Cascade Manor Inc.

“The board of directors has an executive committee consisting of the officers of the board, the chair and vice chair of each standing committee and such others as the board may designate. The executive committee considers matters relating to admissions and occupancy, all questions referred to it by the board of directors, and has the power to act in the place and stead of the board of directors on matters of business requiring immediate action between the regular meetings of the board of directors. The executive committee makes recommendations to the board for filling director and officer vacancies and is responsible for long range planning. The executive committee reports its actions to the board at the next regular meeting.”

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

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

“Pacific retirement services, inc. Has the authority to elect all directors from a list of nominees selected by the cascade manor, inc. Board of directors.”

“The following actions are reserved to pacific retirement services, inc., the sole member: (a) enactment, amendment or restatement of the articles of incorporation; (b) approval of the enactment or amendment of the by-laws at any time; (c) the election of all directors from nominees selected by the board of directors, including filling vacancies caused by the removal or resignation of a director. Individual directors may be removed by the member, with or without cause; (d) approval of the election by the board of directors of all officers who shall be subject to removal by the member; (e) approval of any merger, all consolidations, and/or all partial or total dissolutions involving the organization; (f) approval of all donations or transfers without consideration of all or substantially all of the assets of the organization; (g) the creation of any taxable or tax-exempt subsidiary organization of the organization, and the investment by the organization in any joint venture, partnership, limited liability company, subchapter 'c' corporation, or similar entity; (h) any acquisition of controlling interests in organizations or business by the organization; (i) approval of all budgets and long-range plans of the organization before authorized expenditures may be made therefrom; (j) approval of all non-budgeted contracts, expenditures, or investments in excess of $100,000; (k) the appointment of the outside auditors for the organization; (l) adoption or revision of the mission statement and long-range plans; (m) approval of the appointment of all professional advisors, including but not limited to accountants, auditors, and legal counsel for the organization; (n) approval of the adoption or revision of operating policies and procedures of the organization, the corporate mission and long-range plans; (o) approval of any change in any material respect to the nature of the organization's business or the decision to enter into new lines of business; (p) approval of the removal or replacement of the executive director/administrator and any other senior manager of cascade manor; (q) approval of any revisions to the form, whether now existing or hereafter created, of cascade manor residence contracts; (r) approval of any plan of dissolution or liquidation involving the organization.”

“The form 990 was reviewed by the cfo, assistant controller, vp of accounting, 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 executive director'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 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 has been reported in form 990, 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 cap agreement -2,648. Change in beneficial interest in net assets of foundation 2,425.”