United Methodist Homes & Services Foundation

“VOTING MEMBERS:”

“Two voting members of the governing body are not”

“independent because they are compensated in excess”

“of the threshold amount by this organization or a”

“related organization.”

“990 board review process:”

“Form 990 is completed by the CFO, then reviewed by”

“the CEO and the tax department of an external”

“CPA firm. Prior to filing, a copy is provided to”

“each Board of Director member for their review and”

“comment.”

“Conflict of interest policy:”

“Conflict of interest disclosure is regularly”

“reviewed, once a year, at a Board of Directors”

“meeting. The review covers all members of the”

“Board. Should a conflict exist, that Board member”

“is restricted from voting on any specific matters”

“related to the conflict.”

“COMPENSATION PROCESS:”

“The Compensation Committee, consisting of specific”

“Board of Director members, established a”

“compensation process which includes a review of all”

“staff members of the organization who are at a”

“certain level or higher. Their review takes place on”

“an annual basis, with the last one being completed”

“in 2018. The process includes the CEO,”

“and other key employees of our”

“organization. The specifics are as follows:”

“1. The committee determines which employees meet the”

“criteria of disqualified employees.”

“2. For each disqualified employee, their base salary is”

“compared to the 50th percentile for their respective”

“position on the LeadingAge annual salary survey.”

“UMH&S endeavors to pay at the 50th percentile for”

“our region.”

“3. The benefit package is compared to the industry”

“average to be sure we are competitive and consistent”

“with the market place.”

“4. A bonus plan is developed for employees at the”

“vice president level and above wherein both corporate”

“and individual goals are established. The committee”

“insures that the goals are both relevant and measurable.”

“5. The total compensation (base plus bonus) is intended”

“to approximate the 75th percentile from LeadingAge”

“survey.”

“PUBLIC DISCLOSURE:”

“The organization makes its governing documents,”

“conflict of interest policy, and financial”

“statements available to the general public by”

“providing copies of the documents, upon request.”

“Other changes in net assets:”

“Net Asset Transfers to related organizations -”

“Cmss - ($240,000); umh&s - ($50,000)”

“Change in Market Value of Trust Agreements - ($82,773)”

“Total - Other Changes in Net Assets - ($372,773).”

“Audit oversight and selection process:”

“The audit oversight and selection process did not change”

“from last year.”