2016-09-28T15:27:28-05:00 2015-12-31 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2015-01-01 161486032 UMH MANAGEMENT SERVICES CORP UMH NY CORP UMHM 6077756400 10 ACRE PLACE BINGHAMTON NY 13904 BRIAN J PICCHINI CPA PRESIDENT & CEO 6077556400 2016-09-21 1 JULIUS GREEN CPA P00350393 2159720701 2015 2017-02-10 21:41:12Z UMH MANAGEMENT SERVICES CORP BRIAN J PICCHINI CPA 10 ACRE PLACE BINGHAMTON NY 13904 6149702 0 9223 X WWW.UNITEDMETHODISTHOMES.ORG X 1994 PA THE ORGANIZATION PERFORMS MANAGEMENT FUNCTIONS FOR THE EIGHT OTHER AFFILIATED ORGANIZATIONS. 27 27 38 38 0 0 0 0 4891280 4967412 205698 280784 140036 128154 5237014 5376350 0 0 0 0 3341607 3587250 0 0 0 1638857 1676765 4980464 5264015 256550 112335 14522272 16207548 12018019 13674750 2504253 2532798 X THE ORGANIZATION'S MISSION IS TO PROVIDE A WIDE RANGE OF SENIOR LIVING SERVICES WITH EXCEPTIONAL CARE AND COMPASSION. OUR VISION IS TO BE THE PROVIDER OF CHOICE IN LIFESTYLE OPTIONS FOR SENIORS. CORE VALUES INCLUDE CONCERN AND UNDERSTANDING FOR THE WHOLE PERSON, EDUCATION AND WELLNESS IN PURSUIT OF A FULL LIFE, INDEPENDENCE, DIGNITY AND A SENSE OF CONTROL FOR ALL RESIDENTS AND A CARING AND COMPASSIONATE STAFF. 0 0 5264015 5095566 CENTRALIZED MANAGEMENT FUNCTIONS AND SUPPORTIVE FINANCIAL, INFORMATION TECHNOLOGY AND ADMINISTRATIVE SERVICES FOR THE EIGHT OTHER BROTHER / SISTER RELATED AND AFFILIATED ORGANIZATIONS OF THE UNITED METHODIST HOMES WHICH PROVIDE SERVICES FOR THE FRAIL AND ILL ELDERLY. SUCH CENTRALIZED SERVICES INCLUDE QUALITY ASSURANCE, BUILDINGS AND GROUND MANAGEMENT, HUMAN RESOURCES, EMPLOYEE BENEFITS, MARKETING AND PUBLIC RELATIONS, GROUP PURCHASING, ACCOUNTING AND FINANCIAL SERVICES, BUDGETING, INFORMATION TECHNOLOGY, INSURANCE CONTRACTING, CONTRACT REVIEW AND NEGOTIATIONS, CORPORATE COMPLIANCE, AND OTHER ADMINISTRATIVE FUNCTIONS. 5264015 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 40 0 1 38 1 0 0 0 0 0 0 0 0 0 0 X 27 27 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA NY X BRIAN J PICCHINI CPA 6077756400 10 ACRE PLACE BINGHAMTON NY 13904 X SHARON BERG CHAIRPERSON 14.00 X X 0 0 0 JOHN CROUNSE-HONORARY EFF 2015 VICE CHAIRPERSON 7.00 X X 0 0 0 ALLAN ROSE TREASURER 4.00 X X 0 0 0 EDWIN ROGERS ASSISTANT TREASURER 2.00 X X 0 0 0 LEE ROBESON ASSISTANT SECRETARY 3.00 X X 0 0 0 JAMES CORSELIUS SECRETARY 3.40 X X 0 0 0 LEE BEARSCH DIRECTOR 1.50 X 0 0 0 EDWIN BETZ DIRECTOR 2.00 X 0 0 0 JOHN CARLING DIRECTOR 2.00 X 0 0 0 KATHLEEN COLLING DIRECTOR 2.00 X 0 0 0 JOSEPH COONS DIRECTOR-EFFECTIVE 5/2015 1.75 X 0 0 0 MELISSA DRABO DIRECTOR 1.00 X 0 0 0 SARAH HOPKINS DIRECTOR-EFFECTIVE 5/2015 1.00 X 0 0 0 MARYANN JOHNSON DIRECTOR 4.00 X 0 0 0 ALLAN KINSMAN DIRECTOR 8.00 X 0 0 0 MELISSA KLINKO DIRECTOR 2.00 X 0 0 0 WILLIAM LEWIS DIRECTOR 2.00 X 0 0 0 JANET MCCABE DIRECTOR 13.00 X 0 0 0 KAREN MCMAHON DIRECTOR 5.00 X 0 0 0 ELAINE MILLER DIRECTOR-EFFECTIVE 2/2015 0.57 X 0 0 0 ROBERT MONTGOMERY JR DIRECTOR 5.00 X 0 0 0 ROSANNE MULLIGAN DIRECTOR 0.40 X 0 0 0 JOSEPH PAPI DIRECTOR-EFFECTIVE 11/2015 0.20 X 0 0 0 BLENDA SMITH DIRECTOR-EFFECTIVE 2/2015 1.00 X 0 0 0 BETTY STANTON DIRECTOR-EFFECTIVE 5/2015 2.50 X 0 0 0 KENNETH SUMMERS DIRECTOR-EFFECTIVE 5/2015 5.00 X 0 0 0 A WAYNE TRIVELPIECE DIRECTOR 7.00 X 0 0 0 WARREN WATKINS DIRECTOR 5.00 X 0 0 0 NEIL ANDRE DIRECTOR-RESIGNED 01/2015 3.00 X 0 0 0 LINDA ROSS DIRECTOR-TERM END 05/2015 1.00 X 0 0 0 JOHN WELCH DIRECTOR-TERM END 05/2015 1.00 X 0 0 0 BRIAN PICCHINI PRES & CEO 45.00 X 352123 0 23514 JOHN LOPATKA COO 53.00 X 232471 0 25992 RICHARD RUNYON VP-INVESTMENTS 40.00 X 183485 0 9495 SALVATORE LAMANTIA CONTROLLER 44.00 X 127050 0 15159 SHANE MCGUIRE VP OF FINANCE 43.00 X 139473 0 12727 GARY GARDNER SR. VP, FINANCIAL ANALYST 47.00 X 149181 0 19618 MARTHA WRIGHT VP CLINICAL SERVICES 46.00 X 124270 0 6652 1308053 0 113157 11 0 1 0 BAKER TILLY VIRCHOW KRAUSE LLP PO BOX 78975 MILWAUKEE WI 532788975 ACCOUNTING AND AUDITING 168622 ULTIMATE SOFTWARE GROUP ATTN ACCOUNTING DEPT ATLANTA GA 311930953 SOFTWARE SERVICES 131750 2 MANAGEMENT SERVICE FEE 541610 4967412 4967412 4967412 282508 282508 771628 772309 1043 -681 -1043 -1724 -1724 EXPENSE REIMBURSEMENT 900099 128154 128154 128154 5376350 5095566 0 280784 X 634100 634100 2400734 2400734 97230 97230 263451 263451 191735 191735 89762 89762 118716 118716 533470 533470 47478 47478 117932 117932 27998 27998 111241 111241 238420 238420 149757 149757 68892 68892 ADMINISTRATIVE SERVICES 55829 55829 RENT/LEASE - BUILDINGS 55704 55704 PRINTING & DUPLICATING 28997 28997 OTHER LICENSES/TAXES 9625 9625 22944 22944 5264015 5264015 0 0 891721 395573 696648 70396 2782 461059 109067 147918 2008996 1513714 573319 495282 2426613 2392555 9822122 12244765 14522272 16207548 3207307 3150611 8524933 9782672 285779 741467 12018019 13674750 X 2504253 2532798 2504253 2532798 14522272 16207548 X 112335 -30639 -53151 X X 0 1 X 1 0 X X 1 UMH NY CORP 240856145 9 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 SCHEDULE A, SECTION B, LINE 2 THIS ENTITY SUPPORTS ALL EXEMPT AFFILIATES THAT FALL UNDER THE GROUP RULING OF ITS PARENT, UMH NY CORP., WHICH IS THE SUPPORTED ORGANIZATION LISTED IN THE ORGANIZING DOCUMENTS AND REPORTED ON SCHEDULE A PAGE 1, LINE 11. 2426613 58647 62154 154859 2392555 2349047 78109 153448 153991 2426613 1644050 627300 129719 52022 2349047 1552337 527000 92272 527559 1644050 1048918 525000 26346 47927 1552337 1.00000 0 0 134434 81272 53162 1874562 1432442 442120 495282 DUE FROM AFFILIATES 12244765 12244765 DUE TO AFFILIATES 421645 FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 319822 741467 X 5346754 -30639 -30639 5377393 -1043 -1043 5376350 5318209 54194 54194 5264015 0 5264015 PART V, LINE 4: THE INTENDED USES OF THE ENDOWMENT FUNDS ARE: FUTURE CAPITAL IMPROVEMENTS, FUTURE OPERATING COSTS AND TO ESCROW ADVANCE FEES, OVER WHICH THE BOARD RETAINS CONTROL AND MAY AT ITS DISCRETION, SUBSEQUENTLY USE FOR OTHER PURPOSES. PART X, LINE 2: THE HOMES ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING 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 HAS BEEN MET. MANAGEMENT DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2015 OR 2014. THE HOMES' FEDERAL RETURNS OF ORGANIZATION EXEMPT FROM INCOME TAX FOR THE YEARS PRIOR TO DECEMBER 31, 2012 ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON SALE OF EQUIPMENT -1,043. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF EQUIPMENT 1,043. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS 53,151. X 0 0 X X X 0 1 0 0 0 0 0 1 0 BRIAN PICCHINI PRES & CEO 285272 0 0 0 66851 0 13250 0 10264 0 375637 0 0 0 JOHN LOPATKA COO 203284 0 0 0 29187 0 10888 0 15104 0 258463 0 0 0 RICHARD RUNYON VP-INVESTMENTS 147294 0 0 0 36191 0 7923 0 1572 0 192980 0 0 0 SHANE MCGUIRE VP OF FINANCE 125775 0 0 0 13698 0 6567 0 6160 0 152200 0 0 0 GARY GARDNER SR. VP, FINANCIAL ANALYST 132466 0 0 0 16715 0 7050 0 12568 0 168799 0 0 0 PART I, LINE 1A THE ORGANIZATION PROVIDED ALL EMPLOYEES WITH A HOLIDAY GIFT OF $25. THE GIFT WAS "GROSSED-UP" USING A COMPUTATION IN ORDER TO COVER THE TAXES. ALL PAYMENTS WERE REPORTED AS TAXABLE INCOME ON EACH EMPLOYEE'S RESPECTIVE W-2. PART I, LINE 4B BRIAN PICCHINI AND RICHARD RUNYON PARTICIPATE IN NONQUALIFIED DEFERRED COMPENSATION PLANS. THE AMOUNTS DEFERRED FOR THE 2015 YEAR WERE $18,000 AND $10,927, RESPECTIVELY. THESE AMOUNTS HAVE BEEN INCLUDED IN COLUMN B(III) AND HAVE BEEN INCLUDED IN THEIR REPORTABLE MEDICARE WAGES FOR THE 2015 YEAR. PART I, LINE 7 THE ORGANIZATION HAS INSTITUTED A PRACTICE WHEREBY NON-FIXED PAYMENTS MAY BE MADE TO EMPLOYEES IN THE FORM OF RECOGNITION AWARDS. RECOGNITION AWARDS ARE CONSIDERED ON OCCASIONS WHEN AN EMPLOYEE IS DEEMED TO HAVE GONE ABOVE AND BEYOND HIS/HER ORDINARY SCOPE OF WORK IN RELATION TO CERTAIN ORGANIZATIONAL INITIATIVES. AS PART OF THE RECOGNITION AWARD PROGRAM, MANAGERS CAN NOMINATE ANY DESERVING EMPLOYEE FOR A RECOGNITION AWARD. WITH THE EXCEPTION OF ANY CONSIDERATION WHICH MAY BE GIVEN TO THE PRESIDENT & CEO, ALL NOMINATIONS ARE PRESENTED TO THE PRESIDENT & CEO, COO, AND VP OF FINANCE (COLLECTIVELY "SENIOR MANAGEMENT") FOR A REVIEW OF THE JUSTIFICATION FOR AN AWARD AND THE PROPOSED AMOUNT OF THE AWARD. SENIOR MANAGEMENT USES THEIR DISCRETION IN ASSESSING, APPROVING, AND DETERMINING IF/WHEN THE PROPOSED AWARDS WILL BE PRESENTED TO THE MANAGEMENT AND PERSONNEL COMMITTEE OF THE BOARD OF DIRECTORS FOR INDEPENDENT REVIEW AND APPROVAL. SENIOR MANAGEMENT HAS PRIMARY RESPONSIBILITY FOR DETERMINING THE REASONABLENESS OF ALL AWARDS (EXCEPT ANY AWARD GRANTED TO THE PRESIDENT & CEO) AND GENERALLY CONSIDER THE LEVEL OF ADDITIONAL WORK PERFORMED BY THE INDIVIDUAL AND AN EVALUATION OF WHAT AMOUNTS WOULD BE CONSIDERED MEANINGFUL TO AN AWARDEE BASED UPON THE EMPLOYEE'S POSITION AND WAGE. PROPOSED RECOGNITION AWARDS ARE PRESENTED TO THE MANAGEMENT AND PERSONNEL COMMITTEE WHICH IS COMPRISED OF BOARD OF DIRECTOR SHAVING NO CONFLICT OF INTEREST WITH RESPECT TO COMPENSATION AND BENEFIT MATTERS. MEMBERS OF THE MANAGEMENT AND PERSONNEL COMMITTEE CONDUCT AN ANNUAL REVIEW OF THE PRESIDENT & CEO AND ARE CHARGED WITH CONSIDERATION, REVIEW, AND/OR APPROVAL OF ANY RECOGNITION AWARD TO BE PAID TO THE PRESIDENT & CEO. ALL PROCEEDINGS OF THE MANAGEMENT AND PERSONNEL COMMITTEE MEETINGS ARE DOCUMENTED IN WRITTEN MINUTES AND ARE REPORTED TO THE BOARD OF DIRECTORS. ULTIMATELY ANY NON-FIXED PAYMENTS IN THE FORM OF DISCRETIONARY RECOGNITION AWARDS ARE MADE ONLY AFTER FORMAL APPROVAL OF THE BOARD. A NORTHEASTERN PENNSYLVANIA HOSPITAL AND EDUCATION AUTHORITY 237394107 2013-06-19 49973000 ASSIST AFFILIATES WITH CONSTRUCTION/RENOVATION ACTIVITIES 0 0 0 A 405000 10187672 196277 7106759 2884636 1 0 0 1 A 0 0 1 1 0 0 0 1 A 0 0 0 1 1 1 RBS CITIZENS NA 7.420000000000 0 0 0 0 1 A 1 PART II, LINE 3, COLUMN A THE ISSUE PRICE OF THE 2013 BOND ISSUE OF $49,973,000 IS FOR ALL AFFILIATED COMPANIES, NOT JUST UMH MANAGEMENT SERVICES CORP. THIS IS THE REASON FOR THE DIFFERENCE BETWEEN THE AMOUNTS INCLUDED IN PART I, ROW A, COLUMN E (ISSUE PRICE) AND PART II, LINE 3, COLUMN B (TOTAL PROCEEDS OF ISSUE). THE PROCEEDS OF THE NORTHEASTERN PENNSYLVANIA HOSPITAL AUTHORITY 2013 BOND ISSUE HAVE BEEN ALLOCATED TO AFFILIATED COMPANIES AS FOLLOWS: UMH PA CORP., FEDERAL EIN: 22-3266577 ISSUANCE COSTS FROM PROCEEDS: $578,683 CAPITAL EXPENDITURES: $16,954,502 OTHER SPENT PROCEEDS: $12,690,230 TOTAL PROCEEDS OF ISSUE: $30,223,415 UMH NY CORP., FEDERAL EIN: 24-0856145 ISSUANCE COSTS FROM PROCEEDS: $200,404 CAPITAL EXPENDITURES: $8,237,792 OTHER SPENT PROCEEDS: $1,123,717 TOTAL PROCEEDS OF ISSUE: $9,561,913 UMH MANAGEMENT SERVICES CORP., FEDERAL EIN: 16-1486032 ISSUANCE COSTS FROM PROCEEDS: $196,277 CAPITAL EXPENDITURES: $7,106,759 OTHER SPENT PROCEEDS: $2,884,636 TOTAL PROCEEDS OF ISSUE: $10,187,672 TOTAL ISSUANCE COSTS FROM PROCEEDS: $975,364 CAPITAL EXPENDITURES: $32,299,053 OTHER SPENT PROCEEDS: $16,698,583 TOTAL PROCEEDS OF ISSUE: $49,973,000 PART II, LINE 3, COLUMN A THE TOTAL PROCEEDS OF ISSUE FROM THE 2013 BOND ISSUE RECORDED ON PART II, LINE 3, COLUMN A DIFFERS FROM THE AMOUNT REPORTED FOR THE SAME BOND ISSUE IN 2014. THE DIFFERENCE IS DUE TO ADJUSTMENTS TO THE INTER-COMPANY ALLOCATION OF THE BOND PROCEEDS; HOWEVER, THE TOTAL PROCEEDS OF THE ISSUANCE REMAINS THE SAME ($49,973,000). THE FOLLOWING IS A SUMMARY OF THE 2013 BOND ISSUANCE PROCEEDS REPORTED IN 2014 COMPARED TO 2015: AMOUNT REPORTED ON 2014 RETURN BY ENTITY: UMH PA CORP., FEDERAL EIN: 22-3266577 = $31,712,000 UMH NY CORP., FEDERAL EIN: 24-0856145 = $9,295,000 UMH MANAGEMENT SERVICES CORP., FEDERAL EIN: 16-1486032 = $8,966,000 TOTAL = $49,973,000 AMOUNT REPORTED ON 2015 RETURN BY ENTITY: UMH PA CORP., FEDERAL EIN: 22-3266577 = $30,223,415 UMH NY CORP., FEDERAL EIN: 24-0856145 = $9,561,913 UMH MANAGEMENT SERVICES CORP., FEDERAL EIN: 16-1486032 = $10,187,672 TOTAL = $49,973,000 FORM 990, PART V, LINE 1: FORMS 1099 FOR EACH OF THE RELATED UNITED METHODIST HOMES ENTITIES ARE ISSUED BY UMH NY CORP., FEDERAL ID# 24-0856145, WHICH ACTS AS THE COMMON ACCOUNTS PAYABLE ARM OF THE SYSTEM. THE NUMBER REPORTED ON THIS LINE REFLECTS THE NUMBER OF FORMS 1099 FILED BY UMH NY CORP. NO FORMS 1099 HAVE BEEN FILED DIRECTLY BY THIS ENTITY. FORM 990, PART VI, SECTION A, LINE 1 UMH MANAGEMENT SERVICES CORP., FEDERAL ID# 16-1486032, IS ONE OF NINE ENTITIES OF A GROUP OF BROTHER / SISTER RELATED AND AFFILIATED ORGANIZATIONS (SEE SCHEDULE R), GOVERNED BY A COMMON BOARD OF DIRECTORS. THE NINE BROTHER / SISTER RELATED ENTITIES OPERATE UNDER THE BRAND NAME "UNITED METHODIST HOMES". THE BYLAWS OF 8 OF THE ORGANIZATIONS EXCEPT FOR UNITED METHODIST HOMES FOUNDATION PROVIDE THAT THE DIRECTORS OF THE CORPORATIONS SHALL BE THE MEMBERS OF THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS OF THE 8 ORGANIZATIONS PROVIDE FOR 27 DIRECTORS, ELECTED BY THE DIRECTORS, AND DIVIDED INTO THREE CLASSES OF NINE EACH. THIS ARRANGEMENT PROVIDES FOR THE ELECTION OF NINE DIRECTORS EACH YEAR. A DIRECTOR MAY SERVE TWO CONSECUTIVE THREE-YEAR TERMS AND MUST REMAIN OFF THE BOARD FOR ONE YEAR BEFORE BECOMING ELIGIBLE FOR AN ADDITIONAL TERM. THE BOARD MEETS FOUR TIMES PER YEAR AND THE EXECUTIVE FINANCE COMMITTEE MEETINGS ARE HELD ELEVEN TIMES PER YEAR. NO MEETINGS ARE HELD IN JULY. THE EXECUTIVE FINANCE COMMITTEE, WHEN MEETING BETWEEN BOARD MEETINGS IS AUTHORIZED TO EXERCISE ALL AUTHORITY OF THE BOARD EXCEPT TO HIRE, DISCHARGE OR FIX THE SALARY OF THE PRESIDENT / CEO, TO APPROVE THE ANNUAL BUDGET OR MODIFICATIONS THERETO RESULTING IN AN AMOUNT EXCEEDING THE TOTAL AMOUNT OF THE BUDGET OR TO COMMIT AN ENTITY TO ANY MAJOR CONSTRUCTION OR ESTABLISHMENT OF A NEW FACILTY OR THE PURCHASE, MORTGAGE OR SALE OF ANY REAL PROPERTY. SIX MEMBERS OF THE EXECUTIVE FINANCE COMMITTEE CONSTITUTE A QUORUM AND ONE OF THE SIX MEMBERS MUST BE EITHER THE CHAIRPERSON OR THE VICE CHAIRPERSON OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 7A THE BYLAWS OF UMH MANAGEMENT SERVICES CORP. PROVIDE THAT THE BOARD OF DIRECTORS OF UMH NY CORP (THE SUPPORTED ORGANIZATION) SHALL SERVE AS THE BOARD OF DIRECTORS OF UMH MANAGEMENT SERVICES CORP. AS SUCH, THE BOARD OF UMH NY CORP. HAS THE POWER TO ELECT OR APPOINT ALL MEMBERS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE PROCESS BY WHICH THE ORGANIZATION'S OFFICERS, DIRECTORS, BOARD COMMITTEE MEMBERS, AND MANAGEMENT REVIEWED THE PREPARED FORM 990 IS AS FOLLOWS: THE BOARD DID REQUIRE THAT THE FORM 990 FOR ALL 9 BROTHER / SISTER RELATED AND AFFILIATED ORGANIZATIONS BE PREPARED FROM INFORMATION COMPILED BY INTERNAL STAFF. A DRAFT COPY OF THE FORM 990 WAS THEN PROVIDED TO THE ORGANIZATION'S MANAGEMENT, BOARD MEMBERS AND INDEPENDENT PUBLIC ACCOUNTING FIRM WITH SPECIFIC EXPERTISE IN NOT-FOR-PROFIT TAX RETURN PREPARATION. A DETAILED REVIEW OF THE FORM 990 IS CONDUCTED FOR ANY CHANGES OR CORRECTIONS. AFTER REVIEW BY ALL OF THE AFOREMENTIONED INDIVIDUALS, THE INDEPENDENT PUBLIC ACCOUNTING FIRM CONDUCTS THEIR FINAL REVIEW, SIGNS AS PAID PREPARER AND ASSISTS WITH THE ELECTRONIC SUBMISSION OF THE FORM 990. UTILIZING THIS METHODOLOGY, A COPY OF THE FORM 990 IS PROVIDED TO EACH VOTING MEMBER OF THE ORGANIZATION'S GOVERNING BODY FOR REVIEW AND COMMENT PRIOR TO THE FORM 990 BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C UPON ELECTION TO THE BOARD OF DIRECTORS, ALL DIRECTORS ARE REQUIRED TO COMPLETE A WRITTEN CONFLICT OF INTEREST FORM IN CONNECTION WITH THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. THE ORGANIZATION ALSO FOLLOWS THE PRACTICE OF UPDATING OFFICER AND DIRECTORS CONFLICT OF INTEREST INFORMATION IN WRITING ANNUALLY. THE ASSISTANT TO THE CEO MONITORS THE DISTRIBUTION AND SUBSEQUENT RECEIPT OF THE WRITTEN CONFLICT FORMS THAT ARE PROVIDED TO THE BOARD ON AN ANNUAL BASIS. WHEN THE COMPLETED FORMS HAVE BEEN RECEIVED, THE ASSISTANT TO THE CEO RECORDS AND REPORTS CONFLICTS, IF ANY, TO THE BOARD CHAIR AND THE CEO FOR THEIR REVIEW AND ACTION. ALL BOARD MEMBERS AND EMPLOYEE PERSONNEL ARE SUBJECT TO THE ORGANIZATION'S CONFLICT OF INTEREST POLICIES. ALL EMPLOYEES ARE REQUIRED TO ACT INDEPENDENTLY AND WITHOUT A CONFLICT OF INTEREST IN THE PERFORMANCE OF THEIR JOB DUTIES. IN ADDITION, AS PART OF THE BOARD MEMBERS AND EMPLOYEE PERSONNELS' TRAINING ANY POTENTIAL CONFLICT OF INTEREST PROHIBITIONS AND SITUATIONS ARE COVERED AND DISCUSSED. THE ORGANIZATION HAS ESTABLISHED AN "OVERSIGHT COMPLIANCE COMMITTEE" COMPOSED OF DIRECTORS OF THE BOARD AND STAFFED BY THE CORPORATE COMPLIANCE OFFICER AND COMPLIANCE PERSONNEL. ALL POTENTIAL CONFLICTS OF INTEREST ARE INITIALLY REVIEWED BY THE CORPORATE COMPLIANCE OFFICER, COMPLIANCE PERSONNEL AND THE MANAGEMENT COMPLIANCE COMMITTEE AND AN INITIAL DETERMINATION OF POTENTIAL CONFLICTS IS MADE. THE POTENTIAL CONFLICT OF INTEREST AND THE INITIAL DETERMINATION IS THEN REPORTED TO, AND DISCUSSED WITH THE OVERSIGHT COMPLIANCE COMMITTEE OF THE BOARD WHICH MAKES THE FINAL DETERMINATION WITH REGARDS TO WHETHER A CONFLICT OF INTEREST DOES, OR DOES NOT EXIST. ANY PERSON, INCLUDING BOARD MEMBERS, OFFICERS, DIRECTORS, KEY EMPLOYEES AND / OR MANAGERS AND ALL EMPLOYEE PERSONNEL ARE PROHIBITED BY THE BOARD CONFLICT OF INTEREST POLICY FROM PARTICIPATING IN ANY TRANSACTION IN WHICH THE OVERSIGHT COMPLIANCE COMMITTEE HAS DETERMINED THAT A CONFLICT OF INTEREST EXISTS. THE OVERSIGHT COMPLIANCE COMMITTEE PROVIDES REPORTS OF ITS ACTIVITIES DIRECTLY TO THE BOARD OF THE ORGANIZATION. ANY PERSON FOUND TO HAVE KNOWINGLY VIOLATED THE ORGANIZATION'S CONFLICT OF INTEREST POLICY IS SUBJECT TO DISCIPLINARY ACTION AND / OR DISMISSAL. BOARD MEMBERS ARE GENERALLY REMINDED FROM TIME-TO-TIME AT BOARD AND COMMITTEE MEETINGS OF THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. BOARD AND COMMITTEE MEMBERS ARE ASKED TO DISCLOSE ANY ISSUE OR MATTER IN WHICH THEY HAVE A CONFLICT AS INDICATED ABOVE. THEY ARE ALSO ASKED TO ABSTAIN FROM VOTING ON SUCH MATTERS. EMPLOYEES ARE REMINDED ABOUT POTENTIAL CONFLICTS OF INTEREST THROUGH OUR CORPORATE AND MANDATORY TRAINING PROGRAMS. FORM 990, PART VI, SECTION B, LINE 15 ALL NINE ENTITIES ARE UNDER COMMON CONTROL AND FOLLOW THE SAME COMPENSATION PROCESS. THE BOARD OF DIRECTORS HAS ESTABLISHED A MANAGEMENT AND PERSONNEL COMMITTEE COMPRISED OF BOARD MEMBERS HAVING NO CONFLICT OF INTEREST WITH RESPECT TO COMPENSATION AND BENEFIT MATTERS TO BE ESTABLISHED FOR ALL SENIOR EXECUTIVES EMPLOYED BY THE ORGANIZATION. THE BOARD COMMITTEE UTILIZES STUDY DATA AS TO COMPARABLE COMPENSATION FOR SIMILARLY QUALIFIED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS IN SIMILARLY SITUATED ORGANIZATIONS IN ITS DELIBERATIONS. DATA HAS BEEN COMPILED USING AN INDUSTRY JOB DESCRIPTION / CLASSIFICATION COMPENSATION STUDY WHICH FOCUSES ON MULTI-ORGANIZATION, MULTI-LOCATION, MULTI-LEVEL CARE SENIOR LIVING SERVICE ORGANIZATIONS IN THE UNITED STATES FOR COMPARATIVE COMPENSATION INFORMATION WHICH IS COMPARED TO THE UNITED METHODIST HOMES' SENIOR EXECUTIVE COMPENSATION LEVELS. UNITED METHODIST HOME'S KEY EMPLOYEE AND EXECUTIVE COMPENSATION LEVELS ARE REVIEWED ANNUALLY BY THE MANAGEMENT AND PERSONNEL COMMITTEE AND ARE SUBSEQUENTLY INCORPORATED, UPON APPROVAL BY THE BOARD, INTO THE ORGANIZATION'S ANNUAL BUDGET. THESE DISCUSSIONS ARE DOCUMENTED IN THE COMMITTEE MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART VII: AS PREVIOUSLY DISCLOSED IN SCHEDULE O, THE BOARD OF DIRECTORS IS A COMMON BOARD. THE TIME SPENT AS REPORTED ON PART VII IS FOR THIS ORGANIZATION AS WELL AS THE RELATED ORGANIZATIONS REPORTED ON SCH. R. FORM 990, PART IX, LINE 11G CONSULTING & MGMT SERVICES: PROGRAM SERVICE EXPENSES 83,435. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 83,435. ADMINISTRATIVE SERVICES: PROGRAM SERVICE EXPENSES 450,035. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 450,035. FORM 990, PART XI, LINE 9: CHANGE IN FAIR VALUE OF DERIVATIVE INSTRUMENTS -53,151. FORM 990, PART XII, LINE 2C: THE ORGANIZATION HAS A COMMITTEE THAT ASSUMES RESPONSIBILITY OVER THE AUDIT. NEITHER THE OVERSIGHT PROCESS OR SELECTION PROCESS HAS CHANGED SINCE THE PRIOR YEAR. FORM 990, PART VI, SECTION A, LINE 2: ON AN ANNUAL BASIS, THE ORGANIZATION PROVIDES A QUESTIONNAIRE TO ALL BOARD MEMBERS WHICH ADDRESSES ANY POTENTIAL BUSINESS OR FAMILY RELATIONSHIP BETWEEN OFFICERS, DIRECTORS, TRUSTEES, OR KEY EMPLOYEES. BASED ON THE RESPONSES, THERE ARE NO FAMILY OR BUSINESS RELATIONSHIPS IDENTIFIED BETWEEN OFFICERS, DIRECTORS, TRUSTEES, OR KEY EMPLOYEES WHICH WOULD REQUIRE DISCLOSURE ON THE FORM 990. PART V, LINE 2A ALL W-2 FORMS ARE ISSUED BY UMH MANAGEMENT SERVICES CORP. WHICH ACTS AS THE COMMON PAYMASTER FOR ALL RELATED ENTITIES OPERATING UNDER THE BRAND NAME "UNITED METHODIST HOMES". WESLEY TOWERS INC 10 ACRE PLACE BINGHAMTON NY 13904 237095034 INACTIVE PA 501 (C)(3) LINE 11A UMH NY CORP 0 BROOKS CENTER INC 10 ACRE PLACE BINGHAMTON NY 13904 161446116 INACTIVE NY 501 (C)(3) LINE 11A UMH NY CORP 0 UNITED METHODIST HOMES FOUNDATION 10 ACRE PLACE BINGHAMTON NY 13904 161401063 FUNDRAISING NY 501 (C)(3) LINE 11A UMH NY CORP 0 UMH ECM CORP 10 ACRE PLACE BINGHAMTON NY 13904 161421889 NURSING HOME NY 501 (C)(3) LINE 11A UMH NY CORP 0 UMH NY CORP 10 ACRE PLACE BINGHAMTON NY 13904 240856145 NURSING AND RESIDENT SERVICES NY 501 (C)(3) LINE 9 N/A 0 UMH PA CORP 10 ACRE PLACE BINGHAMTON NY 13904 223266577 NURSING AND RESIDENT SERVICES PA 501 (C)(3) LINE 11A UMH NY CORP 0 UMH JGJ CORP 10 ACRE PLACE BINGHAMTON NY 13904 161421888 NURSING HOME NY 501 (C)(3) LINE 11A UMH NY CORP 0 THE GRACE VIEW MANOR NURSING HOME CORPORATION 10 ACRE PLACE BINGHAMTON NY 13904 223180239 NURSING HOME NY 501 (C)(3) LINE 11A UMH NY CORP 0 0 0 0 1 1 0 0 0 0 0 1 1 0 0 1 0 0 0 0