Lytton Gardens III

“The organization together with its affiliated organizations (see schedule r) entered into a memo of understanding with episcopal senior communities (esc), april 1, 2008 whereas esc assigned lytton gardens senior communities to provide certain administrative, accounting, fundraising and other general management services and the employment of personnel on a shared basis.”

“Jtm communities, a california nonprofit public benefit corporation is the sole member of lytton gardens, inc.”

“The 9 member board of lytton gardens, inc. (lgi) is identical to the board of jtm communities which is the sole member of lgi.”

“Lytton gardens, inc. Shares board members with all other related lytton entities. Decisions are shared and require majority vote across all board members.”

“The cfo, management personnel, and the finance committee review the 990 information before filing.”

“Board members are asked on an annual basis if there are any activities and/or affiliations that would pose a conflict with their ability to serve on the board or items that they will need to recuse themselves from voting on.”

“Senior management employees listed in part vii are employees of episcopal senior communities (esc), a related organization. They are paid and issued w-2s by esc; however, their compensation is allocated to various related organizations including lytton gardens, inc. Based on where their work is performed. Esc uses an independent consultant who analyzes and reports on reasonability of compensation every two years. The consultant is independent of management and reports directly to the chair of the board. The consultant reviews and provides a report on any issues with the compensation the ceo and/or the cfo receive including any issues around excess compensation. Additionally, all key executives compensation are reviewed by the consultant. This review includes total cash compensation and benefits including retirement plans. Every year, the vice president of human resources reviews the compensation for all management against market analysis guidelines and recommends changes. This review also includes a test of benefits against similar companies.”

“Policies and statements are available upon request.”

“Other fees: program service expenses 3,641,492. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,641,492.”

“Beneficial interest in remainder trust 4,434.”

“Audit committee and oversight of the consolidated audited financial statements - there have been no changes to this process from prior year.”