Provident Resources Group Inc

“Provident Resources Group Inc. does contract with third party management companies to oversee day to day operations for some of its properties. However, the management company does not act in their capacity to perform the functions typically done by officers or directors. These properties have committees that make recommendations to the officers and directors of Provident Resources Group Inc.. The Provident Resources Group Inc. officers and directors have the ultimate authority to make these decisions.”

“Board-Delegated Power Committees of Directors; Executive Committee: Pursuant to Section 14-3-825 of the Act, the Board of Directors, by resolution passed by a majority of the Directors then in office, may designate one or more other committees to have to the extent provided in such resolution. The Board of Directors may designate and exercise the Board of Director's authority under Section 14-3-801 of the Act ("Board-delegated powers") such committees as it determines necessary or appropriate for the conduct of the Corporation's affairs, each such committee to consist of such Directors of the Corporation and such other persons (who formerly were members of the Board of Directors) as are appointed by the board who shall serve at the pleasure of the Board of Directors. Except to the extent that such grant of powers is limited by Section 14-3-825 of the Act, to the extent provided in the resolution, any such committee with Board-delegated powers will have and may exercise all the authority of the Board of Directors granted to it by resolution of the Board of Directors. Such committee or committees will have such name or names as may be determined from time to time by resolution adopted by the Board of Directors. Each committee shall elect a chairman from among the members of such committee. Each committee shall also keep regular minutes of its proceedings and report the same to the Board of Directors when required. The Board of Directors may, by resolution passed by a majority of the Directors then in office, at any time change the members of; fill vacancies in; limit, expand or alter the authority of; and discharge any committee of said Board of Directors. The Board of Directors may, but shall not be required to, create an Executive Committee of the Board of Directors. If created, the Executive Committee shall be created pursuant to this Section 7.1 and shall, in the interim between meetings of the Board of Directors, have and exercise such power and authority of the Board of Directors under Section 14-3-801 in the management of the affairs of the Corporation as are delegated by the Board of Directors as limited by the Act.”

“STEVE HICKS, DONOVAN HICKS and CHRISTOPHER HICKS - Family relationship”

“The final draft of the Form 990 was reviewed in detail by management. The final draft was then presented to audit committee (comprised of non management board members) for their review and information. each voting member of the governing body also received a copy of the Form 990 before it was filed with the IRS.”

“All members of senior management, board of directors, and board committees sign annual conflict of interest statements. All statements are collected and reviewed by Chief Compliance Officer. Electronic and paper copies of all COI forms are maintained. If a matter concerning a potential conflict arises at a committee or board meeting, the conflict is evaluated without the potentially conflicted member and a determination is made by the committee or governing board about whether the person should be restricted from discussion and vote.”

“A market review of compensation for all officers is performed. That analysis is compared to historical compensation and evaluated relative to the percentile for the industry and size. Combined with overall performance, the analysis is presented to the independent Compensation Committee comprised of members of the governing board of Provident Resources Group Inc. for their review, deliberation, and decision regarding compensation for the officers. This process was used for the compensation of all officers of Provident Resources Group, Inc. Minutes are maintained to document the deliberations and actions of the committee.”

“See narrative above for Part VI, Line 15a”

“The organization's financial statements, conflict of interest policy, and governing documents are available upon written request.”

“Provident Resources Group Inc's education properties have net investment in sales-type leases. The properties deferred the interest income on the sales-type leases, which is being recognized as operating interest income over the life of the leases.”

“ANCILLARY REVENUE - Total Revenue: 644518, Related or Exempt Function Revenue: 644518, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ;”

“other revenue - Total Revenue: 14551157, Related or Exempt Function Revenue: 14551157, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ;”

“(continued from form 990, part iii, line 1) operation, management, and disposition of skilled nursing facilities, assisted living facilities, independent living facilities, rehabilitative care facilities, and other types of senior living facilities. - serve to promote and advance the physical health, emotional health, mental health and social well-being of the individuals, families, and communities served by the organization, which may be accomplished by the development, construction, acquisition, ownership, management, maintenance, operation, and disposition of general and acute care, hospital facilities, medical clinics, mental health facilities, rehabilitative care facilities, pediatric facilities, medical research and diagnostic facilities, medical training and educational facilities, and other types of inpatient related services, programs, and activities that may be pursued. - serve to relieve the poor and distressed, combat community deterioration, eliminate discrimination and prejudice, and lessen neighborhood tensions by providing safe, decent, and sanitary housing to persons of low and very low income. - serve to lessen the burden of government, which charitable purpose may be accomplished through various means, including, without limitation, the development, construction, acquisition, ownership, management, maintenance, operation and disposition of public facilities, public buildings, public works, and infrastructure of various types. - serve to promote and advance education through various means including the development, construction, acquisition, ownership, management, maintenance, operation, and disposition of facilities of various types including educational, research, and student-housing facilities and through the provision of development, enrichment, counseling, tutoring, and other activities, services, and programs.”

“The complex financing structures of Provident's projects, the majority of which finance depreciable assets, lead to large non-cash expenses in the "non-operating revenues (expenses)" on our operating statement and therefore a significant accumulated net asset deficit is reflected. To date, the most significant non-cash expenses include subordinate interest, which is repaid from excess cash; subordinate expenses unpaid; depreciation; and amortization. While accounting rules require disclosing these non-cash items, the resulting deficit reported is not an indication of true operating losses. Provident prudently manages the assets in our portfolio to meet the covenants within our financing documents while serving the communities we are called on to assist.”

“UNREALIZED GAIN/LOSS ON INTEREST RATE SWAP - 212945; Total - 212945;”