Covenant Living Communities and Services

“The members are the individual members of the board of benevolence.”

“The board of benevolence approves the covenant living communities and services' (clcs) board of directors. Clcs elects the board of directors.”

“S 2.4 of bylaws include reserved powers to the members such as appointment of president of covenant living communities and services, changes to mission and strategic plan, approval of certain acquisitions, dispositions and financings, changes to articles and bylaws.”

“Management review: the draft form 990 was reviewed by multiple levels of management including the chief financial officer. The general counsel also reviewed select returns. Board review: prior to filing, the form 990 process was reviewed with the board of directors at the board meeting and the final form 990 was provided to each board member.”

“Covenant living communities and services has an administrative policy on conflict of interest, identifying the parameters of a conflict of interest and the requirement to disclose any such conflict of interest. The covenant living policy is distributed annually to covenant living board members and officers. They are asked to sign acknowledging receipt of the policy and to disclose if they have any conflict of interests. If someone is absent from the meeting or fails to return the acknowledgment, there is a follow-up with the individual until the signed acknowledgment is provided. In addition to the above, a separate and more comprehensive questionnaire is sent to the board members, officers, key employees and other interested persons. The completed questionnaires are reviewed by covenant living's legal counsel to determine if any actual or potential conflicts exist. If a person becomes an interested person, he or she may be considered in determining whether a quorum is present. The interested person may make a short statement relating to the transaction or arrangement in question, but shall not be present during the discussion and shall not vote on the motion addressing the actual or potential conflict.”

“Covenant living communities and services' board of directors has duly appointed an executive compensation committee (the "committee"), which is responsible for the review and approval of all compensation and benefits provided to covenant living's executive management. The committee has adopted a written executive compensation philosophy statement and an executive compensation committee charter governing the work and review process of the committee. The committee follows the procedures described in the philosophy statement and the charter when it reviews and approves the compensation and employee benefits provided to the covenant living's senior management. The committee's review analyzes every element of compensation, including current and deferred compensation, and benefits, including qualified and non-qualified benefits. The committee conducts its review and approval process at least annually, and approves compensation and benefits only to the extent that the committee has concluded that the compensation and benefits constitute no more than reasonable compensation for each executive. The committee consists entirely of disinterested members of the board, and the committee works with an independent compensation consultant to prepare and review in advance comprehensive data showing the compensation provided by similarly situated organizations for functionally similar positions. The committee also prepares a timely and thorough written record of its deliberations and conclusions. As a result, the committee's review process is designed to satisfy the procedural criteria necessary to qualify for the rebuttable presumption of reasonableness under the federal income tax law intermediate sanctions rules. The resources utilized by the compensation committee include: 1) independent compensation consultant; 2) compensation survey or study; 3) approval by the board or compensation committee”

“The governing documents, conflict of interest policy and financial statements are available upon request by contacting the covenant living communities and services finance department at 773-878-2294.”

“As a ministry of the evangelical covenant church, covenant living communities and services celebrates god's gift of life in christian community. We follow the great commandment to love and serve god and one another as taught by jesus christ. That compels us to affirm the dignity of each person and to pursue excellence and financial integrity in all that we do. As we provide a broad range of resources, services and programs to enhance individual and community wellness, we collaborate with residents and families to achieve the best possible results. While seeking to foster independence, we respond to each individual's evolving needs in order to provide the security that assures peace of mind. Covenant living is organized and operated for the benefit of, and to plan and support the charitable purposes of, multiple continuing care retirement communities, all nonprofit organizations, consisting of residential living, assisted living, assisted living memory care, and skilled nursing, as well as other senior care organizations and services. In addition to the program service accomplishments of each organization, covenant living communities and services provided $5,476,074 of free or discounted services to those residents unable to pay all or a portion of their charges, and who meet certain eligibility requirements. Covenant living communities and services also provides services to medicaid recipients at a cost greater than the reimbursement provided. In the year ended september 30, 2024, the amount of cost in excess of medicaid reimbursement was $18,720,418.”

“Transfer to three crowns park -300,000. Change in present value of irrevocable trusts 1,232. Transfer to covenant living west -17,830,468.”

“Pursuant to sec. Ix.b. Of irs notice 2008-113, as amended (the notice"), covenant living communities and services provided the following information ("statement") to terri cunliffe concerning an inadvertent error that occurred in her 2022 tax year: 1. Identification of the nonqualified deferred compensation plan. An inadvertent operational failure occurred with respect to the nonqualified deferred compensation plan known as the capital accumulation account benefit under the covenant ministries of benevolence flexible benefit plan (the "plan"). 2. Description of the inadvertent operational failure. On or about september 1, 2022, terri was due a distribution of plan benefits, with respect to her 2000 and 2001 services, in a gross amount of $20,846.81. That gross amount was debited from her plan account (and hence no subsequent investment earnings accrued thereon), but due to an inadvertent administrative error, the distribution to her was not completed at the time. The distribution was completed later, on or about april 23, 2024. 3. Preventing recurrence. As of the date of this statement, (i) administrative review of her plan account has been completed and future dates of distribution have been noted; and (ii) the plan administrator and the service recipient have established a process for carefully directing, and double-checking the work of, personnel who have plan distribution processing responsibilities. Additionally, service recipient representatives and terri have conferred and agreed that in the future, terri will follow up on future plan distributions in advance of their due dates and will promptly alert the plan administrator if she has reason to believe that a distribution is not being timely and correctly processed. The foregoing steps to avoid recurrence of the error were completed on or about march 31, 2024. 4. Entitlement to relief. The inadvertent operational failure described in this statement is eligible for correction under the terms of the notice. The service recipient has taken all actions required, and otherwise met all requirements, for such correction. With respect to the above-described inadvertent operational failure, terri was entitled to the relief provided in sec. Vii.d. Of the notice. 5. Filing this statement. Terri was directed to attach this statement to her timely-filed (including extensions) original federal income tax return for the year in which the failure was discovered (i.e., timely-filed (including extensions) 2024 original federal income tax return). Additionally, terri was advised that she may attach this statement to her 2022 federal income tax return. 6. Notice to the irs in the event of a future audit. When relying upon the relief provided in sec. Vii.d. Of the notice, terri was notified that she must make reasonable efforts to provide notice to the irs examining agent upon the future commencement of any examination of her income tax return(s) that she was relying upon the relief provided under the notice for tax years covered by the examination. Such tax years could include the 2022 and/or 2024 tax years. 409(a) relief under sec. Vii.d. Of notice 2008-113 pursuant to sec. Ix.b. Of irs notice 2008-113, as amended (the notice"), covenant living communities and services provided with the following information ("statement") to terri cunliffe concerning an inadvertent error that occurred in her 2023 tax year: 1. Identification of the nonqualified deferred compensation plan. An inadvertent operational failure occurred with respect to the nonqualified deferred compensation plan known as the covenant ministries of benevolence supplemental executive retirement plan (the "plan"). 2. Description of the inadvertent operational failure. On or about january 4, 2023, certain prior contributions to terri's plan account, plus accrued earnings thereon, in the total amount of $36,568.90 became vested. Under code 457(f), that amount became immediately subject to all applicable employment taxes. To supply t”