Lambeth House Inc.

“Lambeth house, inc. ("lhi") is the sole member of broadway services, inc. ("bsi"), a louisiana non-profit corporation that is also exempt from federal income taxation pursuant to 501(c)(3) of the internal revenue code. In its capacity as the sole member, lhi maintains the power and authority to appoint members of bsi's governing board. Furthermore, lhi and bsi are parties to a certain management and operating agreement pursuant to which bsi has agreed to assume all responsibility for managing and operating lhi's continuing care retirement community, including the provision of certain healthcare and other services to residents, in exchange for a monthly management fee. As a result of that arrangement, lhi only maintains uncompensated officers, and does not have any employees or payroll expenses. Instead, all personnel who provide services in connection with the management and operation of lhi's continuing care retirement community are employed and compensated by bsi. Please refer to the form 990 separately filed by bsi for a detailed description of bsi's governance structure, operations, and policies and procedures.”

“After the completed 990 is received by the organization, it is reviewed by the entire board. Any questions or comments are then directed to the president of the board. Upon approval, the form 990 is released for submission to the internal revenue service.”

“A disclosure statement is submitted annually by all officers and directors of lhi and all related organizations to disclose any situations that may give rise to a conflict of interest. The board of directors shall take such actions as may be reasonably necessary to protect the best interests of the organization.”

“While the lhi board approves the annual budget of bsi (which includes the management fee payable to bsi), it does not independently evaluate the reasonableness of the compensation payable to bsi's officers and executive level employees. Instead, that analysis is within the purview of the bsi board.”

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

“Earnings of member corporations 1,782,626.”

“The finance committee is responsible for the oversight of the audit.”

“The management fee of $4,479,590 was paid to broadway services inc, a related nonprofit organization. Lambeth house, inc. Is the sole member of broadway services, inc. Lambeth house foundation, st. Anna's asylum for the relief of destitute females and helpless children, broadway services inc are all nonprofit 501(c)(3) public charities which are controlled by lhi and which work toward the same exempt purpose. See also explanation for part vi section a line 3 above.”