2012-12-06T11:17:37-06:00 2012-01-31 990 2011-02-01 953472345 Covenant Retirement Communities West COVE 8056870701 2550 Treasure Drive Santa Barbara CA 931054892 Elizabeth Buikema 7738782294 2012-12-06 2011 2016-02-24 21:20:13Z Elizabeth Buikema 5700 Old Orchard Rd Skokie IL 60077 75810958 0 2650 X www.covenantretirement.org X 1975 CA Care for Senior Adults 21 17 902 323 0 0 1090543 1355050 66153466 68782939 5841970 4037656 1251230 1525072 74337209 75700717 58535 52538 0 0 27700991 28301187 0 0 510566 40336092 40025637 68095618 68379362 6241591 7321355 250464521 260622710 170177740 172278448 80286781 88344262 X As a ministry of the Evangelical Covenant Church, Covenant Retirement Communities celebrates God's gift of life in Christian community. We follow the Great Commandment to love and serve God and one another as taught by Jesus Christ. (SEE SCHEDULE O) 0 0 23646351 33890599 Residential Living:The number of persons who benefited from the services we provided for the year ended January 31, 2012 were as follows:There were 1,081 Residents occupying 776 apartments as of 1/31/12 The residency for the fiscal year totaled 390,476 resident days. 7724501 9857103 Assisted Living & Assisted Dementia:The number of persons who benefited from the services we provided for the year ended January 31, 2012 were as follows:There were a total of 176 assisted living residents at 01/31/12 Assisted living residency for the fiscal year totaled 66,233 patient days. 20567441 26564238 Skilled Nursing:The number of persons who benefited from the services we provided for the year ended January 31, 2012 were as follows:There were a total of 224 skilled care patients at 01/31/12.Skilled care residency for the fiscal year totaled 80,744 patient days. The organization was involved in various community benefits projects which include the followingThe Samarkand: - Staff members volunteered a total of 611 hours of their time to various activities/events in the community including the Empty Bowls Fundraiser for a local food bank and others (equivalent to $63,788)- Residents volunteered a total of 6,649 hours to various activities/events in the community including the Empty Bowls Fundraiser for a local food bank, Operation Christmas Child project and others. They also raised a total of $1,742 and made a monetary donation to Operation Christmas Child as well as collected 500 lbs. of food for the Santa Barbara Food Bank ($2,500 in estimated value). - Hosted monthly student internship programs for nursing students from the Santa Barbara City College and San Marcos High School (equivalent to $27,713)- Provided space usage for meetings & events for small (under 35) to large groups (75+ people) including Gideon's International dinner meetings, Montecito Covenant Church, Samarkand Neighborhood Association, California Lutheran University Luncheon, Evangelical Covenant Church meeting, Los Padres Chapter Aging Services of California, DAWG Board, PEO, Santa Barbara Clergy Association, Community Covenant Church Elderberries Christmas Luncheon, various memorial services and others (equivalent to $78,935)- Participated in the Recycling project and conversion to Reclaimed Water Irrigation project (equivalent to $140,000)- Provided temporary residence to missionaries (equivalent to $140)- Monetary Donations to Alaska Christian College, American Bible College, Bridge of Hope, Campus Crusade, CHET, Covenant Radio for Russia, Covenant Women's Project, Covenant World Mission, Covenant World Relief, Gideon's International, Habitat for Humanity, International Bible Society, KICY Radio-Alaska, Life Network, Mission Aviation Fellowship, North Park Covenant Seminary, PSWC Covenant Help Fund, Santa Barbara Community Development Center, Santa Barbara Community Kitchen (Casa Esperanza), Santa Barbara Rescue Mission, Santa Barbara Salvation Army, Santa Barbara Food bank, Transition House, Villa Majella and Wycliffe Bible Translators ($37,281 in Total)-In-Kind Donations to Alpha Thrift Store, Empty Bowls fundraiser, 1st Presbyterian Church, Willbridge for homeless housing, and Boys' and Girls' Club of Santa Barbara. ($6,591 in estimated value)Covenant Village of Turlock:- Staff members volunteered a total of 705 hours of their time to various areas in the community which includes the 4th of July Parade, local churches, serving food for the homeless, Relay for Life, and others (equivalent to $53,150)- Residents volunteered a total of 2,895 hours in the community which includes local churches, Medic Alert Foundation, Hope Ranch Animal Rescue, Delta Blood Bank, Salvation Army, sewing projects for various groups, United Samaritans and others.- Provided space usage for meetings/events for small (under 35) to large groups (75+ people) including different support group meetings (Alzheimers', Loss of Spouse, Parkinsons', Peripheral Neuropathy, Cancer Survivors), Gideon's International, AARP Drivers Class, Turlock Historical Society, music recitals and other music/arts events (TCC Brass band, Covenant Four Quartet, Hand bell Ensemble concert, Debra Dance Recital, Community Hymn Sing, Children's Harp Ensemble, Jack Martens Music program, Virginia's Choir), Church and Community Outreach, Aging in Place Fair, TCC Health and Safety meeting, Pastors' meeting, Mayor's Prayer Breakfast meeting, County Fair Relaxation Station, SCAMPS, Thursday Bible Study, Pacific SW Conference meetings, Voting place, and others (equivalent to $901,740 and a total of 515 Staff volunteer hours)- In kind Donations to the Turlock Concert Association, Animal Shelter, Ballico School, Food and Toy Drive, Goodwill, Joni and Friends, Missionary Gospel, Modesto Shelter, Needy Family, North Avenue Church, Off Center, Salvation Army, United Samaritans, Women's Shelter, yard sale ($16,370 estimated value)Mt. Miguel Covenant Village:- Staff members volunteered a total of 569 hours of their time in various areas of the community such as the Activity Directors of Greater San Diego meetings, Animal Shelter, caroling and delivering gifts to Elder Abuse victims, Community Theater rehearsal and performance, Homeless Outreach, San Diego Master Chorale concerts, Medical Outreach, Backpack drive, Turkey Give-away, Seasons of Love food drive and others (equivalent to $33,925)- Residents volunteered a total of 9,352 hours to the different areas of the community such as in local schools, local churches, knitting and sewing for various projects, food distributions to different groups and individuals and others. They also donated to various groups/organizations such as the Alpine Conference Center, Bethel Seminary of San Diego, Christian Radio for Russia, Covenant World Missions, Covenant World Relief, Grace Covenant Church, North Park Theological Seminary and others (16,607 in total)- Monetary Donations to San Diego Military Outreach ministries and Backpack Drive ($5,368 in total).- In-Kind Donations to 1st Baptist Church ($760 in estimated value)- Provided space usage for meetings and community events for small (under 35) to large groups (75+ people) including the Alaska Christian College Program, Red Hat Day Program, San Diego Harmony Makers, Aqua Fitness program, Friends of Bethel event, Marketing seminar, Volunteer Appreciation event, Concert on Green, Accordion Lovers Society International, Activity Directors of Greater San Diego meetings, Ambassador Event for Shadow Mtn. Church, The Applique Society, and Gideon's Fish Fry (equivalent to $558,204)Covenant Shores:- Staff members volunteered a total of 106 hours in different areas in the community including Covenant Church Outreach event, Bellevue School, New Covenant Church, M.I. Youth and Family Services and a non-profit community theater (equivalent to $14,738)- Residents volunteered a total of 4,785 hours to various areas in the community including the Stitches from the Heart (knitting 309 items for Neighborcare Health, Seattle and Eastside Baby Corner), local schools, churches, hospitals and nursing homes, The Ernest Baker Foundation, Museum of Flight and others.- Provided space usage for the North Park University Event (equivalent to $3,500)-Provided scholarships to individuals ($13,020.00 in total)- Monetary Donations to Asian Counseling and Referral Service and Salvation Army ($330 in total)- In-kind Donations to Seattle's Union Gospel Mission and M.I. Youth and Family Services ($5,250 in estimated value). 51938293 1 1 0 0 0 0 0 0 1 1 1 1 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 221 0 1 902 1 0 0 0 0 0 1 1 0 0 0 0 X 21 17 0 1 0 0 1 0 1 1 1 1 0 1 1 1 1 1 1 0 1 0 CA X Elizabeth Buikema 7738782294 C/O CRC 5700 Old Orchard Rd Skokie IL 60077 X Jon P Aagaard MD 1.00 X 0 0 0 Curtis B Anderson 1.00 X 0 0 0 Rev Richard B Berry 1.00 X 0 0 0 Wendell Danielson 1.00 X 0 0 0 Rev Harvey Drake 1.00 X 0 0 0 James Elving 1.00 X 0 0 0 Marc E Espinosa 1.00 X 0 0 0 Lorene G Flewellen 1.00 X 0 0 0 Rhoda Friesen 1.00 X 0 0 0 Mary Miller 1.00 X 0 0 0 Cletus J Moll 1.00 X 0 0 0 Joyce Peterson 1.00 X 0 0 0 Norton Richards 1.00 X 0 0 0 Walter Schiller 1.00 X 0 0 0 Marlene Stante 1.00 X 0 0 0 Jean A Stebinger 1.00 X 0 0 0 Robert K Johnston 1.00 X 0 0 0 David A Dwight 1.00 X 0 848677 95681 Rick K Fisk 1.00 X X 0 897465 84268 Scott MacDonald 1.00 X 0 0 0 Gary Walter 1.00 X 0 151985 115788 Steven P Anderson 1.00 X 0 252774 70881 Elizabeth B Buikema 1.00 X 0 358640 55395 Moraine M Byrne 1.00 X 0 202945 47866 Terri S Cunliffe 1.00 X 0 350896 72409 John R Harriff 1.00 X 0 273526 47657 David G Erickson 1.00 X 0 226176 40285 Kathleen Jenkins 1.00 X 0 176448 70348 Thad D Rothrock 40.00 X 223133 0 41736 Anne Arakaki-Lock 40.00 X 210009 0 35089 Dwayne D Gabrielson 40.00 X 175173 0 51874 Paul D Peterson 40.00 X 167471 0 45797 Jay S Caddell 40.00 X 113673 0 22034 Edna Briones 40.00 X 109664 0 6445 Robert Mann 40.00 X 108135 0 22247 1107258 3739532 925800 8 0 1 0 Sodexo Inc & Affiliates Dept 43283 Los Angeles CA 900883283 Dining Services 2188507 Aegis Therapies PO Box 8103 Fort Smith AR 72902 Therapy Services 1067299 Pannel Construction Company 9623 Kenora Lane Spring Valley CA 91977 Maintenance/Construction Services 959498 Hallmark Rehabilitation 27442 Portola Parkway Suite 200 Foothill Ranch CA 92610 Therapy Services 613196 John S Jewel 1337 Lone Palm Avenue Modesto CA 95351 Roof Repair/Replacement 277600 5 150246 21876 1182928 1355050 Routine Services 623000 43406755 43406755 Entrance Fees 623000 11321135 11321135 Medicare/Medicaid 623000 7961587 7961587 Ancillary Services 623000 5682832 5682832 Meals 623000 410630 410630 68782939 2830990 2830990 79463 83392 -3929 -3929 -3929 1206666 0 1206666 1206666 1206666 26849 150246 26849 0 Support Services 623000 908935 908935 Services to Residents 623000 113964 113964 506102 506102 1529001 75700717 70311940 0 4033727 52538 52538 341077 341077 21853082 18336579 3404338 112165 771451 636970 128844 5637 3613078 3039827 568545 4706 1722499 1356902 357231 8366 369102 369102 105068 105068 119517 119517 5861383 5252193 606955 2235 792274 786947 5327 2969085 2386240 571306 11539 591549 860 590622 67 3966976 3966976 127790 40888 86902 142208 15103 127105 4929883 3736372 1133873 59638 8026712 6084188 1846144 96380 865389 865389 Related Party Payments 4591093 180 4391611 199302 Dining Services 2937144 2937144 Resident Care 1822752 1822752 Admin & General 212579 5087 207492 1595133 1033003 556926 5204 68379362 51938293 15930503 510566 183108 210504 100107 107126 1279703 1577110 2511060 3099883 261355 420377 353362 423177 214328538 93678694 119918189 120649844 49849001 43994909 13089816 19271083 62918820 70868697 250464521 260622710 2351453 2364792 60358492 59917398 72122561 70252741 1392415 749118 33952819 38994399 170177740 172278448 X 78368070 85689426 1918711 2611943 42893 80286781 88344262 250464521 260622710 X 7321355 736125 X 0 1 1 X 0 X 676059 969650 770727 1090543 1355050 4862029 60997665 60030554 65618602 66153466 68782939 321583226 61673724 61000204 66389329 67244009 70137989 326445255 0 0 0 326445255 4127962 3476399 6049754 3529628 4037656 21221399 4127962 3476399 6049754 3529628 4037656 21221399 65801686 64476603 72439083 70773637 74175645 347666654 0.93900 0.93820 0.06100 0.06180 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 42980 -87 0 0 0 42893 0 0 4608401 4608401 174589223 74355914 100233309 28834450 16598181 12236269 6296464 2724599 3571865 120649844 Mortgages 658434 F Domestic Equity 2170620 F International Equity 3538171 F Hedge Funds & Derivatives 9043575 F Private Equity 2475362 F International Real Estate 1384921 F 19271083 Unamortized Debt & Related Expenses 1264456 Other Investments 2538325 Unamortized Original Issue Discount 401483 Intercompany Advance Accounts 66664433 70868697 Deferred Revenue Subject to Refund 23295032 Refundable Contract Liabilities 14234849 Accrued Taxes & Employee Benefits 141612 Other Liabilities 1322906 38994399 75700717 68379362 7321355 736125 736125 8057480 Part IV, Line 2b: Part IV, line 2b: Resident Trust Fund Account: Per state regulations, an account is made available to Skilled Nursing Facility residents wishing to deposit personal needs funds that they can access as needed. Interest is paid based on the interest received from the bank for those deposited funds and allocated among the individual trust fund accounts based on average balances. Resident Entrance Fee Account: Prospective residents pay an application fee deposit which is carried in an escrow account. At move in, the deposit is applied against the total entrance fee amount and the remainder of the money is collected and put in this account. At the end of the month the resident has moved in, all money is transferred out of the escrow account. Description of Uncertain Tax Positions Under FIN 48: Part X: Part X, Line 2: A FIN 48 footnote was not included in the consolidated audited financial statements of Covenant Retirement Communities, Inc. and affiliates. A FIN 48 analysis was completed for Covenant Retirement Communities, Inc. and affiliates and it did not have a material impact on the financial position or results of operations. Part XI, Line 8 - Other Adjustments: Change in Temporarily Restricted Net Assets not included on Income Stmnt 693,232. Change in Permanently Restricted Net Assets not included on Income Stmnt 42,893. Total to Schedule D, Part XI, Line 8: 736,125. SAM Benefit Dinner 58475 53510 4965 300 150 3065 800 650 MMCV Benefit Dinner 60058 55045 5013 5013 2 58562 41691 16871 2157 6755 2000 5959 177095 150246 26849 300 150 2157 9820 2800 11622 26849 0 1 Good Neighbor Fund 9 52538 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: When a resident's financial need becomes known, consideration is given by the executive director of the facility to determine if the resident qualifies for assistance based on the guidelines established for the fund. Each expenditure from the fund is approved by the executive director. X X 1 1 0 1 0 0 0 0 0 1 0 David A Dwight 0 505032 0 0 0 343645 0 67314 0 28367 0 944358 0 0 Rick K Fisk 0 401500 0 109285 0 386680 0 67384 0 23717 0 988566 0 18009 Gary Walter 0 151985 0 0 0 0 0 27623 0 88165 0 267773 0 0 Steven P Anderson 0 146862 0 21837 0 84075 0 52698 0 24166 0 329638 0 5634 Elizabeth B Buikema 0 213636 0 38071 0 106933 0 34666 0 23948 0 417254 0 10768 Moraine M Byrne 0 160778 0 21538 0 20629 0 33590 0 17108 0 253643 0 8210 Terri S Cunliffe 0 169582 0 29138 0 152176 0 57714 0 17075 0 425685 0 0 John R Harriff 0 128946 0 15355 0 129225 0 37805 0 16193 0 327524 0 0 David G Erickson 0 149595 0 32240 0 44341 0 20060 0 23450 0 269686 0 0 Kathleen Jenkins 0 80036 0 7500 0 88912 0 52257 0 20314 0 249019 0 11125 Thad D Rothrock 156007 0 12832 0 54294 0 20808 0 22989 0 266930 0 0 0 Anne Arakaki-Lock 126299 0 12201 0 71509 0 33089 0 5600 0 248698 0 11307 0 Dwayne D Gabrielson 101167 0 10590 0 63416 0 33691 0 23561 0 232425 0 0 0 Paul D Peterson 134648 0 8316 0 24507 0 26445 0 22632 0 216548 0 0 0 Part I, Line 1a Part I, Line 1a: The following are available benefits and are treated as taxable compensation: - Travel for companions paid for three (3) senior-level employees. - Health club dues paid for two (2) senior-level employees. Part I, Line 3 Part I, Line 3: See Schedule O explanation for Form 990 Part VI Section B Line 15 for the methods used to determine CEO compensation. Part I, Line 4b Executive Benefit Plan Covenant Ministries of Benevolence (CMB) provides certain supplemental retirement benefits to its officers and key employees. These benefits are provided through a nonqualified deferred compensation plan, under which a portion of the benefits being earned are subject to a "substantial risk of forfeiture." The supplemental retirement benefits are structured to provide a retention incentive that has been determined by the Compensation Committee of CMB's Board to be of substantial value to the organization. The Committee approves all retirement benefits, together with all other forms of compensation and benefits for these and other executives, in a manner intended to qualify for the rebuttable presumption of reasonableness under the intermediate sanctions rules of federal income tax law. The following listed individuals participated in the Executive Benefit Plan: David Dwight - $78,250.81 Rick Fisk - $62,656.27 Elizabeth Buikema - $22,523.08 Steven P. Anderson - $19,775.86 John R. Harriff - $21,225.06 Terri Cunliffe - $18,594.60 David Erickson - $20,085.18 Kathleen Jenkins - $11,814.81 Moraine Byrne - $17,884.00 Thad D. Rothrock - $15,336.00 Dwayne D. Gabrielson - $15,860.88 Anne A. Arakaki-Lock - $15,660.24 Paul D. Peterson - $15,467.00 Pension Restoration Plan As certain individuals' pension benefits may be limited by tax code maximums on both eligible compensation and benefits, Covenant Ministries of Benevolence (CMB) provides a Pension Restoration Plan which entitles the individuals listed below to a pension benefit based on total cash compensation. David A. Dwight - $6,814 Rick K. Fisk - $25,517 Part I, Line 7 Part I, Line 7: The following applies to certain individuals listed on Part VII whose compensation is paid from related organizations: The Executive Compensation Committee (the "Committee") follows a prescribed method for calculating bonuses. The calculation is based on measurable targets determined at the beginning of the year. The Committee has the ability to adjust the dollar value of the calculated awards by up to 10%. The adjustment can be an upward or downward adjustment based on various performance factors. Refer to additional information on the Committee included in Schedule O. Supplemental Information Part III Part II, Column B (i): Base compensation for certain individuals may include payments from deferred compensation plans. Part II, Column B (ii): Bonus and incentive compensation - Certain key persons employed by CRC are eligible for incentive compensation as determined by the CRC Board Compensation Committee. Incentives paid in 2011 relate to the achievement of targets for the fiscal year ended 1/31/2011. Part II, Column B (iii): Other Reportable Compensation - During the 2010 calendar year, Covenant Ministries of Benevolence (CMB) discontinued its sponsorship of a particular deferred benefit program that included employer contributions to split dollar life insurance arrangements for certain employees, including some individuals whose compensation is disclosed on this Form 990 Part VII and in Schedule J. While the sponsorship and employer contributions to the split dollar life insurance arrangements were discontinued in 2010, federal tax law rules prevented CMB from transferring the insurance policies to the affected employees, and fully terminating these arrangements, for 12 months following the Board action to end its sponsorship and contributions. As a result, affected employees were taxed on the value of those split dollar life insurance policies in 2011, when the policies or the value of them was actually transferred to the employees. Although these benefits were earned over many years of employment, the full value of the benefits must be treated as taxable compensation in the year that the employee receives the policy or the benefit. In prior years, the premiums paid for the life insurance arrangements were reported in Part II Column B(iii) as non-taxable benefits in the years they were paid. The portions of reportable compensation that were due to this acceleration treatment are as follows: David Dwight - $283,443.23 Rick Fisk - $274,538.58 Elizabeth Buikema - $75,181.58 Steven P. Anderson - $67,348.01 John R. Harriff - $92,164.41 Terri Cunliffe - $119,770.13 David Erickson - $19,001.89 Kathleen Jenkins - $45,430.60 Thad D. Rothrock - $48,802.10 Dwayne D. Gabrielson - $53,537.28 Anne A. Arakaki-Lock - $59,593.11 Paul D. Peterson - $21,061.78 Part II, Column C: Deferred compensation includes and estimate of the contribution made to an employer sponsored defined benefit pension plan. Part II, Column D: Nontaxable benefits include health insurance premiums paid by the employer and employee. Mission Statement: Form 990 - Part III - Line 1 As a ministry of the Evangelical Covenant Church, Covenant Retirement Communities celebrate God's gift of life in Christian community. We follow the Great Commandment to love and serve God and one another as taught by Jesus Christ. That compels us to affirm the dignity of each person and to pursue excellence and financial integrity in all that we do. As we provide a broad range of resources, services and programs to enhance individual and community wellness, we collaborate with residents and families to achieve the best possible results. While seeking to foster independence, we respond to each individual's evolving needs in order to provide the security that assures peace of mind. In living out the mission, the community provides a complete continuum of care from residential living through skilled nursing. Such services are guided by a series of values and goals addressing resident needs, privacy, safety and dignity, including appropriate access to services. In carrying out the mission statement of Covenant Retirement Communities, Covenant Retirement Communties West provided $1,493,917 of free or discounted services to those residents unable to pay all or a portion of their charges, and who meet certain eligibility requirements. Tax-Exempt Bonds: Form 990 - Part IV - Line 24a The organization has tax-exempt bonds issued after December 31, 2002 with an outstanding principal of more than $100,000. The bonds are reported on Schedule K of the parent organization. Form 990, Part VI, Section A, line 3 Covenant Retirement Communities West delegated control over management duties to Covenant Retirement Communities, Inc. (CRC), its parent organization. Form 990, Part VI, Section A, line 6 The sole member of Covenant Retirement Communities West (CRC-West) is Covenant Retirement Communities, Inc. (CRC). Form 990, Part VI, Section A, line 7b S 2.4 of Bylaws include reserved powers to the [individual] members such as appointment of president of CRC, changes to mission and strategic plan, approval of certain acquisitions, dispositions and financings, changes to articles and bylaws. Form 990, Part VI, Section B, line 11 Management Review: The draft Form 990 was reviewed by multiple levels of management including the President of CRC, the Vice President of Finance/CFO and the Vice President of Legal Affairs. Board Review: Prior to filing, key provisions of the Form were discussed with the Board of Directors at the Board meeting and the final Form 990 was provided to each Board member. Form 990, Part VI, Section B, line 12c Covenant Retirement Communities, Inc. (CRC) has an Administrative Policy on conflict of interest, identifying the parameters of a conflict of interest and the requirement to disclose any such conflict of interest. Each January, the CRC policy is distributed to CRC board members and officers. They are asked to sign acknowledging receipt of the policy and to disclose if they have any conflicts of interest. If someone is absent from the meeting or fails to return the acknowledgment, there is a follow-up with the individual until the signed acknowledgment is provided. In addition to the above, a separate and more comprehensive questionnaire is sent to the board members, officers, key employees and other interested persons. The completed questionnaires are reviewed by CRC's legal counsel to determine if any actual or potential conflicts exist. If a person becomes an interested person, he or she may be considered in determining whether a quorum is present. The interested person may make a short statement relating to the transaction or arrangement in question, but shall not be present during the discussion and shall not vote on the motion addressing the actual or potential conflict. Form 990, Part VI, Section B, line 15b Covenant Retirement Communities' (CRC) Board of Directors has duly appointed an Executive Compensation Committee (the "Committee"), which is responsible for the review and approval of all compensation and benefits provided to CRC's executive management. The Committee has adopted a written Executive Compensation Philosophy Statement and an Executive Compensation Committee Charter governing the work and review process of the Committee. The Committee follows the procedures described in the Philosophy Statement and the Charter when it reviews and approves the compensation and employee benefits provided to the CRC's senior management. The Committee's review analyzes every element of compensation, including current and deferred compensation, and benefits, including qualified and non-qualified benefits. The Committee conducts its review and approval process at least annually, and approves compensation and benefits only to the extent that the Committee has concluded that the compensation and benefits constitute no more than reasonable compensation for each executive. The Committee consists entirely of disinterested members of the Board, and the Committee works with an independent compensation consultant to prepare and review in advance comprehensive data showing the compensation provided by similarly situated organizations for functionally similar positions. The Committee also prepares a timely and thorough written record of its deliberations and conclusions. As a result, the Committee's review process is designed to satisfy the procedural criteria necessary to qualify for the rebuttable presumption of reasonableness under the federal income tax law intermediate sanctions rules. The resources utilized by the compensation Committee include: 1) independent compensation consultant; 2) written employment contract; 3) compensation survey or study; 4) approval by the board or compensation committee. Form 990, Part VI, Section C, line 18 Form 990, Part VI, Section C, Line 18: A copy of the organization's Form 990 is available upon request by contacting the CRC accounting department at 773-878-5744. Form 990, Part VI, Section C, line 19 Form 990, Part VI, Section C, Line 19: The governing documents, conflict of interest policy and financial statements are available upon request by contacting the CRC accounting department at 773-878-5744. Contact Information for Directors and Officers: Form 990 - Part VI - Line 9 All of the organization's directors and officers can be contacted at this address: Covenant Retirement Communities, Inc. - 5700 Old Orchard Road, Skokie, IL 60077. Related Organization: Form 990 - Part VII - Section A Officers and Directors devote less than 1 hour per week to related organizations except for those individuals that are employees of Covenant Retirement Communities, Inc. (CRC). Those that are employed by CRC devote approximately 40 hours per week to CRC. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Change in Temporarily Restricted Net Assets not included on Income Stmnt 693,232. Change in Permanently Restricted Net Assets not included on Income Stmnt 42,893. Total to Form 990, Part XI, Line 5: 736,125. The Samarkand 2550 Treasure Drive Santa Barbara CA 93105 953472345 Continuing Care Retirement Community CA 23044185 85266074 N/A Covenant Village of Turlock 2125 North Olive Ave Turlock CA 95380 953472345 Continuing Care Retirement Community CA 14242935 64484400 N/A Mount Miguel Covenant Village 325 Kempton Street Spring Valley CA 91977 953472345 Continuing Care Retirement Community CA 20297570 60752785 N/A Covenant Shores 9150 Fortuna Drive Mercer Island WA 98040 953472345 Continuing Care Retirement Community WA 18116026 50119451 N/A Evangelical Covenant Church 8303 West Higgins Road Chicago IL 60631 362167730 Church IL 501(c)(3) Line 1 N/A 0 Swedish Covenant Faculty Group (SCFG) 5145 North California Avenue Chicago IL 60625 363686216 Patient Treatment/Education IL 501(c)(3) Line 11a, I Swedish Covenant Hospital 0 Swedish Covenant Hospital 5145 North California Avenue Chicago IL 60625 362179813 Hospital IL 501(c)(3) Line 3 Covenant Ministries of Benevolence 0 Swedish Covenant Hospital Foundation (SCHF) 5145 North California Avenue Chicago IL 60625 205055155 Supporting Organization of SCH IL 501(c)(3) Line 7 Swedish Covenant Hospital 0 SC Insurance Company 6970 E Chauncey Lane Suite 100 Phoenix AZ 85054 273312053 Insurance AZ 501(c)(3) Line 11a, I Swedish Covenant Hospital 0 Cardiovascular Performance Group LLC 5145 N California Avenue Chicago IL 60625 203587272 Management Services IL N/A N/A 0 0 Coast Asset Management LLC 2450 Colorado Ave Suite 100 E Tower Santa Monica CA 90404 954763400 Hedge Fund Investment CA N/A N/A 0 0 Covenant Village of Portland LP 420 NE Mason St Portland OR 97211 364356838 Assisted Living Community OR N/A N/A 0 0 Swedish Covenant Surgery LLC 5215 N California Avenue Chicago IL 60625 272485300 Outpatient Medical Services IL N/A N/A 0 0 Covenant International Insurance Company Ltd Crawford House 50 Cedar Ave Hamilton BD Insurance BD N/A Covenant Trust Company 5215 Old Orchard Rd Suite 725 Skokie IL 60077 363583163 Financial Services IL N/A C Swedish Covenant Management Services Inc (SCMS) 5145 N California Avenue Chicago IL 60625 364073303 Physician Practice Management IL N/A C Swedish Covenant Managed Care Alliance (SCMCA) 2740 W Foster Suite 409 Chicago IL 60625 364118659 Physician - Hospital Organization IL N/A C 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 Covenant Retirement Communities Inc A 1187945 Covenant Retirement Communities Inc O 7099709 Covenant Trust Company O 199302