Hebrew Homes Captive Services Inc.

“Abraham galbut, the organizations administrator and daniel galbut, director of operations, are father and son respectively. Form 990, part vi, section a, line 6: the sole member of the organization is hebrew homes health network, inc. Form 990, part vi, section b, line 11b: form 990 is prepared by a nationally renowned accounting firm in conjunction with the organization's controller. Draft form 990 is provided to the controller who conducts a comprehensive review and distributes it to all members of the board of directors before it is filed with the internal revenue service. Form 990, part vi, section b, line 12c: the organizations conflicts committee monitors and enforces compliance with the conflict of interest policy annually. The committee reviews actual conflicts that are identified by the annual disclosure process and prohibits officers and directors from voting on matters where actual conflicts of interest exist.”

“THE REPORTING ORGANIZATION HAS NO COMPENSATION PAID TO THE TOP MANAGEMENT OFFICIAL. COMPENSATION IS PAID BY HEBREW HOMES MANAGEMENT SERVICES, INC. A RELATED SECTION 501(C)(3) ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 15B: The compensation committee determines the compensation and benefits of other officers and key employees. The committee potentially includes the CEO and other top management officials. However, the committee is independent with respect to all compensation related decisions in that committee members refrain from voting on the compensation if a conflict of interest arises. The committee utilizes comparability surveys provided by an independent accountant. The review and approval process is documented in committee meeting minutes. FORM 990, PART VI, SECTION C, LINE 19: Upon request, the organization will make available only those documents required to be disclosed under the public inspection laws.”

“All officers, key employees and highest compensated employees, with the exception of Abraham Galbut, are compensated by a related organization, Hebrew Homes Management Services, Inc., THAT PERFORMS AS A MANAGEMENT COMPANY for all entities within the consolidated group.”

“The Board of Directors 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.”