Northern Lights Services Inc.

“Under the terms of the 2007 restated lease agreement with bayfield county, wisconsin, bayfield county will appoint one member to the board of directors of northern lights services, inc. As the county's representative.”

“Under the terms of the 2007 restated lease agreement with bayfield county, wisconsin, any issuances of long-term debt are subject to approval by the bayfield county board.”

“The form 990 is prepared by an independent accounting firm and reviewed by the executive director prior to submission. The form 990 is provided to the board of directors for review and approval prior to filing.”

“Because northern lights services, inc. Is part of a small community, conflicts are generally known, if not disclosed through the annual conflict of interest review process conducted by the organization. The board of directors reviews annual conflict of interest statements which are completed by all management level employees, directors, and members of the board. During the review, the board of directors reviews any relationships that would create a conflict and looks for ways to minimize potential risks associated with these conflicts. Any board members with noted conflicts abstains from voting on potentially conflicted issues during board meetings.”

“The board of directors has an established process with respect to the review of executive compensation and to define compensation practices. Comparative data from long-term care wage surveys, area labor adjustments, and market rates in other area facilities are used in determining executive compensation. The personnel committee of the board of directors reviews and approves any exceptions to across-the-board raises and standard new hire wages, however these are also reviewed with the human resources director and with comparative wage and benefit surveys.”

“Northern lights services, inc. Makes its governing documents, conflict of interest policy, and financial statements available to the public upon request at its business location.”

“Delegation of control/management company explanation: northern lights services, inc.'s board of directors maintains the control over the monthly financial statements, strategic plan, budgets, and other key operating measures and goals. The board of directors has entered into a management services agreement with carriage healthcare companies, inc. (carriage healthcare), a long term care management company which contracts with healthcare facilities throughout the united states to provide management services on either a long-term or short-term basis. Under this agreement, carriage healthcare provides general administrative, consulting, and group purchasing services to northern lights services, inc. Carriage healthcare will manage all of northern lights services, inc.'s facilities, programs, and services based upon the written management services agreement under the direction of the northern lights services, inc. Board of directors.”

“The board of directors assumes responsibility for oversight of the audit of the financial statements and selection of the independent accountant. The board of directors reviews the annual audit reports with the independent accountant during their annual presentation each year. This process has not changed during 2013.”