2011-11-15T09:44:07-06:00 2010-12-31 PARENTEBEARD LLC 1650 MARKET STREET 45TH FLOOR PHILADELPHIA PA 19103 990 2010-01-01 231900132 ACTS RETIREMENT-LIFE COMMUNITIES INC ACTS 2156618330 375 MORRIS ROAD PO BOX 90 WEST POINT PA 19486 GERALD T GRANT 2156618330 2011-11-15 1 2159720701 2010 2016-03-07 17:11:31Z MARVIN MASHNER 375 MORRIS ROAD PO BOX 90 WEST POINT PA 19486 306974855 0 X WWW.ACTSRETIREMENT.ORG X 1971 PA ACTS' PURPOSE IS TO SERVE OLDER ADULTS SIXTY-TWO YEARS OF AGE AND OLDER, PROVIDING RETIREMENT-LIFE SERVICES INCLUDING INDEPENDENT LIVING, ASSISTED LIVING, SKILLED NURSING CARE AND COMPLEMENTARY SERVICES; MEETING RESIDENT NEEDS IN A CHRISTIAN MANNER WITHOUT PREJUDICE OR PREFERENCE TO ANY FAITH, IN AN EXPRESSION OF LOVING KINDNESS. 15 14 5378 1928 117776 0 2635304 2571097 245809959 247924695 3704542 6431771 4151297 6815904 256301102 263743467 228634 264953 0 0 122862087 125300707 77917 89946 372102 129645039 134709578 252813677 260365184 3487425 3378283 730672778 772577268 700222738 737748930 30450040 34828338 X ACTS IS COMMITTED TO PROVIDING SECURITY AND PEACE OF MIND TO ALL RESIDENTS BY BEING THE PRE-EMINENT PROVIDER OF RETIREMENT-LIFE SERVICES, MEETING RESIDENTS' SOCIAL, PERSONAL, HEALTH AND SPIRITUAL NEEDS IN A CHRISTIAN ATMOSPHERE GRACED WITH LOVING-KINDNESS, DIGNITY, SENSITIVITY, HONESTY, AND RESPECT WITHOUT PREJUDICE TO ANY INDIVIDUAL OR PREFERENCE TO ANY PARTICULAR FAITH OR CREED. ACTS RETIREMENT-LIFE COMMUNITIES WILL DO THIS BY: CONTROLLING OUR FINANCES TO FULFILL OUR SACRED PROMISE OF RETIREMENT-LIFE SECURITY; HIRING THE BEST, TRAINING THEM WELL AND TREATING THEM FAIRLY; BEING RESPONSIVE TO ADVANCES IN HEALTH CARE AND TO THE CHANGING NEEDS AND EXPECTATIONS OF OUR RESIDENTS; AND MAINTAINING OUR PROPERTIES AS STANDARDS OF EXCELLENCE IN TERMS OF ATTRACTIVENESS, CLEANLINESS, QUALITY, SAFETY AND UTILITY. 0 0 216540304 264953 252012989 ACTS PROVIDES COMPREHENSIVE LIFE CARE SERVICES TO SENIOR ADULTS AGED 62 AND OLDER, THAT INCLUDES INDEPENDENT LIVING HOUSING, DINING AND NUTRITIONAL SERVICES, PASTORAL SERVICES, SECURITY, HOUSEKEEPING, MAINTENANCE SERVICES AND SOCIAL, CULTURAL, EDUCATIONAL, SPIRITUAL AND RECREATIONAL ACTIVITIES. IN ADDITION, WHEN A RESIDENT'S HEALTH CARE NEEDS CHANGE, ACTS OFFERS HOME HEALTH, ASSISTED LIVING, SKILLED NURSING CARE AND HOSPICE SERVICES. ALL PHYSICAL ACCOMMODATIONS AND SERVICES ARE PROVIDED IN ITS CONTINUING CARE RETIREMENT COMMUNITIES UNDER THE TERMS OF A FORMAL AGREEMENT WHICH ALSO ASSURES THAT ASSISTED LIVING AND SKILLED NURSING CARE WILL BE PROVIDED TO RESIDENTS WHEN THEY NEED IT, WITHOUT A CHANGE IN THEIR MONTHLY FEE, THEREBY OFFERING FURTHER SECURITY AND PEACE OF MIND.IN 2010, ACTS SERVED, ON AVERAGE, 4,811 RESIDENTS IN INDEPENDENT LIVING, 510 RESIDENTS IN ASSISTED LIVING AND 972 RESIDENTS IN SKILLED CARE. IN ADDITION, APPROXIMATELY 1,700 RESIDENTS RECEIVED HOMECARE SERVICES. 216540304 1 1 0 1 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 664 0 1 5378 1 1 1 0 0 0 0 1 1 0 0 0 1 0 X 15 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA NC FL GA SC AL MD X GERALD T GRANT 2156618330 375 MORRIS ROAD PO BOX 90 WEST POINT PA 19486 X DONALD L DAVIS 5.00 X X 0 0 0 THOMAS A DUNN III 2.00 X X 0 0 0 MARVIN MASHNER 45.00 X X 3684335 0 20554 ELRIC C GERNER 2.00 X X 0 0 0 MERRILL S MOYER 2.00 X X 0 0 0 JOHN L ESTERHAI JRMD 2.00 X 0 0 0 ROBERT B EVANS 2.00 X 0 0 0 JOHN J MARCHESCHI 2.00 X 0 0 0 GRACE E WERT 2.00 X 0 0 0 H BRUCE DETWEILER 2.00 X 0 0 0 SUZANNE N PRITCHARD 2.00 X 0 0 0 ANNLOUISE DEVENNEY 2.00 X 0 0 0 GEORGE M FURLONG JR 2.00 X 0 0 0 DONNA J JACOBI MD 2.00 X 0 0 0 DONALD E KINKAID 2.00 X 0 0 0 GERALD T GRANT 45.00 X 337527 0 77075 J MARK VANDERBECK 45.00 X 328581 0 97074 KAREN I CHRISTIANSEN 45.00 X 209845 0 23112 ELSIE S NORTON 45.00 X 189385 0 10301 WARREN S JOHNSON 45.00 X 183590 0 17148 JEFFREY J RATHFON 45.00 X 195950 0 20927 PETER J KRESS 45.00 X 193122 0 22984 JEFFERSON D KAIGHN 45.00 X 170682 0 22472 CHARLES W COXSON III 45.00 X 172648 0 22444 HOWARD C BRAXTON II 45.00 X 148363 0 22100 GARY JN GINTER 45.00 X 162485 0 22218 STEPHEN V EGGLES 45.00 X 155745 0 22187 ROBERT L SUPPER 45.00 X 108672 0 13490 THOMAS P STRADER 40.00 X 123623 0 15664 MICHELE WASSERLAUF 40.00 X 128379 0 12512 JONATHAN GRANT 40.00 X 125245 0 17321 BARBARA HUDSON 40.00 X 123425 0 7351 FREDERICK DIXON JR 40.00 X 121923 0 7351 6863525 0 474285 43 0 1 0 GENESIS REHABILITATION SERVICE PO BOX 7247-6524 PHILADELPHIA PA 191706524 THERAPY SERVICES 7765822 ADVANCED ROOFING INC 1950 NW 22ND ST FORT LAUDERDALE FL 333112939 GENERAL CONTRACTOR 1876039 PROCTOR CONSTRUCTION CO 2050 US HIGHWAY 1 VERO BEACH FL 32960 GENERAL CONTRACTOR 1588948 CONTINUUM CREW LLC 2200 POWELL ST STE 515 EMERYVILLE CA 94608 MARKETING SERVICES 1581404 JERRY MARSAN PAINTING CO PO BOX 129 1977 N OLDEN AVE EXTENS TRENTON NJ 086182112 GENERAL CONTRACTOR 1379205 46 109823 12625 2448649 121299 2571097 MONTHLY FEES 623000 138999942 138999942 ENTRANCE FEE AMORT. 623000 55568903 55568903 MEDICARE AND MEDICAID 623000 25398069 25398069 MEDICAL SERVICES REV. 623000 13894023 13894023 RES. ANCILLARY REV. 623000 11954439 11954439 2109319 2109319 247924695 5672890 5672890 348685 348685 397684 322213 75471 75471 75471 43237468 21265 42828205 20332 409263 933 410196 410196 40949 109823 60638 -19689 -19689 MGMT. SERVICES REVENUE 541610 4168584 4088294 80290 CAFE & CATERING INCOME 722210 909041 37486 871555 APARTMENT MODIFICATION 721000 836164 836164 846333 846333 6760122 263743467 252012989 117776 9041605 60304 60304 204649 204649 6655015 6655015 100249 100249 95849205 82224900 13409392 214913 2348065 1390048 958017 12909020 10415070 2491822 2128 7439153 6068846 1355109 15198 931429 931429 456818 456818 89946 89946 414544 414544 10172587 9581841 590746 2806565 5832 2800733 24306301 22077861 2195253 33187 507184 450 506734 25224283 24495148 729135 1226040 266867 943459 15714 40723 40723 13382627 13382627 40026870 34086794 5940076 6403471 4675743 1727728 MAINTENANCE SERVICES 3860442 3779988 80454 NURSING HOME ASSESSMENT 808870 808870 BAD DEBT 598952 598952 MAINTENANCE PROJECTS 570097 538336 31761 BEAUTY & BARBER SHOP 514068 514068 2457707 1363110 1093581 1016 260365184 216540304 43452778 372102 59567 50633 71235321 106219852 14939779 18277844 12054736 15862246 5528127 5492538 987466193 500997420 499679158 486468773 86100118 97920093 16699955 16772300 18849630 18849630 5526387 6663359 730672778 772577268 39838314 43426087 335672228 322657536 253072786 299881210 60042512 59474091 11596898 12310006 700222738 737748930 X 22621814 26146005 7318226 8172333 510000 510000 30450040 34828338 730672778 772577268 X 3378283 1000015 X X 0 1 1 X 0 X 1045038 2292293 1419652 2635304 2571097 9963384 225970766 235829789 246912125 249973762 254725766 1213412208 227015804 238122082 248331777 252609066 257296863 1223375592 0 0 0 1223375592 8275435 9022896 7049437 5348093 6419259 36115120 8275435 9022896 7049437 5348093 6419259 36115120 235291239 247144978 255381214 257957159 263716122 1259490712 0.97130 0.97030 0.02870 0.02970 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 260365184 260365184 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 25000 25000 250000 250000 250000 250000 1000000 1500000 1 8167 177109 177928 7348 0 52909535 52909535 736061191 365323666 370737525 24158111 18725920 5432191 174337356 116947834 57389522 486468773 UNIT DEPOSITS 6616137 CHARITABLE GIFT ANNUITY 3968220 FAIR MARKET VALUE OF INVESTMENT CONTRACTS 1725649 12310006 263743467 260365184 3378283 1916910 -916895 1000015 4378298 PART IV, LINE 1B: ACTS RETIREMENT-LIFE COMMUNITIES, INC. FUNCTIONS AS A CUSTODIAN FOR THE RECEIPT AND DISTRIBUTION OF FUNDS OF PATIENTS ON MEDICAID. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: ACTS RETIREMENT-LIFE COMMUNITIES ACCOUNT FOR UNCERTAINTY IN INCOME TAXES USING A REGOGNITION THRESHOLD OF MORE-LIKELY-THAN NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD IS MET. MANAGEMENT DETERMINED THERE WERE NO TAX UNCERTAINTIES THAT MET THE REGOGNITION THRESHOLD IN 2010. PART XI, LINE 8 - OTHER ADJUSTMENTS: UNREALIZED LOSS ON INVESTMENT CONTRACTS -1,072,811. UNREALIZED GAIN ON TEMPORARILY RESTRICTED NET ASSETS 601,690. CHARITABLE GIFT ANNUITY VALUATION ADJUSTMENT -467,266. AMORTIZATION OF FAIR VALUE OF INVESTMENT CONTRACTS 21,492. X X X X X 1 CLOVER DEVELOPMENT STRATEGIES INC 2677 S OCEAN BLVD 4C BOCA RATON FL 33432 FUNDRAISING CONSULTANT 0 1564939 89946 1474993 1564939 89946 1474993 PA FL NC SC GA AL MD PA GOLF TOURNAMENT 96385 70696 25689 6729 12937 10672 1800 FL GOLF TOURNAMENT 31396 23644 7752 2573 3342 3320 7899 1 22991 15483 7508 2923 3675 2241 2527 150772 109823 40949 12225 19954 16233 12226 60638 -19689 1 AMERICAN ASSOCIATION OF HOMES AND SERVICES FOR THE AGING 2519 CONNECTICUT AVE NW WASHINGTON DC 20008 136213525 501(C)(3) 50000 0 CONTRIBUTION 1 SCHOLARSHIPS OFFERED TO CULINARY EMPLOYEES TO FURTHER THEIR EDUCATION 567 204649 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: SCHOLARSHIPS ARE AVAILABLE TO CULINARY AND NUTRITION SERVICE EMPLOYEES WHO MEET CERTAIN CRITERIA. FOR ELIGIBILITY, EMPLOYEES MUST WORK UNDER 40 HOURS PER PAY PERIOD, ARE NOT BENEFIT ELIGIBLE, AND MUST WORK A MINIMUM NUMBER OF HOURS DURING A 16 WEEK PERIOD, OFFERED TWO TIMES A YEAR, JANUARY THROUGH MAY AND AUGUST THROUGH NOVEMBER. EMPLOYEES MEETING ALL REQUIREMENTS ARE GRANTED A VOUCHER GOOD FOR $300 TO $500 EACH DURING 2010 THAT CAN BE USED TO FORWARD THEIR EDUCATION. VOUCHERS ARE PRESENTED TO THE EDUCATIONAL INSTITUTION BY THE SCHOLARSHIP RECIPIENT. ACTS RETIREMENT-LIFE COMMUNITIES REIMBURSES THE EDUCATIONAL INSTITUTION UPON RECEIPT OF ORIGINAL VOUCHER. AT TIMES GRANTS MAY ALSO BE PROVIDED TO OTHER CHARITABLE ORGANIZATIONS TO FURTHER THEIR EXEMPT PURPOSE. X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 MARVIN MASHNER 458972 0 143880 0 3081483 0 4900 0 15654 0 3704889 0 2378906 0 GERALD T GRANT 271227 0 66300 0 0 0 57272 0 19803 0 414602 0 0 0 J MARK VANDERBECK 266106 0 62475 0 0 0 89792 0 7282 0 425655 0 0 0 KAREN I CHRISTIANSEN 183145 0 26700 0 0 0 3618 0 19494 0 232957 0 0 0 ELSIE S NORTON 167860 0 21525 0 0 0 3328 0 6973 0 199686 0 0 0 WARREN S JOHNSON 167240 0 16350 0 0 0 3321 0 13827 0 200738 0 0 0 JEFFREY J RATHFON 171200 0 24750 0 0 0 3388 0 17539 0 216877 0 0 0 PETER J KRESS 176622 0 16500 0 0 0 3490 0 19494 0 216106 0 0 0 JEFFERSON D KAIGHN 151572 0 19110 0 0 0 3057 0 19415 0 193154 0 0 0 CHARLES W COXSON III 153538 0 19110 0 0 0 3057 0 19387 0 195092 0 0 0 HOWARD C BRAXTON II 139453 0 8910 0 0 0 2744 0 19356 0 170463 0 0 0 GARY JN GINTER 144285 0 18200 0 0 0 2844 0 19374 0 184703 0 0 0 STEPHEN V EGGLES 139170 0 16575 0 0 0 2806 0 19381 0 177932 0 0 0 PART I, LINE 1A THE ORGANIZATION HAS AN ANNUAL BOARD OF DIRECTORS' EDUCATIONAL RETREAT NEAR ONE OR MORE OF THE ORGANIZATION'S COMMUNITIES, WHICH MAY REQUIRE SOME OR ALL OF THEM TO TRAVEL. SPOUSES OF BOARD MEMBERS ARE ALSO INVITED TO ATTEND AT THE COMPANY'S EXPENSE. THESE SPOUSES PARTICIPATE IN EDUCATIONAL SESSIONS, SINCE THEY TOO HAVE AN INTEREST IN THE MISSION OF THE ORGANIZATION, FREQUENTLY BECOME INVOLVED IN DISCUSSION OF THEIR SPOUSE'S ROLE AND HOW THE ORGANIZATION FUNCTIONS, AND ALSO MUST PROVIDE ENABLING SUPPORT TO THE BOARD MEMBER. IN ADDITION, SPOUSES ALSO PROVIDE INSIGHT INTO THE EFFECTS OF ORGANIZATIONAL PLANS AND STRATEGIES. AS SUCH, THIS BENEFIT WAS NOT TREATED AS TAXABLE COMPENSATION. PART I, LINE 1A: DURING 2010 MARVIN MASHNER BECAME FULLY VESTED IN THE ACTS NON-QUALIFIED DEFERRED COMPENSATION PLAN CAUSING THE TOTAL AMOUNT TO BE REPORTED AS OTHER REPORTABLE COMPENSATION ON SCHEDULE J, PART II. ALTHOUGH NOT DISTRIBUTED, THE FULL VESTED AMOUNT BECAME SUBJECT TO TAXATION DURING 2010. IN ACCORDANCE WITH PLAN DOCUMENTS, THE ORGANIZATION MADE A PAYMENT TO SATISFY THE RESULTING TAX LIABILITY. PART I, LINE 4B PART I, LINE 4B: OTHER COMPENSATION FOR GERALD T. GRANT AND J. MARK VANDERBECK INCLUDES ACCRUALS FOR A DEFERRED, NON-VESTED, SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. THE AMOUNT OF THE CURRENT YEAR ACCRUAL IS $52,372 FOR GERALD T. GRANT AND $84,892 FOR J. MARK VANDERBECK. PART II(B): DURING 2010 MARVIN MASHNER BECAME FULLY VESTED IN THE ACTS NON-QUALIFIED DEFERRED COMPENSATION PLAN CAUSING THE TOTAL AMOUNT TO BE REPORTED AS OTHER REPORTABLE COMPENSATION ON SCHEDULE J, PART II, ALTHOUGH NOT DISTRIBUTED. THIS REPRESENTS THE ACCUMULATION OF AMOUNTS REPORTED IN PRIOR YEARS RESULTING IN AN OVERSTATEMENT OF CURRENT YEAR COMPENSATION. THE AGGREGATE AMOUNT OF DEFERRED INCOME REPORTED PREVIOUSLY WAS $2,378,906. MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232245125 61360PAX8 2006-12-20 24675000 PA REVENUE BONDS SERIES 2006A ISSUED TO FUND CAPITAL IMPROVEMENTS 0 0 0 MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232245125 61360PBH2 2006-12-20 72612526 ISSUED TO CURRENTLY REFUND THE SERIES 1996 PA BONDS, ISSUED DEC. 19,1996 0 0 0 PALM BEACH COUNTY HEALTH FACILITIES AUTHORITY 521297506 69650MAB5 2006-12-20 20285956 FL REVENUE BONDS SERIES 2006A ISSUED TO FUND CAPITAL IMPROVEMENTS 0 0 0 PALM BEACH COUNTY HEALTH FACILITIES AUTHORITY 521297506 69650MAC3 2006-12-20 24733977 ISSUED TO CURRENTLY REFUND THE SERIES 1996 FL BONDS, ISSUED DEC. 19,1996 0 0 0 24675000 2318489 406250 21950261 2006 0 0 1 1 72612526 4316000 67337306 959220 1 0 1 1 20285956 1912308 323909 18049739 2009 0 0 1 1 24733977 1457000 22934645 342332 1 0 1 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 0 1 RBC CAPITAL MARKETS 27.300000000000 1 0 0 0 0 0 1 RBC CAPITAL MARKETS 13.300000000000 1 0 0 0 0 0 1 RBC CAPITAL MARKETS 27.300000000000 1 0 0 0 0 0 1 RBC CAPITAL MARKETS 13.300000000000 1 0 0 MONTGOMERY COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY 232245125 61360PCA6 2009-06-03 18258677 PA REVENUE BONDS SERIES 2009 ISSUED TO FUND CAPITAL IMPROVEMENTS 0 0 0 PALM BEACH COUNTY HEALTH FACILITIES AUTHORITY 521297506 69650MAJ8 2010-11-03 53753735 FL REVENUE BONDS SERIES 2010 ISSUED TO FUND CAPITAL IMPROVEMENTS 0 0 0 18258677 1390607 365173 16502897 2010 0 0 1 1 53753735 3004650 749085 3840469 46159531 0 0 1 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 1 0 1 0.00000 0.00000 0.00000 1 0 0 0 0 0 0 0 0 0 1 BAYERISCH LANDESBANK 33.000000000000 1 0 0 KAREN I CHRISTIANSEN OFFICER OF ACTS RETIREMENT-LIFE COMMUNITIES 100249 FAMILY RELATIONSHIP-KAREN I. CHRISTIANSEN, AN OFFICER OF ACTS RETIREMENT-LIFE COMMUNITIES, INC., HAS A FAMILY MEMBER THAT IS EMPLOYED BY ACTS RETIREMENT-LIFE COMMUNITIES, INC. MS. CHRISTIANSEN DOES NOT DIRECTLY OR INDIRECTLY SUPERVISE THIS INDIVIDUAL, AND THEREFORE IS NOT INVOLVED IN DETERMINING COMPENSATION AND REVIEWING PERFORMANCE. 0 X 1 13775 PRIVATE PARTY SALE X 2 107524 FAIR MARKET VALUE 0 0 1 0 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: PART I, COLUMN (B): LINE 6B REPRESENTS THE NUMBER OF CONTRIBUTIONS; ONE CAR WAS DONATED TO ACTS RETIREMENT-LIFE COMMUNITIES, INC. LINE 9B REPRESENTS THE NUMBER OF CONTRIBUTIONS; TWO DONORS CONTIBUTED SHARES OF PUBLICLY TRADED SECURITIES TO ACTS RETIREMENT-LIFE COMMUNITIES, INC. FORM 990, PART VI, SECTION B, LINE 11 AFTER REVIEW BY THE CFO AND CEO, THE FORM 990 IS REVIEWED, BEFORE FILING, BY THE BOARD OF DIRECTORS' AUDIT COMMITTEE, WHICH INCLUDES TWO CERTIFIED PUBLIC ACCOUNTANTS. THE FORM 990 IS THEN PROVIDED TO THE OTHER MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 12C A CONFLICT OF INTEREST QUESTIONNAIRE IS COMPLETED ON AN ANNUAL BASIS BY THE ORGANIZATION'S OFFICERS, DIRECTORS AND TRUSTEES. THE RESPONSES ARE REVIEWED BY THE CEO AND CHAIRMAN OF THE BOARD OF DIRECTORS TO DETERMINE IF CONFLICTS ARE PRESENT AND IF SO, THE EXTENT OF THE CONFLICT. FOR CONFLICTS THAT ARISE, THE OFFICER, DIRECTOR OR TRUSTEE MUST RECUSE THEMSELVES FROM PARTICIPATING IN DELIBERATIONS AND DECISIONS THAT INVOLVE THE DETERMINED CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 IT HAS BEEN THE COMPANY'S PRACTICE TO ENGAGE AN INDEPENDENT COMPENSATION CONSULTANT ON AN APPROXIMATELY BIENNIAL BASIS FOR THE PURPOSE OF REVIEWING THE COMPENSATION PROGRAM FOR THE COMPANY'S TOP 28 POSITIONS, RANGING FROM COMMUNITY MANAGERS UP TO THE CEO. THE STUDY, THE LATEST VERSION OF WHICH WAS COMPLETED IN 2010, INCLUDES COMPARISON OF NOT-FOR-PROFIT AND FOR-PROFIT COMPETITORS, OPERATING EFFECTIVENESS, IDENTIFICATION OF INDUSTRY SPECIFIC TRENDS OR PRACTICES IN COMPENSATION OR RECRUITMENT/EMPLOYMENT. MEASUREMENT AND ACTION IS GENERALLY FOCUSED AT THE MEDIAN LEVELS IDENTIFIED IN THE STUDY. THE REPORTS' GENERAL FINDINGS ARE REVIEWED WITH BOARD OFFICERS. COMPENSATION ADJUSTMENTS FOR THE PRESIDENT & CEO ARE DETERMINED BY A COMMITTEE OF INDEPENDENT BOARD MEMBERS APPOINTED BY THE CHAIRMAN AND ARE BASED ON THE FINDINGS OF THE MOST RECENT STUDY AND A REVIEW OF PERFORMANCE COMPARED AGAINST OBJECTIVE CRITERIA. AFTER THIS DETERMINATION IS REPORTED TO AND APPROVED BY THE BOARD OF DIRECTORS, ACTION IS DOCUMENTED IN WRITING BY THE BOARD CHAIR. SIMILARILY, COMPENSATION ADJUSTMENTS FOR THE MOST SENIOR MEMBERS OF MANAGEMENT REFLECT STUDY FINDINGS AND PERFORMANCE MEASUREMENT AGAINST SPECIFIED CRITERIA AND ARE DETERMINED BY THE CEO AND REVIEWED WITH THE BOARD CHAIR. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICIES ARE FILED WITH NUMEROUS REGULATORY AUTHORITIES AND THEREFORE, ARE AVAILABLE TO THE PUBLIC. IN ADDITION, UPON RECEIPT OF A REQUEST AND ITS REVIEW, THE ORGANIZATION WILL MAKE AVAILABLE SUCH DOCUMENTS, AS DEEMED APPROPRIATE. FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC. CERTAIN FINANCIAL STATEMENTS, SUCH AS ANNUAL REPORTS AND QUARTERLY REPORTS ARE POSTED TO THE ORGANIZATION'S WEBSITE AND ARE ALSO AVAILABLE AT EACH OF THE ORGANIZATION'S COMMUNITIES. IN ADDITION, FINANCIAL INFORMATION IS INCLUDED IN THE DISCLOSURE PACKAGES THAT ARE PROVIDED TO PROSPECTIVE RESIDENTS AND MADE AVAILABLE TO THE PUBLIC. CERTAIN OTHER FINANCIAL STATEMENTS ARE ALSO PROVIDED UPON REQUEST. FORM 990, PART VII, SECTION A, (B): AVERAGE HOURS PER WEEK LISTED IN PART VII ARE FOR THIS LEGAL ENTITY ONLY. BOARD MEMBERS AND OFFICERS ALSO DEVOTE TIME TO THE RELATED ORGANIZATIONS LISTED ON SCHEDULE R. AVERAGE HOURS PER WEEK FOR ALL OTHER RELATED ORGANIZATIONS ARE AS FOLLOWS: DONALD L. DAVIS 6 THOMAS A. DUNN, III 3 MARVIN MASHNER 12 ELRIC C. GERNER 4 MERRILL S. MOYER 2 JOHN L. ESTERHAI, JR., MD 2 ROBERT B. EVANS 3 JOHN J. MARCHESCHI 2 GRACE E. WERT 2 H. BRUCE DETWEILER 2 SUZANNE N. PRITCHARD 2 ANNLOUISE DEVENNEY 2 GEORGE M. FURLONG, JR. 2 DONNA J. JACOBI, MD 2 DONALD E. KINKAID 2 J. MARK VANDERBECK 12 GERALD T. GRANT 12 KAREN I. CHRISTIANSEN 11 CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 1,916,910. UNREALIZED LOSS ON INVESTMENT CONTRACTS -1,072,811. UNREALIZED GAIN ON TEMPORARILY RESTRICTED NET ASSETS 601,690. CHARITABLE GIFT ANNUITY VALUATION ADJUSTMENT -467,266. AMORTIZATION OF FAIR VALUE OF INVESTMENT CONTRACTS 21,492. TOTAL TO FORM 990, PART XI, LINE 5: 1,000,015. PART XII, FINANCIAL STATEMENTS AND REPORTING THE ORGANIZATION'S ANNUAL FINANCIAL STATEMENTS ARE AUDITED ON A CONSOLIDATED BASIS AND THE ORGANIZATION HAS AN AUDIT COMMITTEE CONSISTING OF BOARD MEMBERS ONLY THAT EXERCISES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT. FORM 990, PART VII, COMPENSATION OF OFFICERS* OTHER COMPENSATION FOR GERALD T. GRANT AND J. MARK VANDERBECK INCLUDES ACCRUALS FOR A DEFERRED, NON-VESTED, SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN. 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