2018-11-12T16:41:18-06:00 2017-12-31 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 46 PUBLIC SQUARE WILKESBARRE PA 187012681 990 2017-01-01 237404857 LEBANON VALLEY BRETHREN HOME LEBA 7178385406 1200 GRUBB ROAD PALMYRA PA 17078 HENRY BRUBAKER CFO VP FINANCE/CFO 7178385406 2018-11-12 1 JULIUS GREEN CPA P00350393 5708200100 X 24.229.124.227 2018-11-12 16:17:11 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 1C07D3DB1C94FB752016147E5D6573FD6A6810DC 2017 2019-02-21 02:37:17Z LONDONDERRY VILLAGE JEFFREY SHIREMAN 1200 GRUBB ROAD PALMYRA PA 17078 23199876 0 X WWW.LONDONDERRYVILLAGE.ORG X 1974 PA CONTINUING CARE RETIREMENT COMMUNITY PROVIDING HOUSING, HEALTH CARE, AND RELATED SERVICES. 14 14 305 225 0 0 501544 1282679 21154490 21044182 169665 362498 274407 385074 22100106 23074433 116734 180237 0 0 12829147 11956410 0 0 119976 8573797 10025234 21519678 22161881 580428 912552 60276945 63687326 44537389 46451953 15739556 17235373 X THE LEBANON VALLEY BRETHREN HOME, AN OUTREACH MINISTRY OF THE CHURCH OF THE BRETHREN, IS COMMITTED TO PROVIDING INDEPENDENT LIVING HOUSING, HIGH-QUALITY HEALTH CARE, AND SUPPORTIVE SERVICES FOR ELDERLY PERSONS IN AN ATTITUDE OF LOVE AND SERVANTHOOD. 0 0 19047553 180237 21044182 NURSING CARE IN 2017, THE NURSING CENTER OF THE LEBANON VALLEY BRETHREN HOME CONTINUED AT ITS LICENSED CAPACITY OF 100 BEDS, DIVIDED AMONG THREE (3) PROGRAMMATIC COMPONENTS: 40 NURSING BEDS LOCATED IN THE FOUR, 10-BED GREEN HOUSES HOMES; 20 BEDS IN THE TRANQUIL TERRACE GENERAL NURSING UNIT; AND THE REMAINING 40 BEDS IN THE TRADITIONAL LEFFLER CARE NURSING UNIT. OCCUPANCY FOR NURSING WAS IN THE MID-80TH PERCENTILE, NOT AS HIGH AS IN PREVIOUS YEARS. THIS IS CONSISTENT WITH STATE AND NATIONAL TRENDS WHEREIN NURSING HOME OCCUPANCY RATES ARE FALLING DUE TO CHANGES IN UTILIZATION PATTERNS. OUR FOUR GREEN HOUSE HOMES, IN THEIR TENTH YEAR OF SERVICE, REMAIN AS ONE OF THE MOST INNOVATIVE AND HIGHEST QUALITY NURSING SETTINGS IN THE COMMONWEALTH OF PENNSYLVANIA. THE FACILITY HAD A VERY GOOD RESULT IN OUR ANNUAL INSPECTION OF THE NURSING CENTER (BY THE PA DEPARTMENT OF HEALTH); ONLY 2 MINOR AREAS OF DEFICIENCY WERE NOTED, AND BOTH WERE CORRECTED TO THE SATISFACTION OF THE DOH WITHIN 60 DAYS. THE PERCENTAGE OF RESIDENTS IN NURSING WHO REQUIRED FINANCIAL SUBSIDY FROM BOTH LVBH AND THE MEDICAID PROGRAM WAS IN THE RANGE OF 40%. DURING 2017, THE HEALTH CENTER WAS UPGRADED BY THE CENTERS FOR MEDICARE AND MEDICAID SERVICES FROM A 4-STAR TO A 5-STAR QUALITY RATING. PERSONAL CARE - IN THE PERSONAL CARE UNIT, THE 2017 ANNUAL INSPECTION BY THE DEPARTMENT OF HUMAN SERVICES ALSO WENT VERY WELL, AND RESULTED IN ONLY A FEW MINOR DEFICIENCIES WHICH WERE IMMEDIATELY CORRECTED. NO SIGNIFICANT ISSUES OR PROBLEMS WERE RAISED BY RESIDENTS AT THE QUARTERLY RESIDENT COUNCIL MEETINGS. OCCUPANCY OF THE PERSONAL CARE UNIT TRENDED UPWARD, FROM 25 RESIDENTS TO NEARLY 35 RESIDENTS BY YEAR-END. INDEPENDENT LIVING THE INDEPENDENT LIVING COMMUNITY RESPONDED VERY FAVORABLY TO THE RE-NAMING AND RE-BRANDING OF THE ENTIRE CAMPUS. THE ORGANIZATION RETAINED ITS HISTORIC LEGAL NAME AS THE "LEBANON VALLEY BRETHREN HOME" , BUT ALSO ADOPTED A NEW "DOING BUSINESS AS" PUBLIC NAME LONDONDERRY VILLAGE. THE NEW NAME BECAME EFFECTIVE ON MARCH 1ST OF 2017, AND WAS WELL-RECEIVED BY OUR RESIDENTS, STAFF, AND VISITORS. THE INDEPENDENT LIVING COMMUNITY REMAINED FUNCTIONALLY "FULL" THROUGHOUT 2017, AS ALL OF OUR UNITS WERE EITHER OCCUPIED OR BEING TRANSITIONED TO A NEW INCOMING RESIDENT. IN THE FALL OF 2017, PHASE 2 OF THE WHEATON APARTMENTS WAS OFFICIALLY OPENED; ALL 15 OF THE PHASE 2 APARTMENTS WERE SOLD AND OCCUPIED WITHIN THE FIRST 2 MONTHS OF THE BUILDING'S OPENING. VOLUNTEERISM AMONG LVBH RESIDENTS STAYED AT HISTORICALLY HIGH LEVELS, AND THE RESIDENT-ORGANIZED 2017 ANNUAL YARD SALE RAISED A RECORD-BREAKING $78,000, ALL OF WHICH WAS DONATED BACK TO THE COMMUNITY. FINALLY, THE COMMUNITY PRODUCED AND RELEASED A MUSIC VIDEO FEATURING OVER 70 RESIDENTS AND 20 EMPLOYEES; THE VIDEO QUICKLY FOUND ITS WAY TO YOUTUBE AND EXPERIENCED OVER 10,000 VIEWINGS. 19047553 1 1 0 1 0 0 0 0 0 1 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 0 0 0 0 1 35 0 1 305 1 0 0 0 0 0 1 1 0 0 0 1 0 X 14 14 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X HENRY BRUBAKER VP OF FINANCE CFO 7178385406 1200 GRUBB ROAD PALMYRA PA 17078 X CRAIG MOYER CHAIR 2.00 X X 0 0 0 JAMES SNELL VICE CHAIR 2.00 X X 0 0 0 ROBERT FORTNA SECRETARY 2.00 X X 0 0 0 GWEN BOLTZ DIRECTOR 1.00 X 0 0 0 JAY BUFFENMYER DIRECTOR 1.00 X 0 0 0 RUSSELL COLLINS DIRECTOR TERM END 3/15/17 1.00 X 0 0 0 DR WILLIAM DAVIDSON DIRECTOR 1.00 X 0 0 0 RAY DEIMLER JR DIRECTOR 1.00 X 0 0 0 WENDIE DI MATTEO- HOLSINGER DIRECTOR 1.00 X 0 0 0 REV RON LUDWICK DIRECTOR 1.00 X 0 0 0 ROY MEYER DIRECTOR 1.00 X 0 0 0 SANDY PINTARCH DIRECTOR 1.00 X 0 0 0 GEORGE PORTER DIRECTOR 1.00 X 0 0 0 RHONA STONEBACK DIRECTOR 1.00 X 0 0 0 DONALD WITMAN DIRECTOR 1.00 X 0 0 0 DOUGLAS GARRETT CFO RETIRED 5/31/17 38.00 X 114140 0 17557 JEFFREY SHIREMAN CEO 38.00 X 196200 0 30894 HENRY BRUBAKER CFO TERM BEGAN 6/1/17 38.00 X 108211 0 18702 JENNIFER GINDER VP HEALTH SERVICES 38.00 X 107097 0 7775 525648 0 74928 4 0 1 0 ARTHUR FUNK & SONS INC 1405 BIRCH ROAD LEBANON PA 17042 CONSTRUCTION 3831120 SHOPE'S GARDENS CONST INC 53 NORTH CHARLOTTE STREET MANHEIM PA 17545 CONSTRUCTION 1130758 SYMBRIA REHAB 28100 TORCH PARKWAY SUITE 600 WARRENVILLE IL 60555 THERAPY SERVICES 583977 SIMPLEX GRINNELL DEPT CH 10320 PALATINE IL 60055 FACILITIES SERVICES 247641 CROSSROADS TECHNOLOGIES INC PO BOX 6528 WYOMISSING PA 19610 INFORMATION TECHNOLOGY SERVICE & EQUIPME 225404 9 60953 1221726 16368 1282679 NET RESIDENT SVC REV 623000 20722713 20722713 PA NURSING HOME ASSESSMT 623000 321469 321469 21044182 340229 340229 38825 31952 6873 6873 6873 24297 18323 8232 12119 16065 6204 22269 22269 35021 60953 36513 -1492 -1492 43531 36627 6904 6904 FOOD SERVICES 722210 165498 165498 BARBER SHOP 900099 106268 106268 MISCELLANEOUS 900099 78671 78671 22352 22352 372789 23074433 21044182 0 747572 180237 180237 555243 114872 440371 8604718 7636160 894302 74256 371354 351701 16442 3211 1728000 1511545 202883 13572 697095 599867 91847 5381 19481 19481 69127 69127 722 722 28619 28619 922690 767821 154869 204144 204144 1604299 1398711 205588 325548 23182 302366 1976179 1976179 60327 47285 13042 2681 303 2378 242959 242959 3587149 3587149 232641 232641 PA NURSING HM ASSESSMNT 238410 238410 FOOD SERVICE COSTS 172647 172647 RESIDENT COMMUNICATIONS 98398 98398 DUES & SUBSCRIPTIONS 66472 4545 61927 172741 95582 53603 23556 22161881 19047553 2994352 119976 871 900 7203272 8078809 10000 5000 1855677 1368479 692725 597676 87882451 46384309 38467761 41498142 11730350 11801521 316289 336799 60276945 63687326 1506944 1452956 18498805 19750314 14260131 13985691 10271509 11262992 44537389 46451953 X 13945002 15376341 62392 78119 1732162 1780913 15739556 17235373 60276945 63687326 X 912552 575596 7669 X X 0 1 X 1 0 X 813395 653501 684674 501544 1282679 3935793 17631566 19265417 19758497 21154490 21044182 98854152 18444961 19918918 20443171 21656034 22326861 102789945 38667 106506 55524 21070 35970 257737 590448 590448 38667 106506 55524 21070 626418 848185 101941760 201072 284957 251423 228155 379054 1344661 201072 284957 251423 228155 379054 1344661 296775 279073 280679 298209 414714 1569450 18942808 20482948 20975273 22182398 23120629 105704056 0.96440 0.97310 0.01270 0.01060 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS FOOD SERVICES STATE SALES TAX REFUND PR EVENT FEES CONVENIENCE SHOP BARBER SHOP FUNDRAISING REVENUE RESIDENT FACILITIES 0 0 0 0 0 0 0 0 1 722 722 0 PART II-B, LINE 1: THE ORGANIZATION PAYS DUES TO NATIONAL (LEADINGAGE) AND STATE (LEADINGAGE PA) ASSOCIATIONS. A PORTION OF THE STATE AND NATIONAL ORGANIZATION'S DUES ARE USED FOR LOBBYING PURPOSES. THE $722 REPORTED AS LOBBYING EXPENDITURES IS THE TOTAL OF LEADINGAGE'S DUES THAT WERE USED FOR LOBBYING PURPOSES BY NATIONAL LEADINGAGE AND LEADINGAGE PA. 1759393 183 254814 51469 11836 1951085 1664423 503 139806 34173 11166 1759393 1749884 3769 -44514 32741 11975 1664423 1733390 12640 74945 59643 11448 1749884 1433197 167169 194068 52548 8496 1733390 1.00000 0.00000 0.00000 0 0 777519 777519 52641318 23001554 29639764 0 27272555 18373124 8899431 7191059 5009631 2181428 41498142 REFUNDABLE FEES AND DEPOSITS 10617669 SPLIT-INTEREST OBLIGATIONS 45138 RESIDENT SECURITY DEPOSITS 600185 11262992 X 23561738 575596 -172568 403028 23158710 -84277 -84277 23074433 22065921 84277 84277 21981644 180237 180237 22161881 PART V, LINE 4: THE ENDOWMENT FUND IS INTENDED TO ASSIST NURSING, PERSONAL CARE AND INDEPENDENT LIVING RESIDENTS WHO ARE NO LONGER ABLE TO AFFORD THEIR OWN CARE. IT IS ALSO USED TO COVER THE DIFFERENCE BETWEEN GOVERNMENT PAYMENTS FOR CARE AND THE COST OF DELIVERING THE CARE. PART X, LINE 2: LVBH ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY USING A RECOGNITION 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 THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD AT DECEMBER 31, 2017 AND 2016. PART XI, LINE 2D - OTHER ADJUSTMENTS: BENEVOLENT CARE -180,237. CHANGE IN VALUE OF SPLIT INTEREST 7,669. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -31,952. SPECIAL EVENT EXPENSES -38,044. CONVENIENCE STORE PURCHASES -36,627. FUNDRAISING EXPENSES 1,531. MISCELLANEOUS EXPENSE -7. BAD DEBT EXPENSE 20,822. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 31,952. SPECIAL EVENT EXPENSES 38,044. CONVENIENCE STORE PURCHASES 36,627. FUNDRAISING EXPENSES -1,531. MISCELLANEOUS EXPENSE 7. BAD DEBT EXPENSE -20,822. PART XII, LINE 4B - OTHER ADJUSTMENTS: BENEVOLENT CARE NETTED AGAINST REVENUE 180,237. CHICKEN BBQ/AUCTION 40916 18773 22143 2217 6966 1925 5599 GOOD SAMARITAN DINNER 33420 26545 6875 802 2672 1375 2957 2 21638 15635 6003 300 1226 2663 7811 95974 60953 35021 300 4245 12301 3300 16367 36513 -1492 1 BENEVOLENT CARE 13 180237 CASH VALUE BENEVOLENT CARE PART I, LINE 2: RESIDENTS WHO NEED FINANCIAL ASSISTANCE SUBMIT AN APPLICATION TO THE FINANCE OFFICE. FINANCIAL INFORMATION OF THE RESIDENT IS REVIEWED AND CONFIRMED. BASED UPON THE INFORMATION SUBMITTED, THE ADMINISTRATOR THEN MAKES A DECISION AS TO WHETHER FINANCIAL ASSISTANCE WILL BE PROVIDED. THE ADMINISTRATOR PROVIDES INFORMATION TO THE FINANCE COMMITTEE OF THE BOARD WITH RESPECT TO THE TOTAL ASSISTANCE THAT HAS BEEN AWARDED. THE RESIDENTS WHO RECEIVE THE BENEVOLENT CARE REMAIN ANONYMOUS TO THE FINANCE COMMITTEE. X X X X 0 1 0 0 0 0 0 0 0 JEFFREY SHIREMAN CEO 196200 0 0 0 0 0 20346 0 10548 0 227094 0 0 0 A WEST CORNWALL TWP MUNICIPAL AUTHORITY 251640412 952354BM9 2006-10-01 11275000 TO REFINANCE DEBT; TO FINANCE GREEN HOUSE PROJ; RES UNIT RENOV & CONVERSION 0 0 0 B WEST CORNWALL TWP MUNICIPAL AUTHORITY SERIES B 251640412 2015-07-16 6321000 TO FUND THE CONSTRUCTION OF THE WHEATON APARTMENTS AND OTHER IMPROVEMENTS 0 0 0 C WEST CORNWALL TWP MUNICIPAL AUTHORITY SERIES OF 2016 251640412 2016-09-13 2600000 FUND THE CONSTRUCTION OF THE IL WHEATON APTS. PHASE 2; PAY ISSUANCE COSTS 0 0 0 A 3495000 11607449 225500 10000 7583746 3788203 2008 1 0 1 1 B 2370000 3953414 107952 3846005 2016 0 0 0 1 C 2604679 48675 2556004 2017 0 0 0 1 A 0 0 1 1 0 0.02400 0.02400 0 0 1 B 0 0 0 0 0 0 1 C 0 0 0 0 0 0 0 A 0 0 0 1 1 1 PNC BANK NATIONAL ASSOCIATION 0.100000000000 0 0 0 0 1 B 0 0 0 1 1 0 0 0 1 C 0 1 0 0 1 0 0 0 1 A 1 B 1 C 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: WEST CORNWALL TWP MUNICIPAL AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 11/18/2009 ISSUER NAME: WEST CORNWALL TWP MUNICIPAL AUTHORITY SERIES B DATE THE REBATE COMPUTATION WAS PERFORMED: 05/12/2017 SCHEDULE K, ADDITIONAL INFORMATION THE INTEREST RATE SWAP EXPIRED IN 2013. IN CONNECTION WITH THE EXPIRATION OF THE INTEREST RATE SWAP AGREEMENT, LVBH ENTERED INTO AN INTEREST RATE CAP AGREEMENT. THE TERM OF THE AGREEMENT EXPIRES JANUARY 2017. ACCORDING TO THE AGREEMENT, LVBH'S INTEREST ON THE 2006 BONDS IS CAPPED AT 2% FOR $5,000,000 OF THE OUTSTANDING BONDS. THE TERMS OF THE HEDGE ARE THAT PNC PROVIDES THE BORROWER VARIABLE INTEREST RATE CAP OF 2.00% ON AN AMOUNT OF $5,000,000. AS NOTED ABOVE, THE INITIAL AGREEMENT EXPIRES JANUARY 31, 2017, AND WAS RENEWED EFFECTIVE FEBRUARY 1, 2017 WITH A TERMINATION DATE OF FEBRUARY 1, 2020. SCHEDULE K, ADDITIONAL INFORMATION FOR 2015 BOND ISSUE IN JULY 2015, THE AUTHORITY ISSUED, ON BEHALF OF LVBH: (A) WEST CORNWALL TOWNSHIP MUNICPAL AUTHORITY REVENUE NOTE, SERIES A OF 2015 ("SERIES A NOTE") IN THE AMOUNT OF $2,370,000; AND (B) WEST CORNWALL TOWNSHIP MUNICPAL AUTHORITY REVENUE NOTE, SERIES B OF 2015 ("SERIES B NOTE") IN THE AMOUNT OF $3,951,000 (COLLECTIVELY "SERIES 2015 NOTES"). THE PROCEEDS OF THE SERIES 2015 NOTES ARE TO BE USED TO: (A) FINANCE THE CONSTRUCTION OF A NEW INDEPENDENT LIVING FACILITY; AND (B) PAY FOR THE COSTS OF ISSUANCE. THE SERIES 2015 NOTES ARE SECURED BY A MORTGAGE AND SECURITY AGREEMENT COVERING CERTAIN PROPERTY AND EQUIPMENT, AS WELL AS THE GROSS REVENUES OF LBVH. THE SERIES A NOTE SHALL ACT AS A LINE OF CREDIT. INTEREST ON THE SERIES A NOTE SHALL BE CHARGED AT A VARIABLE RATE BASED ON THE DAILY LIBOR RATE. ALL UNPAID BORROWINGS AND INTEREST ARE PAYABLE IN THEIR ENTIRETY IN JULY 2020. BEGINNING IN JULY 2018, THE SERIES B NOTE SHALL BE PAYABLE IN ANNUAL INSTALLMENTS OF $171,783 PLUS INTEREST, WITH A FINAL PAYMENT DUE IN JULY 2040. INTEREST ON THE SERIES B NOTE SHALL BE CHARGED AT FIXED RATE OF 2.0% PER ANNUM THROUGH JULY 2020, AT WHICH TIME THE INTEREST RATE WILL BE MODIFIED EVERY FIVE YEARS TO A FIXED RATE BASED ON PREVAILING MARKET CONDITIONS. IN ADDITION, THE HOLDERS OF THE SERIES B NOTE RESERVES THE RIGHT TO TENDER THE OUTSTANDING PRINCIPAL BALANCE ON THE SERIES B NOTE TO LVBH FOR PURCHASE EVERY FIVE YEARS, BEGINNING IN JULY 2020. THE AMOUNT REPORTED ON LINE 3 PART II REPRESENTS THE ISSUE PRICE OF THE SERIES B BONDS OF $3,951,000 PLUS EARNINGS OF $2,414. THE 2015 NOTES CONSTITUTE A DRAW DOWN LOAN WITH THE MEANING OF THE IRC REGULATIONS SECTION 1.150-1(C)(4); OF THE ORGINIAL AVAILABLE AMOUNT OF $6,321,000, $2,730,000 WAS NOT NEEDED TO COMPLETE THE PROJECT. THE SERIES A NOTE WAS DESIGNED TO ACT AS A LINE OF CREDIT AND HAS BEEN CLOSED AS OF DECEMBER 31, 2016. THERE WERE NO BORROWINGS ON THE SERIES A NOTE. SCHEDULE K, ADDITIONAL INFORMATION, PART I ITEM C - SERIES 2016 NOTE IN SEPTEMBER 2016, THE AUTHORITY ISSUED, ON BEHALF OF LVBH, THE WEST CORNWALL TOWNSHIP MUNICIPAL AUTHORITY REVENUE NOTE, SERIES OF 2016 ("SERIES 2016 NOTE") IN THE AMOUNT OF $2,600,000. THE PROCEEDS OF THE SERIES 2016 NOTE IS TO BE USED TO: (A) FINANCE THE CONSTRUCTION OF A PHASE 2 OF WHEATON AAPARTMENTS, AN INDEPENDENT LIVING FACILITY; AND (B) PAY FOR THE COSTS OF ISSUANCE. THE SERIES 2016 NOTE IS SECURED BY A MORTGAGE AND SECURITY AGREEMENT COVERING CERTAIN PROPERTY AND EQUIPMENT, AS WELL AS THE GROSS REVENUES OF LVBH. BEGINNING IN JULY 2019, THE SERIES 2016 NOTE SHALL BE PAYABLE IN ANNUAL INSTALLMENTS OF $113,043 PLUS INTEREST, WITH A FINAL PAYMENT DUE IN JULY 2041. INTEREST ON THE SERIES 2016 NOTE SHALL BE CHARGED AT FIXED RATE OF 1.75% PER ANNUM THROUGH JULY 2021, AT WHICH TIME THE INTEREST RATE WILL BE MODIFIED EVERY FIVE YEARS TO A FIXED RATE BASED ON PREVAILING MARKET CONDITIONS. IN ADDITION, THE HOLDERS OF THE SERIES 2016 NOTE RESERVES THE RIGHT TO TENDER THE OUTSTANDING PRINCIPAL BALANCE ON THE SERIES 2016 NOTE TO LVBH FOR PURCHASE EVERY FIVE YEARS, BEGINNING IN JULY 2021. FORM 990, PART VI, SECTION B, LINE 11B BEFORE IT IS SUBMITTED TO THE IRS, FORM 990 WILL BE REVIEWED BY THE FINANCE COMMITTEE OF THE BOARD AT EITHER A REGULARLY SCHEDULED MEETING OR A SPECIALLY CALLED MEETING. THE REVIEW WILL BE CONDUCTED BY THE CEO AND THE CFO. THE REVIEW USUALLY CONSISTS OF LINE BY LINE ASSESSMENT AND DISCUSSION OF ALL RELEVANT SECTIONS AND LINE ITEMS. THE ENTIRE BOARD THEN RECEIVES A COPY OF THE FINAL 990 BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST STATEMENTS, REQUIRED ANNUALLY OF GOVERNING BODY MEMBERS, OFFICERS AND KEY EMPLOYEES, ARE REVIEWED BY THE CHIEF FINANCIAL OFFICER. GOVERNING BODY MEMBERS AND KEY EMPLOYEES ARE EXPECTED TO DIVULGE ANY POTENTIAL CONFLICT OF INTEREST THEY MIGHT HAVE IN A GIVEN TRANSACTION, NOTIFY THE DECISION-MAKERS INVLOVED IN THAT TRANSACTION, AND REMOVE THEMSELVES FROM ANY DECISION-MAKING ROLE IN THE TRANSACTION. DETERMINATION OF CONFLICTS ON THE LEVEL OF THE GOVERNING BODY WILL BE MADE BY THE GOVERNING BODY. DETERMINATION OF CONFLICTS ON THE LEVEL OF KEY EMPLOYEE WILL BE DETERMINED BY THE CEO, OR IF THE CEO IS INVOLVED IN THE CONFLICT, THROUGH AN ANONYMOUS HOTLINE TO THE CORPORATE COMPLIANCE OFFICER, WHO HAS DIRECT REPORTING ACCESS TO THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD ADOPTED A CEO EVALUATION TOOL IN 2012 THAT WAS COMPLETED INDIVIDUALLY BY ALL BOARD MEMBERS. THE COLLECTED RESULTS WERE CONSIDERED BY THE BOARD EXECUTIVE COMMITTEE, AND A REVIEW OF THE RESULTS WAS PLANNED TO INVOLVE THE CEO AND REPRESENTATIVES OF THE EXECUTIVE COMMITTEE. THE LEADINGAGE PA ANNUAL WAGE SURVEY IS USED FOR DETERMINING COMPARABLE SALARIES FOR THE EXECUTIVE MANAGEMENT TEAM. THE SALARIES OF SIMILIAR POSITIONS LOCATED IN THE CENTRAL PENNSYLVANIA REGION ARE USED AS A FAIR VALUE COMPARISON. THE EXECUTIVE COMMITTEE OF THE BOARD MODIFIED THE EXECUTIVE COMPENSATION POLICY IN NOVEMBER 2016 TO INCLUDE OBTAINING ADDITIONAL COMPARATIVE DATA FOR EXECUTIVE COMPENSATION, OBTAINING FEEDBACK RELATIVE TO THE PERFORMANCE OF THE CEO, RECORDING THE FULL PROCESS IN THE EXECUTIVE COMMITTEE MINUTES OF THE MEETING AND RECORDING INFORMATION AS TO THE COMPARABILITY OF THE DATA RELIED UPON. THIS POLICY WAS USED TO DETERMINE EXECUTIVE COMPENSATION IN 2017. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. ADDITIONALLY, AUDITED FINANCIAL STATEMENTS ARE AVAILABLE WITH THE ANNUAL DISCLOSURE STATEMENT REQUIRED BY THE PENNSYLVANIA DEPARTMENT OF INSURANCE, ALSO AVAILABLE UPON REQUEST BY ANY MEMBER OF THE PUBLIC. THE DISCLOSURE STATEMENT IS ALSO MADE AVAILABLE TO ALL CURRENT LVBH COMMUNITY RESIDENTS IN THE COMMUNITY CENTER READING ROOM, AND TO ALL INCOMING RESIDENTIAL LIVING RESIDENTS AS THEY ARE MOVING INTO THE COMMUNITY. PART VII, SECTION A COMPENSATION LISTED IN COLUMN D FOR DOUGLAS GARRETT, INCLUDES A PAYMENT IN THE AMOUNT OF $45,333 FROM HIS SECTION 457(B ) RETIREMENT PLAN. FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS 7,669. FORM 990, PART XI, LINE 2C: THE PROCESSES USED BY THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS AND THE SELECTION OF AN INDEPENDENT ACCOUNTANT HAVE NOT CHANGED FROM THE PRIOR YEAR.