Hearthstone Senior Communities Inc.

“The filing organization has delegated management duties over its financial operations to kane financial services, llc pursuant to a board-approved agreement.”

“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.”

“Purchased medical services: program service expenses 16,010,388. Management and general expenses 0. Fundraising expenses 0. Total expenses 16,010,388. Consulting fees: program service expenses 0. Management and general expenses 766,063. Fundraising expenses 0. Total expenses 766,063. Environmental services: program service expenses 2,279,267. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,279,267. Payroll processing fees: program service expenses 0. Management and general expenses 93,413. Fundraising expenses 0. Total expenses 93,413. Nutrition services: program service expenses 4,070,239. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,070,239. Other professional fees: program service expenses 16,918. Management and general expenses 17,298. Fundraising expenses 0. Total expenses 34,216.”

“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.”