Sun Health Colonnade

“The board of directors retains Sun Health Senior Living, LLC, a related entity, to manage the operation of the facility. Sun Health Senior Living, LLC is member owned by Sun Health Services, Sun Health Colonnades sole member.”

“The organization has a board of directors, elected to serve a term of three years or until resignation or removal. The terms of the directors are staggered such that approximately one-third of the directors are elected each year. Directors are eligible to serve a maximum of three consecutive terms without regard to partial terms due to staggering or filling vacancies.”

“Certain reserve powers are maintained by Sun Health Services as sole member. These reserve powers include the power to elect the board of directors of the organization, to remove any director upon written notice to such director and to the chairman of the board and to hire or terminate the president and chief executive officer of the organization upon written notice to such individual and the chairman of the board.”

“The Form 990 is prepared by management and reviewed by the organizations independent accountant, Plante Moran, PLLC. The return is then reviewed by the Audit Committee of the board of directors and provided to the full board of directors for comment prior to the filing of the return.”

“On an annual basis board members and management staff are required to submit a conflict of interest questionnaire for board and management approval, as appropriate. The questionnaire provides specific instructions that the form must be updated if any situation arises during the year that might constitute a conflict. The Audit Committee has responsibility for intervening, if necessary, on conflict of interest matters. Any individual found to be in conflict will abstain from the decision making process.”

“The Management Review Committee, as provided in the Sun Health Services by-laws, has responsibility for the compensation of all senior management. Annually, salaries of senior management are reviewed and approved by the organizations board of directors. The deliberation and decision of the compensation arrangements is contemporaneously substantiated in the organizations minutes. An independent compensation consultant is retained by the organization to assist with the determination of the compensation and benefits for all senior management. The compensation review process was last undertaken in 2016.”

“Governing documents and conflict of interest policies are generally not made available to the public. Financial statements are available upon request.”

“These individuals devote weekly time to the following organizations Ronald D. Guziak, 28 hours to Sun Health Services, 20 hours to Sun Health Foundation and 2 hours to Sun Health Partners William T. Sellner, 40 hours to Sun Health Services, 6 hours to Sun Health Partners and 4 hours to Sun Health Foundation Sharon Grambow, 15 hours to La Loma Senior Living Services, Inc., 15 hours to Sun Health Colonnade, 15 hours to Sun Health Grandiew Terrace, LLP and 5 hours to Sun Health Services. Mr. Guziak and Mr. Sellner also contribute time Sun Health Grandview Terrace, LLP and La Loma Senior Services, Inc. All board members devoted time to Sun Health Services, a related organization, with an average of 2 hours per week. The following board members devoted time to Sun Health Foundation, a related organization Gerald Solomon, 5 hours Herman Orcutt, 2 hours and L. Birt Kellam, 2 hours.”

“Sun Health Colonnade has a management agreement with Sun Health Senior Living, LLC under which the organization pays a percentage of gross revenues, with a minimum amount established, as defined in the agreement. In addition, Sun Health Senior Living, LLC employs all of the personnel who work for the organization and incurs other direct costs on behalf of the organization for which the organization reimburses Sun Health Senior Living, LLC based on actual costs incurred. During the period, the organization incurred management fees and reimbursable expenses totalling 3,074,923.”

“Sun Health Colonnade created a life care at home program in fiscal year 2016 entitled Sun Health at Home. This program offers selected care and amenities of a senior living life care community within a members home. The program offers in-home services and the opportunity for assisted living, memory support and custodial care, depending on the contract executed.”

“Other changes in net assets and fund balance consists of the following return of capital invested by sole member, Sun Health Services, 8,000,000.”