East Ridge Retirement Village Inc.

“East ridge retirement village, inc. Has a management agreement with life care services, llc to provide management, advisory and consulting services.”

“The amended and restated articles of incorporation state that the board of directors shall be elected and may be removed by the board of santafe senior living, inc.”

“The reserved powers of santafe senior living, inc., as delineated in the articles of incorporation and bylaws, permit it to approve or ratify the governing body's decisions related to board member elections or removals, the decision to dissolve the organization, and other matters that may come before the board of directors.”

“The organization's process for ensuring the accurate preparation, review and approval of the 2013 form 990 began with professional development of staff (several of which are cpas) which were involved in the preparation of the 2013 form 990. In addition to staff development, which included attending tax seminars and classes, management also consulted with independent accounting firms and tax legal counsel regarding the internal revenue service (irs) form 990 code and filing requirements. The organization also previously educated its management team, officers and directors, with the assistance of deloitte tax llp, regarding the form 990 and their involvement in reviewing the return. Following management's preparation of the 2013 form 990, deloitte tax llp reviewed the 2013 form 990. A copy of the 2013 form 990 and attachments were provided to the organization's current board of directors for their review and comment. Executive management addressed any questions raised by the board members prior to filing the 2013 form 990 and attachments with the irs.”

“East ridge retirement village, inc. (east ridge) has a conflict of interest policy (policy) that covers board members, officers, employees with contracting authority or other persons associated with the organization having contracting authority on behalf of the organization. This policy is intended to supplement the corporate compliance program. The president of east ridge, or his or her designee, is responsible for providing each director or officer with a copy of the policy and obtaining the signed acknowledgment of each person covered by the policy at the time of appointment and annually thereafter. All persons covered by the policy have the duty to disclose the existence of a possible conflict of interest to the president. In the case of self-disclosure, the person involved is excused from further discussion by the board of directors or a committee of the board of directors. The remaining board or committee members shall decide if a conflict of interest exists. The board will decide what action will be taken, if any, given the facts and circumstances. Possible violations of the policy, whether willful or not and not previously disclosed to the president, will be discussed with the person involved to allow that person to explain the alleged failure to disclose. If, after hearing the response of the person and making further investigation as may be warranted in the circumstances, the board will take appropriate disciplinary and corrective action, if necessary.”

“Michael p gallagher is the chief executive officer (ceo) of east ridge retirement village, inc. Mr. Gallagher is compensated by santafe healthcare, inc. (santafe), a related supporting organization. Santafe utilizes the following process to establish the ceo's compensation and benefits: the santafe board of directors annually retains an independent compensation and benefits consulting firm to conduct a market competitiveness review of the ceo's total direct compensation (base salary, annual incentives and long term incentives) and benefits. The competitive analysis includes comparison to similar positions in companies of similar size within the same or similar industry. The independent consulting firm makes recommendations, if any, directly to the board of directors. The board of directors establishes the final compensation and benefit package for the ceo taking into consideration the market competitiveness review and final recommendation of the independent consulting firm. The independent consulting firm provides an opinion letter regarding the reasonableness of the final compensation and benefits package. The actions of the board are documented in the minutes of the board meeting. Form 990, part vi,section b, line 15b: process for determining compensation for the president of east ridge retirement village, inc. Is as follows: the santafe healthcare, inc. (santafe) board of directors annually retains an independent third party compensation and benefits firm (firm) to conduct a market competitiveness review of the aforementioned officer's total direct compensation (base salary, annual incentives, and long-term incentives) and benefits. The competitive analysis includes comparisons to similar positions in companies of similar size within the same or similar industry. After completion of its review, the firm makes recommendations, if any, directly to the santafe board of directors. The firm provides an opinion letter regarding the reasonableness of total direct compensation and executive benefits. The actions of the board are documented in the minutes of the board meetings.”

“East ridge applied to the internal revenue service for recognition of exemption (form 1023) before july 15, 1987. As of july 15, 1987, east ridge did not have a copy of its exemption application. Therefore, east ridge does not make the exemption application or the associated documents available to the public.”

“East ridge retirement village, inc. (east ridge) posts in a prominent place at its facility a summary of the latest annual statement as required under florida statute 651.091. East ridge makes available the full annual statement, including audited financial statements, to the public upon request. East ridge further complies with florida statute 651.091, which requires that additional financial and operational reports and records for continuing care facilities be prominently posted or available for inspection upon request. The restated and amended articles of incorporation are available for public inspection online at the state of florida secretary of state website www.sunbiz.org. The current east ridge conflict of interest policy is available for public inspection at the east ridge main office.”

“Compensation paid by related organizations: certain senior executives are accountable for and perform services for santafe healthcare, inc. And each of its affiliates. Santafe healthcare and affiliates represent a diversified family of not-for-profit organizations with $2 billion in gross receipts and approximately 2,000 employees. These senior executives are paid directly by either santafe healthcare, inc. Or avmed, inc. And their compensation and benefits are apportioned and charged to the respective affiliate based on the estimated amount of time spent on each affiliates activities. For 2013, the following percentages of each executives compensation and benefits (for those senior executives paid by a related organization) is apportioned and charged to east ridge, as follows: 0% - michael p gallagher, chief executive officer 0% - troy r hart, president 0% - steven m ziegler, assistant secretary”

“Net assets released from restriction (included in total revenue) -2,615.”

“There has been no change from the prior year to the process related to audit oversight and selection of the independent accountant for the organization.”