Life Enrichment for the Elderly Inc

“The Executive Director/COO, VP of Finance, and VP of Operations are employed by Avinity Services Company, a related tax exempt organization. Bob Brooke, John Bergeson, Hannah Brandes, Tamara Tasche, and John Doyle are also board members of Avinity Services Company. Therefore, a business relationship exists between these individuals.”

“Avinity Services Company provides business management services and other support functions, including personnel, property, and financial management. The Executive Director/COO, VP of Finance, and VP of Operations are employed by Avinity Services Company. Refer to Part VII for compensation paid by the related organization.”

“The organization does not have any committees with the authority to act on behalf of the governing body.”

“Prior to the Form 990 being filed, it will be provided to all members of the Board of Directors for their review. It will also be reviewed by the VP of Finance.”

“The conflict of interest policy requires that all board members, officers, other volunteers and employees must fully disclose all areas of interest where potential conflict(s) may exist and that this disclosure should take place prior to any transactions being consummated. Transactions with parties with whom a conflicting interest does exist, may be undertaken only if all of the following are observed: 1. The person with the conflict of interest is excluded from the discussion and approval of such transaction; 2. A competitive bid or comparable valuation exists; and 3. The Board, Executive Director/COO, or Vice President of Finance has determined that the transaction is in the best interest of the organization. To help ensure compliance with this policy, all board members and all employees are required to complete a conflict of interest disclosure statement, which is reviewed by the Executive Director/COO or Vice President of Finance for indication of any potential conflicts of interest. If any material conflicts of interest are determined to exist, they are dealt with on a case by case basis and are brought to the Board of Director's attention, as appropriate.”

“Compensation for the Executive Director/COO and all other officers and key employees are determined by a related organization that has policies in place for determining compensation.”

“The financial statements are available upon request. The governing documents and conflict of interest policy may be made available on a case by case basis if requested.”

“On August 22, 2019, Avinity closed on the sale of the assets of the Organization for $5,300,000, less the outstanding balance of the HUD insured mortgage which was assumed by the purchaser. Assets included in the sale are the property and equipment, restricted deposits and funded reserves, escrow deposits, tenant security deposits, and the Hibbing Foundation funds. The Organization will retain the cash, receivables, accounts payable, and accrued expenses. At August 21, 2019, other accrued liabilities included $25,000 of earnest money received on the sale. The Organization recognized a gain associated with the sale of $3,465,229.”

“Change in Fair Value of Endowments -6,039. Transfer on Sale of Subsidiary -195,378. Intercompany Distributions -1,286,786.”

“The Board of Directors of Avinity, Inc. assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant.”