Homewood at the Shenandoah Valley

“The form 990 is provided to the chief financial officer of the parent organization and to the executive compensation committee of the board of trustees for review and comment before the form is filed. The other members of the board of trustees are notified that the form 990 will be filed and is available upon request for their review.”

“Executive compensation philosophy: the executive compensation committee serves in a governance and oversight role for the homewood board of trustees to ensure that homewood maintains executive compensation strategies and practices that are compliant with regulations, prudent within the homewood's resources and ability to honor its commitments, internally equitable, and are externally competitive. The committee will review the executive compensation philosophy annually and make any recommendations to the trustees for final approval. The independent executive compensation committee of the homewood retirement centers board of trustees, as designated in the by-laws, will determine the total compensation philosophy and compensation packages for senior management (president/ceo and vice presidents.) the executive compensation committee will be structured, and will operate, in a manner intended to satisfy the requirements of the irs "intermediate sanctions" rules. Homewood's goal for salary ranges andincentive plans are linked to the mid-point of the 70th percentile and a 25% spread is used to establish the range minimum and maximum to the market levels for ccrcs and senior housing/services organizations reflecting regional and national benchmarks. Deferred or supplemental benefits/compensation plans will be used to support retention and smooth succession planning for senior management with benefit levels targeted at 70th percentile market levels for the ceo and for the vice presidents and the foundation president. Benefits and perquisites for senior management will reflect 70th percentile market practices. The executive pay plan architecture used for implementation of this philosophy will be approved by the executive compensation committee from time to time. The ceo will be responsible for making recommendations to the committee concerning subordinate pay, ensuring that those recommendations reflect homewood's overall philosophy. The executive compensation committee will keep the full board informed of key decisions, and will consist of independent decision makers who do not perform paid services for homewood, who are not related to the executives and who otherwise meet the "no conflict-of-interest" rules of the irs intermediate sanctions rules. Trustees approved: september 2006, december 2012, april 2015, march 22, 2018, june 3, 2021. Executive compensation plan architecture: homewood's executive reward plan is designed to support a "best practices" approach to the governance of executive pay utilizing the following components: 1. Total compensation practices will be benchmarked to comparable ccrcs and senior housing/service organizations with similar missions and growth strategies reflecting regional and national results at the 70th percentile market levels for total annual cash compensation, with earnings opportunities tied to mission, performance, and growth goals. Multiple surveys will be used to identify themes and trends. In developing the organization's executive salary ranges, the competitive market data is used to establish the range midpoint, and a 25% spread is used to establish the range minimum and maximum. (10% above and 15% below the target). The lower portion of the range is where less experienced executives (i.e., new to the position) are compensated. The middle of the range, immediately around the target (or "going rate"), is where fully experienced executives who meet all performance expectations should be remunerated. Executives who are highly experienced and consistently exceed job expectations should be paid in the upper portion of the range. Minimum new or little experience; partially meets expectations midpoint (target) experienced; meets expectations maximum fully seasoned; consistently exceeds expectations 2. Performance appraisal - the chair and vice chair of the board of trustees will oversee the preparation and presentation of the performance appraisal for the ceo annually. Performance appraisals for th”

“Wage administration guidelines for the calendar budget year 2022: homewood's wage administration program looks at base pay rates that take into consideration if it is: o internally equitable. O externally competitive. O affordable/cost effective. O legal/defensible. O understandable. O appropriate for the organization. O appropriate for the workforce. Homewood's wage administration program applies principles to assist in the retention and recruitment of co-workers. Homewood's goal is to pay wages in the 60th percentile in the long-term care industry for most positions taking into consideration the geographic area. Some positions require a higher percentage due to market conditions. Homewood will use the pa leading-age state wage survey to benchmark starting wages, implement market wage adjustments and review wage ceilings. Other wage surveys will also be used to compare data in our industry as well as other industries. Homewood's goal for the starting wage and average wage will be the 60th percentile. When either the average wage or starting wage does not meet this standard a market wage adjustment will be considered. It is at homewood's discretion to have a higher percentile than the 60th for some positions. A market adjustment is considered when a specific position is determined to be below the 60th percentile for that geographic area. The market adjustment is determined by the dollars needed to reach the 60th percentile. A fixed dollar amount is given to co-workers in that job category. Homewood's goal and practice is to limit wage increases for co- workers at or above the 95th or above percentile of the pa leading-age state wage survey for that particular position. Wage increases for co- workers at or above the 95th percentile will receive 50% of their performance wage increase. Homewood's underlying philosophy for wage increases will be based on performance, on the position, on the current pay rate and market comparisons. Homewood evaluates and considers each co-worker's current pay before determining the appropriate wage adjustment. The wage administration program is provided to serve as a guideline in a systematic approach to wage adjustments. Wage increases for the calendar year 2023 are separated into the following three components: 1. The average wage of each job category (or another determined wage based on wage surveys) will be used as the basis to establish the wage increase. A pay grid is established for each position which has a dollar/cents amount linked to the evaluation points. Wage adjustments are administered based on the co-worker's performance and does not take into consideration longevity. Example: if all co-workers in a job category have the same total points from the evaluation they all will receive the same dollar/cents per hour increase. 2. An additional increase may be approved if particular position(s) are determined to be below the market value for that area. This increase is not reflective of the co-worker's performance or longevity. It is solely based on the need to become more competitive with the salary. The vice president-human resources will make initial recommendations for market adjustment consideration. Site executives will then make final recommendations to the vice president-human resources for senior management final approval. All market adjustment requests by the site executive(s) must be provided to the vice president-human resources for the budget process and prior to september. 3. The following will be used for the department director positions. An increase of up to a maximum of 3.25% may be awarded where performance exceeds the norm in all areas and is documented in writing in the performance appraisal process. This increase would be consistent with other director's whose performance is similar. The performance wage adjustment grid will use the parameter of the average wage being set at 2.75% for the 2023 year. Co-workers actively employed as of january 1, 2023 may be eligible for”

“The organization makes the governing documents, conflict of interest policy, and financial statements available to the public upon request. Much of the information is made available to the residents as part of the disclosure statements required by the states.”

“Statement regarding corporate structure: as of december 31, 2022 the homewood group of companies consists of a parent corporation, six subsidiary operating companies, and a subsidiary foundation. This corporation structure results from the restructuring of a former single corporation effective january 1, 1996. The companies constituting the homewood group are as follows: parent: homewood retirement centers, inc. 52-1892688 subsidiaries: homewood at williamsport md, inc. 52-0619001 (former single corporation before restructuring) homewood at hanover pa, inc. 52-1931788 homewood at martinsburg pa, inc. 52-1931790 homewood at frederick md, inc. 52-1931794 homewood foundation, inc. 52-1892689 homewood at spring house estates, inc. 20-5189952 (became part of the group in 2007.) homewood at shenandoah valley, inc. 26-2624652 (became part of the group in 2008.) as required by the internal revenue service, each company in the homewood group files a separate form 990. Homewood retirement centers, inc., the parent company, serves each of the subsidiary companies with administrative support, centralized accounting including billing and collection, computer and technical support, human resources, purchasing, and fundraising through the homewood foundation. Accordingly, approximately 95% of its functional expenses are reported as "management and general" on its form 990. The remaining 5% is allocated to "program services" with less than 1 % allocated to fundraising related activities. The subsidiary operating companies have the sole purpose of providing services to clients. Accordingly, approximately 90% of their functional expenses are reported as "program services" on their respective form 990. The remaining 10% is allocated to "management and general" with less than 1 % allocated to fundraising related activities. The subsidiary foundation is involved in promotional and public relations support for the operating companies and fundraising activities for the benevolent fund. In addition, the foundation manages investments and makes grants to the operating companies in support of charity services. The foundation classifies grants and depreciation expense as "program services- and allocates other expenses between "management and general- and "fundraising".”

“Homewood retirement centers have consistently participated in and have helped to develop programs that serve the broader community, those with limited resources, as well as its own residents. As a not-for-profit, tax-exempt organization, homewood retirement centers from its very beginnings has provided resources to help serve our community while also providing opportunities for community members to learn from and interact with senior citizens. In 2022 homewood retirement centers celebrated 90 years of service to seniors. From our genesis, we have accepted our responsibility as a non- profit, faith-based organization, to be accountable to our local communities and have taken pride in engaging the community and living out our mission in creative and meaningful ways. In prior years the organization has reported a summary of the yearly activities for each location from its annual social accountability report, "the spirit of giving." however, due to the covid-19 pandemic, the social accountability report was not issued for the past three years (2020, 2021, and 2022.) all homewood campuses and buildings were closed and only authorized personnel were permitted. Volunteers were unable to perform in any capacity in 2020 and in limited capacity in 2021 and 2022. It is the hopes of the organization to be able to return to its normal activities and issue a report for 2023.”

“Form 990, part v, line 1(a), regarding number of u.s. Information returns: no u.s. Information returns are filed by homewood at the shenandoah valley, inc. The parent organization, the homewood retirement centers, inc., processes all the payables for the subsidiary organizations and processes and files all of the u.s. Information returns. Form 990, part v, line 2(a), regarding number of employees: homewood at the shenandoah valley, inc. Had no employees that were paid by the parent organization, homewood retirement centers, inc. The parent organization, the homewood retirement centers, inc., processes the payroll for all of the subsidiary organizations. All of the payroll tax reports are submitted by the homewood retirement centers, inc.”

“Impairment on assets held for sale -39,535”