Sunrise Community Inc.

“F.j. Mcmackin iii (director) and frank j. Mcmackin iv (director) are father and son. Jose e. Souto, sr. (director) and jose e. Souto, jr. (director) are father and son.”

“The sole member of the organization is the phineas corporation.”

“The organization's sole member, the phineas corporation, has the authority to elect members of the board of directors.”

“At a meeting of members called expressly for that purpose, any director or the entire board of directors may be removed, with or without cause, by a vote of a majority of the members then entitled to vote at an election of directors.”

“At the direction of the board of directors, finance management conducts a comprehensive review of the form 990 and, thereafter, a complete copy is provided to the bod.”

“The organization's conflict of interest policy covers all employees, executives, trustees and board members. The president & ceo monitors and enforces compliance with the conflict of interest policy. Members of the board of directors must fully disclose to the board chair any contract, business arrangement, or direct financial interest in a business that contracts or transacts business with the organization. Members of the board of trustees, employees and committee members must make such disclosures to the president & ceo. The board chair (in matters involving the board of directors), or the president & ceo (in matters involving members of the board of trustees, employees, and committee members), may decide whether to allow continuing involvement in the discussion and decision process, and to what degree (i.e. Discussion only and the member must abstain from voting), before proceeding. The potential conflict of interest is recorded in the minutes or notes of the meeting.”

“The organization uses a comparative process for determining appropriate and just compensation for its chief executive officer, other officers, and key employees inclusive of a review and approval by the organization's independent board of directors. The process includes the use of comparability data of similarly qualified persons in functionally comparable positions in other non-profit organizations of similar size and function. The chief executive officer's compensation is determined by the executive committee of the board of directors and the compensation of the other officers and key employees is determined by the chief executive officer. The compensation amount is reported to the board of directors for their review and approval. This process includes contemporaneous documentation and recordkeeping with respect to the deliberations and decisions regarding the compensation arrangements.”

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

“Net assets transferred (to)/from related parties 1,049,829.”

“Oversight of audit and selection of independent accountant: the audit committee is responsible for the selection, monitoring and evaluation of an independent audit firm and oversight of the audit of its financial statements. There was no change in this process from the prior year.”

“Net assets transferred from (to) related parties and related-party transactions the sunrise group's cash management policies require all cash receipts to be transferred to the sunrise community, inc. General operating account. Cash transfers back to the other members of the sunrise group are only made to cover required cash flow needs, creating a due from (to) other members of the sunrise group. Since there is no intention to repay these related-party balances, any excess cash transfers are considered a permanent transfer of net assets at year- end. During the years ended june 30, 2019 and 2018, the organization had net asset transfers from the other members of the sunrise group amounting to $1,049,829 and $3,832,156, respectively. Net assets transferred from (to) related parties during the years ended june 30, 2019 and 2018, included non-cash assets and their related debt with a net non-cash transfer of $(14,020) and $19,046, respectively.”

“Management fee: the organization provides substantially all executive management, financial, information systems, and human resource management functions to the other members of the sunrise group. The organization charged management fees of $5,097,505 and $4,818,271 for the years ended june 30, 2019 and 2018, respectively, for such services. These amounts are presented as a reduction in management and general expense in the statements of activities.”