Willow Valley Communities

“FORM 990 REVIEW The management company's finance department prepares the information for the form 990. Our independent accounting firm (KPMG) reviews the information and prepares a draft return. The draft is reviewed by the board of directors with filing approval given by the audit & finance committee.”

“CONFLICT OF INTEREST On an annual basis, officers, directors, and key employees are required to complete a conflict of interest form. Upon completion this form must be notarized. One copy is forwarded to PA Department of Insurance and another is retained by the Management Company. As new business relationships are developed/formed, appropriate questions are asked to determine if potential conflicts exist. In addition, each individual that completed the form is to make the communities aware of any potential conflicts of interest that they may become aware of. Any potential conflict would be reviewed, discussed and brought to the executive committee of the board for recommended resolution.”

“COMPENSATION REVIEW Annually the retirement communities executive committee of the board evaluates the services provided by the management company. Prior to the renewal of the management contract, the executive committee of the board engages an independent counsel to review the terms and conditions of the contract. Additionally, an independent accounting firm is engaged by independent counsel to verify the reasonableness of the management fees by comparing the fees to other management contracts. Upon receipt of all information, including the recommendation of the executive committee, the full board of directors takes action on the renewal of the management contract. The contract is a five-year contract.”

“AVAILABILITY OF GOVERNING DOCUMENTS TO THE PUBLIC The organization does not make its governing documents, conflict of interest policy or financial statements available to the public.”

“SMARTLIFE VIA WILLOW VALLEY In 2014, SmartLife via Willow Valley began. Please see Form 990, Part III, Line 4b for more information on this new service. FORM 990, PART VI, SECTION A, LINE 3 Management Company SINCE THE INCEPTION OF WVC, A MANAGEMENT COMPANY HAS BEEN ENGAGED TO OVERSEE AND DIRECT VARIOUS FUNCTIONS ON BEHALF OF THE COMMUNITIES. THE CHIEF FINANCIAL OFFICER OVERSEES ALL ACCOUNTING, PAYROLL, FINANCIAL REPORTING, PURCHASING AND INVESTMENT FUNCTIONS. THE CORPORATE DIRECTOR OF HUMAN RESOURCES OVERSEES THE EMPLOYMENT PROCESS, BENEFITS ADMINISTRATION AND TRAINING. THE CHIEF OPERATING OFFICER OVERSEES, PROVIDES DIRECTION AND INSIGHT TO THE VARIOUS OPERATIONS (DINING, HEALTHCARE, PROPERTY MANAGEMENT, HOUSEKEEPING, RESIDENT SERVICES). THE CHIEF MARKETING OFFICER PROVIDES DIRECTION AND INSIGHT TO MARKETING AND SALES. STRATEGIC PLANNING AND DIRECTION IS SPEARHEADED BY THE PRESIDENT. DUE TO THE EXPERTISE AND EXPERIENCE, THE COMMUNITIES HAVE FOUND THIS TO BE A VERY EFFICIENT, PRO-ACTIVE AND COST EFFECTIVE METHOD OF PROVIDING LEADERSHIP AND SERVICE.”

“Other changes in net assets change in fair value of interest rate swaps 24,288”