2019-11-15T11:59:02-06:00 2018-12-31 410746749 CLIFTONLARSONALLEN LLP 220 SOUTH SIXTH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2018-01-01 300577845 WESLEYLIFE WESL 5152716789 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 NICK HARSHFIELD CFO 5152716789 2019-11-14 1 KURT BENNION P01469618 6123764500 2019-11-14 67.137.57.251 2019-11-14 21:46:31 CS P CF5DC47B04BEE981237F6452D320A88985A44A86 B71DF8EF734977C0D9AF27883840492912BFA7BF 2018 2020-03-31 21:24:44Z ROB KRETZINGER 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 7589265 0 X WWW.WESLEYLIFE.ORG X 2009 IA SUPPORT THE INDEPENDENCE, HEALTH AND WELL-BEING OF OLDER ADULTS, WHEREVER THEY CALL HOME. 9 9 2219 634 0 0 1929 11069 7620372 7227323 320050 139263 0 0 7942351 7377655 2467505 5274 0 0 5141995 5369229 0 0 377395 2036567 2071343 9646067 7445846 -1703716 -68191 8397392 8422797 6389277 6678682 2008115 1744115 X WESLEYLIFE IS THE SUPPORTING ORGANIZATION FOR ITS AFFILIATES: WESLEY RETIREMENT SERVICES AND WESLEY COMMUNITY SERVICES (BOTH 501(C)(3) ORGANIZATIONS), AS WELL AS WESLEY DEVELOPMENT SERVICES, AN LLC DERIVING ITS EXEMPT STATUS FROM WESLEYLIFE. THE MISSION OF WESLEYLIFE IS TO ENHANCE THE INDEPENDENCE, HEALTH AND WELL BEING OF OLDER ADULTS. IT DOES THIS BY PROVIDING SUPPORTING SERVICES SUCH AS ACCOUNTING, FINANCE, HUMAN RESOURCES, MARKETING, INFORMATION TECHNOLOGY, AND PHILANTHROPY THROUGHOUT ITS AFFILIATES. 0 0 5274 5274 7227323 WESLEYLIFE WAS ESTABLISHED IN DECEMBER 2010 AS A SUPPORTING ORGANIZATION FOR WESLEY RETIREMENT SERVICES, INC. (WRS) AND WESLEY COMMUNITY SERVICES, INC. (WCS). 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. WCS WAS ESTABLISHED IN 2005 WITH THE FOCUS OF PROVIDING SERVICES TO OLDER PERSONS AND THE INDIGENT REGARDLESS OF FINANCIAL MEANS THROUGH IN-HOME SUPPORT, ASSISTANCE, MEALS, AND COMPANIONSHIP. WESLEY DEVELOPMENT SERVICES WAS CREATED IN FEBRUARY 2011. ITS ROLE IS TO PROVIDE MARKET RESEARCH, AND SERVICES SUCH AS PROJECT DESIGN, MANAGEMENT, MONITORING, AND MARKETING RELATED TO NEW COMMUNITIES FOR WESLEYLIFE AND ITS AFFILIATES. OUR MISSION IS GUIDED BY CHRISTIAN COMPASSION, TO SUPPORT THE INDEPENDENCE, HEALTH, AND WELL-BEING OF OLDER ADULTS WHEREVER THEY CALL HOME. AS NEEDS AND TRENDS IN RETIREMENT LIVING CONTINUE TO CHANGE, WE HAVE RESPONDED WITH AN ARRAY OF SERVICES THAT PROMOTE AND DELIVER FRIENDSHIP AND FELLOWSHIP, A SLATE OF MEANINGFUL ACTIVITIES, LIFELONG LEARNING, AND COMPREHENSIVE HEALTH AND WELL-BEING PROGRAMS TO EXCEED THE EXPECTATIONS OF RESIDENTS AND THE COMMUNITY AT LARGE.OUR CORE MISSION SUPPORTS OLDER ADULTS WHEREVER THEY CALL HOME. WESLEYLIFE CURRENTLY OWNS AND OPERATES EIGHT RETIREMENT COMMUNITIES IN IOWA THROUGH WESLEY RETIREMENT SERVICES, INC. (WRS) THAT OFFER A FULL CONTINUUM OF 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, A WESLEY ACTIVE LIFE COMMUNITY IN WEST DES MOINES; HEARTHSTONE, A MINISTRY OF WESLEYLIFE IN PELLA; AND BRIO OF JOHNSTON, A WESLEYLIFE ACTIVE COMMUNITY. WESLEYLIFE ALSO OPERATES HOME AND COMMUNITY BASED SERVICES THROUGH WESLEY COMMUNITY SERVICES, INC. (WCS) THAT AUGMENT OUR TOTAL SERVICE OFFERING. OUR HOME AND COMMUNITY BASED SERVICES ARE FOCUSED ON PROVIDING SERVICES TO OLDER ADULTS AND THE INDIGENT REGARDLESS OF FINANCIAL MEANS. WE CONTINUE TO RESPOND TO STUDIES EXPRESSING A GROWING DESIRE AND NEED OF OLDER ADULTS TO RECEIVE SERVICES IN THEIR HOMES BY PROVIDING MEDICARE, MEDICAID, AND PRIVATE PAY HOME CARE SERVICES; MEALS ON WHEELS (MOW), PERSONAL AND ENVIRONMENTAL SERVICES, TRANSPORTATION SERVICES, AND OTHER VOLUNTEER SERVICES WHICH HELP KEEP INDIVIDUALS INDEPENDENT AND ACTIVE IN THEIR HOMES AND THE COMMUNITY. WESLEY ALSO OPERATES THREE ADULT DAY CENTERS - WILLOWBROOK ADULT DAY SERVICES IN NEWTON; DAHL ADULT DAY SERVICES IN DES MOINES; AND LENDING HANDS ADULT DAY SERVICES IN WASHINGTON. FOR THOSE COMMUNITY MEMBERS APPROACHING END OF LIFE AND NEEDING END OF LIFE CARE, WCS ALSO PROVIDES HOSPICE CARE, WHICH ALLOWS US TO EXTEND OUR MINISTRY AND QUALITY OF CARE. IN 2018, WESLEYLIFE'S SUPPORTING ORGANIZATIONS, WRS AND WCS, PROVIDED HOUSING AND SERVICES FOR OLDER IOWANS WHO RECEIVED INDIVIDUALIZED ATTENTION FROM OUR MORE THAN 2,219 PASSIONATE TEAM MEMBERS. 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, INTEGRITYIN PROVIDING THE BEST CARE POSSIBLE.BELOW REFLECTS SOME OF THE COMMUNITY BENEFITS FROM 2018:- WESLEYLIFE RESIDENTS RECEIVED $808,015 WORTH OF CHARITABLE CARE AS SUPPORTED THROUGH THE GOOD SAMARITAN AND GOOD SHEPHERD FUNDS TO ENSURE EACH PERSON COULD THRIVE IN THEIR HOME. CLIENTS AND PARTICIPANTS OF HOME AND COMMUNITY BASED SERVICES RECEIVED $169,619 WORTH OF CHARITABLE CARE AS SUPPORTED THROUGH SCHOLARSHIPS TO HELP SUPPORT THEIR INDEPENDENCE, HEALTH AND WELL-BEING.- IN 2018, INCREASING OUR REACH TO UNDERSERVED COMMUNITY MEMBERS, MEDICAID DAYS INCREASED BY 2% OVER LAST YEAR TO APPROIMATELY 39,000 DAYS.- WE OFFERED 88 EDUCATIONAL SESSIONS AIMED AT IMPROVING THE HEALTH OF OLDER ADULTS BY PROMOTING NUTRITION, WELLNESS, AND QUALITY OF LIFE. IN TOTAL, 1,316 COMMUNITY MEMBERS PARTICIPATED IN THESE EDUCATIONAL SESSIONS.- WE PROVIDED MORE THAN 29,000 HOURS OF VOLUNTEER OPPORTUNITIES TO MEMBERS OF OUR SHARED COMMUNITIES.- WE COLLECTED AND DONATED VARIOUS ITEMS, INCLUDING CLOTHING, COATS, BOOKS, AND OTHER SUPPLIES TO AREA CHARITIES. 5274 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 218 0 2219 1 0 0 0 0 0 0 0 0 0 0 1 0 X 9 9 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 X X NICK HARSHFIELD CFO 5152716789 5508 NORTHWEST 88TH STREET JOHNSTON IA 50131 KEVIN LAGREE CHAIR 2.00 3.00 X X 0 0 0 SUSAN WATSON SECRETARY/TREASURER 1.00 2.00 X X 0 0 0 CHAD RASMUSSEN PAST CHAIR 1.00 2.00 X X 0 0 0 KIP ALBERTSON BOARD MEMBER 1.00 2.00 X 0 0 0 ABBEY GILROY BOARD MEMBER 1.00 2.00 X 0 0 0 JODY LORENCE BOARD MEMBER 1.00 2.00 X 0 0 0 BOB RUCH BOARD MEMBER 1.00 2.00 X 0 0 0 DAVID STOUT BOARD MEMBER 1.00 2.00 X 0 0 0 DR CHRISTINA TAYLOR BOARD MEMBER 1.00 2.00 X 0 0 0 ROB KRETZINGER PRESIDENT & CEO 4.00 36.00 X 125457 1129124 54687 NICK HARSHFIELD CFO 4.00 36.00 X 27174 244562 28472 KRISTY VANDERWIEL VP OF PEOPLE & CULTURE 40.00 0.00 X 195569 0 31429 JACCI NICKEL RVP OPERATIONS/COO 40.00 0.00 X 185158 0 26630 JANET SIMPSON RVP OPERATIONS/COO 40.00 0.00 X 185798 0 35680 DAMON BUSKOHL WESLEY ACRES EXECUTIVE DIRECTOR 40.00 0.00 X 171166 0 35586 SALLY GROOME VP OF SALES & MARKETING 40.00 0.00 X 164106 0 14335 1054428 1373686 226819 11 0 1 0 CLIFTONLARSONALLEN LLP 220 SOUTH SIXTH ST STE 300 MINNEAPOLIS MN 554021436 ACCOUNTING SERVICES 150961 1 11069 500 11069 MANAGEMENT FEES 561000 7227323 7227323 7227323 109567 109567 30199 211107 0 211610 30199 -503 29696 29696 7377655 7227323 0 139263 5274 5274 160947 160947 4142856 3897380 245476 74715 70616 4099 700156 668335 31821 290555 273096 17459 24494 24494 185301 185301 6614 6614 329809 319106 10703 101766 96678 5088 136553 120787 15766 480848 459707 21141 330 330 80483 75272 5211 50979 47629 3350 19886 19886 411828 411828 11034 11034 EMPLOYEE RECRUITING 101700 101700 EMPLOYEE RELATIONS 44346 44346 FUND DEVELOPMENT 27307 10822 16485 58065 57269 796 7445846 5274 7063177 377395 347035 703047 521811 54402 123 94610 20828 7581 297702 278805 5182488 1636033 3863827 3546455 3221641 3607222 124425 130675 8397392 8422797 3964420 3992030 1710836 1670900 714021 1015752 6389277 6678682 X 1996462 1723820 12125 20923 -472 -628 2008115 1744115 8397392 8422797 -68191 -195809 0 X 0 1 X 1 1 1 X X X 2 WESLEY COMMUNITY SERVICES INC 203970256 10 1 0 0 WESLEY RETIREMENT SERVICES INC 420680440 10 1 0 0 2 0 0 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 PART IV, SECTION A, LINE 2: WCS IS A TAX-EXEMPT 501(C)(3) PUBLIC CHARITY WITH AN IRS DETERMINATION LETTER STATING A STATUS OF 509(A)(3). AS SUCH, WCS DOES NOT HAVE AN IRS DETERMINATION STATUS OF 509(A)(1) OR 509(A)(2), BUT HAS SATISFIED THE SUPPORT TEST UNDER 509(A)(2). WCS MAKES ITS SUPPORT TEST CALCULATION AND ACCOMPANYING DOCUMENTATION AVAILABLE TO WESLEYLIFE ANNUALLY AS SUBSTANTIATION OF MEETING THE 509(A)(2) REQUIREMENTS. PART IV, SECTION A, LINE 6: WESLEYLIFE, WRS AND WCS OCCASIONALLY PROVIDE SPACE IN OUR FACILITIES TO OTHER NOT-FOR-PROFIT ORGANIZATIONS TO HOLD MEETINGS, WITHOUT CHARGE. PART IV, SECTION D, LINE 3: WESLEYLIFE AND ITS SUPPORTED ORGANIZATIONS, WRS AND WCS, HAVE COMPLETE BOARD OVERLAP. IN ADDITION TO THE OVERSIGHT AND AUTHORITY THAT THIS PROVIDES, WESLEYLIFE'S ARTICLES OF INCORPORATION EXPRESSLY STATES THE FOLLOWING IN SECTION 2.18 (NAMES HAVE BEEN ABBREVIATED FOR 990 PURPOSES): THE OFFICERS AND DIRECTORS OF WESLEYLIFE SHALL MAINTAIN A CLOSE AND CONTINUOUS RELATIONSHIP WITH THE OFFICERS AND DIRECTORS OF WRS AND WCS. TO THAT END, AN OFFICER OR MEMBER OF THE BOARD OF WRS OR WCS SHALL ATTEND THE BOARD MEETINGS OF WESLEYLIFE AS A NON-VOTING ATTENDEE. SUCH OFFICER OR DIRECTOR OF WRS OR WCS SHALL PROVIDE INPUT IN WESLEYLIFE'S ACTIVITIES, INCLUDING PROVIDING SIGNIFICANT INPUT IN WESLEYLIFE'S INVESTMENT POLICIES, THE TIMING OF GRANTS, THE MANNER OF MAKING GRANTS OR THE SELECTION OF RECIPIENTS FOR GRANTS. PART IV, SECTION E, LINE 3A: WESLEYLIFE IS GRANTED EXCLUSIVE AUTHORITY TO APPOINT ALL MEMBERS OF EACH SUPPORTED ORGANIZATION'S BOARD OF DIRECTORS. THIS AUTHORITY IS EXPRESSLY STATED IN EACH SUPPORTED ORGANIZATION'S GOVERNING DOCUMENTS. PART IV, SECTION E, LINE 3B: THE BUSINESS, PROPERTY, AFFAIRS, AND FUNDS OF EACH OF THE SUPPORTED ORGANIZATIONS ARE MANAGED, SUPERVISED AND CONTROLLED BY ITS BOARD OF DIRECTORS AS OUTLINED IN ITS GOVERNING DOCUMENTS. THE SUPPORTED ORGANIZATIONS AND WESLEYLIFE SHARE COMPLETE OVERLAP IN THEIR BOARD OF DIRECTORS; THEREFORE, WESLEYLIFE IS ABLE TO EXERCISE A SUBSTANTIAL DEGREE OF DIRECTION OVER EACH SUPPORTED ORGANIZATION. 2438903 2438903 2451855 1636033 815822 291730 291730 3546455 INTERCOMPANY PAYABLES 1006952 ASSET RETIREMENT OBLIGATION 8800 1015752 X PART X, LINE 2: THE CORPORATION AND ITS AFFILIATES ARE GENERALLY EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND APPLICABLE SECTIONS OF THE STATE STATUTES. CONSEQUENTLY, NO PROVISION HAS BEEN MADE FOR INCOME TAXES. HOWEVER, THERE ARE IMMATERIAL AMOUNTS OF UNRELATED BUSINESS INCOME IN CERTAIN AFFILIATES THAT ARE TAXABLE. THE CORPORATION FOLLOWS THE ACCOUNTING STANDARD FOR CONTINGENCIES IN EVALUATING UNCERTAIN TAX POSITIONS. WESLEYLIFE 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). 1 PART I, LINE 2: TRANSFERS TO RELATED ORGANIZATIONS ARE MONITORED THROUGH COMMON MANAGEMENT AND BOARD OVERLAP TO ENSURE ALL FUNDS ARE USED FOR APPROPRIATE CHARITABLE PURPOSES. THE ORGANIZATION DOES NOT HAVE AN ONGOING GRANT PROGRAM, BUT WHEN GRANTS ARE AWARDED POTENTIAL GRANTEES ARE EVALUATED BASED ON MISSION CONNECTIVITY AND ABILITY TO MAINTAIN OVERSITE TO ENSURE PROPER USE OF GRANT FUNDS. THE ORGANIZATION WILL BE ENGAGED IN THE PROGRAMMING THEY ARE SUPPORTING AND WILL ASK FOR FINANCIAL SUPPORT FROM RECIPIENTS TO SHOW PROPER USE OF THE FUNDS. X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 ROB KRETZINGER PRESIDENT & CEO 51562 464060 71709 645382 2186 19682 2225 20025 3244 29193 130926 1178342 58329 524961 NICK HARSHFIELD CFO 26944 242493 0 0 230 2069 0 0 2847 25625 30021 270187 0 0 KRISTY VANDERWIEL VP OF PEOPLE & CULTURE 185293 0 10000 0 276 0 5603 0 25826 0 226998 0 0 0 JACCI NICKEL RVP OPERATIONS/COO 181953 0 0 0 3205 0 2760 0 23870 0 211788 0 0 0 JANET SIMPSON RVP OPERATIONS/COO 177536 0 7000 0 1262 0 5506 0 30174 0 221478 0 0 0 DAMON BUSKOHL WESLEY ACRES EXECUTIVE DIRECTOR 170936 0 0 0 230 0 5315 0 30271 0 206752 0 0 0 SALLY GROOME VP OF SALES & MARKETING 150906 0 12432 0 768 0 0 0 14335 0 178441 0 0 0 PART I, LINE 1A ROB KRETZINGER, PRESIDENT & CEO, RECEIVED $2,596 FOR SOCIAL CLUB DUES; THIS BENEFIT WAS INCLUDED IN HIS TAXABLE W-2 COMPENSATION. PART I, LINE 3 WESLEYLIFE DETERMINES THE CEO'S COMPENSATION. WESLEYLIFE, WCS AND WRS HAVE THE SAME BOARD MEMBERS. SEE SCHEDULE O FOR THE NARRATIVE RELATED TO FORM 990, PART VI, LINE 15 FOR FURTHER INFORMATION. PART I, LINE 4B THE FOLLOWING INDIVIDUALS RECEIVED CONTRIBUTIONS INTO A 457(F) DEFERRED COMPENSATION PLAN IN 2018: KRISTY VANDERWIEL - $10,000 NICK HARSHFIELD - $10,000 ROB KRETZINGER, PRESIDENT/CEO OF WESLEYLIFE AND RELATED AFFILIATES, HAS PARTICIPATED IN A 457(F) DEFERRED COMPENSATION PROGRAM DATING BACK TO 2004. THIS WAS A LONG-TERM RETENTION PROGRAM THAT BECAME VESTED IN 2018 AND PROVIDED A PRE-TAX PAYMENT OF $583,290, SPLIT BETWEEN WESLEYLIFE AND RELATED AFFILIATES. THERE ARE TWO REMAINING VESTING PERIODS ON 1/2019 AND 1/2020 IN EQUAL PAYMENTS. HE IS RESPONSIBLE FOR HIS OWN TAX LIABILITY ON THE LUMP SUM PRE-TAX PAYMENT. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE IS COMPRISED OF THE CHAIR OF THE BOARD, THE VICE CHAIR, THE PAST CHAIR, THE CHAIR OF THE PLANNING COMMITTEE, THE CHAIR OF THE FINANCE COMMITTEE, AND THE PRESIDENT/CEO. 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 OF CONSOLIDATION. THE EXECUTIVE COMMITTEE SHALL REPORT ON ITS ACTIONS AT THE NEXT MEETING OF THE BOARD OF DIRECTIONS AND SUCH ACTIONS SHALL BE SUBJECT TO REVISION AND ALTERATION OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM. THE CEO, CFO AND CONTROLLER REVIEWED THE DOCUMENT INTERNALLY. THE FORM 990 WAS THEN REVIEWED BY THE BOARD'S FINANCE COMMITTEE AND MADE AVAILABLE TO ALL VOTING BOARD MEMBERS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATION COMMUNICATES THE CONFLICT OF INTEREST POLICY ANNUALLY TO BOARD MEMBERS AND REQUIRES BOARD MEMBERS TO COMPLETE AN ANNUAL STATEMENT DESCRIBING ACTUAL OR PERCEIVED CONFLICTS OF INTEREST. IF ANY CONFLICTS ARISE, THE BOARD MUST FOLLOW THE PROCEDURES SPECIFIED IN THE POLICY TO RESOLVE THE MATTER. 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. FORM 990, PART VI, SECTION B, LINE 15A 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. MULTI-SITE ORGANIZATIONS AND LEADINGAGE, FORMERLY KNOWN AS "THE AMERICAN ASSOCIATION OF HOMES AND SERVICES FOR THE AGING", PROVIDE AN ANNUAL SURVEY OF COMPENSATION FOR CEOS AND OTHER OFFICERS. (WESLEYLIFE 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 2015, 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 2018 AND IS DONE ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. WESLEY DEVELOPMENT SERVICES LLC 5508 NW 88TH STREET JOHNSTON IA 50131 822839395 DEVELOPMENT SERVICES IA 220695 2865044 WESLEYLIFE WESLEY COMMUNITY SERVICES INC 5508 NW 88TH STREET JOHNSTON IA 50131 203970256 HOME HEALTH CARE IA 501(C)(3) LINE 10 WESLEYLIFE 1 WESLEY RETIREMENT SERVICES INC 5508 NW 88TH STREET JOHNSTON IA 50131 420680440 LONG TERM CARE IA 501(C)(3) LINE 10 WESLEYLIFE 1 0 0 0 1 0 0 0 0 0 1 0 1 0 1 1 1 1 1 1 WESLEY COMMUNITY SERVICES INC L 6908624 FMV WESLEY RETIREMENT SERVICES INC L 31351426 FMV