Presbyterian Homes Inc.

“The Finance Committee of the Board is responsible for reviewing the Form 990. A copy of the Form 990 excluding Part VII and Schedule J was provided to each Finance Committee member. The Executive Committee of the Board reviewed the Part VII and Schedule J of the return and this information was approved as filed. The members had a question and answer period with members of management. The members then voted on approving the Form 990. The Finance Committee minutes included documentation of the process and discussion. The Finance Committee reported on the 990 to the Full Board. The Form 990 was available upon request to the other Board Members. The Full Board voted on approving the Form 990 based upon the Finance Committee's recommendation. The Board minutes included documentation of the process and discussion.”

“The conflict of interest policy is presented to the Board members annually for review and dated signature. Board members and management understand that no agreements are arranged to create a conflict of interest. Any noncompliance is discussed and noted in the Board minutes.”

“The Vice President of Human Resources compiles comparability data from an independent salary consultant to calculate a wage for executive positions and from an independent salary survey to calculate a wage at market average for all other positions. With the exception of providing a vehicle for the Assistant Secretary, Vice President of Operations, Executive Directors and Director of the Golf Course; all fringes offered are exactly the same as for any other employee. The executives' compensation is calculated using the executive compensation plan approved by the Board of Governors. The Assistant Secretary's compensation is reviewed by the Executive Committee of the Board for reasonableness and approval. All other wages are calculated following a budgeted amount which is approved by the Boards. This is documented in the Board minutes.”

“The organization makes its governing documents, financial statements, and conflict of interest policy available upon request at the home office. The financial statements and conflict of interest policy are also available online at www.ncdoi.gov.”

“The Presbyterian Homes, Inc provides assistance to residents through reduced monthly service fees and by participation in Medicaid. The funds received are included in resident fees at the net amount collected.”

“This includes miscellaneous expenses such as Corporate Allocation, maintenance and repair, and cost of therapies.”

“Transfers of Assets Between Communities (Glenaire, Inc): 13,023; Interest Rate Swap: -7,056,380”