2015-11-16T08:56:53-06:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP 220 SOUTH SIXTH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2014-01-01 420680440 WESLEY RETIREMENT SERVICES INC WESL 5152716789 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 FRANK TALLERICO CFO 5152716789 2015-11-13 1 KACIE MCEWEN P01599614 6123764500 2014 2016-02-25 16:41:14Z ROB KRETZINGER 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 77978447 0 X WWW.WESLEYLIFE.ORG X 1947 IA PROVIDING HOUSING, HEALTH CARE, AND SUPPORT SERVICES FOR OLDER ADULTS. 9 9 0 2032 0 0 2302597 1877591 64276831 73110537 1812546 2873852 76500 76500 68468474 77938480 500000 0 0 0 35935739 39926668 0 0 584413 31816639 35350106 68252378 75276774 216096 2661706 230363813 231819980 211926023 213955248 18437790 17864732 X WESLEY RETIREMENT SERVICES, INC.(WRS), WAS ESTABLISHED IN 1947 AS A FAITH-BASED NON-PROFIT ORGANIZATION AND HAS SINCE DEDICATED ITSELF TO PROVIDING HOUSING, HEALTH CARE, AND SUPPORT SERVICES EXCLUSIVELY TO OLDER ADULTS IN WAYS THAT PROMOTE INDEPENDENCE, HEALTH AND WELLNESS FOR EVERY IOWAN WE SERVE. WE CONTINUE TO WITNESS HOW OUR FAITH CONNECTS US TO OUR MISSION AND GUIDES US AS WE SERVE OUR CUSTOMER. OUR VISION IS TO "TRANSFORM THE AGING EXPERIENCE" SO OLDER ADULTS LIVE BETTER LONGER. 0 0 68856968 73110537 WRS WAS ESTABLISHED IN 1947 AS A FAITH-BASED, NON-PROFIT ORGANIZATION AND HAS SINCE DEDICATED ITSELF TO PROVIDING HOUSING, HEALTH CARE, AND SUPPORT SERVICES EXCLUSIVELY TO OLDER ADULTS IN WAYS THAT PROMOTE INDEPENDENCE AND A HEALTHY, ACTIVE LIFESTYLE FOR EVERYONE WE SERVE. WESLEYLIFE IS THE SOLE MEMBER OF WRS AND OF WESLEY COMMUNITY SERVICES, INC, (WCS) WHICH PROVIDES HOME AND COMMUNITY BASED SERVICES. WRS IS A 501(C)(3) NON-PROFIT ORGANIZATION THAT CURRENTLY OWNS AND OPERATES SEVEN CONTINUING CARE RETIREMENT COMMUNITIES (CCRCS) IN IOWA THAT OFFER A FULL CONTINUUM OF WELLNESS SERVICES. THOSE RETIREMENT COMMUNITIES ARE: WESLEY ACRES IN DES MOINES; HALCYON HOUSE IN WASHINGTON; HERITAGE HOUSE IN ATLANTIC; THE VILLAGE IN INDIANOLA; PARK CENTRE IN NEWTON; EDGEWATER, AN ACTIVE LIFE COMMUNITY IN WEST DES MOINES; AND HEARTHSTONE, A MINISTRY OF WESLEYLIFE IN PELLA.AS PART OF OUR MISSION, WE BELIEVE IT IS OUR RESPONSIBILITY TO MAKE THE CITIES AND COMMUNITIES IN WHICH WE OPERATE A BETTER PLACE TO LIVE. WE ARE GUIDED BY OUR CORE VALUES TO PROVIDE QUALITY SERVICES, DEMONSTRATE INTEGRITY, MAINTAIN DIGNITY, FOSTER COMMUNITY, AND DELIVER RESPONSIBLE STEWARDSHIP. WE SERVE OLDER IOWANS BY PROVIDING THEM THE QUALITY SERVICES THEY NEED WITH A SERVANT'S HEART. WE ARE COMMITTED TO QUALITY, EXCELLENCE, HOSPITALITY AND INNOVATION. WE FIRMLY BELIEVE THAT IT IS OUR RESPONSIBILITY TO BE GOOD STEWARDS OF THIS MISSION AND ONLY USE THE RESOURCES WE HAVE BEEN PROVIDED IN WAYS THAT WILL BETTER THE LIVES OF OUR CUSTOMERS. AS A NON-PROFIT ORGNAIZATION, WE UNDERSTAND THAT OUR RESPONSIBILITY AND OBLIGATION TO OUR COMMUNITIES IS TO OPERATE WITH TOTAL TRANSPARENCY, HONESTY, AND INTEGRITY IN PROVIDING THE BEST CARE POSSIBLE.BELOW REFLECTS SOME OF THE COMMUNITY BENEFITS FROM 2014:- MANY OLDER ADULTS SOMETIMES FACE SITUATIONS WHERE THEIR SAVINGS AND INCOME CAN NO LONGER COVER THE COST OF THEIR NEEDS. IN 2014, RESIDENTS RECEIVED $318,199 WORTH OF CHARITABLE CARE AS SUPPORTED THROUGH THE GOOD SAMARITAN AND GOOD SHEPHERD FUNDS TO ENSURE EACH PERSON COULD THRIVE IN THEIR HOME. WESLEY NEVER ASKED ANYONE TO LEAVE THEIR HOME DUE TO LACK OF FUNDS.- IN 2014, INCREASING OUR REACH TO UNDERSERVED COMMUNITY MEMBERS, MEDICAID DAYS INCREASED BY 17% OVER LAST YEAR TO 36,904 DAYS.- OUR CCRC'S CREATED AND CONDUCTED 25 EDUCATIONAL SESSIONS AIMED AT IMPROVING THE HEALTH OF OLDER ADULTS BY PROMOTING NUTRITION, WELLNESS, AND QUALITY OF LIFE. IN TOTAL, 190 ADULTS LIVING OUTSIDE OUR WESLEYLIFE COMMUNITIES PARTICIPATED IN THESE SERVICES.- WE PROVIDED MORE THAN 15,000 HOURS OF VOLUNTEER OPPORTUNITIES TO APPROXIMATELY 2,032 MEMBERS OF OUR SHARED COMMUNITY AT OUR COMMUNITIES FOR HEALTHY LIVING. - AT OUR COMMUNITIES FOR HEALTHY LIVING, WE WELCOMED 156 FUTURE NURSES, PHARMACISTS, DOCTORS, AND WELLNESS PROFESSIONALS AS INTERNS AND STUDENTS, PROVIDING 6,735 HOURS OF HANDS-ON, REAL-LIFE EXPERIENCES WITH RESIDENTS, CLIENTS, TEAM MEMBERS AND LEADERSHIP.- WE PROVIDED A GATHERING SPACE IN OUR RETIREMENT COMMUNITIES AT NO CHARGE TO LOCAL GROUPS ON 376 OCCASSIONS, SERVING OVER 6,151 PEOPLE.- MORE THAN 590 CHILDREN AND STUDENTS VISITED RESIDENTS AND PARTICIPANTS TO CREATE MULTI-GENERATIONAL RELATIONSHIPS, PROMOTE READING SKILLS, AND CREATE MENTORING RELATIONSHIPS.- WE COLLECTED AND DONATED VARIOUS ITEMS, INCLUDING CLOTHING, COATS, BOOKS, AND OTHER SUPPLIES, TO AREA CHARITIES. - WE COLLABORATE TO PROVIDE A MOBILE DENTAL CLINIC TO OLDER ADULTS IN SOUTHWEST IOWA COMMUNITIES. IN 2014, 177 OLDER ADULTS WERE PROVIDED WITH CLEANINGS, BASIC TREATMENT, AND PREVENTATIVE SCREENING MEASURES. 68856968 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 1 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 1 193 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 X X FRANK TALLERICO CFO 5152716559 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 BOB RUCH CHAIR 2.00 4.00 X X 0 0 0 JODY LORENCE SECRETARY/TREASURER 1.00 2.00 X X 0 0 0 CHAD RASMUSSEN VICE CHAIR 1.00 2.00 X X 0 0 0 TOM MAHONEY DIRECTOR 1.00 2.00 X 0 0 0 JOHN MOENCK DIRECTOR 1.00 2.00 X 0 0 0 DAN RENEKER DIRECTOR 1.00 2.00 X 0 0 0 DAVID STOUT DIRECTOR 1.00 2.00 X 0 0 0 KIRK TYLER DIRECTOR 1.00 2.00 X 0 0 0 SUSAN WATSON DIRECTOR 1.00 2.00 X 0 0 0 ROB KRETZINGER PRESIDENT & CEO 30.00 20.00 X 322968 215313 59271 FRANK TALLERICO CFO 27.00 23.00 X 137909 112835 22257 JANET A SIMPSON EDGEWATER EXECUTIVE DIRECTOR 50.00 0.00 X 122069 0 25064 BRADLEE BOATRIGHT PARK CENTRE EXECUTIVE DIRECTOR 50.00 0.00 X 102513 0 22853 CHAD PIPER THE VILLAGE EXECUTIVE DIRECTOR 50.00 0.00 X 100571 0 13898 CHRISTINE MARSHALL HALCYON HOUSE EXECUTIVE DIRECTOR 50.00 0.00 X 100096 0 5449 886126 328148 148792 4 0 1 0 SELECT REHABILITATION INC 2600 COMPASS ROAD GLENVIEW IL 60026 THERAPY SERVICES 3718499 WEITZ COMPANY LLC 5901 THORNTON AVE DES MOINES IA 50321 CONSTRUCTION OF FACILITY 2860224 MORRISON MANAGEMENT SPECIALISTS PO BOX 102289 ATLANTA GA 303682289 FOOD & BEVERAGE GOODS AND SERVICES 1251626 CBS STAFFING LLC 7611 DOUGLAS AVE 36 URBANDALE IA 50322 STAFFING SERVICES 403325 SIGNATURE HEALTHCARE 14225 UNIVERSITY AVE SUITE 130 WAUKEE IA 502638294 STAFFING SERVICES 401485 22 48719 1828872 113442 1877591 HEALTH CARE SERVICES 624100 71830923 71830923 MEALS INCOME 624100 966044 966044 OTHER RESIDENT SERVICES 900099 313570 313570 73110537 1367658 1367658 76500 0 76500 76500 76500 1546161 0 39967 1546161 -39967 1506194 1506194 77938480 73110537 0 2950352 33123398 29183720 3579513 360165 713960 625336 81512 7112 3219176 3025461 134766 58949 2870134 2621910 222047 26177 118021 73932 44089 215521 47123 168398 156938 153581 3357 2631179 2359179 268268 3732 560675 427699 132388 588 3466953 3308251 153777 4925 448621 316442 131718 461 4170155 4108686 60790 679 259581 134029 114875 10677 104323 19730 83245 1348 6247681 6107245 140436 10279039 10015373 257123 6543 1707161 1674204 31990 967 FOOD 3847280 3847280 1136978 807787 227101 102090 75276774 68856968 5835393 584413 17029551 5716624 2265258 2419274 2289255 1961172 4236161 5734261 374467 324699 491590 369231 258095490 100818128 162103504 157277362 28089351 45010724 2414243 2421294 5406946 4880847 5663487 5704492 230363813 231819980 9113213 6692284 15857129 16450085 113447724 113458680 686066 669735 72821891 76684464 211926023 213955248 X 4644419 2875841 4711565 5708805 9081806 9280086 18437790 17864732 230363813 231819980 X 2661706 -683540 -2551224 X 0 1 X 1 0 X 5973231 1501865 2838443 2312280 1877591 14503410 54554100 58218934 61386299 64276831 73110537 311546701 60527331 59720799 64224742 66589111 74988128 326050111 13967 18000 6800 38767 0 13967 18000 6800 38767 326011344 1759701 1013411 1777186 1670209 1444158 7664665 1759701 1013411 1777186 1670209 1444158 7664665 3356 2579 5935 62290388 60736789 66001928 68259320 76432286 333720711 0.97690 0.97440 0.02300 0.02690 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 9028120 230315 21651 9280086 8465838 329274 233008 9028120 7817986 400994 246858 8465838 7716735 245172 -143921 7817986 7293787 357722 65226 7716735 0.00000 1.00000 0.00000 0 0 2631074 2631074 221672883 80791086 140881797 7244036 1857813 5386223 25195072 17401688 7793384 1352425 767541 584884 157277362 LIABILITY UNDER CHARITABLE REMAINDER TRUST 126524 ANNUITY PAYMENT LIABILITY 92499 FAIR VALUE INTEREST RATE SWAP 8354447 ASSET RETIREMENT OBLIGATION 76984 ENTRY FEE ESCROW DEPOSITS 435493 LIABILITY FOR REFUNDABLE ENTRY FEES 67598517 76684464 X PART V, LINE 4: THE EARNINGS FROM THE GOOD SAMARITAN/SHEPHERD ENDOWMENT ARE TRANSFERRED TO THE GOOD SAMARITAN/SHEPHERD RESERVE, WHICH IS USED TO ASSIST RESIDENTS OF MODEST MEANS WITH THEIR MONTHLY FEES IN ACCORDANCE WITH GUIDELINES ESTABLISHED BY THE BOARD OF DIRECTORS. EARNINGS FROM THE SARGENT MEMORIAL ENDOWMENT ARE USED FOR SIMILAR PURPOSES FOR WESLEY ACRES. EARNINGS FROM THE SCHEERER MEMORIAL ENDOWMENT ARE USED TO PURCHASE ITEMS FOR THE BENEFIT OF WESLEY ACRES RESIDENTS. EARNINGS FROM THE NURSING SCHOLARSHIP ENDOWMENT ARE USED TO ASSIST HALCYON AND WESLEY ACRES EMPLOYEES IN ADVANCING THEIR NURSING EDUCATION. EARNINGS FROM THE BAKER EMPLOYMENT ENDOWMENT ARE USED TO ASSIST EMPLOYEES OF WESLEY ACRES WITH SHORT-TERM FINANCIAL NEEDS. EARNINGS FROM THE PARK CENTRE AND VILLAGE BUILDING ENDOWMENTS ARE USED TO MAKE IMPROVEMENTS, UPGRADES AND REPAIRS TO THE BUILDINGS. EARNINGS FROM THE PARK CENTRE COMPUTER ENDOWMENT ARE USED TO PURCHASE COMPUTER HARDWARE. EARNINGS FROM NORRIS WELLNESS ENDOWMENT ARE USED TO SUPPORT A WELLNESS PROGRAM AT WESLEY ACRES. EARNINGS FROM THE GOOD SAMARITAN/CORA WAGNER TRUST ARE USED TO ASSIST RESIDENTS AT WESLEY ACRES. PART X, LINE 2: THE CORPORATION FOLLOWS THE ACCOUNTING STANDARDS FOR CONTINGENCIES IN EVALUATING UNCERTAIN TAX POSITIONS. THE CORPORATION FILES INFORMATION RETURNS AS A TAX-EXEMPT ORGANIZATION. SHOULD THAT STATUS BE CHALLENGED IN THE FUTURE, ALL YEARS SINCE INCEPTION COULD BE SUBJECT TO REVIEW BY THE INTERNAL REVENUE SERVICE (IRS). THE ORGANIZATION'S 2011 THROUGH 2014 TAX YEARS ARE OPEN TO EXAMINATION BY THE IRS. WRS IS NOT AWARE OF ANY CURRENT IRS INQUIRIES OR ACTIONS. X X X X X X X 1 RENAISSANCE GROUP INC 1000 73RD ST STE 12 WINDSOR HEIGHTS IA 503241321 CONSULTING FOR CAPITAL CAMPAIGNS 0 0 37723 -37723 37723 -37723 IA X X X X X 0 0 0 0 0 0 0 0 0 ROB KRETZINGER PRESIDENT & CEO 263738 175826 0 0 59230 39487 22380 14920 13183 8788 358531 239021 0 0 FRANK TALLERICO CFO 137569 112557 0 0 340 278 4131 3380 8110 6636 150150 122851 0 0 PART I, LINE 3 WESLEYLIFE DETERMINES THE CEO'S COMPENSATION. THEY USE A COMPENSATION COMMITTEE, COMPENSATION SURVEY OR STUDY, A WRITTEN EMPLOYMENT CONTRACT, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S CEO. A IOWA FINANCE AUTHORITY 521699886 46245WAV9 2003-07-31 22510000 IMPROVE FACILITIES, REFUND PRIOR ISSUES 10/29/92, 4/10/97, 11/6/97, 6/22/00 0 0 0 B IOWA FINANCE AUTHORITY 521699886 46246KXT4 2006-10-12 8780000 IMPROVE FACILITIES, REFUND PRIOR ISSUE OF $7,980,000 (7/31/03) 0 0 0 C IOWA FINANCE AUTHORITY 521699886 2007-04-27 1030000 PURCHASE FACILITIES 0 0 0 D IOWA FINANCE AUTHORITY 521699886 46245WBT3 2007-12-20 87412217 CONSTRUCT FACILITIES, REFUND PRIOR DEBT (06/21/07) 1 0 0 A 22700116 191335 11518574 10990208 2005 1 0 1 1 B 1065000 8880230 18911 156495 119917 3224476 5360432 2007 1 0 1 1 C 50797 1030000 1030000 2007 0 0 1 1 D 50435000 90546064 3208119 5753124 1375988 740934 696952 72511281 4917635 2009 1 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 D 0 0 0 0 0 0 1 A 0 0 1 1 1 1 SEE PART VI 27.400000000000 0 0 0 0 1 B 0 0 1 1 1 1 SEE PART VI 27.200000000000 0 0 0 0 1 C 0 0 1 1 1 0 0 0 1 D 0 0 1 1 1 1 SEE PART VI 0 1 0 1 1 A 1 B 1 C 1 D 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: IOWA FINANCE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 06/30/2006 ISSUER NAME: IOWA FINANCE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 04/12/2008 ISSUER NAME: IOWA FINANCE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 10/27/2007 ISSUER NAME: IOWA FINANCE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 11/30/2012 ISSUER NAME: CITY OF HARVEY, IOWA DATE THE REBATE COMPUTATION WAS PERFORMED: 11/30/2013 ISSUER NAME: CITY OF PELLA, IOWA DATE THE REBATE COMPUTATION WAS PERFORMED: 11/30/2014 SCHEDULE K, PARTS II AND IV ENTITY 1, PART IV, COLUMN D, LINE 4B: SERIES E - MORGAN STANLEY SERVICES, INC.; SERIES C - SOVEREIGN BANK ENTITY 1, PART IV, COLUMN D, LINE 4C: SERIES E - 3.0 YEARS; SERIES C - 9.9 YEARS (TERMINATED 12/13/2012) ENTITY 1 AND ENTITY 2, PART II, LINE 3 - THE TOTAL PROCEEDS DO NOT AGREE TO THE ISSUE PRICE IN PART I, COLUMN (E) DUE TO INVESTMENT EARNINGS ENTITY 2, PART II, COLUMNS D, LINE 3 - THE TOTAL PROCEEDS DO NOT AGREE TO THE ISSUE PRICE IN PART I, COLUMN (E) AS THIS DEBT WAS ISSUED ON A DRAW-DOWN BASIS AND THE TOTAL PRINCIPAL AVAILABLE HAS NOT YET BEEN DRAWN. ENTITY 1, PART II, COLUMN D, LINE 3 - THE TOTAL PROCEEDS DO NOT EQUAL THE SUMMATION OF LINES 4-12 DUE TO TRANSFERRED OR REPLACEMENT PROCEEDS IN LINE 4. ENTITY 2, PART II, COLUMN B, LINE 3 - THE TOTAL PROCEEDS DO NOT EQUAL THE SUMMATION OF LINES 4 - 12 DUE TO TRANSFERRED OR REPLACEMENT PROCEEDS IN LINE 4. ENTITY 1, PART IV, COLUMNS A, B & C, LINE 2C - SINCE THE BOND PROCEEDS HAVE BEEN SPENT, A SPENDING EXCEPTION WAS MET, AND THE DEBT SERVICE FUND WAS OPERATED ON A BONA FIDE BASIS, NO FURTHER REBATE CALCULATIONS ARE NECESSARY. A IOWA FINANCE AUTHORITY 521699886 2010-12-16 12000000 CONSTRUCT FACILITIES,REFUND PRIOR YEAR ISSUE(07/31/03) 0 0 0 B IOWA FINANCE AUTHORITY 521699886 2012-12-13 20300000 REFUND PRIOR ISSUE (12/20/07) 0 0 0 C CITY OF HARVEY IOWA 421104344 2012-12-21 10000000 LOAN TO FINANCE CONSTRUCTION OF NEW FACILITIES 0 0 0 D CITY OF PELLA IOWA 426005115 2012-12-21 6500000 LOAN TO FINANCE CONSTRUCTION OF NEW FACILITIES 0 0 0 A 3038704 12001928 138348 240000 70593 8657020 2895967 2012 1 0 1 1 B 20000 20300000 1346046 290795 20005190 2009 1 0 1 1 C 241078 10000000 90223 9909777 2014 0 0 1 1 D 140561 6500000 54428 6445572 2014 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 1 D 0 0 0 0 0 0 1 A 0 1 1 0 1 0 0 0 1 B 0 1 1 0 1 0 0 0 1 C 0 0 0 1 1 0 0 0 1 D 0 0 0 1 1 0 0 0 1 A 1 B 1 C 1 D 1 X 4517 DONOR STATED X 1 5000 FAIR MARKET VALUE X 8 68048 SOLD VALUE X 1 800 DONOR STATED X GRAND PIANO 1 20000 DONOR STATED X WATCH 1 8552 DONOR STATED X WHEELCHAIRS/WALKERS 5 2970 DONOR STATED X SUPPLIES 9 1265 DONOR STATED X TOOLS & SHOP EQUIPMENT 2 920 DONOR STATED X TRANSPORTATION/MILEAGE 1 650 DONOR STATED X PROFESSIONAL SERVICES - GRAPHIC DESIGN 1 570 DONOR STATED X BASEBALL TICKETS 1 150 DONOR STATE/TICKET P 4 0 1 0 PART I, COLUMN (B): NUMBER OF CONTRIBUTORS FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIR OF THE BOARD, THE PRESIDENT/CEO AND AT LEAST THREE DIRECTORS SELECTED BY VOTE OF THE BOARD OF DIRECTORS. EXCEPT FOR THE PRESIDENT/CEO, ALL MEMBERS OF THE EXECUTIVE COMMITTEE MUST BE MEMBERS OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE HAS ALL THE AUTHORITY OF THE BOARD (EXCEPT AS NOTED BELOW) BUT LIMITS ITSELF TO MATTERS THAT REQUIRE IMMEDIATE ACTION AND CANNOT WAIT UNTIL THE NEXT SCHEDULED BOARD MEETING. THE EXECUTIVE COMMITTEE SHALL HAVE NO AUTHORITY TO AMEND THE ARTICLES OF INCORPORATION, THE BYLAWS, OR ADOPT A PLAN OF MERGER OR CONSOLIDATION. THE EXECUTIVE COMMITTEE SHALL REPORT ON ITS ACTIONS AT THE NEXT MEETING OF THE BOARD OF DIRECTORS AND SUCH ACTIONS SHALL BE SUBJECT TO REVISION AND ALTERATION OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 6 WESLEYLIFE, AN EXEMPT 501(C)(3) ORGANIZATION, IS THE SOLE CORPORATE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A WESLEYLIFE ELECTS THE BOARD MEMBERS OF WRS. VACANCIES IN THE BOARD OF DIRECTORS AT WRS ARE FILLED BY WESLEYLIFE. FORM 990, PART VI, SECTION A, LINE 7B APPROVAL OF THE FOLLOWING MATTERS ARE RESERVED EXCLUSIVELY TO THE MEMBER: 1. APPROVAL OF CHANGES TO THE ARTICLES OF INCORPORATION OR BYLAWS; 2. APPOINTMENT OF, OR REMOVAL OF, WITH OR WITHOUT CAUSE, THE MEMBERS OF THE BOARD OF DIRECTORS; ABILITY TO FIX THE NUMBER OF BOARD OF DIRECTORS; 3. APPROVAL OF THE INCURRENCE OF DEBT; 4. THE SALE, TRANSFER OR SUBSTANTIAL CHANGE IN USE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS, DIVESTITURES, DISSOLUTIONS, CLOSURES, MERGERS, CONSOLIDATIONS, OR CHANGES IN CORPORATE MEMBERSHIP; 5. APPROVAL OF THE TRANSFER OR ENCUMBRANCE OF THE ASSETS; AND 6. APPROVAL OF THE ANNUAL OPERATING BUDGET AND CAPITAL PLAN. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM. THE CEO, CFO AND THE DIRECTOR OF FINANCE REVIEW THE DOCUMENT INTERNALLY. THE 990 IS THEN REVIEWED BY THE BOARD'S FINANCE COMMITTEE, APPROVED, AND MADE AVAILABLE TO ALL GOVERNING BODY INDIVIDUALS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATION REQUIRES FROM BOARD MEMBERS AND MANAGING EMPLOYEES AN ANNUAL STATEMENT DESCRIBING ACTUAL OR PERCEIVED CONFLICTS OF INTEREST. WITH RESPECT TO THE BOARD MEMBERS, A PERSON WHO HAS A CONFLICT OF INTEREST IS DEEMED AN INTERESTED DIRECTOR. THE INTERESTED DIRECTOR SHALL NOT PARTICIPATE IN THE VOTE REGARDING HIS/HER POTENTIAL CONFLICT AND, DEPENDING UPON THE CIRCUMSTANCES, MAY NOT BE PERMITTED TO PARTICIPATE IN THE DISCUSSION REGARDING THE ISSUE. NO INTERESTED DIRECTOR SHALL BE PERMITTED TO VOTE IN MATTERS IN WHICH HE/SHE HAS A CONFLICT OF INTEREST. WITH RESPECT TO EMPLOYEES, THE PRESIDENT, IN CONSULTATION WITH OTHER UNBIASED MANAGERS, SHALL DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. AFTER EXERCISING DUE DILIGENCE, INCLUDING INVESTIGATING ALTERNATIVES TO A TRANSACTION OR ARRANGEMENT THAT GIVES RISE TO A CONFLICT OF INTEREST, THE PRESIDENT SHALL DETERMINE WHETHER THE CORPORATION IS ABLE TO OBTAIN WITH REASONABLE EFFORTS, A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM ANOTHER INDIVIDUAL OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT AVAILABLE, THE ARRANGEMENT OR TRANSACTION MAY GO FORWARD IF THE PRESIDENT DETERMINES THAT THE TRANSACTION IS FAIR AND IN THE BEST INTEREST OF THE CORPORATION. ALL CONFLICTS OF INTEREST ARE REPORTED IN THE BOARD MINUTES AS THEY ARISE. FORM 990, PART VI, SECTION B, LINE 15A EXPLANATION: THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS IS EMPOWERED BY THE BOARD OF DIRECTORS, ACCORDING TO ARTICLE VII OF THE ORGANIZATION'S BY-LAWS, TO DETERMINE PERFORMANCE GOALS AND MONITOR AND EVALUATE PERFORMANCE OF THE CHIEF EXECUTIVE OFFICER. THE EXECUTIVE COMMITTEE INCLUDES IN ITS EVALUATION, FEEDBACK FROM OTHER BOARD MEMBERS AND OTHERS NOT ASSOCIATED WITH THE COMMITTEE OR THE BOARD. THE COMMITTEE MONITORS PERFORMANCE OF THE ORGANIZATION AND CEO THROUGHOUT THE YEAR AND PROVIDES ONGOING ASSESSMENTS TO THE CEO USING AN EVALUATION AND RATING TOOL. THE COMMITTEE UTILIZES AN ANNUAL INDEPENDENT COMPENSATION SURVEY TO ASSIST IN DETERMINING COMPENSATION. THE ORGANIZATIONS OF CHIEF EXECUTIVE OFFICERS OF MULTI-SITE ORGANIZATIONS AND LEADING AGE, FORMERLY KNOWN AS THE AMERICAN ASSOCIATION OF HOMES AND SERVICES FOR THE AGING, PROVIDE AN ANNUAL SURVEY OF COMPENSATION FOR CEOS AND OTHER OFFICERS. (WRS HAS SEARCHED FOR OTHER SURVEYS TO SUPPLEMENT THIS ONE BUT NO OTHER SURVEY PROVIDES THE SAME DEGREE OF COMPARABILITY.) THE SURVEY INCLUDES ONLY SENIOR LIVING ORGANIZATIONS AND IS SORTED BY GEOGRAPHIC REGIONS, REVENUE VOLUME, FULL-TIME EQUIVALENT EMPLOYEES, AND ASSET SIZE. IN 2014, THE EXECUTIVE COMMITTEE OF THE BOARD ENGAGED AN INDEPENDENT, THIRD PARTY TO TAKE A DEEPER ANALYSIS INTO THE COMPENSATION DESIGN AS COMPARED TO SIMILAR ORGANIZATIONS. THE INTENT WAS TO GO BEYOND THE INDUSTRY BENCHMARKED STUDY AND DRILL INTO APPROPRIATENESS, COMPETITIVENESS, AND OVERALL DESIGN. IT WAS DETERMINED, THROUGH THIS SECOND OPINION, THAT COMPENSATION WAS APPROPRIATE FOR THE SIZE AND COMPLEXITY OF THE ORGANIZATION. THE EXECUTIVE COMMITTEE DISCLOSES TO THE FULL BOARD OF DIRECTORS, IN CLOSED SESSION, THE RESULTS OF THE PERFORMANCE EVALUATION AND COMPENSATION DECISIONS. MINUTES OF MEETINGS ARE MAINTAINED AND THE BOARD CHAIRMAN PROVIDES WRITTEN NOTIFICATION TO BOTH THE CEO AND THE CORPORATE FINANCE DEPARTMENT REGARDING COMPENSATION DECISIONS. THE EVALUATION AND COMPENSATION SETTING PROCESS IS MUCH THE SAME FOR THE OTHER OFFICERS AS FOR THE CEO WITH SOME EXCEPTIONS. THE CEO DETERMINES THE PERFORMANCE GOALS AND MONITORS RESULTS. THE SAME SURVEY AS DESCRIBED ABOVE IS USED TO ASSIST IN DETERMINING COMPENSATION. THE CEO DISCLOSES ANNUALLY TO THE EXECUTIVE COMMITTEE THE COMPENSATION DECISIONS AND REASONS FOR THOSE DECISIONS IN REGARDS TO OTHER OFFICERS. THE LAST REVIEW PROCESS WAS CONDUCTED IN 2014 AND IS DONE ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF INTEREST RATE SWAPS -1,889,324. CHANGE IN VALUE OF SPLIT-INTEREST 1,950. CHANGE IN VALUE OF PERPETUAL TRUST -3,343. NET ASSETS RELEASED FOR OPERATIONS -660,507. EDGEWATER A WESLEY ACTIVE LIVE COMMUNITY LLC 5508 NW 88TH ST JOHNSTON IA 50131 260358303 LONG TERM CARE IA 15557073 90574863 WESLEY RETIREMENT SERVICES INC HEARTHSTONE A MINISTRY OF WESLEYLIFE LLC 413 JEFFERSON ST PELLA IA 50219 270992962 LONG TERM CARE IA 10486540 25426836 WESLEY RETIREMENT SERVICES INC WESLEY COMMUNITY SERVICES INC 5508 NW 88TH STREET JOHNSTON IA 50131 203970256 HOME HEALTH CARE IA 501(C)(3) 9 WESLEYLIFE 0 WESLEYLIFE 5508 NW 88TH STREET JOHNSTON IA 50131 300577845 SUPPORT WESLEY RETIREMENT SERVICES IA 501(C)(3) 11 - TYPE 3 FI N/A 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 1 1 0 0