS"). THE EGER LUTHERAN HOMES AND SERVICES, INC. EXECUTIVE COMMITTEE HAS ASSUMED THE RESPONSIBILITY TO OVERSEE AND COORDINATE THE FEDERAL FORM 990 PREPARATION, REVIEW AND FILING PROCESS FOR THE TAX-EXEMPT AFFILIATES WITHIN THE SYSTEM. AS PART OF THE ORGANIZATION'S FEDERAL FORM 990 TAX RETURN PREPARATION PROCESS THE ORGANIZATION HIRED A PROFESSIONAL certified public accounting ("CPA") FIRM WITH EXPERIENCE AND EXPERTISE IN BOTH HEALTHCARE AND NOT-FOR-PROFIT TAX RETURN PREPARATION TO PREPARE THE FEDERAL FORM 990. THE CPA FIRM'S TAX PROFESSIONALS WORKED CLOSELY WITH THE ORGANIZATION'S FINANCE PERSONNEL INCLUDING, BUT NOT LIMITED TO, THE SENIOR VICE PRESIDENT FOR FINANCE/CHIEF FINANCIAL OFFICER ("INTERNAL WORKING GROUP") TO OBTAIN THE INFORMATION NEEDED IN ORDER TO PREPARE A COMPLETE AND ACCURATE TAX RETURN. THE CPA FIRM PREPARED A DRAFT FEDERAL FORM 990 AND FURNISHED IT TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR REVIEW. THE ORGANIZATION'S INTERNAL WORKING GROUP REVIEWED THE DRAFT FEDERAL FORM 990 AND DISCUSSED QUESTIONS AND COMMENTS WITH THE CPA FIRM. REVISIONS WERE MADE TO THE DRAFT FEDERAL FORM 990 WHERE NECESSARY AND A FINAL DRAFT WAS FURNISHED BY THE CPA FIRM TO THE ORGANIZATION'S INTERNAL WORKING GROUP FOR FINAL REVIEW AND APPROVAL PRIOR TO PRESENTATION TO THE MEMBERS OF THE EGER LUTHERAN HOMES AND SERVICES, INC. EXECUTIVE COMMITTEE. FOLLOWING THE EXECUTIVE COMMITTEE'S REVIEW THE FINAL FEDERAL FORM 990 WAS PROVIDED TO EACH VOTING MEMBER OF THIS ORGANIZATION'S GOVERNING BODY PRIOR TO FILING WITH THE IRS.”

“The organization is a subsidiary within eger lutheran homes and services, inc., a tax-exempt healthcare system composed of a nursing home and other entities whose purpose is to serve the community ("system"). This organization and system regularly monitors and enforces compliance with its conflict of interest policy. Annually all members of the board of trustees, officers and senior management personnel are required to review the existing conflict of interest policy and complete a questionnaire. The completed questionnaires are returned to the organization and the organization's president/chief executive officer for review. If necessary, any conflicts of interest are then reviewed and discussed by the organization's board of trustees.”

“The organization is a subsidiary within the eger lutheran homes and services, inc., a tax-exempt healthcare system composed of a nursing home and other entities whose purpose is to serve the community ("system"). The system has an executive committee ("committee") of the board of trustees. The compensation and benefits of the president/chief executive officer are reviewed by the committee to ensure fair market value compensation is paid. Where appropriate, the board reviews external comparable data and seeks advice of the committee to ensure total compensation of this individual is reasonable at fair market value. Other members of management, including, but not limited to, these reported on form 990 are reviewed by the president/chief executive officer and the vice president of human resources, in accordance with job performance and current fair market value salary data.”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the state of new york.”

“Core form, part vii and schedule j reflect certain officers receiving compensation and benefits from a related organization. Please note this remuneration was for services rendered as full-time employees of the related organization; not for services rendered as a voting member or officer of the organization's board of trustees.”

“This organization is an affiliate within eger lutheran homes and services, inc.; a tax-exempt healthcare system composed of a nursing home and other entities whose purpose is to serve the community ("system"). Certain board of trustee members, officers and/or directors listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990, for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of trustees of other related organizations in the system, their respective hours per week per organization are approximately the same as reflected on core form, part vii of this form 990. The hours reflected on core form, part vii of this form 990, for board members who received no compensation for services rendered in a non-board capacity, paid officers and key employees, reflect total hours worked per week on behalf of eger lutheran homes and services, inc.; not solely this organization.”

“In August 2016, The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-14, "Presentation of Financial Statements of Not-For-Profit Entities" (Topic 958). The ASU amends the current reporting model for nonprofit organizations and enhances their required disclosures, including adding the requirement of liquidity disclosures. Eger Harbor House, inc. adopted the new guidance beginning on January 1, 2018 and reclassified the prior year financial statement presentation to conform with the amendment.”

“The organization is a subsidiary within eger lutheran homes and services, inc.; a tax-exempt healthcare system composed of a nursing home and other entities whose purpose is to serve the community ("system"). The system's tax-exempt parent entity is eger lutheran homes and services, inc. An independent cpa firm audited the consolidated financial statements of the system and its subsidiaries for the years ended december 31, 2018 and december 31, 2017; including this organization; respectively. The independent cpa firm issued an unmodified opinion with respect to the audited consolidated financial statements. In addition, an independent cpa firm audited the financial statements of eger harbor house, inc. For the years ended december 31, 2018 and december 31, 2017; respectively. The independent cpa firm issued an unmodified opinion with respect to the audited financial statements. The eger lutheran homes and services, inc. Audit committee has assumed responsibility for the oversight of the financial statement audits outlined above and the selection of an independent auditor.”

“The organization engaged an independent accounting firm to prepare and issue an audit under the single audit act and omb circular a-133 audit.”