Homewood at Spring House Estates

“The form 990 is provided to the chief financial officer of the parent organization and to the executive compensation committee of the board of trustees for review and comment before the form is filed. The other members of the board of trustees are notified that the form 990 will be filed and is available upon request for their review.”

“Executive compensation philosophy: the executive compensation committee (committee) serves in a governance and oversight role for the homewood board of trustees to ensure that homewood living ministrties(homewood) maintains executive compensation strategies and practices that are compliant with regulations, prudent within the homewood's resources and ability to honor its commitments, internally equitable, and are externally competitive. The committee will review the executive compensation philosophy annually and make any recommendations to the trustees for final approval. The independent executive compensation committee of the homewood living ministries board of trustees, as designated in the by-laws, will determine the total compensation philosophy and compensation packages for senior management (president/ceo and vice presidents.) the executive compensation committee will be structured, and will operate, in a manner intended to satisfy the requirements of the irs "intermediate sanctions" rules and to establish a rebuttable presumption of reasonable compensation. The three elements necessary to establish the reasonableness presumption include compensation arrangements being approved in advance by an authorized body of the organization (the committee) comprised of individuals without conflict of interest; the committee using appropriate, comparable data to make its decisions; and the committee documenting its decisions thoroughly and timely. Homewood's targeted total cash compensation for executives is the 70th percentile and with a 40% spread is used to establish the range between minimum and maximum total compensation, of the market levels for a competitor peer group comprised of senior living, health care, hospitality, and other related organizations reflecting regional and national benchmarks. Deferred or supplemental benefits/compensation plans will be used to support retention and smooth succession planning for senior management. The executive compensation policy used for implementation of this philosophy will be approved by the executive compensation committee from time to time. The ceo will be responsible for making recommendations to the committee concerning subordinate pay, ensuring that those recommendations reflect homewood's overall philosophy and compensation policies. The executive compensation committee will keep the full board informed of key decisions and will consist of independent decision makers who do not perform paid services for homewood, who are not related to the executives, and who otherwise meet the "no conflict-of-interest" rules of the irs intermediate sanctions. Executive compensation policy: homewood living ministries (homewood) is an organization providing care and services to over 2,000 seniors residing on our five campuses in maryland and pennsylvania. As a large and complex organization guided by our commitment to caring for seniors in our local communities, homewood views executive compensation as an important part of our ability to attract and retain the talent necessary to ensure continued successful operations and service. Homewood has thus, developed our executive compensation philosophy and plan to enable efficient and consistent administration of our executive compensation processes. All references to executives in this document include the president/ceo and the vice presidents. Homewood's executive compensation plan is designed to support a "best practices" approach to the governance of executive pay utilizing the following components: 1. Competitiveness - total cash compensation comprised of base salary and variable cash incentives for executives will be benchmarked to competitor organizations and targeted at the 70th market percentile as identified by an independent executive compensation consultant's market survey. Homewood's peer group of competitor organizations will be drawn from industries/sectors with which homewood exchanges talent as represented by data calibrated for homew”

“Homewood's wage administration guidelines for the calendar budget year 2024: homewood's wage administration program looks at base pay rates that take into consideration if it is: o internally equitable. O externally competitive. O affordable/cost effective. O legal/defensible. O understandable. O appropriate for the organization. O appropriate for the workforce. Homewood's wage administration program applies principles to assist in the retention and recruitment of co-workers. Homewood's goal is to pay wages in the 60th percentile in the long-term care industry for most positions taking into consideration the geographic area. Some positions require a higher percentage due to market conditions. Homewood will use the pa leading-age state wage survey to benchmark starting wages, implement market wage adjustments and review wage ceilings. Additional wage surveys will also be used to compare data in our industry as well as other industries. Homewood's goal for the starting wage and average wage will be the 60th percentile. When either the average wage or starting wage does not meet this standard a market wage adjustment will be considered. It is at homewood's discretion to have a higher percentile than the 60th for some positions. A market adjustment is considered when a specific position is determined to be below the 60th percentile for that geographic area. The market adjustment is determined by the dollars needed to reach the 60th percentile. A fixed dollar amount is given to co-workers in that job category. Homewood's goal and practice is to limit wage increases for co- workers at or above the 95th or above percentile of the pa leading-age state wage survey for that particular position. Wage increases for co- workers at or above the 95th percentile will receive 50% of their performance wage increase. Homewood's underlying philosophy for wage increases will be based on performance, on the position, on the current pay rate and market comparisons. Homewood evaluates and considers each co-worker's current pay before determining the appropriate wage adjustment. The wage administration program is provided to serve as a guideline in a systematic approach to wage adjustments. Wage increases for the calendar year 2024 are separated into the following three components: 1. The average wage of each job category (or another determined wage based on wage surveys) will be used as the basis to establish the wage increase. A pay grid is established for each position which has a dollar/cents amount linked to the evaluation points. Wage adjustments are administered based on the co-worker's performance and does not take into consideration longevity. Example: if all co-workers in a job category have the same total points from the evaluation they all will receive the same dollar/cents per hour increase. 2. An additional increase may be approved if particular position(s) are determined to be below the market value for that area. This increase is not reflective of the co-worker's performance or longevity. It is solely based on the need to become more competitive with the salary. The vice president-human resources will make initial recommendations for market adjustment consideration. Site executives will then make final recommendations to the vice president-human resources for senior management final approval. All market adjustment requests by the site executive(s) must be provided to the vice president-human resources for the budget process and prior to september. 3. The following will be used for the department director positions. An increase of up to 3% may be awarded where performance exceeds the norm in all areas and is documented in writing in the performance appraisal process. This increase would be consistent with other director's whose performance is similar. The performance wage adjustment grid will use the parameter of the average wage being set at 2.75% for the 2024 year. Co-workers actively employed as of january 1, 2024 may be eligible for”

“The organization makes the governing documents, conflict of interest policy, and financial statements available to the public upon request. Much of the information is made available to the residents as part of the disclosure statements required by the states.”

“Statement regarding corporate structure: as of december 31, 2024 the homewood group of companies consists of a parent corporation, five subsidiary operating companies, and a subsidiary foundation. This corporation structure results from the restructuring of a former single corporation effective january 1, 1996. The companies constituting the homewood group are as follows: parent: homewood living ministries, inc. 52-1892688 subsidiaries: homewood living williamsport, inc. 52-0619001 (former single corporation before restructuring) homewood living plum creek, inc. 52-1931788 homewood living martinsburg, inc. 52-1931790 homewood living frederick, inc. 52-1931794 homewood living foundation, inc. 52-1892689 homewood living spring house, inc. 20-5189952 (became part of the group in 2007.) as required by the internal revenue service, each company in the homewood group files a separate form 990. Homewood living ministries, inc., the parent company, serves each of the subsidiary companies with administrative support, centralized accounting including billing and collection, computer and technical support, human resources, purchasing, and fundraising through the homewood foundation. Accordingly, approximately 95% of its functional expenses are reported as "management and general" on its form 990. The remaining 5% is allocated to "program services" with less than 1 % allocated to fundraising related activities. The subsidiary operating companies have the sole purpose of providing services to clients. Accordingly, approximately 90% of their functional expenses are reported as "program services" on their respective form 990. The remaining 10% is allocated to "management and general" with less than 1 % allocated to fundraising related activities. The subsidiary foundation is involved in promotional and public relations support for the operating companies and fundraising activities for the benevolent fund. In addition, the foundation manages investments and makes grants to the operating companies in support of charity services. The foundation classifies grants and depreciation expense as "program services- and allocates other expenses between "management and general- and "fundraising".”

“Homewood living ministries have consistently participated in and have helped to develop programs that serve the broader community, those with limited resources, as well as its own residents. As a not-for-profit, tax-exempt organization, homewood living ministries from its very beginnings has provided resources to help serve our community while also providing opportunities for community members to learn from and interact with senior citizens.”

“Form 990, part v, line 1(a), regarding number of u.s. Information returns: no u.s. Information returns are filed by homewood living spring house, inc. The parent organization, homewood living ministries, inc., processes all the payables for the subsidiary organizations and processes and files all of the u.s. Information returns. Form 990, part v, line 2(a), regarding number of employees: homewood living spring house, inc. Had 57 employees that were paid by the parent organization, homewood living ministries, inc. The parent organization, homewood living ministries, inc., processes the payroll for all of the subsidiary organizations. All of the payroll tax reports are submitted by the homewood living ministries, inc.”

“Interest paid on deposits included in revenue on f/s -1,853 interest paid on deposits included in revenue on f/s 1,853”