2023-11-14T07:55:13-06:00 2022-12-31 390859910 BAKER TILLY US LLP 1570 FRUITVILLE PIKE SUITE 400 LANCASTER PA 17601 990 2022-01-01 521530598 HERON POINT OF CHESTERTOWN INC HERO 2156618330 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 SUSAN AHERN TREASURER 2156618330 2023-11-13 1 SUSAN AHERN XXX-XX-XXXX 1 KERRI N BOGDA CPA P00760402 7177404863 2023-11-13 X 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z X GERALD T GRANT 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 19236378 0 X WWW.HERONPOINT.ORG X 1987 MD THE PURPOSE OF HERON POINT OF CHESTERTOWN, INC. IS TO SERVE OLDER ADULTS SIXTY-TWO YEARS OF AGE AND OLDER, PROVIDING RETIREMENT-LIFE SERVICES INCLUDING INDEPENDENT LIVING, ASSISTED LIVING, SKILLED NURSING CARE AND COMPLEMENTARY SERVICES; RESPONSIVE TO RESIDENT NEEDS IN A CHRISTIAN MANNER WITHOUT PREJUDICE OR PREFERENCE TO ANY FAITH, IN AN EXPRESSION OF LOVING KINDNESS. X 7 5 237 97 0 0 193416 136491 17113108 17912924 358714 151801 706550 400045 18371788 18601261 550 1100 0 0 7201253 7186925 0 0 0 9121126 9969501 16322929 17157526 2048859 1443735 70848712 0 55855913 0 14992799 0 X AS AN ACTS RETIREMENT-LIFE COMMUNITY, HERON POINT OF CHESTERTOWN, INC. IS COMMITTED TO PROVIDING SECURITY AND PEACE OF MIND TO SENIORS BY BEING THE PRE-EMINENT PROVIDER OF RETIREMENT-LIFE SERVICES, RESPONSIVE TO INDIVIDUAL, SOCIAL, PERSONAL, HEALTH AND SPIRITUAL NEEDS IN A CHRISTIAN ATMOSPHERE GRACED WITH LOVING-KINDNESS, DIGNITY, SENSITIVITY, HONESTY, AND RESPECT WITHOUT PREJUDICE OR PREFERENCE. 0 1 14946090 1100 17912924 HERON POINT OF CHESTERTOWN, INC. PROVIDED COMPREHENSIVE LIFE CARE SERVICES TO SENIOR ADULTS AGED 62 AND OLDER THAT INCLUDED INDEPENDENT LIVING HOUSING, DINING AND NUTRITIONAL SERVICES, PASTORAL SERVICES, SECURITY, HOUSEKEEPING, MAINTENANCE SERVICES AND SOCIAL, CULTURAL, EDUCATIONAL, SPIRITUAL AND RECREATIONAL ACTIVITIES. IN ADDITION, WHEN A RESIDENT'S HEALTH CARE NEEDED CHANGE, HOME HEALTH, ASSISTED LIVING, SKILLED NURSING CARE AND HOSPICE SERVICES WERE AVAILABLE. ALL PHYSICAL ACCOMMODATIONS AND SERVICES WERE PROVIDED UNDER THE TERMS OF A FORMAL LIFECARE AGREEMENT WHICH ALSO ASSURED THAT ASSISTED LIVING AND SKILLED NURSING CARE WERE PROVIDED TO RESIDENTS WHEN THEY NEEDED IT, WITHOUT A CHANGE IN THEIR MONTHLY FEE, THEREBY OFFERING FURTHER SECURITY AND PEACE OF MIND. IN 2022, HERON POINT OF CHESTERTOWN, INC. SERVED, ON AVERAGE, 253 RESIDENTS IN INDEPENDENT LIVING, 26 RESIDENTS IN ASSISTED LIVING AND 26 RESIDENTS IN SKILLED CARE. 14946090 1 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 1 51 0 237 1 0 0 0 0 0 0 0 0 0 0 0 0 X 7 5 0 1 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MD X SUSAN AHERN TREASURER 2156618330 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 X GERALD T GRANT CEO & VICE CHAIRMAN 1.00 54.00 X X 0 818586 541934 KAREN I CHRISTIANSEN PRESIDENT & CHAIRMAN 1.00 54.10 X X 0 593046 212745 DR W JACKSON STENGER DIRECTOR 2.00 0.00 X 0 0 0 JOHN L ESTERHAI JR MD DIRECTOR 0.10 4.20 X 0 0 0 H BRUCE DETWEILER DIRECTOR 0.50 1.80 X 0 0 0 ANNE FORREST DIRECTOR 0.50 0.00 X 0 0 0 DANIEL W LAWSON II DIRECTOR 0.50 1.60 X 0 0 0 GLENN D FOX SECRETARY 2.00 48.10 X 0 463488 360930 JONATHAN D GRANT ASSISTANT SECRETARY 1.00 47.10 X 0 381300 25527 SUSAN AHERN TREASURER 1.00 52.10 X 0 313772 30336 PEGGY C VALDIVIA ASSISTANT TREASURER 0.50 48.60 X 0 208602 26391 ZAKIA HARRIS NURSE PRACTITIONER 40.00 0.00 X 105425 0 7077 KATHLEEN SANDERSON SENIOR LIFECARE CONSULTANT 40.00 0.00 X 107673 0 4132 MELINDA MILLER NURSE PRACTITIONER 40.00 0.00 X 128994 0 5195 KAREN PIOMELLI DIRECTOR OF CULINARY & NUTRITION SVCS 40.00 0.00 X 104072 0 11363 MARY REIHL DIRECTOR OF FITNESS & REHAB SVCS 40.00 0.00 X 100330 0 18188 546494 2778794 1243818 5 0 1 0 ROSIN CREEK COLLABORATIVE LLC 7328 CHURCH HILL ROAD CHESTERTOWN MD 21620 CONTRACTOR/CONSTRUCTION 1180115 GL MADDEN CONTRACTING 2 ROLLING ROAD CHESTERTOWN MD 21620 GENERAL CONTRACTOR 571840 CHESAPEAKE FAMILY FLOORING 7306 CHURCH HILL ROAD CHESTERTOWN MD 21620 FLOORING INSTALLATION 242407 SNAPNURSE PO BOX 200352 DALLAS TX 75320 NURSING TEMP 231324 MEDICAL SOLUTIONS LLC 1010 N 102ND ST STE 300 OMAHA NE 68114 NURSING TEMP 225752 8 136491 136491 MONTHLY FEES 623000 12000155 12000155 ENTRANCE FEE AMORTIZATION 623000 4075844 4075844 MEDICARE 623000 1099097 1099097 ADMINISTRATIVE FEE INCOME 623000 371695 371695 RESIDENT ANCILLIARY REVENUE 623000 240414 240414 125719 125719 17912924 90445 90445 1916 1916 23224 7759 15465 15465 15465 685548 1250 627358 0 58190 1250 59440 59440 APARTMENT MODIFICATIONS 623000 351667 351667 CAFE & CATERING REVENUE 722514 23124 23124 EMPLOYEE MEALS 623000 6509 6509 3280 3280 384580 18601261 17912924 0 551846 1100 1100 59743 59743 5726294 5401413 324881 104328 100045 4283 874551 873328 1223 422009 400344 21665 54866 54866 36578 36578 1520369 1520369 8698 2029 6669 504447 447610 56837 25000 25000 1559229 1559229 22511 21909 602 836468 836468 2477666 2451848 25818 65771 65771 MANAGEMENT SERVICES 1540004 1540004 FOOD 735602 720244 15358 MEDICAL SUPPLIES 142413 142413 BAD DEBT 132348 132348 307531 209879 97652 17157526 14946090 2211436 0 2000 0 1824530 0 0 834272 0 0 0 0 0 466038 0 0 0 39883256 0 5105214 0 0 0 22551394 0 182008 0 70848712 0 1439789 0 31485460 0 22141605 0 789059 0 55855913 0 X 13805998 0 1186801 0 14992799 0 70848712 0 X 1443735 -690341 -15746193 X X 0 1 X 1 1 1 X 136107 58190 655285 156811 136491 1142884 15643241 15155097 16016709 17808002 18297504 82920553 15779348 15213287 16671994 17964813 18433995 84063437 6007 6007 0 6007 6007 84057430 137107 116843 101343 277182 115585 748060 137107 116843 101343 277182 115585 748060 15916455 15330130 16773337 18241995 18549580 84811497 0.99110 0.99050 0.00880 0.00940 X PART III, SECTION A & B: THE CURRENT TAX YEAR ENDED DECEMBER 31, 2022. EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. DISSOLVED AND THE REMAINING ASSETS AND LIABILITIES WERE MERGED INTO INTEGRACE, INC. (52-1710891). RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 570294 -27484 5231 537579 504057 66237 570294 504057 10213 10213 504057 504057 9869 9869 504057 504057 16302 16302 504057 0.00000 0.00000 0.00000 0 0 0 PART V, LINE 4: ENDOWMENTS PROVIDE FOR THE FINANCIAL SECURITY OF RESIDENTS AND PROTECT AGAINST THE FINANCIAL RISKS ASSOCIATED WITH ADVANCED AGE TO MAINTAINING IN RESIDENCE ANY PERSON WHO BECOMES UNABLE TO PAY REGULAR CHARGES; AND TO PROVIDE EMPLOYEES DEVELOPMENT AND TRAINING OPPORTUNITIES WHICH ENHANCE THEIR ABILITY TO MEET THE PHYSICAL, EMOTIONAL, RECREATIONAL, SOCIAL AND SPIRITUAL NEEDS OF THOSE SERVED BY THE ORGANIZATION. EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891). THE ADMINISTRATIVE EXPENSES REPRESENT THE AMOUNT OF ENOWMENTS MERGED INTO INTEGRACE, INC. THE ENDOWMENTS WILL CONTINUE TO BE UTILIZED BY INTEGRACE, INC. IN ACCORDANCE WITH DONOR INTENT. X 1 0 0 1 0 0 0 0 0 0 0 GERALD T GRANT CEO & VICE CHAIRMAN 0 602062 0 216524 0 0 0 527221 0 14713 0 1360520 0 0 GLENN D FOX SECRETARY 0 364548 0 98940 0 0 0 346217 0 14713 0 824418 0 0 KAREN I CHRISTIANSEN PRESIDENT & CHAIRMAN 0 444870 0 148176 0 0 0 194451 0 18294 0 805791 0 0 JONATHAN D GRANT ASSISTANT SECRETARY 0 307944 0 73356 0 0 0 7278 0 18249 0 406827 0 0 SUSAN AHERN TREASURER 0 254606 0 59166 0 0 0 12200 0 18136 0 344108 0 0 PEGGY C VALDIVIA ASSISTANT TREASURER 0 177090 0 31512 0 0 0 8482 0 17909 0 234993 0 0 PART I, LINE 1A THE ORGANIZATION HAS AN ANNUAL BOARD OF DIRECTORS' EDUCATIONAL RETREAT NEAR ONE OR MORE OF THE ORGANIZATION'S COMMUNITIES, WHICH MAY REQUIRE SOME OR ALL BOARD MEMBERS TO TRAVEL. SPOUSES OF BOARD MEMBERS ARE ALSO INVITED TO ATTEND AT THE COMPANY'S EXPENSE. THESE SPOUSES PARTICIPATE IN EDUCATIONAL SESSIONS, SINCE THEY TOO HAVE AN INTEREST IN THE MISSION OF THE ORGANIZATION, FREQUENTLY BECOME INVOLVED IN DISCUSSION OF THEIR SPOUSE'S ROLE AND HOW THE ORGANIZATION FUNCTIONS, AND ALSO MUST PROVIDE ENABLING SUPPORT TO THE BOARD MEMBER. IN ADDITION, SPOUSES ALSO PROVIDE INSIGHT INTO THE EFFECTS OF ORGANIZATIONAL PLANS AND STRATEGIES. AS SUCH, THIS BENEFIT WAS NOT TREATED AS TAXABLE COMPENSATION. PART I, LINE 3 IT HAS BEEN THE PRACTICE OF THE MANAGEMENT COMPANY, ACTS MANAGEMENT SERVICES, INC., TO UTILIZE AN INDEPENDENT COMPENSATION CONSULTANT ON AN APPROXIMATELY BIENNIAL BASIS FOR THE PURPOSE OF REVIEWING THE COMPENSATION PROGRAM FOR THE ORGANIZATION'S TOP MANAGEMENT POSITIONS, RANGING FROM THE COMMUNITY MANAGERS UP TO THE CEO. THE STUDY, THE LATEST VERSION OF WHICH WAS COMPLETED IN 2020, INCLUDES COMPARISON OF NOT-FOR-PROFIT AND FOR-PROFIT COMPETITORS, OPERATING EFFECTIVENESS, IDENTIFICATION OF INDUSTRY SPECIFIC TRENDS OR PRACTICES IN COMPENSATION OR RECRUITMENT/EMPLOYMENT. MEASUREMENT AND ACTION ARE GENERALLY FOCUSED AT THE MEDIAN AND SLIGHTLY ABOVE IN ACCORDANCE WITH LEVELS IDENTIFIED IN THE STUDY. THE REPORTS' FINDINGS ARE REVIEWED WITH THE PARENT BOARD OFFICERS. COMPENSATION ADJUSTMENTS FOR THE PRESIDENT & CEO ARE DETERMINED BY A COMMITTEE OF INDEPENDENT BOARD MEMBERS APPOINTED BY THE CHAIRMAN AND ARE BASED ON THE FINDINGS OF THE MOST RECENT STUDY AND A REVIEW OF PERFORMANCE COMPARED AGAINST OBJECTIVE CRITERIA. THIS DETERMINATION IS REPORTED TO AND APPROVED BY THE BOARD OF DIRECTORS AND IS DOCUMENTED IN WRITING BY THE BOARD CHAIR. SIMILARLY, COMPENSATION ADJUSTMENTS FOR THE MOST SENIOR MEMBERS OF MANAGEMENT REFLECT STUDY FINDINGS AND PERFORMANCE MEASUREMENT AGAINST SPECIFIED CRITERIA AND ARE DETERMINED BY THE CEO AND REVIEWED WITH THE BOARD CHAIR. PART I, LINE 4B OTHER COMPENSATION FOR KAREN I. CHRISTIANSEN, GLENN D. FOX, AND GERALD T. GRANT INCLUDES ACCRUALS FOR A DEFERRED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. THE AMOUNT OF THE CURRENT YEAR ACCRUAL IS $182,251 FOR KAREN I. CHRISTIANSEN (NON-VESTED), $334,017 FOR GLENN D. FOX (NON-VESTED), AND $515,021 FOR GERALD T. GRANT (NON-VESTED). DR W JACKSON STENGER DIRECTOR OF HP 59743 FAMILY RELATIONSHIP; DR. W. JACKSON STENGER, A DIRECTOR OF HERON POINT OF HESTERTOWN, INC., HAS ONE FAMILY MEMBER WHO IS EMPLOYED BY HERON POINT OF CHESTERTOWN, INC. DR. STENGER DOES NOT DIRECTLY SUPERVISE THIS INDIVIDUAL, AND THEREFORE IS NOT INVOLVED IN DETERMINING COMPENSATION AND REVIEWING PERFORMANCE. 0 CASH 2022-12-31 3293025 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) ACCOUNTS RECEIVABLE 2022-12-31 950345 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) INVENTORY 2022-12-31 52745 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) PREPAID EXPENSES 2022-12-31 317996 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) PUBLICALLY TRADED SECURITIES 2022-12-31 4595493 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) LAND, BUILDINGS & EQUIPMENTS 2022-12-31 40572704 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) INTANGIABLE ASSETS 2022-12-31 22551394 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) DEFERRED COSTS 2022-12-31 211323 BOOK VALUE 521710891 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 501(C)(3) 1 0 0 0 1 1 1 1 1 1 PART I, LINE 2E: THE FOLLOWING HERON POINT OF CHESTERTOWN, INC. DIRECTORS AND OFFICERS ARE DIRECTORS AND OFFICERS OF THE TRANSFEREE ORGANIZATION, INTEGRACE, INC.: GERALD T. GRANT, KAREN I. CHRISTIANSEN, GLENN D. FOX, JONATHAN D. GRANT, SUSAN AHERN, PEGGY C. VALDIVIA, AND JOHN L. ESTERHAI, JR., MD. PART I, LINE 6C: THE LIABILITIES OF HERON POINT OF CHESTERTOWN, INC. WERE DISCHARGED IN EFFECT THROUGH THE TRANSFER TO ANOTHER 501(C)(3) ORGANIZATION, INTEGRACE, INC. (EIN 52-1710891), WITH THE UNDERSTANDING THEY WILL BE TIMELY PAID AFTER THE MERGER ON 12/31/2022.AT THE DIRECTION, AND WITH THE CONSENT, OF THE PURCHASER AS THE CURRENT HOLDER OF 100% OF THE 2018B BONDS OUTSTANDING AND HERON POINT, IN ITS CAPACITY AS OBLIGATED ISSUER UNDER THE HERON POINT MTI, THE HERON POINT MASTER TRUSTEE DISCHARGED THE HERON POINT MTI AND RELEASED THE LIENS THEREOF, AND ALL RIGHT, TITLE AND INTEREST OF THE HERON POINT MASTER TRUSTEE IN AND TO THE REVENUE FUND (AS ESTABLISHED UNDER SUCH HERON POINT MTI), INCLUDING ALL MONEYS AND INVESTMENTS THEREIN AND INVESTMENT INCOME THEREON, AND IN ALL OF ITS RIGHT, TITLE AND INTEREST IN AND TO THE PLEDGED REVENUES (AS DEFINED IN SUCH HERON POINT MTI).THE MERGER IS PERMITTED PURSUANT TO THE TERMS OF THE MASTER TRUST INDENTURES. INTEGRACE AND THE INTEGRACE MASTER TRUSTEE ENTERED INTO SUPPLEMENT NO. 2 FOR THE PURPOSE OF PROVIDING FOR THE ISSUANCE BY INTEGRACE OF THE SERIES 2022 MASTER NOTE. THE SERIES 2022 MASTER NOTE REPLACED THE 2018B MASTER NOTE AND THE 2018B MASTER NOTE WAS CANCELLED. THE SERIES 2022 NOTE WAS ISSUED IN A PRINCIPAL AMOUNT OF $21,430,000, WHICH REFLECTS THE OUTSTANDING PRINCIPAL AMOUNT OF THE 2018B BONDS.IN CONNECTION WITH THE MERGER AND THE RELEASE OF THE HERON POINT MASTER INDENTURE, AND AT THE DIRECTION AND WITH THE CONSENT OF THE PURCHASER AND HERON POINT, THE HERON POINT MASTER TRUSTEE FURTHER ASSIGNED THE DEED OF TRUST TO THE INTEGRACE MASTER TRUSTEE IN ORDER TO SECURE THE SERIES 2022 NOTE ISSUED PURSUANT TO SUCH INTEGRACE MASTER INDENTURE. FORM 990, PART III, LINE 3 EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891) AS AN OPERATING DIVISION. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE HAD THE AUTHORITY TO TRANSACT SUCH BUSINESS AS SHALL BE NECESSARY FOR THE ADMINISTRATION AND OPERATION OF THE CORPORATION BETWEEN BOARD OF DIRECTORS' MEETINGS SUBJECT TO CERTAIN LIMITS SPECIFIED IN THE BYLAWS. FORM 990, PART VI, SECTION A, LINE 3 ACTS MANAGEMENT SERVICES, INC., AN AFFILIATED ENTITY, PROVIDED MANAGEMENT SERVICES TO HERON POINT OF CHESTERTOWN, INC. FORM 990, PART VI, SECTION A, LINE 4 EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891) AS AN OPERATING DIVISION. SEE SCHEDULE N FOR THE DISTRIBUTION OF ASSETS UPON DISSOLUTION. FORM 990, PART VI, SECTION A, LINE 6 HERON POINT OF CHESTERTOWN, INC. WAS A MARYLAND TAX-EXEMPT ORGANIZATION OF WHICH ACTS RETIREMENT-LIFE COMMUNITIES, INC., A RELATED PENNSYLVANIA TAX-EXEMPT ORGANIZATION (THROUGH ITS WHOLLY OWNED SUBSIDIARY ACTS ACQUISITION AND DEVELOPMENT COMPANY, LLC), WAS THE SOLE MEMBER. EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891) AS AN OPERATING DIVISION. FORM 990, PART VI, SECTION A, LINE 7A ACTS RETIREMENT-LIFE COMMUNITIES, INC., A RELATED PENNSYLVANIA TAX-EXEMPT ORGANIZATION (THROUGH ITS WHOLLY OWNED SUBSIDIARY ACTS ACQUISITION AND DEVELOPMENT COMPANY, LLC), WAS THE SOLE MEMBER OF HERON POINT OF CHESTERTOWN, INC. AS SOLE MEMBER, IT HAD THE RIGHT TO ELECT THE MEMBERS OF THE ORGANIZATION'S BOARD. EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891) AS AN OPERATING DIVISION. FORM 990, PART VI, SECTION A, LINE 7B ACTS RETIREMENT-LIFE COMMUNITIES, INC., A RELATED PENNSYLVANIA TAX-EXEMPT ORGANIZATION (THROUGH ITS WHOLLY OWNED SUBSIDIARY ACTS ACQUISITION AND DEVELOPMENT COMPANY, LLC), WAS THE SOLE MEMBER OF HERON POINT OF CHESTERTOWN, INC. AS SOLE MEMBER, IT HAD THE RIGHT TO APPROVE ALL AMENDMENTS OR ALTERATIONS TO THE ORGANIZATION'S ARTICLES OF INCORPORATION AND BYLAWS BEFORE CHANGES BECOME EFFECTIVE. EFFECTIVE 12/31/2022 AT 11:59 PM, HERON POINT OF CHESTERTOWN, INC. MERGED INTO INTEGRACE, INC. (EIN 52-1710891) AS AN OPERATING DIVISION. FORM 990, PART VI, SECTION B, LINE 11B AFTER REVIEW BY THE CFO, THE FORM 990 IS REVIEWED, BEFORE FILING, BY THE BOARD OF DIRECTORS' AUDIT AND COMPLIANCE COMMITTEE, WHICH INCLUDES TWO CERTIFIED PUBLIC ACCOUNTANTS. THE FORM 990 IS THEN PROVIDED TO THE OTHER MEMBERS OF THE HERON POINT OF CHESTERTOWN, INC. GOVERNING BODY BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C A CONFLICT OF INTEREST QUESTIONNAIRE IS COMPLETED ON AN ANNUAL BASIS BY THE ORGANIZATION'S OFFICERS, DIRECTORS AND TRUSTEES. THE OFFICERS AND DIRECTORS REPORT ON ANY FAMILY OR BUSINESS RELATIONSHIPS WITH ANY BOARD MEMBER, OFFICER OR KEY EMPLOYEE OF THE ORGANIZATION AND ITS AFFILIATES. IF ANY FAMILY OR BUSINESS RELATIONSHIPS ARE DISCLOSED, THEY ARE REPORTED ON SCHEDULE L AS APPROPRIATE. IN ADDITION, THE RESPONSES ARE REVIEWED BY THE PRESIDENT & CEO AND CHAIRMAN OF THE BOARD OF DIRECTORS TO DETERMINE IF CONFLICTS ARE PRESENT AND IF SO, THE EXTENT OF THE CONFLICT. FOR CONFLICTS THAT ARISE, THE OFFICER, DIRECTOR OR TRUSTEE MUST RECUSE THEMSELVES FROM PARTICIPATING IN DELIBERATIONS AND DECISIONS THAT INVOLVE THE DETERMINED CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 IT HAS BEEN THE PRACTICE OF THE MANAGEMENT COMPANY, ACTS MANAGEMENT SERVICES, INC., TO UTILIZE AN INDEPENDENT COMPENSATION CONSULTANT ON AN APPROXIMATELY BIENNIAL BASIS FOR THE PURPOSE OF REVIEWING THE COMPENSATION PROGRAM FOR THE ORGANIZATION'S TOP MANAGEMENT POSITIONS, RANGING FROM THE COMMUNITY MANAGERS UP TO THE CEO. THE STUDY, THE LATEST VERSION OF WHICH WAS COMPLETED IN 2020, INCLUDES COMPARISON OF NOT-FOR-PROFIT AND FOR-PROFIT COMPETITORS, OPERATING EFFECTIVENESS, AND IDENTIFICATION OF INDUSTRY SPECIFIC TRENDS OR PRACTICES IN COMPENSATION OR RECRUITMENT/EMPLOYMENT. MEASUREMENT AND ACTION ARE GENERALLY FOCUSED AT THE MEDIAN AND SLIGHTLY ABOVE IN ACCORDANCE WITH LEVELS IDENTIFIED IN THE STUDY. THE REPORTS' FINDINGS ARE REVIEWED WITH THE PARENT BOARD OFFICERS. COMPENSATION ADJUSTMENTS FOR THE PRESIDENT & CEO ARE DETERMINED BY A COMMITTEE OF INDEPENDENT BOARD MEMBERS APPOINTED BY THE CHAIRMAN AND ARE BASED ON THE FINDINGS OF THE MOST RECENT STUDY AND A REVIEW OF PERFORMANCE COMPARED AGAINST OBJECTIVE CRITERIA. THIS DETERMINATION IS REPORTED TO AND APPROVED BY THE BOARD OF DIRECTORS AND IS DOCUMENTED IN WRITING BY THE BOARD CHAIR. SIMILARLY, COMPENSATION ADJUSTMENTS FOR THE MOST SENIOR MEMBERS OF MANAGEMENT REFLECT STUDY FINDINGS AND PERFORMANCE MEASUREMENT AGAINST SPECIFIED CRITERIA AND ARE DETERMINED BY THE CEO AND REVIEWED WITH THE BOARD CHAIR. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE FILED WITH NUMEROUS REGULATORY AUTHORITIES AND THEREFORE, ARE AVAILABLE TO THE PUBLIC. IN ADDITION, UPON RECEIPT OF A REQUEST AND ITS REVIEW, THE ORGANIZATION WILL MAKE AVAILABLE SUCH DOCUMENTS, AS DEEMED APPROPRIATE. AUDITED FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC. CERTAIN FINANCIAL STATEMENTS, SUCH AS ANNUAL REPORTS AND QUARTERLY REPORTS, ARE POSTED TO THE ORGANIZATION'S WEBSITE AND ARE ALSO AVAILABLE AT THE COMMUNITY. IN ADDITION, FINANCIAL INFORMATION IS INCLUDED IN THE DISCLOSURE PACKAGES THAT ARE PROVIDED TO PROSPECTIVE RESIDENTS AND MADE AVAILABLE TO THE PUBLIC. CERTAIN OTHER FINANCIAL STATEMENTS ARE ALSO PROVIDED UPON REQUEST. FORM 990, PART VII, COMPENSATION OF OFFICERS* OTHER COMPENSATION INCLUDES ACCRUALS FOR A DEFERRED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FOR KAREN I. CHRISTIANSEN (NON-VESTED), GLENN D. FOX (NON-VESTED), AND GERALD T. GRANT (NON-VESTED). FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -4,165. MERGER INTO INTEGRACE, INC. -15,742,028. FORM 990, PART XII, FINANCIAL STATEMENTS AND REPORTING THE PROCESS FOR THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE OVERSIGHT OF THE ANNUAL AUDIT OF ITS FINANCIAL STATEMENTS AND THOSE OF ITS AFFILIATES HAS NOT CHANGED FROM THE PRIOR YEAR. ACTS RETIREMENT-LIFE COMMUNITIES INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 231900132 OWNS AND OPERATES CONTINUING CARE REITREMENT COMMUNITIES PA 501(C)(3) LINE 10 ACTS RETIREMENT SERVICES INC 0 ACTS RETIREMENT SERVICES INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 264573260 SUPPORTING ORGANIZATION PA 501(C)(3) LINE 12B, II N/A 0 ACTS SIGNATURE COMMUNITY SERVICES INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 264573131 HOSPICE, HOME HEALTH AND PRIMARY CARE SERVICES PA 501(C)(3) LINE 10 ACTS RETIREMENT SERVICES INC 0 ACTS MANAGEMENT SERVICES INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 264573412 CENTRALIZED MANAGEMENT AND DEVELOPMENT SERVICES PA 501(C)(3) LINE 12B, II ACTS RETIREMENT SERVICES INC 0 ACTS LEGACY FOUNDATION INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 912161987 FUNDRAISING DE 501(C)(3) LINE 12A, I ACTS RETIREMENT SERVICES INC 0 THE EVERGREENS 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 210634485 CONTINUING CARE RETIREMENT COMMUNITY NJ 501(C)(3) LINE 10 ACTS ACQUISITION AND DEVELOPMENT COMPANY LLC 0 COPPER RIDGE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 521750659 LONG-TERM CARE FACILITY MD 501(C)(3) LINE 10 INTEGRACE INC 0 INTEGRACE INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 521710891 OWNS AND OPERATES CONTINUING CARE RETIREMENT COMMUNITIES MD 501(C)(3) LINE 10 ACTS ACQUISITION AND DEVELOPMENT COMPANY LLC 0 PRESBYTERIAN RETIREMENT CORPORATION INC 420 DELAWARE DRIVE FORT WASHINGTON PA 190342711 630770753 CONTINUING CARE RETIREMENT COMMUNITY AL 501(C)(3) LINE 10 ACTS ACQUISITION AND DEVELOPMENT COMPANY LLC 0 0 0 0 0 1 0 0 0 0 0 0 0 1 1 0 1 1 1 0