Friendship Foundation

“An independent accounting firm prepares the form 990 and forwards it to the cfo and ceo for review. The cfo and ceo return the form 990 to the cpa to resolve questions and make changes. The form 990 goes back to the cfo and ceo to ensure questions and changes have been made. A copy of the form 990 is then provided to each board member by the cfo approximately two weeks prior to the due date. They are given one week to review and forward questions to the cfo. Review questions are resolved and the form 990 is filed.”

“The policy is included in both the employee handbook and the code of conduct, which is issued to and discussed with each employee and board member. An annual letter affirming the policy and asking for written declarations of any potential conflicts is sent to all board memebrs and approximately 20% of employees (all managers, business office staff, purchasing department staff, human resources staff, etc). Responses are reviewed by the corporate compliance officer, reported to the board, and acted upon as needed. Also, the corporation is aware of the business affiliations of officers and directors and ensures that each is aware of the affiliations. Whenever discussions occur in which a conflict exists, the individual recuses themself from the proceedings so the other members can discuss the matter freely. Each year at its corporate governance committee meeting and annual board meeting a report is made to the board of directors describing the business affiliations and any business transactions that occurred during the year between the corporation and the external businesses in which the directors or officers are involved.”

“The compensation committee of the board routinely engages an external consultant to review benchmark compensation data for the ceo and other key management positions. A number of nationally recognized salary surveys are utilized as part of this process and the consultant's written report is received by the compensation committee and the full board annually. The compensation committee reviews the compensation for each member of this group utilizing the benchmark data and any adjustments in compensation are recommended from the compensation committee to the full board for consideration and approval.”

“Upon request, the company will provide copies of governing documents, policies, financial statements, and form 990s to persons asking for the documents.”

“The organization shares board members and officers with related organizations. The average hours a week that each individual spends with each organization is as follows: valley management co, inc: edwin r. Feinour 2.62 edgar k. Baker .59 glen c. Combs .66 lucian y. Grove, jr .66 robert c. Lawson .87 robert h. Sandel .87 cynda a. Johnson .44 kathryn k. Oelschlager .87 joseph m. Hoff 40.00 c. Michael shannon 40.00”

“Friendship health and rehab, inc, ein 23-7126857 is the paymaster for ten related c corporations which have employees. This corporation pays all employees and prepares and files all required federal payroll returns. Each corporation and its employees are as follows: friendship health and rehab center inc 461 employees friendship apartment village corp 20 eastwood assisted living, inc 83 professional health care services, inc 73 friendship pharmacy, inc 33 valley management co, inc 37 ltc services, inc 27 friendship outpatient & wellness services, inc 11 friendship foundation 20 friendship health and rehab center south 312 total 1,099”

“The corporation participates in a consolidated audit with affiliated companies reported on schedule r. When finished, the audited statements are presented to the finance committee and the board of directors by the external auditors.”

“The process has not changed from the prior year.”