Greencroft Retirement Communities Inc.

“The organization does not have members. The organization's sponsor, mennonite health services, appoints six of the nine directors of the board ("sponsor appointed directors"). A sponsor appointed director may be removed at any time with or without cause.”

“A final draft of the full form 990, including all applicable schedules, is presented by our tax advisors to the organization's audit committee at a regularly scheduled meeting. A copy of the final draft is then provided to each board member prior to its filing. This allows the board of directors and management to review and provide comments and explanations regarding changes to the redesigned form.”

“Board members and officers are required to annually disclose any conflicts of interest they may have with the organization. The treasurer reviews each policy statement signed by these individuals to determine if any conflicts have occurred and need to be brought to the attention of the board. If a conflict arises, the respective board member will abstain him/herself from any related discussion, vote or similar action on the matter.”

“Greencroft communities' (gc) philosophy is to compensate team members in a fair manner for the worth of work provided within the current market value range for each position in the organization. Gc will conduct periodic review of the market to develop average wages for positions within greencroft communities. Greencroft communities will start employees that meet the minimum requirements for the position at/or near the starting wage. Employees with experience in a job are hired higher up in the wage scale. A hiring grid is used for up to eleven years of experience. Our compensation philosophy for staff of our organization is based on the various tiers. The first tier is general and management staff. We have hired an outside consultant to develop a compensation system for all of greencroft communities' positions. The consultants developed a system with wage scales that use the marketplace average for key positions as the starting point for the scales. The wage scales have a minimum, a 25th percentile, a 50th percentile (average) a 75th percentile and a maximum. We strive to keep the average pay in the marketplace for positions at the mid-point of our pay range for a position developed by our consultants. Periodically we hire a consultant to update the marketplace average for several key positions. The consultant will use area marketplace data, leadingage data, and other industry data to develop the average. Our compensation philosophy for executive staff (vice presidents and above) of our organization is slightly different. The second tier is vice presidents. The wage scale system is the same for our staff. However, our policy states that vice presidents can earn up to the 85th percentile of the range for their position. Our third tier is senior vice presidents and ceo staff. The wage scale system is the same for our staff. However, there are two differences. First, the policy states that senior vice presidents and the ceo can earn up to the 75th percentile of the range for their position. The pay range uses the marketplace median as the mid-point for these pay ranges, not the marketplace average. Generally, the median is below the average. The board has also designed a qualified deferred compensation program for this tier of employee. Annually the board sets aside up to 10% of these employees' wages in this program. Annually the board reviews the salary and wage comparisons for each executive staff member. A fiscal year 2016 survey of our executive positions show the following breakdowns: vice president, senior vice president & ceo: number of employees in group 0 to 24th percentile 0 (0%) 25th to 49th percentile 1 (8%) 50th to 74th percentile 9 (69%) 75th to 100th percentile 3 (23%) the overall compensation policy, the vps compensation polices and the ceo compensation policy are approved by the greencroft communities (gc) board of directors. The various affiliates in the gc structure review the compensation policies. Annually the gc board and its affiliate boards review the compensation of their respective executive teams. They compare base wages and variable pay plan with national data provided by leadingage (formerly the american association of homes and services for the aging - aahsa). The boards review the current wage, the percentile ranking of the employee in his/her respective range and the median of the marketplace compared to the mid-point of the employee's range. The boards document these meetings and actions taken in their board minutes. The gc board has reviewed the base wage and the variable pay for the president and ceo of greencroft communities. In the fiscal year 2016 this position was, compared to similar size non-profit organizations, at the 56th percentile of the market for base compensation, the 51st percentile of the market for total cash compensation and at the 0 percentile of the market for the variable pay compensation. The leadingage/ziegler 2015 data shows total compensation to be $265,460 to $544,270.”

“Governing documents, financial statements, and conflict of interest policies are not required disclosures pursuant to internal revenue code (irc) section 6104. These documents are not available to the public at this time.”

“The audit process has not changed from the prior year.”