2016-04-26T12:20:10-05:00 2015-06-30 381357951 PLANTE & MORAN PLLC PO BOX 307 SOUTHFIELD MI 480370307 990 2014-07-01 300036587 GREENCROFT RETIREMENT COMMUNITIES INC GREE 5745374000 PO BOX 819 GOSHEN IN 46527 DALE SHENK TREASURER 5745374000 2016-02-22 1 DAVID LOWENTHAL P00378651 2483522500 2014 2016-08-17 19:52:53Z MARK KING 1721 GREENCROFT BLVD GOSHEN IN 46526 5327244 0 X WWW.GREENCROFT.ORG X 2002 IN GREENCROFT RETIREMENT COMMUNITIES' MISSION IS TO PROVIDE MANAGEMENT & SUPPORT SERVICES TO RELATED NOT-FOR-PROFIT ORGANIZATIONS THAT PROVIDE AFFORDABLE HOUSING, QUALITY CARE, AND CHARITY CARE FOR OLDER ADULTS. 9 9 39 44 0 0 0 2135 3927235 4709525 39376 68785 5167 4721 3971778 4785166 235305 27062 0 0 3804541 3824533 0 0 0 819858 798335 4859704 4649930 -887926 135236 10819675 10847654 1847472 1774995 8972203 9072659 GREENCROFT COMMUNITIES CREATES DYNAMIC LIVING COMMUNITIES THAT EMBRACE THE CREATIVITY, CONTRIBUTIONS AND CHALLENGES OF AGING FOR ALL, GROUNDED IN SERVICE EXCELLENCE, COMPASSIONATE CARE AND MENNONITE VALUES. 0 0 3075404 27062 4709525 GREENCROFT RETIREMENT COMMUNITIES, INC (GRC) IS THE SPONSOR OF TEN NOT-FOR-PROFIT CONTINUING CARE RETIREMENT COMMUNITIES (CCRC) AND HUD FACILITIES. GRC PROVIDES THEM WITH SUPPORT AND SERVICES, AND GIVES 2,000 ELDERLY RESIDENTS OF ALL ECONOMIC LEVELS AN ENVIRONMENT THAT EMBRACES THEIR CREATIVITY AND CONTRIBUTIONS, AS WELL AS THE CHALLENGES OF AGING. AT LEAST 40 PERCENT OF RESIDENTS HAVE INCOME BELOW THE FEDERAL POVERTY LINE. RESIDENTS WHO DO NOT MISUSE THEIR ASSETS ARE ELIGIBLE FOR SUPPORT FROM THE GREENCROFT COMMUNITIES FOUNDATION (ANOTHER RELATED ORGANIZATION) IF THEIR ASSETS RUN OUT. 3075404 1 0 0 0 0 0 0 0 0 0 1 0 0 1 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 0 1 1 1 0 0 1 78 0 1 39 1 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 IN X DALE SHENK 5745374000 1721 GREENCROFT BLVD GOSHEN IN 46527 DENNIS BLYLY VICE CHAIR 1.00 0.00 X X 0 0 0 ROD DILLER CHAIR 1.00 0.00 X X 0 0 0 LIZ GUNDEN BOARD MEMBER 1.00 0.00 X 0 0 0 JIM L HISTAND BOARD MEMBER-PARTIAL YEAR 1.00 0.00 X 0 0 0 SAM HOOVER BOARD MEMBER 1.00 0.00 X 0 0 0 LAURIE NEUMANN NAFZIGER BOARD MEMBER 1.00 0.00 X 0 0 0 LOREN ROTH BOARD MEMBER 1.00 0.00 X 0 0 0 DANIELLE THOMPSON BOARD MEMBER 1.00 0.00 X 0 0 0 BYRON SHELTER BOARD MEMBER 1.00 0.00 X 0 0 0 DAVE WEAVER BOARD MEMBER 1.00 0.00 X 0 0 0 MARK KING PRESIDENT 50.00 0.10 X 539260 0 154850 ROBERT GIBSON VICE PRESIDENT/CFO 45.00 3.50 X 243597 0 90520 DALE SHENK TREASURER 32.00 11.50 X 115893 0 33060 ANDREA KING ASSISTANT TREASURER 16.00 24.00 X 63513 0 13623 ANGELA MARSHALL SECRETARY 38.00 2.00 X 50481 0 11486 KATHY BREWTON VP OF HUMAN RESOURCES 40.00 0.00 X 124977 0 28465 SANDRA YODER ADMINISTRATOR - GOSHEN 2.00 43.00 X 139906 0 42481 DAVID THOMPSON ADMINISTRATOR - HAVEN HUBBARD HOMES 0.00 45.00 X 110009 0 25277 JEREMY KAUFFMAN ADMINISTRATOR - WALNUT HILLS 0.00 40.00 X 103135 0 29302 RYDELL BONTRAGER VP OF INFORMATION SERVICES 40.00 0.00 X 124032 0 33012 1614803 0 462076 8 0 1 0 D-J CONSTRUCTION COMPANY INC 3414 ELKHART ROAD GOSHEN IN 46526 CONSTRUCTION SERVICES 10216588 HEALTHCARE THERAPY SERVICES 1411 W COUNTY LINE RD SUITE A GREENWOOD IN 46142 THERAPY SERVICES 916741 PLANTE MORAN 27400 NORTHWESTERN HIGHWAY SOUTHFIELD MI 48037 ACCOUNTING SERVICES 354270 HORTY ELVING & ASSOCIATES INC 505 EAST GRANT STREET MINNEAPOLIS MN 55404 ARCHITECT SERVICES 329842 ADP INC PO BOX 842875 BOSTON MA 02284 PAYROLL SERVICES 324204 16 2135 2135 MGMT/AFFILIATE SUPPORT 561000 4709525 4709525 4709525 60863 60863 550000 540979 1099 9021 -1099 7922 7922 MISCELLANEOUS REVENUE 900099 4721 4721 4721 4785166 4709525 0 73506 27062 27062 1054750 770428 284322 2106645 1308336 798309 252536 156838 95698 289802 179982 109820 120800 75023 45777 89403 89403 58200 58200 69403 69403 62779 62779 69977 69977 37525 37525 80827 80827 26230 26230 23020 23020 108845 108845 10297 10297 PROF. DEVELOPMENT 63674 63674 FACILITY MAINTENANCE 48000 48000 DUES & SUBSCRIPTIONS 19489 19489 REPAIRS & MAINTENANCE 15166 15166 15500 15500 4649930 3075404 1574526 0 200 200 6340205 6740742 208135 221458 465 354 292201 82573 1707991 1056332 716262 651659 3262207 3150668 10819675 10847654 772825 718480 1074647 1056515 1847472 1774995 X 8972203 9072659 8972203 9072659 10819675 10847654 135236 -34780 0 X X 0 1 X 1 0 X X 12 GREENCROFT GOSHEN INC 351270709 9 1 0 0 GREENCROFT CENTRAL MANOR INC 356047318 9 1 0 0 GREENCROFT MANOR II INC 351377430 9 1 0 0 GREENCROFT MANOR III INC 351431475 9 1 0 0 GREENCROFT HOME HEALTH SERVICES INC 351606010 9 1 0 0 GREENCROFT COMMUNITIES FOUNDATION INC 237126990 7 1 0 0 GREENCROFT MIDDLEBURY INC 300036865 9 1 0 0 SOUTHFIELD VILLAGE INC 351866553 9 1 0 0 HAVEN HUBBARD HOMES INC 350870110 9 1 0 0 CHICAGO TRAIL VILLAGE INC 310990629 9 1 0 0 OAK GROVE CHRISTIAN RETIREMENT VILLAGE INC 351986767 9 1 0 0 WALNUT HILLS RETIREMENT COMMUNITIES INC 351317338 9 1 0 0 12 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 SCHEDULE A, PART I, LINE 11G, COL. V: THE ORGANIZATION PROVIDES CORPORATE AND MANAGEMENT SERVICES TO ALL SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION D, LINE 3: THE SUPPORTED ORGANIZATIONS HAVE REPRESENTATION, OR THE OPPORTUNITY THERETO, ON THE AUDIT/INVESTMENT COMMITTEE THAT REVIEWS INVESTMENT POLICIES AND AUDIT PLANNING/RESULTS FOR ALL AFFILIATED ENTITIES. SEVERAL TIMES A YEAR, THE PRESIDENTS OF EACH OF THE SUPPORTED ORGANIZATIONS MEET JOINTLY WITH THE PRESIDENT AND VICE-PRESIDENT, AND OTHER SENIOR MANAGEMENT, OF GREENCROFT RETIREMENT COMMUNITIES (GRC) TO REVIEW OPERATIONS. ALSO, EITHER THE PRESIDENT OR VICE-PRESIDENT OF GRC ARE PRESENT AT ALL OF THE BOARD MEETINGS OF THE SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 3A: EACH OF THESE ENTITIES HAVE ONE MEMBER, GREENCROFT RETIREMENT COMMUNITIES, INC. (GRC), THAT IS ALSO A RELATED TAX-EXEMPT ORGANIZATION. THE RESERVED POWERS OF THE SOLE MEMBER ARE AS FOLLOWS: 1. APPROVAL TO ANY CHANGES IN CORPORATE MISSION, WHICH MAY BE PROPOSED BY THE ORGANIZATION, BUT WHICH SHALL BECOME EFFECTIVE ONLY UPON APPROVAL OF GRC 2. APPROVAL OF NOMINATED CANDIDATES TO SERVE AS DIRECTOR OF THE ORGANIZATION 3. THE CREATION OR DISCONTINUATION OF PROGRAMS OR SERVICES OFFERED BY THE ORGANIZATION 4. AMENDMENTS TO THE BYLAWS AND ARTICLES OF INCORPORATION 5. APPROVAL OR THE ADOPTION OF THE ANNUAL BUDGET 6. APPROVAL OF NON-BUDGETED CONTRACTS AND/OR NON-BUDGETED PURCHASES OF OVER $50,000 7. THE INCURRENCE OF INDEBTEDNESS OF OVER $500,000 8. THE SALE OF REAL ESTATE 9. THE DONATION OR TRANSFER OF ALL OR SUBSTANTIALLY ALL OF THE ORGANIZATION'S ASSETS 10. ANY MERGER OR CONSOLIDATION WITH ANY OTHER ORGANIZATION, OR THE PARTIAL OR TOTAL DISSOLUTION OF THE ORGANIZATION 11. THE CREATION OF SUBSIDIARY CORPORATIONS, LLCS, PARTNERSHIPS, OR OTHER ENTERPRISES 12. THE ACQUISITION OF CONTROLLING INTERESTS IN ANOTHER ENTITY 13. THE APPOINTMENT OF THE PRESIDENT/CEO, CFO, SECRETARY, AND TREASURER OF THE CORPORATION (BUT NOT THE OFFICERS OF THE BOARD OF DIRECTORS) 14. THE REMOVAL OF THE CHAIR OF THE BOARD OF DIRECTORS, WITH OR WITHOUT CAUSE 15. THE REMOVAL OF MEMBERS OF THE BOARD OF DIRECTORS, WITH OR WITHOUT CAUSE NOTWITHSTANDING THESE RESERVED POWERS, THE MEMBER HAS NO FINANCIAL OBLIGATIONS OR RESPONSIBILITIES FOR ANY ACTIONS OF THE ORGANIZATION BY REASON OF SERVING AS A MEMBER. SCHEDULE A, PART IV, SECTION E, LINE 3B: SEE NARRATIVE FOR SCHEDULE A, PART IV, SECTION E, LINE 3A. 383032 383032 9662 8143 1519 1315297 1048189 267108 651659 DUE FROM AFFILIATE - GREENCROFT CENTRAL MANOR 240460 DUE FROM AFFILIATE - GREENCROFT MANOR II 5383 DUE FROM AFFILIATE - GREENCROFT MANOR III 40504 DUE FROM AFFILIATE - GREENCROFT MIDDLEBURY 1805079 DUE FROM AFFILIATE - GREENCROFT GOSHEN 22965 DUE FROM AFFILIATE - HAMILTON GROVE 59852 DUE FROM AFFILIATE - CHICAGO TRAIL VILLAGE 3181 DUE FROM AFFILIATE - WALNUT HILLS RETIREMENT COMMUNITIES 746061 DUE FROM AFFILIATE - OAK GROVE CHRISTIAN RETIREMENT VILLAGE 149057 ACCRUED INTEREST RECEIVABLE 2997 DUE FROM AFFILIATE - SOUTHFIELD VILLAGE 73446 DUE TO AFFILIATE - GREENCROFT COMMUNITIES FOUNDATION 1683 3150668 DEFERRED COMPENSATION LIABILITY 1056515 1056515 X PART X, LINE 2: THE INTERNAL REVENUE SERVICE HAS RULED THAT SUBSTANTIALLY ALL OF THE ORGANIZATIONS COMPRISING GREENCROFT RETIREMENT COMMUNITIES, INC. AND AFFILIATES ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE ORGANIZATION HAS BEEN DETERMINED TO BE A PUBLICLY SUPPORTED ORGANIZATION AND NOT A PRIVATE FOUNDATION. ACCORDINGLY, THE ORGANIZATION'S NET INVESTMENT INCOME IS NOT SUBJECT TO EXCISE TAX AND GIFTS MADE TO THE ORGANIZATION ARE DEDUCTIBLE ON THE PART OF DONORS, SUBJECT TO SPECIFIED LIMITATIONS FOR CHARITABLE CONTRIBUTIONS. GREENCROFT MANAGEMENT, INC. IS A FOR-PROFIT AFFILIATED ENTITY OF GREENCROFT RETIREMENT COMMUNITIES, INC. AND AFFILIATES. INCOME TAX PROVISIONS ARE NOT MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS. THE ACCOUNTING STANDARD THAT REFERS TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ADDRESSES THE DETERMINATION OF HOW TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED ON THE CONSOLIDATED FINANCIAL STATEMENTS. COMPANIES MUST RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED UPON EXAMINATION BY THE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE STANDARD ALSO PROVIDES GUIDANCE ON DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS, AND REQUIRES INCREASED DISCLOSURES. THE EVALUATED POTENTIAL EXPOSURE RELATED TO UNCERTAIN TAX POSITIONS WAS FOUND TO BE IMMATERIAL. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE ORGANIZATION AND RECOGNIZE A TAX LIABILITY IF THE ORGANIZATION HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE ORGANIZATION AND HAS CONCLUDED THAT AS OF JUNE 30, 2015 AND 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE ORGANIZATION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO JUNE 30, 2012. 1 MENNONITE HEALTH SERVICES 234 S MAIN ST STE A GOSHEN IN 46526 231421919 501(C)(3) 8000 N/A N/A MENNONITE HEALTH ASSEMBLY SPONSORSHIP 1 0 PART I, LINE 2: GRANTS MADE ARE UNRESTRICTED AND CAN BE USED IN ANY WAY THE RECIPIENT SEES FIT TO FURTHER ITS TAX-EXEMPT PURPOSE. X X 0 1 0 0 0 0 0 0 0 MARK KING PRESIDENT 314041 0 0 0 225219 0 129307 0 25543 0 694110 0 177640 0 ROBERT GIBSON VICE PRESIDENT/CFO 196660 0 0 0 46937 0 71572 0 18948 0 334117 0 0 0 KATHY BREWTON VP OF HUMAN RESOURCES 116111 0 0 0 8866 0 7168 0 21297 0 153442 0 0 0 SANDRA YODER ADMINISTRATOR - GOSHEN 118708 0 0 0 21198 0 21209 0 21272 0 182387 0 0 0 RYDELL BONTRAGER VP OF INFORMATION SERVICES 99330 0 0 0 24702 0 6219 0 26793 0 157044 0 0 0 PART I, LINE 4B KATHY BREWTON - $0 ROBERT GIBSON - $0 MARK KING - $199,915 SCHEDULE J, PART I, LINE 4B: 2000 SERP: EFFECTIVE JANUARY 1, 2000, THE BOARD OF DIRECTORS OF GREENCROFT GOSHEN ESTABLISHED A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN UNDER SECTION 457(F) TO PROVIDE ITS EXECUTIVE GROUP OF EMPLOYEES WITH CERTAIN RETIREMENT BENEFITS. THE EXECUTIVE MUST BE EMPLOYED UNTIL AGE 62 TO RECEIVE THE BENEFIT. THE PLAN WAS FROZEN IN 2005. NO PAYMENTS WERE MADE TO LISTED PERSONS IN CALENDAR YEAR 2014. PARTICIPANTS OF THIS PLAN ARE KATHY BREWTON AND ROBERT GIBSON. 2011 RETENTION SERP: THE 2011 RETENTION SERP IS DESIGNED TO RETAIN STAFF UP TO A CERTAIN AGE. THE PAYMENT INTO THE FUND IS BASED ON ANNUALLY REACHING THE BOARD'S FINANCIAL AND QUALITY TARGETS. IF THESE TARGETS ARE MET, THE BOARD PLACES A PAYMENT INTO THE FUND ON BEHALF OF THE EMPLOYEES. THE GOAL IS TO RETAIN THE EMPLOYEE BY PAYING A MARKET COMPETITIVE WAGE IF THE EMPLOYEE STAYS WITH THE ORGANIZATION UNTIL AGE 62. THE BOARD WILL NOT PAY ABOVE THE 75TH PERCENTILE OF THE MARKET RANGE FOR THE POSITION IN A GIVEN YEAR, INCLUDING THE SERP AMOUNT ALLOWED FOR THE EMPLOYEE. PARTICIPANTS OF THIS PLAN ARE ROBERT GIBSON AND MARK KING. SCHEDULE J, PART I, LINE 3: A COMPLETE DESCRIPTION OF THE ORGANIZATION'S COMPENSATION PHILOSOPHY AND METHODOLOGY FOR ESTABLISHING COMPENSATION IS PROVIDED ON SCHEDULE O UNDER THE HEADING "FORM 990, PART VI. SECTION B, LINE 15." FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION DOES NOT HAVE MEMBERS. THE ORGANIZATION'S SPONSOR, MENNONITE HEALTH SERVICES, APPOINTS SIX OF THE NINE DIRECTORS OF THE BOARD ("SPONSOR APPOINTED DIRECTORS"). A SPONSOR APPOINTED DIRECTOR MAY BE REMOVED AT ANY TIME WITH OR WITHOUT CAUSE. FORM 990, PART VI, SECTION B, LINE 11 A FINAL DRAFT OF THE FULL FORM 990, INCLUDING ALL APPLICABLE SCHEDULES, IS PRESENTED BY OUR TAX ADVISORS TO THE ORGANIZATION'S AUDIT COMMITTEE AT A REGULARLY SCHEDULED MEETING. A COPY OF THE FINAL DRAFT IS THEN PROVIDED TO EACH BOARD MEMBER PRIOR TO ITS FILING. THIS ALLOWS THE BOARD OF DIRECTORS AND MANAGEMENT TO REVIEW AND PROVIDE COMMENTS AND EXPLANATIONS REGARDING CHANGES TO THE REDESIGNED FORM. FORM 990, PART VI, SECTION B, LINE 12C BOARD MEMBERS AND OFFICERS ARE REQUIRED TO ANNUALLY DISCLOSE ANY CONFLICTS OF INTEREST THEY MAY HAVE WITH THE ORGANIZATION. THE TREASURER REVIEWS EACH POLICY STATEMENT SIGNED BY THESE INDIVIDUALS TO DETERMINE IF ANY CONFLICTS HAVE OCCURRED AND NEED TO BE BROUGHT TO THE ATTENTION OF THE BOARD. IF A CONFLICT ARISES, THE RESPECTIVE BOARD MEMBER WILL ABSTAIN HIM/HERSELF FROM ANY RELATED DISCUSSION, VOTE OR SIMILAR ACTION ON THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 GREENCROFT COMMUNITIES' (GC) PHILOSOPHY IS TO COMPENSATE TEAM MEMBERS IN A FAIR MANNER FOR THE WORTH OF WORK PROVIDED WITHIN THE CURRENT MARKET VALUE RANGE FOR EACH POSITION IN THE ORGANIZATION. GC WILL CONDUCT PERIODIC REVIEW OF THE MARKET TO DEVELOP AVERAGE WAGES FOR POSITIONS WITHIN GREENCROFT COMMUNITIES. GREENCROFT COMMUNITIES WILL START EMPLOYEES THAT MEET THE MINIMUM REQUIREMENTS FOR THE POSITION AT/OR NEAR THE STARTING WAGE. EMPLOYEES WITH EXPERIENCE IN A JOB ARE HIRED HIGHER UP IN THE WAGE SCALE. A HIRING GRID IS USED FOR UP TO ELEVEN YEARS OF EXPERIENCE. OUR COMPENSATION PHILOSOPHY FOR STAFF OF OUR ORGANIZATION IS BASED ON THE VARIOUS TIERS. THE FIRST TIER IS GENERAL AND MANAGEMENT STAFF. WE HAVE HIRED AN OUTSIDE CONSULTANT TO DEVELOP A COMPENSATION SYSTEM FOR ALL OF GREENCROFT COMMUNITIES' POSITIONS. THE CONSULTANTS DEVELOPED A SYSTEM WITH WAGE SCALES THAT USE THE MARKETPLACE AVERAGE FOR KEY POSITIONS AS THE STARTING POINT FOR THE SCALES. THE WAGE SCALES HAVE A MINIMUM, A 25TH PERCENTILE, A 50TH PERCENTILE (AVERAGE) A 75TH PERCENTILE AND A MAXIMUM. WE STRIVE TO KEEP THE AVERAGE PAY IN THE MARKETPLACE FOR POSITIONS AT THE MID-POINT OF OUR PAY RANGE FOR A POSITION DEVELOPED BY OUR CONSULTANTS. PERIODICALLY WE HIRE A CONSULTANT TO UPDATE THE MARKETPLACE AVERAGE FOR SEVERAL KEY POSITIONS. THE CONSULTANT WILL USE AREA MARKETPLACE DATA, LEADINGAGE DATA, AND OTHER INDUSTRY DATA TO DEVELOP THE AVERAGE. OUR COMPENSATION PHILOSOPHY FOR EXECUTIVE STAFF (VICE PRESIDENTS AND ABOVE) OF OUR ORGANIZATION IS SLIGHTLY DIFFERENT. THE SECOND TIER IS VICE PRESIDENTS. THE WAGE SCALE SYSTEM IS THE SAME FOR OUR STAFF. HOWEVER, OUR POLICY STATES THAT VICE PRESIDENTS CAN EARN UP TO THE 85TH PERCENTILE OF THE RANGE FOR THEIR POSITION. OUR THIRD TIER IS SENIOR VICE PRESIDENTS AND CEO STAFF. THE WAGE SCALE SYSTEM IS THE SAME FOR OUR STAFF. HOWEVER, THERE ARE TWO DIFFERENCES. FIRST, THE POLICY STATES THAT SENIOR VICE PRESIDENTS AND THE CEO CAN EARN UP TO THE 75TH PERCENTILE OF THE RANGE FOR THEIR POSITION. THE PAY RANGE USES THE MARKETPLACE MEDIAN AS THE MID-POINT FOR THESE PAY RANGES, NOT THE MARKETPLACE AVERAGE. GENERALLY THE MEDIAN IS BELOW THE AVERAGE. THE BOARD HAS ALSO DESIGNED A QUALIFIED DEFERRED COMPENSATION PROGRAM FOR THIS TIER OF EMPLOYEE. ANNUALLY THE BOARD SETS ASIDE UP TO 10% OF THESE EMPLOYEES' WAGES IN THIS PROGRAM. ANNUALLY THE BOARD REVIEWS THE SALARY AND WAGE COMPARISONS FOR EACH EXECUTIVE STAFF MEMBER. A FISCAL YEAR 2015 SURVEY OF OUR EXECUTIVE POSITIONS SHOW THE FOLLOWING BREAKDOWNS: VICE PRESIDENT, SENIOR VICE PRESIDENT & CEO: UMBER OF EMPLOYEES IN GROUP 0 TO 24TH PERCENTILE 0 (0%) 25TH TO 49TH PERCENTILE 1 (8%) 50TH TO 74TH PERCENTILE 10 (77%) 75TH TO 100TH+ PERCENTILE 2 (15%) THE OVERALL COMPENSATION POLICY, THE VPS COMPENSATION POLICES AND THE CEO COMPENSATION POLICY ARE APPROVED BY THE GREENCROFT COMMUNITIES (GC) BOARD OF DIRECTORS. THE VARIOUS AFFILIATES IN THE GC STRUCTURE REVIEW THE COMPENSATION POLICIES. ANNUALLY THE GC BOARD AND ITS AFFILIATE BOARDS REVIEW THE COMPENSATION OF THEIR RESPECTIVE EXECUTIVE TEAMS. THEY COMPARE BASE WAGES AND VARIABLE PAY PLAN WITH NATIONAL DATA PROVIDED BY LEADINGAGE (FORMERLY THE AMERICAN ASSOCIATION OF HOMES AND SERVICES FOR THE AGING - AAHSA). THE BOARDS REVIEW THE CURRENT WAGE, THE PERCENTILE RANKING OF THE EMPLOYEE IN HIS/HER RESPECTIVE RANGE AND THE MEDIAN OF THE MARKETPLACE COMPARED TO THE MID-POINT OF THE EMPLOYEE'S RANGE. THE BOARDS DOCUMENT THESE MEETINGS AND ACTIONS TAKEN IN THEIR BOARD MINUTES. THE GC BOARD HAS REVIEWED THE BASE WAGE AND THE VARIABLE PAY FOR THE PRESIDENT AND CEO OF GREENCROFT COMMUNITIES. IN THE FISCAL YEAR 2015 THIS POSITION WAS, COMPARED TO SIMILAR SIZE NON-PROFIT ORGANIZATIONS, AT THE 55TH PERCENTILE OF THE MARKET FOR BASE COMPENSATION, THE 44TH PERCENTILE OF THE MARKET FOR TOTAL CASH COMPENSATION AND AT THE 27TH PERCENTILE OF THE MARKET FOR THE VARIABLE PAY COMPENSATION. THE LEADINGAGE/ZIEGLER 2015 DATA SHOWS TOTAL COMPENSATION TO BE $230,100 TO $572,760. FOUR YEARS AGO THE BOARD ADDED AN UNQUALIFIED SERP PROGRAM FOR THE TOP TWO EXECUTIVES (THE CEO AND THE CFO) OF THE ORGANIZATION. THE PURPOSE IS IN RECOGNITION OF TEN YEARS OF POSITIVE PERFORMANCE AND TO SERVE AS A RETENTION INCENTIVE, SO THE ORGANIZATION DOES NOT LOSE THIS TALENT TO OTHERS OFFERING A MORE COMPETITIVE WAGE. PAYMENTS INTO THE SERP ARE BASED ON LONGEVITY AND ORGANIZATIONAL PERFORMANCE. ANNUALLY THE BOARD REVIEWS FINANCIAL PERFORMANCE AND ALLOCATES A DOLLAR AMOUNT INTO AN UNQUALIFIED SERP FOR THESE TWO EXECUTIVES. THE EXECUTIVES NEED TO BE EMPLOYED AT GC AT THE QUALIFYING AGE TO BE ELIGIBLE FOR PAYMENT FROM THIS FUND, IF THEY ARE NOT EMPLOYED THE FUNDS REMAIN WITH GC. IF THE EXECUTIVES WERE TO RECEIVE THE FUNDS TODAY, THEY WOULD EARN APPROXIMATELY THE 66TH AND 58TH PERCENTILE OF TOTAL COMPENSATION COMPARED TO PEERS WITH THE RANGE FOR THEIR RESPECTIVE POSITIONS. ADDITIONALLY, THE BOARD LOOKED AT TWO ADDITIONAL DATA SOURCES FOR WAGE COMPARISONS. 1) GUIDESTAR 2013 DATA SHOWS THAT CEOS OF RETIREMENT ORGANIZATIONS OF SIMILAR SIZE BASE COMPENSATION RANGE FROM $292,000 TO $674,000-- GC PRESIDENT IS AT THE 24TH PERCENTILE OF THE RANGE FOR CCRCS COUNTERPART ORGANIZATIONS. 2) LEADINGAGE/ZIEGLER 2015 DATA SHOWS THAT FOR-PROFIT CEOS BASE COMPENSATION RANGE IS $262,100 TO $883,400 AND TOTAL CASH COMPENSATION RANGE IS $940,000 TO $2,233,300. COMPENSATION REPORTED ON THIS 990 IS UNUSUALLY HIGH THIS YEAR FOR TWO REASONS: 1) MANAGEMENT MADE A DECISION TO PAY OUT AN ACCRUAL OF SICK TIME THAT HAS BEEN ON THE BOOKS SINCE THE ORGANIZATION MOVED TO PAID TIME OFF (PTO) IN 2008. THIS ACCRUAL WAS PAID TO EXEMPT AND NON-EXEMPT STAFF AT GREENCROFT COMMUNITIES AND GREENCROFT GOSHEN. THIS INFLATED SOME WAGES FOR THE YEAR UP TO $25,000. 2) THE BOARD HAS A SERP PROGRAM FOR THE SENIOR EXECUTIVES. THE CEO MET A BENCHMARK ESTABLISHED BY THE BOARD AND WAS PAID A PORTION OF THE SERP IN LATE 2014. THE AMOUNT WAS APPROXIMATELY $200,000, AND AFTER PAYROLL AND OTHER TAXES THE EXECUTIVE RECEIVED ABOUT 50% OF THE AMOUNT IN CASH. THIS SERP WAS REPORTED IN PRIOR YEARS AS DEFERRED COMPENSATION AND WAS PART OF THE COMPARATIVE MATERIAL ON HOW SALARY AND COMPENSATION WAS COMPARED TO PEERS. IN NONE OF THE PRIOR YEARS WAS THE EXECUTIVE, INCLUDING THE DOLLAR AMOUNT OF SERP PAYOUT IN 2014, PAID MORE THAN THE 70% PERCENTILE OF THE RANGE FOR A CEO POSITON. THIS PROCESS WAS LAST PERFORMED IN FISCAL YEAR 2015. FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. FORM 990, PART XII, LINE 2C: THE AUDIT PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. 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