Christian Health Care Center

“The Form 990 was prepared by the independent accounting firm of SCHOEDEL & SCHOEDEL, Certified Public Accountants, PLLC based on information provided under the direction of the Care Center's accounting staff. Draft copies of the Form 990 were first provided to the Care Center's CEO, who reviewed the Form 990 for accuracy and completeness. Any questions, concerns or issues raised were addressed and any necessary revisions were made to the Form 990. The revised Form 990 was then provided to the Board of Directors for its review and approval. Any additional questions, concerns, or issues raised by the Board of Directors were addressed, and any necessary revisions were made to the Form 990. The final version of the Form 990 was reviewed and approved for filing by the Board of Directors.”

“Members of the Board of Directors and other persons having responsibility for the management or administration of the Care Center's finances, investments, or other proprietary information concerning the Care Center are under a continuing obligation to disclose any potential conflicts of interest to the Board of Directors as soon as it is known or reasonably should be known. On an annual basis, each Director are asked to disclose any actual or potential conflicts of interest by completing and signing a conflict-of-interest statement. All conflicts of interest and potential conflicts of interest are investigated by the disinterested Directors (or by disinterested parties designated by the disinterested Directors). If the disinterested Directors determine a conflict of interest exists, the Chairman of the Board, if appropriate, appoints a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. After exercising due diligence, the Directors determine whether the Care Center can obtain, with reasonable efforts, a more advantageous transaction or arrangement with a person or entity that would not give rise to a conflict of interest. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the Board or committee determines by majority vote of the disinterested Directors whether the transaction agreement or arrangement is in the Care Center 's best interest, for its own benefit, and whether it is fair and reasonable. In conformity with the above determination, the Directors decide whether to enter into the transaction agreement or arrangement. The minutes of the meetings reflect that the conflict disclosure was made to the Board, the vote taken and, where applicable, the abstention from voting and participation by the interested party. Whenever possible, the minutes frame the decision of the Board in such a way to provide guidance for consideration of future conflict of interest situations. Additionally, to ensure the Care Center operates in a manner consistent with its tax-exempt purposes and does not engage in activities that could jeopardize its tax-exempt status, the Board of Directors has directed the Chief Executive Officer to conduct periodic reviews of contracts and transactions. The periodic reviews include, at a minimum, the following subjects: Whether the contractual arrangements with service providers and the services provided are reasonable, based on competent market and survey information, and the result of arm's length negotiation; Whether contractual arrangements with service providers and arrangements with other organizations conform to written policies, are properly recorded, reflect reasonable investment or payments for goods and services, further tax-exempt purposes, and do not result in inurement, impermissible private benefit or in an excess benefit transaction; and Whether any transaction conducted by the Care Center during the review period involves or could possibly give rise to a conflict of interest.”

“The compensation of the Chief Executive Officer (CEO) was determined by negotiations between the CEO and the Board of Directors. Prior to entering negotiations, the Board of Directors considered the needs of the Care Center, the employment qualifications of the CEO and prior compensation history of the position. Additionally, they reviewed and analyzed the annual AAHSA nursing home salary and benefits survey, as well as local market surveys, and compensation information obtained from similar organizations. The materials utilized in determining the CEO's compensation and the relevant deliberations of the process are memorialized, as is the approval of the CEO's compensation by the Board of Directors.”

“The Care Center's governing documents, conflict of interest policy, financial statements and Form 990 are available to the general public upon written request sent to Christian Health Care Center at: 855 Aaron Drive, Lynden, WA 98264.”