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 substantially 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.”

“The organization revised its bylaws during the year and a summary of those changes are as follows: article ix section 8 of the bylaws was amended to state (1) that lambeth house, inc. (lhi) is the sole member of broadway services, inc.(bsi), a related section 509(a)(3) supporting organization, (2) lhi,as sole member, shall appoint the five board members of bsi, (3) a majority vote of the board shall be required to authorize the corporation to take any action in its capacity as the sole member of bsi, and (4) the chairman of the board, or such person as he or she may designate in writing from time to time, shall serve as the "member representative" for bsi, as such term is defined in the bylaws of bsi. Article iv, section 8. Annual meeting was changed to state that the board shall hold an annual meeting for organizational purposes, for the election of officers and, subject to section 8 of article ix, the approval of the executive committee's recommendations for the bsi board (as defined in article ix, section 8(c)). The annual meeting shall be held immediately following the annual meeting of members or on such date and at such place and time as designated by the board. Article x conflict of interest was expanded to further define the conflict of interest policy, how to disclose conflicts, the definition of conflicts of interest, the definition of material personal interest and the board's power to determine the existence and effect of a conflict of interest.”

“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.”

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

“Earnings of member corporations 2,838,147. Interest rate swap agreement -438,361.”

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

“Effective january 1, 2019, the company adopted the financial accounting standards board ("fasb") accounting standards update ("asu") 2014-09, "revenue from contracts with customers (topic 606)" ("asu 2014-09") using a modified retrospective method of application to contracts that were not complete as of the date of initial application. The core principle of the guidance in asu 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The company is utilizing the portfolio approach practical expedient in asc 606 to assess the impact of asu 2014-09 on patient service revenue. The adoption of asu 2014-09 has had a material impact in respect of timing and amount of revenue recognized by the company. The company determined that its current policy of recognizing a portion of its refundable entrance fees over the remaining useful life of the facility housing its residents is not consistent with the provisions in asu 2014-09. Therefore, the company reclassified previously amortized amounts of approximately $24,730,000 from net assets without donor restrictions to refundable fees liability. Further, the company did not amortize refundable entrance fees previously included in revenues.”

“The management fee of $4,459,062 was paid to broadway services inc, a 509(a)(3) suporting organization of lambeth house, inc. 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.”