Hearthstone Senior Communities Inc.

“There are no committees with the authority to act on behalf of the governing body.”

“The form 990 is reviewed by the board president and the consulting company. The return is provided to all voting board members before it is filed with the irs.”

“The organizations conflict of interest policy is contained in the employee handbook. The policy extends to the organization's officers and directors. The organization's board of directors monitors and enforces compliance with the conflict of interest policy through its annual disclosure process. The board reviews actual conflicts that are identified and prohibits officers and directors from voting on matters where actual conflicts exist.”

“The board of directors has the authority to fix the compensation of the organization's executive director as well as other officers and key employees. The compensation levels are set based on consultation with the consulting company. All parties are independent with respect to the compensation decisions. Compensation levels are set based on current market conditions, the economy and funding sources.”

“The organization makes its governing documents and financial statements available to the public upon request.”

“Medical & social services: program service expenses 342,846. Management and general expenses 0. Fundraising expenses 0. Total expenses 342,846. Consulting: program service expenses 2,333,195. Management and general expenses 1,027,439. Fundraising expenses 0. Total expenses 3,360,634. Rehabilitation: program service expenses 7,787,599. Management and general expenses 0. Fundraising expenses 0. Total expenses 7,787,599. Housekeeping & laundry: program service expenses 2,670,124. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,670,124. Lab & x-ray: program service expenses 305,332. Management and general expenses 0. Fundraising expenses 0. Total expenses 305,332. Transportation: program service expenses 225,081. Management and general expenses 43,707. Fundraising expenses 0. Total expenses 268,788. Other contract services: program service expenses 1,906. Management and general expenses 126,898. Fundraising expenses 0. Total expenses 128,804. Financial service consulting: program service expenses 0. Management and general expenses 2,082,316. Fundraising expenses 0. Total expenses 2,082,316. Temp labor - nursing: program service expenses 100,550. Management and general expenses 0. Fundraising expenses 0. Total expenses 100,550. Activities: program service expenses 22,400. Management and general expenses 0. Fundraising expenses 0. Total expenses 22,400.”

“Oversight of audit and selection of independent accountant: the responsibility for oversight of the audit and selection of an independent accountant is assumed by the governing body. This process has not changed in any way from the prior year.”