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 made available to all voting board members before it is filed with the irs.”

“The organization's 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.”

“In october 2018, hearthstone's sweet bay facility was severely impacted by hurricane michael. In april 2019, after discussions with its insurance company, hearthstone's management and landlord determined that the sweet bay facility would not be rebuilt. In connection with the closure of the sweet bay facility, hearthstone's consolidated statement of operations and changes in net assets included a loss on disposal of furniture, equipment, leasehold improvements and proceeds from insurance company in other income, net.”

“Temporary help: program service expenses 663,358. Management and general expenses 0. Fundraising expenses 0. Total expenses 663,358. Ancillary sercives: program service expenses 9,969,750. Management and general expenses 0. Fundraising expenses 0. Total expenses 9,969,750. Nurse consultants: program service expenses 110,341. Management and general expenses 0. Fundraising expenses 0. Total expenses 110,341. Housekeeping & laundry: program service expenses 2,186,556. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,186,556. Food service: program service expenses 4,744,253. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,744,253. Lab & x-ray: program service expenses 285,710. Management and general expenses 0. Fundraising expenses 0. Total expenses 285,710. Other professional fees: program service expenses 475,503. Management and general expenses 168,368. Fundraising expenses 0. Total expenses 643,871. Payroll processing: program service expenses 0. Management and general expenses 108,055. Fundraising expenses 0. Total expenses 108,055. Consulting fees: program service expenses 2,327,453. Management and general expenses 678,814. Fundraising expenses 0. Total expenses 3,006,267. Financial services: program service expenses 0. Management and general expenses 2,812,519. Fundraising expenses 0. Total expenses 2,812,519.”

“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.”