Cascade Manor Inc.

“Cascade manor, inc. Delegates management to pacific retirement services, inc.”

“The bylaws were revised to (1) authorize the inclusion of one resident to the board of directors as set forth in article iv section 3(b); (2) amend article iii section 2(c) and delete article iv section 3(b) regarding the requirement for directors from specified churches; (3) amend the duties of the secretary and treasurer as set forth in article v sections 3 and 4; and (4) amend article iii section 2(j) to establish the threshold for contracts requiring approval by prs of $100,000. The articles were revised to be consistent with the revised bylaws and delete article iv section 3(b) regarding the requirement for directors from specified churches.”

“Cascade manor, inc. Has one member, pacific retirement services, inc.”

“Pacific retirement services, inc. Has the authority to elect all directors from nominees selected by the board of directors.”

“Some decisions of the board are subject to approval by pacific retirement services, as outlined in article iii of the bylaws.”

“The form 990 is currently being reviewed by the cfo, assistant controller and the board of directors.”

“The conflict of interest policy and questionnaire are sent to all board members and key employees annually. There are two policies related to conflicts of interest: 1) board of directors; 2) key employees, which identify the purpose, definitions, and procedures. If a conflict is self-identified by a board member or key employee in the questionnaire and/or meeting, procedures are followed and documented according to the policy.”

“A compensation committee of the prs board exists to determine compensation for the executive director of each community. This committee is comprised of the officers of the prs board of directors. The committee has a charter that outlines its duties and responsibilities. It also has agenda elements that describe the activities that the committee undertakes during the year. The vp of human resources provided salary studies from the following resources to the committee relative to executive director compensation: salary.com, payscale.com, 990 review (like size organizations), cemo (chief executive officers of multi-facility organizations) salary study results, and industry state association salary study results based on geographical location. The recommendation for base compensation and bonus are provided by the ed's direct supervisor (coo or vp of operations).”

“All requests go through corporate counsel.”

“Note that brian young is a leased employee of pacific retirement services, inc. And performs services on behalf of cascade manor, inc. Pursuant to a management services agreement between cascade manor, inc. And pacific retirement services, inc. Under the management services agreement, his compensation is reimbursed by cascade manor, inc. His compensation is reported in part vii section a in order to highlight amounts paid by cascade manor, inc., notwithstanding that he is a leased employee of pacific retirement services, inc.”

“Change in value of interest rate swap agreement 167,996. Change in interest in net assets of cascade manor foundation, inc. -253,679. Adoption of asu 2012-01 for refundable advance fees -7,598,219.”