2011-08-02T14:22:58-05:00 2010-12-31 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-01-01 562277623 GALLOWAY RIDGE INC GALL 9195452215 3000 GALLOWAY RIDGE PITTSBORO NC 27312 DALE OLBRICH 9195452215 2011-08-02 1 AMY BIBBY 8282542254 2010 2016-03-07 17:11:31Z DALE OLBRICH 3000 GALLOWAY RIDGE PITTSBORO NC 27312 19557147 0 X WWW.GALLOWAYRIDGE.COM X 2001 NC OPERATION OF CONTINUING CARE RETIREMENT COMMUNITY 16 16 327 151 0 0 129035 245423 17944731 19092296 177198 79424 71689 140004 18322653 19557147 55529 14417 0 0 6098612 6573574 0 0 0 12352626 12171448 18506767 18759439 -184114 797708 101411399 143212712 119582701 161385515 -18171302 -18172803 X THE MISSION OF GALLOWAY RIDGE IS TO PROVIDE A RETIREMENT COMMUNITY OF SUPERIOR QUALITY TO THOSE INDIVIDUALS WHO ENTRUST GALLOWAY RIDGE WITH THEIR FUTURE HEALTH, SOCIAL, SPIRITUAL AND RECREATIONAL NEEDS AND WHO WISH TO CONTINUE THE STANDARD OF LIVING THEY PREVIOUSLY ENJOYED. GALLOWAY RIDGE SHALL STRIVE TO PROVIDE A COMPLEMENT OF SERVICES IN A CARING, SUPPORTIVE AND ATTRACTIVE ATMOSPHERE THROUGH DEDICATED PROFESSIONALS. THE RESPECT AND EMPATHY FOR THE INDIVIDUALITY, PRIVACY, AND INDEPENDENCE OF THE RESIDENTS ARE PARAMOUNT IMPORTANCE. 0 0 14389327 14417 19092296 GALLOWAY RIDGE, INC. PROVIDED HOUSING, HEALTHCARE, AND OTHER RELATED SERVICES TO RESIDENTS THROUGH THE OPERATION OF A RESIDENT FACILITY CONTAINING 233 INDEPENDENT LIVING UNITS, 22 ASSISTED LIVING UNITS, AND 16 SKILLED NURSING UNITS. GALLOWAY RIDGE WELCOMED ITS FIRST RESIDENTS IN 2005 WITH A MISSION OF PROVIDING ITS RESIDENTS SUPERIOR SERVICES AT A REASONABLE COST AND STRIVING TO PROVIDE A COMPLEMENT OF SERVICES TO SUPPORT THE RESIDENT'S HEALTH, SOCIAL, SPIRITUAL AND RECREATIONAL NEEDS. SINCE INCEPTION, GALLOWAY RIDGE HAS PAID PROPERTY TAXES TO CHATHAM COUNTY IN A TOTAL AMOUNT EQUAL TO $2,264,993, $436,778 OF WHICH WAS PAID MOST RECENTLY IN 2010. IN ADDITION TO PAYING PROPERTY TAXES, GALLOWAY RIDGE HAS CONSISTENTLY ENGAGED IN A VARIETY OF OTHER CHARITABLE EFFORTS AND CONTRIBUTIONS. IN 2010, GALLOWAY RIDGE ASSISTED RESIDENTS WHO COULD NOT PAY THEIR MONTHLY SERVICE FEE ($21,734), ALLOWED EMPLOYEES TO DONATE TIME TO LOCAL NON PROFITS ($3,580), COMPLETED ITS PLEDGE TO THE PITTSBORO LIBRARY ($6,667), SUPPORTED ITS EMPLOYEES WITH ACADEMIC SCHOLARSHIPS ($7,750), PROVIDED FITNESS MEMBERSHIPS TO ITS EMPLOYEES ($168,672) AND NON CASH DONATIONS TO LOCAL NON PROFITS ($10,125). GALLOWAY RIDGE WAS ABLE TO MAKE THE FOLLOWING CASH COMMITMENTS TO LOCAL NON PROFITS ($55,000). SOON AFTER OPENING, IN 2006, THE GALLOWAY RIDGE CHARITABLE FUND WAS ESTABLISHED AT THE RECOMMENDATION OF THE BOARD OF DIRECTORS' SOCIAL ACCOUNTABILITY COMMITTEE, A STANDING COMMITTEE OF THE BOARD. THE CHARITABLE FUND WAS ORGANIZED AND CONTINUES TO OPERATE FOR THE FOLLOWING PURPOSES:(A) TO CARRY OUT THE MISSION OF GALLOWAY RIDGE AS STATED IN THE GALLOWAY RIDGE BYLAWS.(B) TO PROVIDE OR FUND CHARITY CARE, DEFINED AS THE UNREIMBURSED COSTS TO GALLOWAY RIDGE OF PROVIDING HEALTH CARE, HOUSING OR OTHER SERVICES TO RESIDENTS WHO ARE UNINSURED, UNDERINSURED OR OTHERWISE UNABLE TO PAY FOR ALL OR PART OF THE SERVICES RENDERED.(C) TO PROVIDE OR FUND COMMUNITY BENEFITS, DEFINED AS THE UNREIMBURSED COSTS TO GALLOWAY RIDGE OF PROVIDING THE FOLLOWING:- SERVICES, INCLUDING HEALTH, RECREATION, COMMUNITY RESEARCH, AND EDUCATION ACTIVITIES PROVIDED TO THE COMMUNITY AT LARGE, INCLUDING THE ELDERLY;- CHARITABLE DONATIONS;- DONATED VOLUNTEER SERVICES; AND- DONATIONS AND VOLUNTARY PAYMENTS TO GOVERNMENT AGENCIES.(D) TO SOLICIT, RECEIVE, ADMINISTER, INVEST AND DISTRIBUTE FUNDS FOR THE PURPOSES LISTED ABOVE.CONTRIBUTIONS TO THE GALLOWAY RIDGE CHARITABLE FUND MAY BE DESIGNATED FOR ANY OF THREE PURPOSES:- SUPPORT FOR GALLOWAY RIDGE RESIDENTS WHO MAY NEED ASSISTANCE WITH FEES IN THE FUTURE BECAUSE OF A DIFFICULT FINANCIAL CIRCUMSTANCE;- SUPPORT OF THE CHATHAM COMMUNITY; AND- PROVISION OF SCHOLARSHIPS FOR EMPLOYEES OF GALLOWAY RIDGE.GALLOWAY RIDGE, ALTHOUGH STILL IN ITS EARLY YEARS, AND ITS RESIDENTS HAVE FOSTERED AND ESTABLISHED RELATIONSHIPS WITH NUMEROUS AGENCIES AND ORGANIZATIONS THROUGHOUT THE COMMUNITY INCLUDING THE FOLLOWING:- BRIAN CHAPEL CONSULTING, MEALS ON WHEELS- CCAHT TASK FORCE MEETING, NORTH CHATHAM SCHOOL- CHAPEL IN THE PINES, PITTSBORO FRIENDS- CHATHAM COUNTY DEMOCRATIC WOMEN, PITTSBORO PUBLIC LIBRARY- CHATHAM COUNTY DEMOCRATS, READING PROGRAM @ PITTSBORO ELEM.- CHATHAM COUNTY HUMAN RELATIONS COMMISSION, SECOND BLOOM THRIFT STORE- CHATHAM HOUSING COALITION, ST. BARTHOLOMEW'S- CHATHAM OUTREACH ALLIANCE FOOD PANTRY, ST. JULIA CHURCH, SILER CITY- COMMUNITY EDUCATION FOUNDATION, ST. THOMAS MOORE CHURCH- COMMUNITY INDEPENDENT SCHOOL, TUTORING AT SCROGGS SCHOOL- COMMUNITY KITCHEN CHAPEL HILL, UNC HOSPITAL/HOSPICE VOLUNTEER- CONTINUING CARE COMMUNITY RESIDENTS, UNC LIBRARY- CORNUCOPIA HOUSE, UNC TOUR- DEEP RIVER MEDIATION, UNITED METH. RET. HOME FOUNDATION- DUKE UNIVERSITY HEART CENTER, UNITED WAY- DUKE UNIVERSITY HOSPITAL VOLUNTEER VISITOR, UNIVERSITY UNITED METHODIST CHURCH- EMPOWERMENT HOUSING CONSULTANT, VILLAGE VOICES- ENGLISH AS A SECOND LANGUAGE TUTOR, MCDOUGAL ELEMENTARY SCHOOL LIBRARY- EUCHARISTIC MINISTER, HABITAT HOME STORE- FEARRINGTON CARES, FHA OFFICE- FEARRINGTON HOUSE, FEARRINGTON WOMAN'S CLUB- WOODS CHARTER SCHOOL, SENIOR CENTER OF CHATHAM COUNTY- LINDBERGER CENTER FOR CANCER RESEARCH, CHATHAM CO. SOCIAL SVCS DEPT.IN 2010, GALLOWAY RIDGE NOT ONLY SUPPORTED THE ABOVE MENTIONED ORGANIZATIONS BY FOSTERING AN ENVIRONMENT THAT SUPPORTED AND ENCOURAGED ITS RESIDENTS AND EMPLOYEES TO VOLUNTEER, IT WAS ALSO ABLE TO MAKE THE FOLLOWING SPECIFIC DONATIONS:- FRIENDS OF PITTSBORO MEMORIAL LIBRARY ($6,667)GALLOWAY RIDGE WAS ALSO ABLE TO MAKE THE FOLLOWING CASH COMMITMENTS:- ST. JULIA CATHOLIC CHURCH BROWN BAG MINISTRIES ($10,000)- VIRGINIA CROSS ELEMENTARY SCHOOL ($8,000)- PITTSBORO ELEMENTARY SCHOOL PTA ($5,400)- CHATHAM HABITAT FOR HUMANITY ($5,000)- NORTHWOOD HIGH SCHOOL ($5,000)- BOYS AND GIRLS CLUBS OF EASTERN PIEDMONT ($5,000)- CHATHAM LITERACY COUNCIL ($4,000)- INTERFAITH MINISTRIES OF CHATHAM COUNTY ($3,000)- BYNUM FRONT PORCH ($3,000)- MONCURE FUEL UP ($2,000)- THE OSMAN FOUNDATION ($1,700)- CHATHAM SOCCER LEAGUE ($1,600)- CHATHAM COUNTY MIDDLE SCHOOL ($850)- HORTON MIDDLE SCHOOL ($450)ADDITIONALLY, GALLOWAY RIDGE CONTINUES TO SUPPORT ITS EMPLOYEES IN A VARIETY OF WAYS, INCLUDING BUT NOT LIMITED TO PROVIDING:- FITNESS MEMBERSHIPS FOR GALLOWAY RIDGE EMPLOYEES ($168,672)- EDUCATIONAL SCHOLARSHIPS TO GALLOWAY RIDGE EMPLOYEES ($7,750) 14389327 1 1 0 0 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 46 0 1 327 1 0 0 0 0 0 0 0 0 0 1 0 X 16 16 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X X VICKI P BARRINGER 9195452608 3000 GALLOWAY RIDGE PITTSBORO NC 27312 SYLVANUS NYE 1.00 X X 0 0 0 DAVID MCGRAIN 1.00 X X 0 0 0 DAVID KIMBALL 1.00 X X 0 0 0 LAWRENCE GROSSBERG 1.00 X 0 0 0 LIDA COLEMAN 1.00 X 0 0 0 LUTHER HODGES JR 1.00 X 0 0 0 RHODES CRAVER 1.00 X 0 0 0 DALE OLBRICH 1.00 X 0 0 0 DIANE TAYLOR 1.00 X X 0 0 0 RHODA BERKOWITZ 1.00 X 0 0 0 BILL BROWDER 1.00 X 0 0 0 RICHARD CRAFTS 1.00 X 0 0 0 MARY HAMMOND 1.00 X 0 0 0 HEATHER RODIN 1.00 X 0 0 0 PHILIP STOUT 1.00 X 0 0 0 CLAUDE YOUNG JR 1.00 X 0 0 0 JASON CRONK 50.00 X 227138 0 22640 VICKI BARRINGER 50.00 X 102359 0 6894 DOUG OLIVER 50.00 X 118225 0 7325 447722 0 36859 3 0 1 0 BB&T CAPITAL MARKETS 901 E BYRD STREET RICHMOND VA 23219 UNDERWRITER 1726751 CSRALCS MANAGEMENT LLC 400 LOCUST STREET STE 820 DES MOINES IA 50309 MANAGEMENT COMPANY 1685357 REHAB CARE GROUP INC PO BOX 503534 ST LOUIS MO 63150 CONTRACT THERAPY SERVICES 709457 CALLOWAY JOHNSON MOORE WEST 119 BROOKSTOWN AVENUE SUITE 100 WINSTONSALEM NC 27101 ARCHITECT 656724 WEAVER COOKE PO BOX 26030 GREENSBORO NC 27420 CONSTRUCTION 650901 7 245423 245423 RESIDENT SERVICES 623000 19092296 19092296 19092296 79424 79424 18370 18370 18370 18370 DINING INCOME 900099 85795 85795 MISCELLANEOUS INCOME 900099 35839 35839 121634 19557147 19092296 0 219428 6667 6667 7750 7750 364196 76483 287713 5048385 4535873 512512 32813 27962 4851 623183 531048 92135 504997 430336 74661 386665 386665 150743 150743 53460 53460 885462 705241 180221 286684 37713 248971 2469759 2234791 234968 70534 481 70053 1546500 1546500 70511 33739 36772 12839 7688 5151 1852388 1852388 3587773 3587773 416070 237287 178783 CLINIC EXPENSE 210000 210000 ROUTINE UNIT TURNOVER 131492 131492 MISCELLANEOUS 27156 27091 65 EMPLOYEE RELATED EXPENS 13412 13412 18759439 14389327 4370112 0 9949633 16811196 1003089 584607 37990 40532 239390 156376 95356635 16318892 77711119 79037743 31970696 12470178 14611562 101411399 143212712 1406417 1623676 73469071 73857387 80903625 2265550 41150000 3557213 2735277 119582701 161385515 X -18467950 -18529804 296648 357001 -18171302 -18172803 101411399 143212712 X 797708 -799209 X 0 1 1 X 0 X 13700 194736 92059 129035 245423 674953 11511093 14551678 17794893 17944731 19092296 80894691 85795 85795 11524793 14746414 17886952 18073766 19423514 81655439 184415 187029 225349 234909 166826 998528 0 184415 187029 225349 234909 166826 998528 80656911 243111 451932 107722 188974 97794 1089533 243111 451932 107722 188974 97794 1089533 525984 390631 444772 53933 35839 1451159 12293888 15588977 18439446 18316673 19557147 84196131 0.95800 0.94920 0.01290 0.01630 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 4934777 4934777 65623603 11843920 53779683 950197 171494 778703 4858692 876909 3981783 18989366 3426569 15562797 79037743 RESERVE REQUIRED BY STATE STATUTE 3816670 DEFERRED FINANCING COSTS 2503540 DEFERRED MARKETING COSTS 5554692 SALES TAX RECEIVABLE 112762 CHARITABLE FUND 357001 ENTRANCE FEES FOR UNITS TO BE CONSTRUCTED 2266897 14611562 REFUNDABLE ENTRANCE FEES 2417277 RESIDENT UPGRADE DEPOSITS 318000 2735277 19557147 18759439 797708 823127 -1622336 -799209 -1501 18633062 -924085 -924085 19557147 0 19557147 19457690 698251 698251 18759439 0 18759439 PART IV, LINE 2B: GALLOWAY RIDGE BEGAN CONSTRUCTION OF NEW INDEPENDENT LIVING UNITS, ASSISTED LIVING UNITS, AND SKILLED NURSING BEDS DURING 2010. ENTRANCE FEES FOR THESE UNITS ARE DEPOSITS RECEIVED FROM POTENTIAL RESIDENTS AND ARE HELD IN AN ESCROW ACCOUNT. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE COMPANY IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, THE ACCOMPANYING FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION OR LIABILITY FOR FEDERAL AND STATE INCOME TAXES. THE COMPANY HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFIT OR OBLIGATION AS OF DECEMBER 31, 2010. PART XI, LINE 8 - OTHER ADJUSTMENTS: LOSS ON EARLY EXTINGUISHMENT OF LONG-TERM DEBT -924,085. IMPAIRMENT OF GOODWILL -698,251. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON EXTINGUISHMENT OF LONG-TERM DEBT -924,085. PART XIII, LINE 2D - OTHER ADJUSTMENTS: IMPAIRMENT OF GOODWILL 698,251. 1 FRIENDS OF PITTSBORO MEMORIAL LIBRARY INC PO BOX 1108 PITTSBORO NC 27312 561674431 501(C)(3) 6667 N/A N/A ASSISTANCE IN BUILDING NEW FACILITY 1 EDUCATIONAL SCHOLARSHIPS 9 7750 N/A N/A PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: GALLOWAY RIDGE ANNUALLY RECEIVES APPLICATIONS FROM COMMUNITY 501(C)(3) ORGANIZATIONS FOR ASSISTANCE FROM THE CHARITABLE FUND. THE DISTRIBUTION COMMITTEE OF THE CHARITABLE FUND REVIEWS ALL REQUESTS AND MAKES DECISION OF WHICH ORGANIZATIONS WILL RECEIVE ASSISTANCE AND THE AMOUNT TO BE RECEIVED (TOTAL GRANTS ARE LIMITED EACH YEAR BASED UPON POLICIES AND PROCEDURES OF CHARITABLE FUND). X X 0 0 0 0 0 1 0 1 0 JASON CRONK 165091 0 57293 0 4754 0 0 0 22640 0 249778 0 0 0 PART I, LINE 6 JASON CRONK, EXECUTIVE DIRECTOR, RECEIVES BONUS FUNDS FOR MEETING THE BUDGETED NET OPERATING INCOME. FOR THE YEAR ENDING DECEMBER 31, 2010, JASON CRONK RECEIVED A $5,459 BONUS BASED ON NET EARNINGS OF GALLOWAY RIDGE. SEE PART II, COLUMN (B)(II). PART I, LINE 7 BONUS ARRANGEMENTS FOR THE EXECUTIVE DIRECTOR ARE BASED ON SEVERAL OBJECTIVES SET ANNUALLY BY THE MANAGEMENT COMPANY. THOSE OBJECTIVES ARE REVIEWED AND APPROVED BY THE PRESIDENT (I.E. CHAIRPERSON OF THE BOARD). FOR 2010, CRSA, INC. PAID JASON CRONK $51,834 FOR THE ACHIEVEMENT OF AGREED-UPON OBJECTIVES FOR THE YEAR. GALLOWAY RIDGE DID NOT REIMBURSE CRSA, INC. FOR $30,000 OF THAT PAYMENT. SEE PART II, COLUMN (B)(II). SUPPLEMENTAL INFORMATION PART III COMPENSATION FROM UNRELATED ORGANIZATIONS: COMPENSATION TO JASON CRONK IN PART II, LINE (I) WAS PAID BY CRSA, INC., AN UNRELATED ORGANIZATION, ON BEHALF OF GALLOWAY RIDGE FOR MANAGEMENT SERVICES. NOTE THAT GALLOWAY RIDGE DID NOT REIMBURSE CRSA, INC. FOR THE ENTIRETY OF THE AMOUNT. PLEASE SEE ABOVE FOR DETAILS. NORTH CAROLINA MEDICAL CARE COMMISSION 521309402 65820YJJ6 2010-10-21 75989731 SEE PART V 0 0 0 NORTH CAROLINA MEDICAL CARE COMMISSION 521309402 NONEAVAIL 2010-10-21 19930000 SEE PART V 0 0 0 75989731 5275850 453693 1901427 4289534 38755000 26692638 2012 1 0 0 1 19930000 1548 733100 959619 18651607 2012 0 0 0 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 0 0 0 0 0.00000 0.00000 0.00000 1 0 1 0 0 0 0 0 1 0 0 0 0 SCHEDULE K, PART I, LINE A, COLUMN F: DESCRIPTION OF PURPOSE SERIES 2010A & 2010B - EXPANSION OF FACILITY AND REFINANCING SCHEDULE K, PART I, LINE B, COLUMN F: DESCRIPTION OF PURPOSE SERIES 2010C - EXPANSION OF FACILITY, REFINANCING, AND REIMBURSEMENT FOR PHASE II CONSTRUCTION OF PHASE 1. THE SERIES 2010C BOND IS A DRAW-DOWN LOAN WITHIN THE MEANING OF TREASURY REGULATION SECTION 1.150-1(C)(4)(I). PART II, LINE 12, COLUMN B REPRESENTS THE MAXIMUM PRINCIPAL AMOUNT THAT WILL BE DRAWN DOWN. FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION CONTRACTS ITS EXECUTIVE DIRECTOR FROM CRSA/LCS MANAGEMENT, LLC. UNDER THE TERMS OF A MANAGEMENT AGREEMENT, MANAGEMENT SERVICES ARE PROVIDED TO THE ORGANIZATION BY COOPERATIVE RETIREMENT SERVICES OF AMERICA (CRSA). THESE SERVICES INCLUDE THE SUPERVISION OF ALL ASPECTS OF NORMAL OPERATIONS INCLUDING BUDGETING, HIRING OF EMPLOYEES, BILLING, PAYROLL, ACCOUNTS PAYABLE, AND OTHER MANAGEMENT RESPONSIBILITIES. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE 990 WAS PROVIDED TO THE BOARD AUDIT AND FINANCE COMMITTEE FOR A COMPREHENSIVE REVIEW PRIOR TO THE BOARD REVIEW. ON JULY 27TH, 2011, WHICH WAS PRIOR TO THE FILING DATE OF THE 990, THE FINANCE COMMITTEE PRESENTED THE 990 TO THE ENTIRE VOTING BOARD, WHERE EACH MEMBER RECEIVED A COPY. AFTER A DISCUSSION PERIOD AND QUESTION & ANSWER PERIOD, THE BOARD VOTED TO APPROVE THE FORM 990 AS PRESENTED. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS REVIEWED BY ALL BOARD MEMBERS ANNUALLY. EACH BOARD MEMBER SIGNS A STATEMENT INDICATING THE UNDERSTANDING OF AND COMPLIANCE WITH THE POLICY. THE CONFLICT OF INTEREST POLICY IS BASED UPON THE IRS MODEL CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION OF EXECUTIVE DIRECTOR IS REVIEWED BY THE MANAGEMENT COMPANY (CRSA) AND THE PRESIDENT (I.E. CHAIRPERSON OF THE BOARD) ANNUALLY USING INDUSTRY DATA FOR COMPARISON. OTHER KEY EMPLOYEES HAVE ANNUAL REVIEWS BY THE EXECUTIVE DIRECTOR AND COMPARABILITY DATA IS REVIEWED ON A REGULAR BASIS. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE ORGANIZATION'S FORM 1023, FORM 990 AND FORM 990-T ARE AVAILABLE UPON REQUEST. RECENT FILINGS OF THE FORM 990 CAN BE ACCESSED THROUGH GUIDESTAR.ORG, A NON-PROFIT WEBSITE. FORM 990, PART VI, SECTION C, LINE 19 BYLAWS, WITH ANY CHANGES OR UPDATES, ARE MAINTAINED IN THE RESIDENT LIBRARY AND ARE ALSO AVAILABLE BY REQUEST. THE CONFLICT OF INTEREST POLICY IS INCLUDED IN THE ANNUAL DISCLOSURE STATEMENT. FINANCIAL STATEMENTS ARE PROVIDED MONTHLY TO THE PRIMARY CREDITOR, BOARD AUDIT & FINANCE COMMITTEE, AND THE RESIDENT FINANCE COMMITTEE AND PROVIDED QUARTERLY TO THE BOARD. THE ANNUAL AUDIT IS PROVIDED ANNUALLY IN THE DISCLOSURE STATEMENT. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: PRIOR PERIOD ADJUSTMENTS: 823,127. LOSS ON EARLY EXTINGUISHMENT OF LONG-TERM DEBT -924,085. IMPAIRMENT OF GOODWILL -698,251. TOTAL TO FORM 990, PART XI, LINE 5: -799,209. FORM 990, PART VI, SECTION A, LINE 1A THE EXECUTIVE COMMITTEE IS A SUB-COMMITTEE OF THE BOARD THAT CONSISTS OF SIX VOTING BOARD MEMBERS AND THE EXECUTIVE DIRECTOR, A NON-VOTING BOARD MEMBER. THE EXECUTIVE COMMITTEE HAS AND EXERCISES ALL OF THE POWERS OF THE BOARD THAT MAY BE LAWFULLY DELEGATED IN THE MANAGEMENT OF THE BUSINESS AND AFFAIRS OF THE CORPORATION.