2015-09-23T08:21:04-05:00 2014-12-31 420714325 MCGLADREY LLP 100 INTERNATIONAL DRIVE SUITE 1400 BALTIMORE MD 21202 990 2014-01-01 522324152 ANN'S CHOICE INC ANNS 2156722900 10000 ANNS CHOICE WAY WARMINSTER PA 18974 BARBARA BISGAIER TREASURER 2156722900 2015-09-14 1 JULIA FLANNERY CPA P00928918 4102469300 2014 2016-04-25 22:37:26Z WILLIAM KENNEDY 10000 ANNS CHOICE WAY WARMINSTER PA 18974 64884654 0 X WWW.NATIONALSENIORCAMPUSES.ORG X 2001 MD PROVIDE A HOME FOR SENIORS THAT SATISFIES THEIR THREE PRIMARY NEEDS. 8 8 1204 750 0 0 1032415 1001480 66945053 63153669 422067 231016 457809 439881 68857344 64826046 288990 233492 0 0 28214129 29857910 0 0 191993 42678517 38820800 71181636 68912202 -2324292 -4086156 358879031 359901534 423167216 430784347 -64288185 -70882813 X OUR MISSION IS TO PROVIDE AN ACTIVE AND ENGAGED QUALITY OF LIFE FOR RESIDENTS AND FUTURE RESIDENTS THROUGH APPROPRIATE HIGH QUALITY PROGRAMS, SERVICES, AND FACIILITIES, AND A FULL CONTINUUM OF HEALTH CARE, AND WHERE FEASIBLE, A LIFELONG COMMITMENT WHILE MAINTAINING AFFORDABILITY AND LONG-TERM FINANCIAL STABILITY OF THE COMMUNITY. 0 0 65131334 233492 63153669 ANN'S CHOICE PROVIDES SERVICES NEEDED BY SENIOR RESIDENTS, WHO RESIDE IN 1,485 INDEPENDENT LIVING UNITS, 44 PERSONAL CARE UNITS AND 88 SKILLED NURSING BEDS. THE SERVICES WE PROVIDE TO OUR RESIDENTS INCLUDE, BUT ARE NOT LIMITED TO HOUSING, FOOD, MEDICAL, SECURITY AND MAINTENANCE SERVICES, RECREATIONAL AND PASTORAL ACTIVITIES. 65131334 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 201 0 1 1204 1 0 0 0 0 0 1 1 0 0 0 0 X 8 8 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X X MARY WINDSOR 4104022364 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 BILL KENNEDY CHAIR 2.00 10.50 X X 12500 45000 0 FRED HAAS PRESIDENT/VICE CHAIR 2.00 8.50 X X 7500 45000 0 HOWARD BISHOW SECRETARY 4.00 X X 10000 0 0 BARBARA BISGAIER TREASURER 1.00 4.00 X X 7500 27500 0 STANLEY ELWELL DIRECTOR 1.00 6.00 X 7500 35000 0 FRED GRUEL DIRECTOR 1.00 3.00 X 7500 27500 0 MARY COLINS DIRECTOR 0.30 1.90 X 7500 27500 0 ARNOLD SPEERT DIRECTOR 1.00 5.00 X 7500 30000 0 JOHN HALL ASSISTANT TREASURER 0.50 7.00 X 0 0 0 CHRIS RATHMANN ASSISTANT TREASURER 0.50 7.50 X 0 0 0 JAMES WALTER ASSISTANT TREASURER 0.50 7.00 X 0 0 0 CHRISTOPHER DONATI EXECUTIVE DIRECTOR 40.00 X 184422 0 20281 THOMAS WALSH DIRECTOR OF FINANCE 40.00 X 139681 0 21109 DEBORAH OLCESE DIRECTOR OF SALES 40.00 X 155381 0 7448 CHRISTOPHER BABST DIRECTOR OF DINING SERVICES 40.00 X 117605 0 14078 ROBIN KAUFOLD DIRECTOR OF GENERAL SERVICES 40.00 X 115458 0 7409 SUSAN ABTOUCHE DIRECTOR OF PHILANTHROPY 40.00 X 112100 0 20253 JOSEPH ZICKEL HOME HEALTH ADMINISTRATOR 40.00 X 106611 0 3488 998758 237500 94066 11 0 1 0 ERICKSON LIVING MANAGEMENT LLC 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 MANAGEMENT SERVICES 2790131 STEPHEN WILLIAMS FLOORING 325 SURREY LANE HATBORO PA 19040 CARPETING 857198 SIEGEL JENNINGS CO LPA 23425 COMMERCE PARK DRIVE SUITE 10 CLEVELAND OH 44122 ATTORNEY 500000 CUSTOM DRAPERIES BY MIRIAM 59 CHEROKEE DRIVE RICHBORO PA 18954 WINDOW TREATMENTS 487513 KIEDAISCH MICHAEL MPK SOLUTIONS 26 TEABERRY LANE NEWTON PA 18940 CONSTRUCTION 441812 19 21500 979980 1001480 RESIDENT FEES 623990 55070178 55070178 ANCILLARY FEES 623990 7944709 7944709 CONTRACT REVENUE 623990 123212 123212 RESIDENT DEPOSITS 623990 10170 10170 PROCESSING FEES 623990 5400 5400 63153669 241875 241875 365475 0 365475 365475 365475 10859 -10859 -10859 -10859 122155 21500 47749 74406 74406 64826046 63153669 0 670897 12719 12719 220773 220773 432993 432993 23149810 21743700 1269855 136255 253321 238171 14408 742 4224495 3970694 236027 17774 1797291 1665044 121240 11007 2790131 2790131 377527 64759 312768 78567 78567 14309 14309 6159036 5183826 975210 1438760 1438760 5909593 5832355 67090 10148 4591856 4591224 632 140070 77764 60837 1469 1732769 1732769 10687471 10687471 493016 493016 LOSS ON SWAP AGREEMENT 1525542 1525542 EQUIPMENT RENTAL 760700 751836 8710 154 CHARITY CARE 734861 734861 ADMINISTRATIVE 683887 638065 45822 702705 659287 28974 14444 68912202 65131334 3588875 191993 1200 1200 22415114 19619081 2318981 3433198 2064906 3393900 140222 126561 353041 522287 388558481 64065252 330506003 324493229 51693 7053903 1027871 1258175 358879031 359901534 4167553 4723772 73057000 71870000 9025553 9025553 336917110 345165022 423167216 430784347 X -65955913 -72255485 1667728 1372672 -64288185 -70882813 358879031 359901534 X -4086156 9645 -2518117 X 0 1 X 1 0 X 924333 796947 1042672 1032415 1001480 4797847 57732075 61197009 66054692 67086981 63275824 315346581 58656408 61993956 67097364 68119396 64277304 320144428 100000 125000 125000 100000 100000 550000 0 100000 125000 125000 100000 100000 550000 319594428 6829306 392273 683969 800740 607350 9313638 6829306 392273 683969 800740 607350 9313638 65485714 62386229 67781333 68920136 64884654 329458066 0.97010 0.91610 0.02830 0.08250 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 20872393 20872393 353269846 53924490 299345356 9597868 6196555 3401313 4818374 3944207 874167 324493229 RESIDENT DEPOSITS (NET) 332768902 ACCRUED EMPLOYEE HEALTH PLAN 859497 FUNDS HELD FOR RESIDENTS 144320 UNCLAIMED PROPERTY 4808 ADVANCE DEPOSITS 712800 RESIDENT REFUNDS PAYABLE 6362671 ACCRUED INTEREST 530671 DEFERRED MANAGEMENT FEE 139507 DEFERRED MARKETING FEE -1818 ACCRUED LIABILITY ON SWAP AGREEMENT 3643664 345165022 X 64885565 9645 47749 57394 64828171 -2125 -2125 64826046 71480193 2565866 2565866 68914327 -2125 -2125 68912202 PART X, LINE 2: ANN'S CHOICE ("ACH") IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND THE APPLICABLE STATE INCOME TAX REGULATIONS. MANAGEMENT HAS EVALUATED ACH'S TAX POSITIONS AND HAS CONCLUDED THAT ACH HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: EXPENSES FROM SPECIAL FUNDRAISING EVENTS NETTED ON FORM 990 47,749. PART XI, LINE 4B - OTHER ADJUSTMENTS: TRNA ADJUSTMENT -2,125. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES FROM SPECIAL FUNDRAISING EVENTS NETTED ON FORM 990 47,749. UNREALIZED LOSS ON SWAP AGREEMENT 2,515,437. REVERSAL OF PRIOR PERIOD AMORTIZATION 100. CHANGE IN BENEFICIAL INTEREST IN NATIONAL CCRC BUSINESS TRUST 1 2,580. PART XII, LINE 4B - OTHER ADJUSTMENTS: TRNA ADJUSTMENT -2,125. ANNUAL GALA 86166 10250 75916 21916 800 2040 GOLF OUTING 38509 6250 32259 500 14265 1992 1 18980 5000 13980 5250 525 461 143655 21500 122155 500 41431 1325 4493 47749 74406 1 EDUCATIONAL SCHOLARSHIPS - SEE PART IV 179 220773 SCHEDULE I, PART I, LINE 2 SCHOLAR CANDIDATES MUST BE CURRENTLY EMPLOYED YEAR-ROUND AT ANN'S CHOICE. ONLY MEDICAL LEAVES OF ABSENCE ARE ALLOWABLE DURING THE TWO YEARS. OTHER REQUESTS FOR A LEAVE OF ABSENCE WILL BE REVIEWED AND DETERMINED CASE BY CASE. A SCHOLAR CANDIDATE MUST HAVE BEEN EMPLOYED BY ANN'S CHOICE ON OR BEFORE SEPTEMBER 30, 2014. THE CANDIDATE MUST ALSO ACHIEVE 1,000 HOURS OF WORK DURING A TIME SPAN THAT BEGINS NO EARLIER THAN JUNE 1, 2014 OF THEIR JUNIOR YEAR OF HIGH SCHOOL (300 OF 1,000 HOURS MUST BE COMPLETED BY THE END OF THEIR JUNIOR YEAR OF HIGH SCHOOL TO QUALIFY). ANY HOURS WORKED PRIOR TO JUNE 1, 2014 DO NOT COUNT TOWARDS THE 1,000 HOURS REQUIREMENT. CANDIDATES MUST ACHIEVE THE 1,000 HOUR REQUIREMENT AS WELL AS FULFILL THE TWO-YEAR MINIMUM EMPLOYMENT REQUIREMENT. CANDIDATES MUST BE IN "GOOD STANDING" FROM THEIR ORIGINAL DATE OF HIRE THROUGH THEIR LAST DAY OF WORK. TO MAINTAIN "GOOD STANDING," SCHOLAR CANDIDATES, AS EMPLOYEES, MUST ABIDE BY ALL EMPLOYMENT POLICIES AND PROCEDURES, TO INCLUDE GIVING TWO WEEKS NOTICE TO THEIR SUPERVISOR WHEN TERMINATING EMPLOYMENT. SCHOLAR CANDIDATES MUST COMPLETE EACH STEP AS OUTLINED IN THE PROGRAM DESCRIPTION BY THE RESPECTIVE DUE DATE. FURTHERMORE, CANDIDATES MUST TURN IN PROOF OF FULL-TIME STATUS WITHIN THE DATES SPECIFIED IN THE PROGRAM DESCRIPTION FOR EACH SPRING AND FALL SEMESTER THEY ATTEND SCHOOL. FAILURE TO DO SO WILL DISQUALIFY THE SCHOLAR THAT SEMESTER AND WILL COUNT TOWARDS ONE OF THE TWO ALLOWABLE SEMESTER LAPSES. CANDIDATES SHOULD INTEND TO GO TO COLLEGE OR TRADE SCHOOL AFTER HIGH SCHOOL. SCHOLAR CANDIDATES MUST ATTEND SCHOOL FULL-TIME (12 CREDIT HOURS EACH SEMESTER) AFTER HIGH SCHOOL. SCHOLAR CANDIDATES MUST BE ACCEPTED AND/OR REGISTERED IN THE FALL OF 2014 AT A TRADE SCHOOL, COLLEGE, OR UNIVERSITY TO BENEFIT. (IN EXCEPTIONAL CASES, A SCHOLAR CANDIDATE MAY ARRANGE TO START SCHOOL UP TO TWO SEMESTERS AFTER BEING INDUCTED INTO THE PROGRAM, BUT THEY MUST MAKE ARRANGEMENTS WITH THE RESIDENT LIFE DEPARTMENT. THESE TWO SEMESTERS WILL COUNT AS THE TWO ALLOCABLE SEMESTER LAPSES.) SCHOLARS WHO LAPSE FROM THE PROGRAM FOR MORE THAN A TOTAL OF TWO SEMESTERS AFTER BEING INDUCTED INTO THE PROGRAM ARE NO LONGER ELIGIBLE TO RECEIVE THE AWARD. SCHEDULE I, PART II ON FORM 990, PART IX STATEMENT OF FUNCTIONAL EXPENSES, LINE 1, ANN'S CHOICE, INC. (ACH) IS SHOWING GRANTS AND OTHER ASSISTANCE TO GOVERNMENTS AND ORGANIZATIONS IN THE UNITED STATES IN THE AMOUNT OF $12,719. NO ORGANIZATIONS WHO RECEIVED GRANTS FROM ACH DURING 2014 RECEIVED GRANTS GREATER THAN $5,000. X X X 0 0 0 0 0 0 0 0 0 CHRISTOPHER DONATI EXECUTIVE DIRECTOR 146019 0 36000 0 2403 0 0 0 20281 0 204703 0 0 0 THOMAS WALSH DIRECTOR OF FINANCE 122475 0 17000 0 206 0 750 0 20359 0 160790 0 0 0 DEBORAH OLCESE DIRECTOR OF SALES 138337 0 16000 0 1044 0 0 0 7448 0 162829 0 0 0 SCHEDULE J, PART II THE INDIVIDUALS LISTED IN SCHEDULE J, PART II ARE EMPLOYEES OF ERICKSON LIVING MANAGEMENT ("ELM"), AN UNRELATED ORGANIZATION TO ANN'S CHOICE, INC., IN ACCORDANCE WITH THE MANAGEMENT AGREEMENT BETWEEN ANN'S CHOICE, INC. AND ELM. SEE SCHEDULE O EXPLANATION FOR FORM 990, PART VI, SECTION A, LINE 3. THEREFORE, FOR IRS MATCHING PURPOSES, ELM IS THE ISSUER OF THE FORM W-2. UNDER THE MANAGEMENT AGREEMENT, ANN'S CHOICE, INC. REIMBURSES ELM FOR THE COST OF SERVICES PERFORMED FOR ANN'S CHOICE, INC. A BUCKS COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232174016 2013-08-16 69975000 REFUND OF PRIOR ISSUE - PRIOR ISSUE DATED 12/21/05 0 0 0 B BUCKS COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232174016 2013-08-16 3290000 REFUND OF PRIOR ISSUE - PRIOR ISSUE DATED 12/21/05 0 0 0 C EAST NORRITON INDUSTRIAL DEVELOPMENT AUTHORITY 300188402 2013-11-15 10000000 CURRENT REFUNDING - PRIOR ISSUE DATED 8/16/2013 0 0 0 D EAST NORRITON INDUSTRIAL DEVELOPMENT AUTHORITY 300188402 2014-01-23 10000000 CURRENT REFUNDING - PRIOR ISSUE DATED 8/16/2013 0 0 0 A 50000000 69975000 891612 69083388 2005 1 0 1 1 B 617000 3290000 47626 3242974 2005 0 1 1 1 C 220000 10000000 183574 9816426 2005 1 0 1 1 D 147000 10000000 83904 9916026 2005 1 0 1 1 A 0 1 1 1 0 0.00340 0.00340 0 0 1 B 0 1 1 1 0 0.00340 0.00340 0 0 1 C 0 1 1 1 0 0.00340 0.00340 0 0 1 D 0 1 1 1 0 0.00340 0.00340 0 0 1 A 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 B 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 C 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 D 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 A 1 B 1 C 1 D 1 PART II, LINE 12 BOND ISSUE B: UNSPENT PROCEEDS USED ON JANUARY 1, 2014 TO REFUND PRIOR ISSUE. PART IV, LINE 4B: ENTITY 1: BOND ISSUE A: NAME OF PROVIDER: BANK OF AMERICA "BOA" LINE 4C: TERM OF HEDGE: 8/16/2020 BOND ISSUE B: NAME OF PROVIDER: BANK OF AMERICA "BOA" LINE 4C: TERM OF HEDGE: 10/1/2019 BOND ISSUE C: NAME OF PROVIDER: M&T BANK LINE 4C: TERM OF HEDGE: 8/1/2023 BOND ISSUE D: NAME OF PROVIDER: M&T BANK LINE 4C: TERM OF HEDGE: 8/1/2023 ENTITY 2: BOND ISSUE A: NAME OF PROVIDER: M&T BANK LINE 4C: TERM OF HEDGE: 8/1/2023 BOND ISSUE B: NAME OF PROVIDER: M&T BANK LINE 4C: TERM OF HEDGE: 8/1/2023 BOND ISSUE C: NAME OF PROVIDER: M&T BANK LINE 4C: TERM OF HEDGE: 8/1/2023 A LOWER SOUTHAMPTON TOWNSHIP INDUSTRIAL DEVELOPMENT AUTHORITY 462360610 2014-01-23 10000000 REFUND OF PRIOR ISSUE - PRIOR ISSUE DATED 8/16/2013 0 0 0 B HORSHAM INDUSTRIAL & COMMERCIAL DEVELOPMENT AUTHORITY 232081091 2014-01-23 10000000 REFUND OF PRIOR ISSUE - PRIOR ISSUE DATED 8/16/2013 0 0 0 C MONTGOMERY TOWNSHIP INDUSTRIAL DEVELOPMENT AUTHORITY 352221091 2014-01-23 10000000 REFUND OF PRIOR ISSUE - PRIOR ISSUE DATED 8/16/2013 0 0 0 A 147000 10000000 87909 9912091 2005 1 0 1 1 B 151000 10000000 83904 9916096 2005 1 0 1 1 C 113000 10000000 83904 9916096 2005 1 0 1 1 A 0 1 1 1 0 0.00340 0.00340 0 0 1 B 0 1 1 1 0 0.00340 0.00340 0 0 1 C 0 1 1 1 0 0.00340 0.00340 0 0 1 A 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 B 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 C 0 1 0 0 1 1 SEE PART VI 0 0 0 1 1 A 1 B 1 C 1 FORM 990, PART VI, SECTION A, LINE 1 UNDER THE BYLAWS OF THE ORGANIZATION, THE BOARD HAS DELEGATED AUTHORITY TO AN EXECUTIVE COMMITTEE COMPRISED OF THE ORGANIZATION'S CHAIRMAN, PRESIDENT, SECRETARY AND TREASURER. THE EXECUTIVE COMMITTEE HAS AND MAY EXERCISE ALL OF THE POWERS AND AUTHORITY OF THE BOARD IN THE MANAGEMENT OF THE BUSINESS AND AFFAIRS OF THE ORGANIZATION EXCEPT FOR THOSE ACTIONS RESERVED SOLELY TO THE MEMBER OR THE DIRECTORS UNDER THE GENERAL LAWS OF THE STATE OF MARYLAND. FORM 990, PART VI, SECTION A, LINE 3 ON APRIL 30, 2010, ANN'S CHOICE, INC. ENTERED INTO A NEW MANAGEMENT AND MARKETING AGREEMENT WITH ERICKSON LIVING MANAGEMENT, LLC ("ELM") TO PROVIDE THE SERVICES PREVIOUSLY PROVIDED BY ERC. ELM IS A SUBSIDIARY OF REDWOOD-ERC SENIOR LIVING HOLDINGS, LLC, NOW KNOWN AS ERICKSON LIVING HOLDINGS, LLC WHICH, TOGETHER WITH OTHER RELATED ENTITIES, PURCHASED THE MAJORITY OF THE ASSETS OF ERC. ELM IS A MARYLAND LIMITED LIABILITY COMPANY WHICH OPERATES AND MANAGES LARGE SCALE CONTINUING CARE RETIREMENT COMMUNITIES. THE MANAGEMENT AGREEMENT COMPLIES WITH REV. PROC. 97-13. THE FOLLOWING OFFICERS ARE LISTED IN PART VII, AS NON-COMPENSATED OFFICERS OF THE FILING ORGANIZATION, JOHN HALL, JAMES WALTER, AND CHRIS RATHMANN. THEIR DUTIES ARE CONSIDERED PERFORMED PRO BONO. CHRISTOPHER DONATI, EXECUTIVE DIRECTOR, THOMAS WALSH, DIRECTOR OF FINANCE, DEBORAH OLCESE, DIRECTOR OF SALES, CHRISTOPHER BABST, DIRECTOR OF DINING SERVICES, AND ROBIN KAUFOLD, DIRECTOR OF GENERAL SERVICES, ARE LEASED EMPLOYEES FROM THE MANAGEMENT COMPANY. THE FILING ORGANIZATION REIMBURSES THE MANAGEMENT COMPANY FOR THEIR COMPENSATION WHICH IS REPORTED ON FORM 990, PART VII, SECTION A. FORM 990, PART VI, SECTION A, LINE 6 ANN'S CHOICE, INC.'S SOLE MEMBER IS NATIONAL SENIOR CAMPUSES, INC. ("NSC"). NSC IS A MARYLAND NON-STOCK CORPORATION. NSC IS A "SUPPORTING ORGANIZATION" WITH RESPECT TO ANN'S CHOICE, AS WELL AS CERTAIN OTHER ORGANIZATIONS SPECIFIED IN ITS GOVERNING DOCUMENTS. AS REQUIRED BY THE REGULATIONS RELATING TO "SUPPORTING ORGANIZATIONS," CERTAIN MEMBERS OF THE BOARD OF DIRECTORS OF NSC WILL ALSO BE MEMBERS OF THE BOARD OF DIRECTORS OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A THE NATIONAL SENIOR CAMPUSES, INC. BOARD OF DIRECTORS APPOINTS THE DIRECTORS OF ANN'S CHOICE, INC. FORM 990, PART VI, SECTION A, LINE 7B CERTAIN EXTRAORDINARY ACTIONS OF THE CORPORATION REQUIRE THE APPROVAL OF THE MEMBER UNDER APPLICABLE STATE LAW. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD APPOINTS A COMMITTEE FROM AMONG ITS DIRECTORS AS WELL AS THE DIRECTORS FROM ONE OR MORE RELATED ENTITIES TO OVERSEE THE PREPARATION OF FORM 990. THE BOARD CHAIR HAS THE RESPONSIBILITY TO REVIEW FORM 990 PRIOR TO ITS FILING OR TO DESIGNATE ANOTHER BOARD MEMBER TO REVIEW THE FORM. THE FULL BOARD IS GIVEN THE OPPORTUNITY TO REVIEW THE FINAL VERSION OF FORM 990 BEFORE IT IS FILED AND ASK QUESTIONS OF THE COMMITTEE OR THE REVIEWER REGARDING THE FORM. THE BOARD CHAIR DESIGNATES AN OFFICER TO SIGN FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ANN'S CHOICE, INC.'S CONFLICT OF INTEREST POLICY COVERS ALL DIRECTORS, OFFICERS, KEY EMPLOYEES, EMPLOYEES AND VOLUNTEERS IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER ANN'S CHOICE, INC.'S AFFAIRS, COMMITTEE MEMBERS, PROSPECTIVE DIRECTORS, AND SENIOR STAFF PROVIDING SERVICES TO THE ORGANIZATION UNDER A MANAGEMENT AGREEMENT. EACH COVERED PERSON COMPLETES A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY AND AS POTENTIAL CONFLICTS ARISE DURING THE YEAR. THESE STATEMENTS ARE REVIEWED BY THE BOARD CHAIR. IF THE CONFLICT INVOLVES A COVERED EMPLOYEE, THE CHAIR DETERMINES WHETHER A CONFLICT EXISTS AND, IF SO, HOW IT IS TO BE HANDLED, OR THE CHAIR MAY REFER THE MATTER TO THE BOARD OF DIRECTORS FOR CONSIDERATION. FOR ALL OTHER CONFLICTS, THE BOARD OF DIRECTORS OR A COMMITTEE OF DISINTERESTED DIRECTORS WILL DETERMINE WHETHER A CONFLICT ACTUALLY EXISTS. A COVERED PERSON MAY NOT PARTICIPATE IN ANY DISCUSSION OR DEBATE BY THE BOARD BUT MAY ANSWER QUESTIONS OR PROVIDE CLARIFYING INFORMATION UNLESS ANY BOARD MEMBER OBJECTS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD HAS APPROVED A DIRECTORS' COMPENSATION POLICY WHICH ESTABLISHES THE PROCESS BY WHICH ALL DIRECTOR COMPENSATION IS DETERMINED. OFFICERS SERVE WITHOUT COMPENSATION. A REVIEW OF THE DIRECTORS' COMPENSATION IS CONDUCTED EACH FISCAL YEAR. COMPENSATION IS APPROACHED ON AN OVERALL BASIS AND THE TOTAL VALUE OF ALL FORMS OF COMPENSATION IS ESTABLISHED AND MONITORED. AN INDEPENDENT COMPENSATION CONSULTANT IS PERIODICALLY RETAINED TO PERFORM AN ANALYSIS OF ANN'S CHOICE, INC.'S COMPENSATION USING COMPARABLES OF BOTH FOR-PROFIT AND NON-PROFIT PEERS. A COMMITTEE OF THE NSC BOARD REVIEWS THE CONSULTANT'S REPORT AND MAKES A RECOMMENDATION TO THE ORGANIZATION AS TO APPROPRIATE COMPENSATION OF DIRECTORS. THE FULL BOARD HAS ACCESS TO ANN'S CHOICE INC.'S CONSULTANT'S REPORT AND AN OPPORTUNITY TO QUESTION THE CONSULTANT ABOUT THE PROCESS, METRICS, AND COMPARABLES THAT WERE USED IN DETERMINING THE RECOMMENDED COMPENSATION. THE BOARD THEN VOTES ON THE COMPENSATION RECOMMENDATIONS AND A CONTEMPORANEOUS RECORD IS MADE OF THE MEETING AND THE VOTE. THE CONSULTANT REVIEW WAS LAST UNDERTAKEN IN 2012 AND WAS ACTED UPON BY THE BOARD IN EARLY 2013. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND THE FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AT THE EXECUTIVE DIRECTOR'S OFFICE FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART XI, LINE 9: REVERSAL OF PRIOR PERIOD AMORTIZATION -100. CHANGE IN BENEFICIAL INTEREST IN NATIONAL CCRC BUSINESS TRUST 1 -2,580. UNREALIZED LOSS ON INTEREST SWAP -2,515,437. ASHBY PONDS INC 21170 ASHBY PONDS BLVD ASHBURN VA 20147 205609803 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 BROOKSBY VILLAGE INC 100 BROOKSBY VILLAGE DRIVE PEABODY MA 01960 522126755 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 CEDAR CREST VILLAGE INC 1 CEDAR CREST VILLAGE DRIVE POMPTON PLAINS NJ 07444 522184915 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 EAGLE'S TRACE INC 14703 EAGLE VISTA DRIVE HOUSTON TX 77077 030498683 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 FOX RUN VILLAGE INC 41000 13 MILE ROAD NOVI MI 48377 522291271 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 HICKORY CHASE INC 701 MAIDEN CHOICE LANE BALTIMORE MD 21228 208991395 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 HIGHLAND SPRINGS INC 8000 FRANKFORD ROAD DALLAS TX 75252 510536892 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 LINDEN PONDS INC 300 LINDEN PONDS WAY HINGHAM MA 02043 141849849 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 MARIS GROVE INC 100 MARIS GROVE WAY GLEN MILLS PA 19342 550878964 CONTINUING CARE RETIREMENT COMMUNITY PA 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 NATIONAL SENIOR CAMPUSES INC 5425 WISCONSIN AVE SUITE 600 CHEVY CHASE MD 20815 204356247 SUPPORTING ORGANIZATION MD 501(C)(3) LINE 11C, III-FI N/A 0 NATIONAL SENIOR CAMPUSES FOUNDATION INC 5425 WISCONSIN AVE SUITE 600 CHEVY CHASE MD 20815 030611973 SUPPORTING ORGANIZATION MD 501(C)(3) LINE 11C, III-FI N/A 0 OAK CREST VILLAGE INC 8800 WALTHER BOULEVARD PARKVILLE MD 21234 521874053 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 RIDERWOOD VILLAGE INC 3110 GRACEFIELD ROAD SILVER SPRING MD 20904 522126753 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 SEABROOK VILLAGE INC 3000 ESSEX ROAD TINTON FALLS NJ 07753 522126751 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 TALLGRASS CREEK INC 13800 METCALF AVENUE OVERLAND PARK KS 66223 870765641 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 WIND CREST INC 3235 MILL VISTA ROAD HIGHLANDS RANCH CO 80129 510549976 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 GREENSPRING VILLAGE INC 7440 SPRING VILLAGE DRIVE SPRINGFIELD VA 22150 522095427 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 LANTERN HILL INC 535 MOUNTAIN AVENUE NEW PROVIDENCE NJ 07974 371742780 CONTINUING CARE RETIREMENT COMMUNITY MD 501(C)(3) 9 NATIONAL SENIOR CAMPUSES INC 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0