Bhi Retirement Communities Inc.

“Process to review the form 990: the cfo and ceo have reviewed the 990. A draft copy of the 990 is made available to all board members for review prior to filing. The form 990 is also reviewed by an independent accounting firm prior to filing.”

“Process for monitoring compliance with conflict of interest policy: all bhi representatives are required to immediately disclose any potential or perceived conflict of interest at the time it develops by submitting a completed conflict of interest statement form. The statement shall be forwarded to the corporate compliance officer for review by the corporate compliance, internal audit, and risk management committee of the bhi board of directors. In addition, board of directors, officers, executive directors, and other designated persons are required to complete the conflict of interest statement to disclose or re-disclose any conflict of interest on an annual basis. In addition, the board of director members shall review and submit a signed code of professional ethics statement on an annual basis. The statements will be reviewed by the corporate compliance committee and will result in one of the following actions; the disclosed conflict shall be approved as submitted. The disclosed conflict shall not be approved as submitted and specific requirements shall be developed by the corporate compliance committee regarding actions to be taken by the individual to resolve the conflict. The disclosed conflict shall be approved with the requirement of specified procedures to be implemented and thereafter monitored by the corporate compliance committee to ensure proper management of the identified conflict.”

“Review of ceo and management compensation: the personnel committee recommends salaries of the ceo, cfo, and top management officials to the board of directors for approval. The committee reviews salaries in the context of similar not-for-profit organizations, performance and job descriptions. This process was last conducted november of 2019.”

“Governing documents available to the public: the form 990 is available upon request at the main office, 5415 bearberry lane, indianapolis, in 46268. The other governing documents have not generally been made available to the public.”

“Other changes in net assets or fund balances: additional investment from bhi senior living, inc $12,500,000 loss from sl development, inc. (563,533) income form bhi home care, inc. 507,090 income from wesley manor, inc. 62,893 loss from barrington of carmel (465,578) loss from heart in home (436,160) ---------- $11,604,712”