Acts Retirement-Life Communities Inc.

“The executive committee has the authority to transact such business as shall be necessary for the administration and operation of the corporation between board of directors meetings subject to certain limits specified in the bylaws.”

“Acts management services, inc., an affiliated entity, provides management services to acts retirement-life communities, inc.”

“Acts retirement-life communities, inc. Is a pennsylvania tax-exempt organization of which acts retirement services, inc., a related pennsylvania tax-exempt organization, is the sole member.”

“Acts retirement services, inc., a related pennsylvania tax-exempt organization, is the sole member of acts retirement-life communities, inc. As sole member, it has the right to elect the members of the organization's board.”

“Acts retirement services, inc., a related pennsylvania tax-exempt organization, is the sole member of acts retirement-life communities, inc. As sole member, it has the right to amend the organization's articles of incorporation and bylaws.”

“After review by the cfo and ceo, the form 990 is reviewed, before filing, by the board of directors' audit committee, which includes three certified public accountants. The form 990 is then provided to the other members of the governing body before filing.”

“A conflict of interest questionnaire is completed on an annual basis by the organization's officers, directors and trustees. The responses are reviewed by the president & ceo, and chairman of the board of directors to determine if conflicts are present and if so, the extent of the conflict. For conflicts that arise, the officer, director or trustee must recuse themselves from participating in deliberations and decisions that involve the determined conflict.”

“It has been the practice of the management company, acts management services, inc., to utilize an independent compensation consultant on an approximately biennial basis for the purpose of reviewing the compensation program for the organization's top management positions, ranging from community managers up to the ceo. The study, the latest version of which was completed in 2016, includes comparison of not-for-profit and for-profit competitors, operating effectiveness, and identification of industry specific trends or practices in compensation or recruitment/employment. Measurement and action are generally focused at the levels from the median up to the seventy-fifth percentile as identified in the study. The reports' general findings are reviewed with board officers. Compensation adjustments for the president & ceo are determined by a committee of independent board members appointed by the chairman and are based on the findings of the most recent study and a review of performance compared against objective criteria. This determination is reported to and approved by the board of directors and is documented in writing by the board chair. Similarly, compensation adjustments for the most senior members of management reflect study findings and performance measurement against specified criteria and are determined by the ceo and reviewed with the board chair.”

“The organization's governing documents and conflict of interest policies are filed with numerous regulatory authorities and therefore, are available to the public. In addition, upon receipt of a request and its review, the organization will make available such documents, as deemed appropriate. Audited financial statements are made available to the public. Certain financial statements, such as annual reports and quarterly reports, are posted to the organization's website and are also available at each of the organization's communities. In addition, financial information is included in the disclosure packages that are provided to prospective residents and made available to the public. Certain other financial statements are also provided upon request.”

“Other compensation includes accruals for a deferred supplemental executive retirement plan for karen i. Christiansen (non-vested), gerald t. Grant (non-vested) and j. Mark vanderbeck (non-vested).”

“Unrealized gain on investment contracts 1,976,043. Change in beneficial interest in investments of acts legacy foundation 2,196,148. Change in value of split-interest agreements -7,454. Loss on early extinguishment of debt -17,789,686.”

“The organization's annual financial statements are audited on a consolidated basis and the organization has an audit committee consisting of board members only that exercises responsibility for the oversight of the audit.”