The Capstone Group Inc and Subsidiarie

“Effective 1/1/17, healthcare of iowa and its affiliated organizations, such as assisted living partners, took over management responsibilities for all levels of care.”

“A majority of the members shall constitute a quorum for the transaction of business at any meetings of the members, provided, however that if less than a majority of the members are present at said meeting, a majority of the members present may adjourn the meeting from time to time without further notice. Each member present shall be entitled to one vote upon each matter submitted to a vote at any such meeting. Members may be removed, for cause, upon the affirmative vote of a majority of the remaining members in the event of the removal of a member. The remaining members may fill such vacancy or vacancies upon the affirmative vote of a majority of the remaining members.”

“There are no committees with authority to act on behalf of the governing body.”

“All board members review form 990 and share questions, which are addressed by the tax preparer. In addition, the final form 990 is provided to each member of the board of directors sufficiently prior to filing the form so that any final comments could be provided to the organization in time to permit any necessary revisions.”

“The organization has a conflict of interest policy that requires annual execution of a certification with respect to conflicts and routine disclosure if there is a conflict in connection with a matter that comes before the board. The board monitors and enforces compliance with this policy by requiring the annual certification and by reminding board members of their obligations with respect to conflict on an on-going basis. If a board member has a conflict of interest then they will not vote on the conflicting issue at hand.”

“The board met in private may 8, 2017 to discuss compensation for the president/executive director, who was absent during the discussion. The board reviewed the requirements of the position, the president/executive director's qualifications, and a compensation analysis based on the position as prepared by an independent consultant in kansas city, mo. The board then determined the president/executive director's salary to be reasonable and consistent with the company's executive compensation policy.”

“The governing documents, conflict of interest policy and financial statements are made available upon request.”

“Professional fees - therapy services: program service expenses 395,230. Management and general expenses 0. Fundraising expenses 0. Total expenses 395,230. Outside services - nursing : program service expenses 489,324. Management and general expenses 0. Fundraising expenses 0. Total expenses 489,324.”