Commission on Accreditation of Rehabilitation Facilities

“The initial draft form 990 is prepared by an independent, external accounting firm. The draft is then reviewed in detail by carf's senior management and any changes/corrections are reviewed with the accounting firm. The completed form 990 is provided to the audit committee of the carf board of directors for review and comment prior to filing. The audit committee is composed of the board of directors as a whole.”

“Carf has written conflict of interest policies incorporated in its employee handbook, corporate compliance manual and board governance policies. Annually, board members, officers and key employees are provided with a statement requiring acknowledgement of the policy and disclosure of any actual and potential conflicts. All identified conflicts are reviewed for any necessary follow-up and/or appropriate action. The corporate compliance manual provides for mandatory reporting by any employee who has reasonable belief that a violation has occurred. All reported violations are investigated and appropriate actions are taken. All carf employees are provided access to the employee handbook and corporate compliance manual upon hire, and are required to acknowledge receipt and agree to abide by all company policies, including the obligation to report potential compliance violations. Employees are also provided ongoing mandatory training regarding corporate compliance on a periodic basis”

“Carf uses an independent human resources consulting firm that is an expert advisor on compensation. Carf has implemented a job evaluation/measurement methodology and receives annual recommendations based on extensive comparability data. Compensation actions related to the president/ceo are exercised by the executive compensation committee of the board of directors. In determining total compensation, the committee obtains and evaluates compensation references including, but not limited to market comparator data and functionally comparable positions. In doing so, the committee considers the reasoned, written opinion of an independent compensation consultant. The duties of the executive compensation committee also include an annual review of the compensation of all other officers, whose compensation is determined by the president/ceo based on comparability data and other factors.”

“Carf makes available for public inspection its current articles of incorporation, bylaws, conflict of interest policies, and financial statements, upon advance written request that identifies the documents to be inspected, the name of the individual to conduct the inspection, the entity represented by the individual, if any, the purpose of the inspection, and the requested inspection date. Notwithstanding the foregoing, carf shall deny any such request if it determines, in its sole discretion, that the inspection is for commercial purposes or cannot be accommodated on the date identified, or the date identified is less than 10 days from receipt of the request. All inspections shall occur in person during normal business hours.”

“The organization (carf) receives management fee income and license fee income from carf canada and carf europe, the related tax-exempt organizations which have the same exempt purpose as carf. Carf provides management services and the use of its publications and other intangible assets to carf canada and carf europe in order to further their exempt purpose. Carf canada and carf europe do not have any unrelated business income. Therefore, this income is related to carf's tax exempt purpose and is not unrelated business income.”

“Pension related changes other than net periodic pension costs -945,328.”

“There has been no change in the oversight process for the audit of the financial statements or the selection of an independent accountant.”