2019-05-17T08:45:00-05:00 2018-12-31 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 191037341 990 2018-01-01 232377560 FRIENDS RETIREMENT CONCEPTS INC FRIE 9086928851 C/O F ROSENWASSER 10 CHEROKEE ROAD EAST BRUNSWICK NJ 08816 FELIX ROSENWASSER PRESIDENT/CEO 9085956520 2019-05-16 1 JULIUS C GREEN CPA P00350393 2159720701 X 24.229.124.227 2019-05-16 15:29:26 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 1C07D3DB1C94FB752016147E5D6573FD6A6810DC 2018 2019-02-21 02:37:17Z X ARBOR GLEN FELIX ROSENWASSER C/O F ROSENWASSER 10 CHEROKEE ROAD EAST BRUNSWICK NJ 08816 123521794 0 X WWW.ARBORGLEN.ORG X 1985 PA TO OPERATE A CONTINUING CARE RETIREMENT COMMUNITY. X 13 12 117 14 1626 -6706 65029 14400 19124328 9115095 263644 67986243 390456 313910 19843457 77429648 0 0 0 0 6601554 3722164 0 0 0 15892417 9985931 22493971 13708095 -2650514 63721553 48992919 1909950 112373437 1909950 -63380518 0 X THE MISSION OF ARBOR GLEN, SPONSORED BY FRIENDS RETIREMENT CONCEPTS, INC., WAS TO ENHANCE THE DIGNITY AND WORTH OF OUR INDIVIDUAL MEMBERS BY PROVIDING QUALITY LIFE CHOICES FOR SENIORS IN A CONTINUUM OF CARE SERVICES ON A FISCALLY SECURE BASIS AND PROVIDING SOCIALLY ACCOUNTABLE SERVICES TO OUR LARGER COMMUNITY. 0 1 10564501 9115095 THE CORPORATION IS INCORPORATED UNDER THE NONPROFIT CORPORATION LAW OF 1972 OF THE COMMONWEALTH OF PENNSYLVANIA, AS AMENDED, FOR THE PURPOSES OF CONDUCTING EXCLUSIVELY CHARITABLE, SCIENTIFIC, OR EDUCATIONAL ACTIVITIES WITHIN THE MEANING OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (OR THE CORRESPONDING PROVISION OF ANY SUCCESSOR UNITED STATES INTERNAL REVENUE LAW) (THE "INTERNAL REVENUE CODE"), INCLUDING BUT NOT LIMITED TO (1) PROVIDING ADMINISTRATIVE, PROPERTY MANAGEMENT, AND OTHER SUPPORT SERVICES FOR NONPROFIT ORGANIZATIONS; (2) OWNING OR OPERATING, INCLUDING DEVELOPING AND MANAGING, OR BOTH, EITHER DIRECTLY OR INDIRECTLY THROUGH ANY OTHER ENTITY OR ORGANIZATION, ANY LIFE CARE FACILITY IN THE NATURE OF CONTINUING CARE RETIREMENT COMMUNITY OR LIFE CARE AT HOME PROGRAM OR OTHERWISE DESIGNED TO BENEFIT ELDERLY PERSONS AND IN GENERAL TO IMPLEMENT PROGRAMS DESIGNED TO MEET THE NEEDS OF ELDERLY PERSONS; AND (3) MAKING DONATIONS AND OTHER TRANSFERS TO CHARITABLE ORGANIZATIONS AND OTHER ORGANIZATIONS AFFILIATED WITH THE CORPORATION AND DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, CONSISTENT WITH AND IN FURTHERANCE OF THESE PURPOSES.THROUGH JULY 12, 2018, FRIENDS RETIREMENT CONCEPTS, INC. D/B/A ARBOR GLEN ("ARBOR GLEN") WAS A NOT-FOR-PROFIT ORGANIZATION THAT OPERATED A CONTINUING-CARE RETIREMENT COMMUNITY. ARBOR GLEN'S COMMUNITY CONSISTS OF 183 INDEPENDENT LIVING APARTMENT UNITS, 19 INDEPENDENT LIVING VILLA UNITS, AND A HEALTH CENTER COMPRISED OF 33 ASSISTED LIVING UNITS/ LICENSED FOR 35 BEDS AND 64 MEDICARE CERTIFIED NURSING BEDS. ARBOR GLEN'S COMMUNITY IS LOCATED ON APPROXIMATELY 24 ACRES IN SOMERSET COUNTY, NEW JERSEY. A MAJORITY OF ARBOR GLEN'S BOARD OF DIRECTORS WERE REQUIRED TO BE MEMBERS OF THE RELIGIOUS SOCIETY OF FRIENDS. EFFECTIVE JULY 13, 2018, ARBOR GLEN SOLD SUBSTANTIALLY ALL ASSETS AND PROPERTIES USED IN OR INCIDENTAL TO THE CONDUCT OF THE BUSINESS TO BRIDGEWATER LIFE CARE PROPERTY, LLC., AND THIS REPORTING ENTITY WILL NO LONGER OPERATE AS A CONTINUING-CARE RETIREMENT COMMUNITY. THE OPERATIONS OF THE CONTINUING-CARE RETIREMENT COMMUNITY, HOWEVER, WILL CONTINUE UNDER THE CONTROL OF BRIDGEWATER LIFE CARE PROPERTY, LLC, WHICH IS UNRELATED TO ARBOR GLEN. 10564501 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 56 0 1 117 1 1 1 0 0 0 0 0 0 0 0 0 X 13 12 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NJ X FELIX ROSENWASSER 9086928851 10 CHEROKEE ROAD EAST BRUNSWICK NJ 08816 PAULA MCCLURE CHAIRPERSON 1.00 X X 0 0 0 RANDY MALONE VICE CHAIR 1.00 X X 0 0 0 CHESTER BREWER TREASURER 1.00 X X 0 0 0 ROBERT GREEN SECRETARY 1.00 X X 0 0 0 HOWARD FREUND DIRECTOR 1.00 X 0 0 0 MILDRED POTENZA DIRECTOR 1.00 X 0 0 0 LEE VARIAN DIRECTOR 1.00 X 0 0 0 CHARLOTTE MCAFEE DIRECTOR 1.00 X 0 0 0 BARBARA MENZEL DIRECTOR 1.00 X 0 0 0 JENNIFER COURY DIRECTOR 1.00 X 0 0 0 BARBARA ANDREWS DIRECTOR 1.00 X 0 0 0 ROBERT KISER DIRECTOR 1.00 X 0 0 0 JOHN VINCENT DIRECTOR 1.00 X X 0 0 0 FELIX ROSENWASSER PRESIDENT & CEO 40.00 X 173132 0 7500 LISA CODDINGTON CONTROLLER & ASSISTANT TRE 40.00 X 111696 0 6158 JANINE SCHMELTZ DIRECTOR OF NURSING 40.00 X 112668 0 6118 MARINA FERRER ADMINISTRATOR AND ASSISTAN 40.00 X 142111 0 5910 539607 0 25686 4 0 1 0 SODEXO INC & AFFILIATES PO BOX 81049 WOBURN MA 01813 MANAGEMENT SERVICES 1662098 TENDER TOUCH REHAB 685 RIVER AVENUE LAKEWOOD NJ 08701 REHAB SERVICES 633577 DRINKER BIDDLE AND REATH LLP PO BOX 627 PRINCETON NJ 08542 LEGAL SERVICES 381597 R KOCH CARPENTRY 22 BUCHANAN ROAD BLAIRSTOWN NJ 07825 CONSTRUCTION SERVICES 116510 4 X 14400 14400 NET RESIDENT SERVICE REV 623000 7880003 7880003 AMORTIZATION OF ENTRANCE FEES 623000 1151297 1151297 OTHER RESIDENT SERVICES 623000 46046 46046 COMPANION PROGRAM 623000 32975 32975 NURSE VISIT/HELPING HANDS 623000 4774 4774 9115095 511333 511333 113566456 46091546 67474910 67474910 67474910 600 14400 600 0 ENTRANCE FEES REFUND INCENTIVE 900099 253676 253676 FITNESS SERVICES 900099 19835 19835 COFFEE SHOP/DINING REV 722210 15815 15815 24584 1626 22958 313910 77429648 9115095 1626 68298527 X 579955 479358 100597 2299848 1900924 398924 29964 24767 5197 528753 434435 94318 283644 234444 49200 468122 468122 113489 113489 1974571 1824944 149627 116133 116133 494675 418498 76177 12494 1115 11379 824406 798707 25699 16301 7108 9193 15416 5623 9793 3001396 3001396 1373565 1373565 779658 779658 MISCELLANEOUS EXPENSE 608334 2850 605484 BAD DEBT EXPENSE 76283 9859 66424 REFINANCING COSTS 50000 50000 DUES, SUBS & LICENSES 42000 42000 19088 4908 14180 13708095 10564501 3143594 0 609345 1853963 5860 767919 55987 47069 245887 0 37070218 10040843 80778 125000 0 48992919 1909950 7793785 204360 39753463 55689067 1705590 9137122 0 112373437 1909950 X -63721555 0 341037 0 -63380518 0 48992919 1909950 X 63721553 -341035 X 0 0 1 0 X 59567 71818 51760 65029 14400 262574 17204616 18908662 17502049 19124328 9115095 81854750 4000 600 600 5200 17264183 18980480 17557809 19189957 9130095 82122524 0 0 0 82122524 426799 134812 336917 264269 511333 1674130 426799 134812 336917 264269 511333 1674130 203955 243209 885098 381642 58608 1772512 17894937 19358501 18779824 19835868 9700036 85569166 0.95970 0.96320 0.01960 0.01670 X 0 0 0 0 0 0 0 0 1 448 448 0 PART II-B, LINE 1: THE ORGANIZATION PAYS DUES TO NATIONAL (LEADINGAGE) AND STATE (LEADINGAGE NJ) ASSOCIATIONS OF HOMES AND SERVICES FOR THE AGING. A PORTION OF THE ORGANIZATION'S DUES ARE USED FOR LOBBYING PURPOSES. THE $448 REPORTED AS LOBBYING EXPENDITURES IS THE PORTION OF LEADINGAGE AND LEADINGAGE NJ'S DUES THAT WERE USED FOR LOBBYING PURPOSES (3.1% OF THE ORGANIZATION'S TOTAL DUES OF $14,446). 0 PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES GALA EXPENSES FITNESS REVENUE NETTED AGAINST EXPENSE PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES GALA EXPENSE FITNESS REVENUE NETTED AGAINST EXPENSE ON FINANCIAL STATEMENT X X 0 0 0 0 0 0 0 1 0 FELIX ROSENWASSER PRESIDENT & CEO 173132 0 0 0 0 0 1632 0 0 0 174764 0 0 0 A NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY 645916A64 2004-05-17 36500000 TO ADVANCE REFUND CERTAIN 1998 BONDS 0 0 0 A 34815012 36500000 1384000 1320000 33796000 2004 0 1 1 1 A 0 0 0 1 1 0 0 0 1 A 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 05/15/2013 ADDITIONAL INFORMATION IN ADDITION TO THE BONDS REPORTED IN PART I OF SCHEDULE K, ARBOR GLEN ALSO HAS A BOND ISSUE AS FOLLOWS: NJEDA, SENIOR MORTGAGE REVENUE AND REFUNDING BONDS, SERIES 1998 ("1998 BONDS") THE TOTAL BOND ISSUE IS IN THE AMOUNT OF $24,620,000. MANAGEMENT HAS MADE ALL REQUIRED BOND PAYMENTS AND HAS NOT DEFAULTED ON THE PAYMENT TERMS OF THE DEBT. AS OF JULY 25, 2014 A MANDATORY TENDER OCCURRED, AND THE BOND TRUSTEE MADE A MANDATORY PURCHASE DRAWING WITH RESPECT TO THE LETTER OF CREDIT. 2004 BONDHOLDERS AGREED TO HOLD THE INTERESTS FORMERLY HELD BY THE BANK. AS OF AUGUST 29, 2014, THE 2004 BONDHOLDERS GRANTED A FORBEARANCE TO ARBOR GLEN AND UNTIL THE EXPIRATION OR TERMINATION OF THE FORBEARANCE PERIOD, THE 2004 BONDHOLDERS WILL FORBEAR FROM EXERCISING THEIR DEFAULT-RELATED RIGHTS AND REMEDIES THROUGHOUT THE FORBEARANCE PERIOD. FINANCIAL COVENANTS DURING THE FORBEARANCE PERIOD HAVE ALSO BEEN MODIFIED. THE PROCEEDS FROM THE 2004 BONDS WERE USED TO ADVANCE REFUND CERTAIN 1998 BONDS. SCHEDULE K - ADDITIONAL INFORMATION AS DESCRIBED IN SCHEDULE N, ARBOR GLEN SOLD SUBSTANTIALLY ALL OF ITS ASSETS ON JULY 12, 2018. PRIOR TO THE SALE, A COURT HEARING WAS HELD ON FEBRUARY 7, 2018, AND A COURT ORDER WAS ISSUED TO HAVE ALL PROCEEDS OF THE SALE OF ARBOR GLEN IN ADDITION TO ALL CASH AND CASH EQUIVALENTS HELD BY ARBOR GLEN, AFTER RESERVING FOR NORMAL POST-CLOSING COSTS AND ESCROW ACCOUNT, TO BE DISTRIBUTED TO THE 2004 AND 1998 BONDHOLDERS. THE 1998 AND 2004 ARBOR GLEN BONDS ARE NOT BEING CANCELLED UPON PAYMENT OF SALE PROCEEDS FOR THREE REASONS: (1) PURSUANT TO THE SALE AGREEMENT, $1,250,000 WAS DEPOSITED INTO ESCROW HELD BY THE TITLE INSURER TO PAY POTENTIAL CLAIMS WHICH COULD ARISE AFTER THE CLOSING; THE NET AMOUNT REMAINING IN THE ESCROW WILL BE PAYABLE TO THE TRUSTEE FOR DISTRIBUTION TO THE HOLDERS OF THE BONDS IN APRIL, 2019; (2) AN AMOUNT WAS SET ASIDE AT THE CLOSING FOR BUDGETED WIND DOWN EXPENSES OF ARBOR GLEN, IN THE AMOUNT OF $663,000, TO BE INCURRED ON OR BEFORE JULY 19, 2019, WITH THE NET REMAINING AT THAT TIME PAYABLE TO THE TRUSTEE FOR DISTRIBUTION TO THE HOLDERS OF THE BONDS; (3) THERE WILL BE A TRUE UP FOR VENDOR PAYMENTS AND OTHER EXPENSES OF OPERATIONS BETWEEN ARBOR GLEN AND BUYER PARTIES 45 DAYS AFTER THE CLOSING, WITH THE NET AMOUNT OF ANY PAYMENTS MADE BY ARBOR GLEN AND PROPERLY ALLOCABLE TO BUYER PARTIES PAID TO THE TRUSTEE AFTER THE TRUE UP IS COMPLETED. THE BOND TRUSTEE IS AUTHORIZED AND DIRECTED TO TERMINATE ITS LIENS AND SECURITY INTEREST ON THE ASSETS OF ARBOR GLEN IN CONNECTION WITH THE SALE. DISTRIBUTIONS OF $39,576,562 WERE PAID TO A DEPOSITORY TRUST COMPANY, AS THE CLEARINGHOUSE FOR ALL HOLDERS OF THE BONDS, ON JULY 18, 2018 FOR ALLOCATION TO THE VARIOUS HOLDERS OF THE BONDS. THE 1998 BONDS AND THE 2004 BONDS ARE OF EQUAL PRIORITY AND HAVE BEEN ALLOCATED IN ACCORDANCE WITH THE PRINCIPAL BALANCE OWED ON EACH SERIES, WHICH RESULTED IN 43.2% PAID TO THE 1998 BONDHOLDERS AND 56.8% PAID TO THE 2004 BONDHOLDERS. SUBSTANTIALLY ALL ASSETS AND RELATED LIABILITES OF THE ORGANIZATION (EXCLUDING CASH AND TAX-FREE BONDS) 2018-07-13 40375000 MARKETING PROCESS 440194180 CCRC 100 GRAND BLVD KANSAS CITY MO 64106 0 0 0 0 SCHEDULE N, PART II SALE OF MORE THAN 25% OF THE ORGANIZATION'S ASSETS. EFFECTIVE JULY 13, 2018, ARBOR GLEN SOLD SUBSTANTIALLY ALL ASSETS AND PROPERTIES USED IN OR INCIDENTAL TO THE CONDUCT OF THE BUSINESS TO BRIDGEWATER LIFE CARE PROPERTY, LLC., AND THIS REPORTING ENTITY WILL NO LONGER OPERATE AS A CONTINUING-CARE RETIREMENT COMMUNITY; WHICH RAISE SUBSTANTIAL DOUBT ABOUT THIS REPORTING ENTITY'S ABILITY TO CONTINUE AS A GOING CONCERN. THE OPERATIONS OF THE CONTINUING-CARE RETIREMENT COMMUNITY, HOWEVER, WILL CONTINUE UNDER THE CONTROL OF BRIDGEWATER LIFE CARE PROPERTY, LLC, WHICH IS UNRELATED TO ARBOR GLEN.ARBOR GLEN WAS REQUIRED TO MEET CERTAIN FINANCIAL AND OPERATING COVENANTS UNDER THE TERMS OF THE REIMBURSEMENT AND CREDIT AGREEMENT RELATED TO THE NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY ("NJEDA"), SENIOR MORTGAGE REVENUE AND REFUNDING BONDS, SERIES 1998 ("1998 BONDS") AND NJEDA SENIOR MORTGAGE VARIABLE RATE DEMAND RATE REVENUE REFUNDING BOND, SERIES 2004 ("2004 BONDS"). ARBOR GLEN WAS NOT IN COMPLIANCE WITH SOME OF THE FINANCIAL AND OPERATING COVENANTS INCLUDED IN THE DEBT AGREEMENTS AS OF DECEMBER 31, 2013 AND SINCE THE DEBT SERVICE COVERAGE RATIO IS BELOW A REQUIREMENT OF 1.0 THE BONDS ARE IN A TECHNICAL EVENT OF DEFAULT. THIS EVENT OF DEFAULT MAKES THE DEBT CALLABLE BY THE LENDERS. DURING 2014, A FORBEARANCE AGREEMENT WAS ENTERED INTO BY ARBOR GLEN. BONDHOLDERS AGREED TO GRANT A FORBEARANCE UNTIL JUNE 30, 2018, EXTENDED TO JULY 16, 2018 SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT, WHICH OUTLINES CERTAIN NEW COVENANTS THAT MUST BE MET TO MAINTAIN THE FORBEARANCE AGREEMENT. DURING 2018, ARBOR GLEN WAS IN COMPLIANCE WITH THE COVENANTS OF THE FORBEARANCE AGREEMENT ,PRIOR TO THE SALE, A COURT HEARING WAS HELD ON FEBRUARY 7, 2018, AND A COURT ORDER WAS ISSUED TO HAVE ALL PROCEEDS OF THE SALE OF ARBOR GLEN IN ADDITION TO ALL CASH AND CASH EQUIVALENTS HELD BY ARBOR GLEN, AFTER RESERVING FOR NORMAL POST-CLOSING COSTS AND ESCROW ACCOUNT, TO BE DISTRIBUTED TO THE 2004 AND 1998 BONDHOLDERS. THE 1998 AND 2004 ARBOR GLEN BONDS ARE NOT BEING CANCELLED UPON PAYMENT OF SALE PROCEEDS FOR THREE REASONS: (1) PURSUANT TO THE SALE AGREEMENT, $1,250,000 WAS DEPOSITED INTO ESCROW HELD BY THE TITLE INSURER TO PAY POTENTIAL CLAIMS WHICH COULD ARISE AFTER THE CLOSING; THE NET AMOUNT REMAINING IN THE ESCROW WILL BE PAYABLE TO THE TRUSTEE FOR DISTRIBUTION TO THE HOLDERS OF THE BONDS IN APRIL, 2019; (2) AN AMOUNT WAS SET ASIDE AT THE CLOSING FOR BUDGETED WIND DOWN EXPENSES OF ARBOR GLEN, IN THE AMOUNT OF $663,000, TO BE INCURRED ON OR BEFORE JULY 19, 2019, WITH THE NET REMAINING AT THAT TIME PAYABLE TO THE TRUSTEE FOR DISTRIBUTION TO THE HOLDERS OF THE BONDS; (3) THERE WILL BE A TRUE UP FOR VENDOR PAYMENTS AND OTHER EXPENSES OF OPERATIONS BETWEEN ARBOR GLEN AND BUYER PARTIES 45 DAYS AFTER THE CLOSING, WITH THE NET AMOUNT OF ANY PAYMENTS MADE BY ARBOR GLEN AND PROPERLY ALLOCABLE TO BUYER PARTIES PAID TO THE TRUSTEE AFTER THE TRUE UP IS COMPLETED. THE BOND TRUSTEE IS AUTHORIZED AND DIRECTED TO TERMINATE ITS LIENS AND SECURITY INTEREST ON THE ASSETS OF ARBOR GLEN IN CONNECTION WITH THE SALE. DISTRIBUTIONS OF $39,576,562 WERE PAID TO A DEPOSITORY TRUST COMPANY, AS THE CLEARINGHOUSE FOR ALL HOLDERS OF THE BONDS, ON JULY 18, 2018 FOR ALLOCATION TO THE VARIOUS HOLDERS OF THE BONDS. THE 1998 BONDS AND THE 2004 BONDS ARE OF EQUAL PRIORITY AND HAVE BEEN ALLOCATED IN ACCORDANCE WITH THE PRINCIPAL BALANCE OWED ON EACH SERIES, WHICH RESULTED IN 43.2% PAID TO THE 1998 BONDHOLDERS AND 56.8% PAID TO THE 2004 BONDHOLDERS. FORM 990, PART III, LINE 3 EFFECTIVE JULY 12, 2018 THE ORGANIZATION SOLD SUBSTANTIALLY ALL OF ITS ASSETS USED IN OR INCIDENTAL TO THE CONDUCT OF ITS BUSINESS TO BRIDGEWATER LIFE CARE PROPERTY, LLC, AND LCS BRIDGEWATER OPERATIONS LLC, AN AFFILIATE OF BRIDGEWATER LLC, AND THIS REPORTING ORGANIZATION WILL NO LONGER OPERATE AS A CONTINUING CARE RETIREMENT COMMUNITY. LCS BRIDGEWATER OPERATIONS LLC BOUGHT THE PERSONAL PROPERTY, FOOD AND BEVERAGE, RESIDENT AGREEMENTS AND RECORDS, PERMITS AND THE ORGANIZATION'S MEDICARE PROVIDER AGREEMENT; BRIDGEWATER LIFE CARE PROPERTY LLC BOUGHT ALL OTHER ASSETS. FORM 990, PART VI, SECTION A, LINE 7A ONE MEMBER OF THE BOARD OF FRIENDS RETIREMENT CONCEPTS, INC. SHALL BE SELECTED BY THE BOARD OF FRIENDS RETIREMENT CONCEPTS, INC. FROM AMONG PERSONS NOMINATED BY THE ELECTED REPRESENTATIVES OF THE RESIDENTS OF THE ARBOR GLEN CONTINUING CARE RETIREMENT COMMUNITY. THERE ARE TWO RESIDENTS WHO ARE CURRENTLY SERVING ON THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B MANAGMENT DOES A DETAIL REVIEW OF THE 990 BEFORE PRESENTATION TO THE BOARD. THE CHAIRMAN OF THE BOARD CONDUCTS THE BOARD MEETING. THE 990 FORM IS PRESENTED TO THE BOARD MEMBERS AT THE MEETING FOR REVIEW. THE BOARD WILL APPROVE THE FORM BEFORE SUBMISSION TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL DISCLOSURE. THE CONFLICT OF INTEREST POLICY IS DISCUSSED ANNUALLY AT A BOARD MEETING AND TRAINING IS PROVIDED ANNUALLY BY THE ORGANIZATION'S COMPLIANCE OFFICER. THE CHAIRMAN OF THE BOARD REVIEWS THE SIGNED CONFLICT OF INTEREST STATEMENTS ANNUALLY. THE EXECUTIVE COMMITTEE OF THE BOARD AND THE CEO HANDLE ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST. BOARD MEMBERS MUST DISCLOSE ANY CONFLICTS OF INTEREST AND ABSTAIN FROM VOTING IF SUCH CONFLICT ARISES. FORM 990, PART VI, SECTION B, LINE 15 EACH YEAR THE BOARD OF DIRECTORS FORMS A COMPENSATION AND REVIEW COMMITTEE TO EVALUATE PERFORMANCE AND REVIEW MARKET BASED SALARIES FOR OTHER TAX EXEMPT STAND-ALONE COMMUNITIES USING AASHA SALARY SURVEYS AND GUIDESTAR. THE COMMITTEE RECOMMENDS CHANGES IN CEO COMPENSATION TO THE FULL BOARD BASED ON CONTRACT OBLIGATIONS, PAST YEAR PERFORMANCE, SALARY SURVEYS AND FINANCIAL CONDITION OF THE ORGANIZATION. THE SALARY PROCESS FOR THE CFO IS ALSO ESTABLISHED ON THE BASIS OF SALARY SURVEY DATA. THE DECISIONS ARE DOCUMENTED IN THE COMPENSATION AND REVIEW COMMITTEE MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. PART VIII, STATEMENT OF REVENUE, LINE 7A AMOUNT SHOWN ON LINE 7A REPRESENTS SALES PROCEEDS, BONDS REMOVED FROM THE BOOKS AND LIABILITIES ASSUMED AT TIME OF SALE FORM 990, PART IX, LINE 11G PROFESSIONAL SERVICES: PROGRAM SERVICE EXPENSES 1,824,944. MANAGEMENT AND GENERAL EXPENSES 149,627. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,974,571. FORM 990, PART XI, LINE 9: ASSETS TRANSFERRED TO COMMUNITY FOUNDATION OF NEW JERSEY -341,035.