Sean Brook House Inc.

“Caritas communities, inc. Is the sole member of the organization.”

“As the sole member, caritas communities, inc. Has the power to appoint the board of directors.”

“All management decisions and actions taken are documented during meetings of caritas communities, inc. (controlling entity).”

“There are no subcommittees with authority to act on behalf of the governing body.”

“The outside cpa firm who performs an audit of the financial statements prepares the form 990 with input provided by the caritas chief financial officer. The complete form 990 is then reviewed by the chief financial officer and is made available to the executive director and board of directors for review.”

“The officers and directors of sean brook house inc. Are also the officers and directors of caritas communities inc. The sign off of the potential conflict of interest form is generally made each year by each member of caritas communities board of directors and senior management and is then reviewed by the chief finanical officer.”

“At the december board meeting each year the full board of directors of caritas communities inc., which is also the board for sean brook house inc., meets with the finance and audit committee to consider the planned compensation of the executive director and the treasurer/coo with both individuals absent from the meeting. Prior thereto the chairman of the finance and audit committee discusses salary information obtained from our independent auditing firm regarding salaries paid to executive directors and treasurers in comparable organizations. The finance and audit committee then makes a recommendation to the full board who discusses and votes on the compensation of these two individuals for the coming year.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

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