Villa Maria Inc.

“Villa maria, inc. Is a nonstock, nonprofit corporation with mercy housing wheaton as the sole member.”

“The board of trustees of mercy housing, inc. Has authority over villa maria, inc. In various aspects of operations and management. The reserved rights held by the mercy housing board of trustees, which may be further delegated to the president and ceo of mercy housing, inc., include approval of the following activities: revisions to articles and bylaws; mergers and acquisitions; establishment of new entities; pledging, mortgaging or disposing of all or substantially all assets; obligations of new operating and mortgage debt; and, appointment or removal of governing board members and officers.”

“SAME AS LINE 7A”

“Each member is given the opportunity to review the return before it is filed.”

“The audit committee of mercy housing, inc. Reviews periodically the conflict of interest disclosures and determines whether any action is required.”

“The process for determining compensation for the president, chairman, officers, and directors is determined by the executive committee of the board. To ensure competitiveness, wages are compared to other affordable housing organizations, both for- and not-for-profit, or the local market for positions applicable to a broader competitive market. Mercy housing, inc. Will comply with all applicable federal and state labor laws and regulations. The process will be administered according to the relevant human resource operational policies and by the human resource department with direction from the senior leadership team. The ceo will make a report to the board of trustees on implementation of the wage and benefit program annually. Periodically the executive committee within the mercy housing, inc. Board of trustees will review executive salaries to ensure competitiveness and reasonableness with external markets and for internal equity in relation to general employee wages and benefits, individual and organizational performance, and the financial resources of the organization.”

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

“Responsibility for selection of an independent accountant and oversight of the annual audit is reserved by the board of trustees.”

“During 2018, the property incurred damages due to flooding. The full effect of the restoration of the units was not recorded by the corporation in the correct year. As a result, fixed assets were overstated and net assets and revenue were understated as of and for the year ended december 31, 2018, respectively. To correct this the corporation restated its 2018 financial statements, as shown below in the table below. The restatement increased the corporation's change in net assets from a reduction of $78,596 for the year ended december 31, 2018 as had been previously reported to an increase of $290,137. Below is a summary of the effect to the financial statements: a) buildings b) accumulated depreciation c) net assets a b c i) december 31, 2018 : 3,233,494 (1,909,167) 1,811,712 ii) ppa : 43,798 50,445 94,243 iii) december 31, 2018 : 3,277,292 (1,858,722) 1,905,955”