Southminster Inc.

“All board members are nominated by a nominating committee of the board, but such nominees are subject to approval by the governing bodies of the organization's two founding churches prior to election by the board.”

“A copy of the final form 990 will be distributed to all members of the board of directors prior to being filed. Any comments or questions will be directed to management.”

“Directors of the board sign conflict of interest policy/declarations each year. If there is a concern that a transaction may rise to a conflict of interest, it is proactively raised with the board for discussion/approval.”

“The compensation of the president is reviewed annually by the executive committee of the board of directors of southminster, inc. As part of a comprehensive review of the president's performance against agreed-upon goals. Changes to compensation of the president are recommended by the executive committee to the board and are approved by the board. Compensation of key employees other than the president is reviewed and approved by the president. Competitive compensation information is obtained from independent sources, such as guidestar, to ensure that compensation is reasonable in relation to the marketplace.”

“The organization's financial statements are available to the public through electronic municipal market access, a source for municipal disclosures and market data. In addition, the organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“No changes in the process from prior year.”

“Generally accepted accounting principles (gaap) require that the organization record entrance fees received as deferred entrance fee revenue. The deferred revenue on these contracts are recognized as income over the actuarially determined life of the resident. That method of accounting for entrance fee revenue is present in the line 2 amounts, resulting in only a portion of the entrance fees paid being recognized as revenue in any given year. In contrast, prior to this year's tax return, the organization had shown the total of all monthly service fees and the entire entrance fee paid by each individual that exceeded the threshold amount on line 13 for that year. The result was that in years past, the organization has excluded too much on line 7b. For the september 30, 2014 tax year, the method used to calculate line 7b was the same as the method to calculate line 2. The result is that the organization has properly captured the exclusion amount for the 2013 tax year and will continue to utilize this method of accounting going forward.”