MASONIC VILLAGES OF THE GRAND LODGE OF PENNSYLVANIA ELIZABETHTOWN, PENNSYLVANIA

MASONIC VILLAGES OF THE GRAND LODGE OF PENNSYLVANIA ELIZABETHTOWN, PENNSYLVANIA FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31,2017 AND 2016

TABLE OF CONTENTS Financial Statements: Balance Sheets Statements of Operations Statements of Changes in Net Assets Statements of Cash Flows PAGE 1-2 3 4-5 6 Supplementary Information: Schedule 1 - Cash and cash equivalents Schedule 2 - Resident accounts receivable Schedule 3 - Assets whose use is limited under indenture agreement and held by trustee Schedule 4 - Investments Schedule 5 - Property and equipment Schedule 6 - Current installments of long-term debt Schedule 7 - Accrued expenses Schedule 8 - Long-term debt Schedule 9 - Resident service revenue Schedule 10 - Amortization of entrance fees Schedule 11 - Other revenue - unrestricted Schedule 12 - Investment income- unrestricted Schedule 13 - Nonoperating gains (losses)- unrestricted Schedule 14 - Operating expenses - unrestricted by natural classification Schedule 15 - Operating expenses - unrestricted by functional classification Schedule 16 - Summary of gift planning revenues and expenses Schedule 17 - Comparison of spending policy maximum to year-to-date cash transfers from Consolidated Fund Schedule 18 - Combining balance sheet 7 7 7 8 9 9 9 10 11 12 12 13 14 15 16 17 18 19-20 Statements of Operations and Changes in Unrestricted Net Assets by Division Schedule 19 - Masonic Villages Consolidated Schedule 20 - Masonic Villages Corporate Function Schedule 21 - Masonic Village at Elizabethtown Schedule 22 - Masonic Village at Warminster Schedule 23 - Masonic Village at Dallas Schedule 24 - Masonic Village at Sewickley Schedule 25 - Masonic Village at Lafayette Hill Schedule 26 - Pennsylvania Acacia Insurance Company, LTD Schedule 27 - Ashlar Home Health and Hospice Services, LLC Schedule 28 - Acacia Services, LLC Schedule 29 - Ashlar Creative Solutions, LLC 21 22 23 24 25 26 27 28 29 30 31

BALANCE SHEETS MARCH 31,2017 AND 2016 :I ASSETS Current Assets: Cash and cash equivalents (Schedule 1) Assets whose use is limited and that are required for current liabilities (Schedule 3) Accounts receivable Resident (Schedule 2) Masonic Charities Fund Pennsylvania Masonic Youth Foundation The Masonic Library and Museum of Pennsylvania Estimated third party settlements receivable Investment income receivable Inventory, at cost Other current assets Notes receivable Contributions receivable Total current assets 21,331,770 3,640,654 6,902,132 38,938 820 762,165 1,377,882 2,714,852 2,857,369 2,367,480 70,671 42,064,733 18,123,01 1 4,653,397 8,730,843 32,885 3,267 109 774,924 1,376,135 2,282,768 3,111,407 2,164,496 63,866 41,317,108 Contributions receivable, net of current portion 326,918 336,480 Assets whose use is limited, net of current portion (Schedule 3) 28,759,772 Investments at fair value (Schedule 4) 673,602,423 666,243,240 Property and equipment, net of accumulated depreciation of 327,414,095 and 301,689,143 (Schedule 5) 360,171,816 357,916,919 Other noncurrent assets, net of accumulated amortization of 752,400 and 699,600 307,573 394,225 1 '1 05,233,235 1,066,207,972

LIABILITIES AND NET ASSETS Current Liabilities: Current installments of long-term debt (Schedule 6) Accounts payable The Masonic Library and Museum of Pennsylvania Grand Lodge Other Accrued expenses (Schedule 7) Deferred revenue from estates and trusts Residents' personal funds Deposits on unoccupied units Annuities payable 10,115,000 9,425,000 736 32,238 21,512 4,923,701 7,333,590 12,653,560 13,920,329 42,697 46,986 831,625 869,975 2,985,059 1,279,740 1,111,157 3,350,013 Total current liabilities 32,695,773 36,247,145 Accrued pension costs Annuities payable, net of current portion Contributions payable Refundable fees Deferred revenue from entrance fees Interest rate swap agreements Deferred revenue from landfill settlement Long-term debt and unamortized bond premium, less current installments (Schedule 8) Total liabilities 12,947,660 13,693,715 5,435,014 15,519,312 11,799,147 83,952,767 75,487,412 100,684,182 101,824,193 20,504,995 27,298,763 25,000 35,000 199,350,37 4 179,063,347 455,595,765 460,968,034 Net Assets Unrestricted Temporarily restricted Permanently restricted Total net assets 357,195,816 326,841,079 83,391,342 69,465,433 209,050,312 208,933,426 649,637,470 605,239,938 1 '1 05,233,235 1,066,207,972 2

STATEMENTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2017 AND 2016 Operating revenues Resident service revenue, net of third party contractual and charity care allowances (Schedule 9) Provision for bad debts Total net resident service revenue Amortization of entrance fees (Schedule 1 0) Other revenue (Schedule 11) Investment income (Schedule 12) Total operating revenues 34,354,610 (1 02,796) 34,251,814 2,937,258 923,503 2,948,627 41,061,202 34,109,000 (87,946) 34,021,054 2,707,828 987,039 3,510,990 41,226,911 Operating expenses (Schedules 14 and 15) 48,538,966 46,954,350 Loss from operations before change in fair value of derivative financial instruments (7,477,764) (5,727,439) Net unrealized appreciation (depreciation) on interest rate swap agreements 1,376,271 (2,376,896) Loss from operations (6, 101,493) (8,1 04,335) Nonoperating gains to subsidize operating deficiency and provide for future capital expenditures (Schedule 13) 13,417,527 10,007,907 Excess of revenues and gains over expenses 7,316,034 1,903,572 Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases Total net assets released from restrictions 18,423 492,612 511,035 13,366 13,366 Net unrealized appreciation (depreciation) on investments 3,628,516 (12,497,641) Increase (decrease) in unrestricted net assets 11,455,585 (10,580,703) 3

STATEMENTS OF CHANGES IN NET ASSETS THREE MONTHS ENDED MARCH 31, 2017 AND 2016 1: :: : : :- Total Revenues and gains: Total operating revenues 41,061,202 Unrealized appreciation (depreciation) on interest rate swap agreements Nonoperating investment income Realized gains on sale of investments Gain on sa le of property and equipment Contributions, gifts and bequests Contributions from Pennsylvania Masonic Youth Foundation Contributions from Grand Lodge Permanently Restricted net assets Income from perpetual trusts held by third parties Total revenues and gains 1,376,271 28,728 20,11 1,161 3,000 829,778 82,176 458,065 63,950,381 2017 Unrestricted 41,061,202 1,376,271 12, 11 3,695 3,000 765,308 82,176 453,348 55,855,000 Temporarily Restricted 28,728 7,997,466 49,911 407 8,076,512 Permanently Restricted 14,559 4,310 18,869 Expenses and losses: Unrestricted expenses (Sched ule 14) 48-'... 53_8_,_,9_6 6_ Total expenses and losses 48,538,966 48,538,966 48,538,966 Excess of revenues and gains over expenses and losses 15,411,415 7,316,034 8,076,512 18,869 Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases Total net assets released from restrictions 18,423 492,612 511,035 (18,423) (492,612) (511,035) Net unrealized appreciation (depreciation) on investments 6,014,655 3,628,516 2,386,139 Increase (decrease) in net assets 21,426,070 11,455,585 9,951,616 18,869 Net assets at January 1 628,21 1,400 345,740,231 73,439,726 209,031,443 Net assets at March 31 649,637,470 357,195,816 83,391,342 209,050,312 4

Total 2016 Unrestricted Temporarily Restricted Permanently Restricted 41,226,911 41,226,911 (2,376,896) 30,931 14,515,027 (2,376,896) 8,629,015 30,931 5,886,012 1,984,329 826,983 1 '153,726 3,620 36,000 36,000 79,149 79,149 441,619 55,937,070 436,760 48,857,922 564 7,071,233 4,295 7,915 46,954,350 46,954,350 46,954,350 46,954,350 8,982,720 1,903,572 7,071,233 7,915 13,366 (13,366) 13,366 (13,366) (20,824,032) (12,497,641 ) (8,326,391) (11,841,312) (1 0,580,703) (1,268,524) 7,915 6 17,081,250 337,421,782 70,733,957 208,925,511 605,239,938 326,841,079 69,465,433 208,933,426 5

STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31,2017 AND 2016 ',_',,.,_,_,_._,_,._,_,_,,,_.,_ ---,,,,,,,,,,.,., -- --.--.-.-.,.. ------ -- ----.-- - --- ----------- -- - ---- --- -- ----. -- --.- ---.--.---.-- ---2o1 7- - - - - - - -.--.-2A1 6 - - -- ---1 " - - -.. :-: :-:-:-:,:,:,:-:':-::::: }::, ;:-:::::: :-:-:--- :}':'::::::::;:::::::::,,..:::::.-)::::::::::::::: ::::::::::}'.-:-,,:,:,.,:,::-::::,-::,;:,_ :: ::_.,:-:.,,,.,,-,:,:,_:::::.,,-,,.:::;::::::;:::: -.....,::::;::;:::;::::;::::;::::::: :::;;:::,::;::;::::::: :::::::;;:::::::;':::...- _,- _::;::: ::-:-:-.. :: :::::':'::-:-:-:.-.-- -:-:-: :,,,.- -: _.v :_ :._:.::;::;::--- ::..; Cash flows from operating activities: Increase (decrease) in net assets Adjustments to reconcile increase (decrease) in net assets to net cash provided by operating activities: Depreciation and amortization Amortization of deferred financing costs Provision for bad debts Bond premium amortization Gain on disposal of property and equipment Amortization of entrance fees Proceeds from contributions and income restricted for investment Net realized and unrealized (gains) losses on investments Net unrealized (appreciation) depreciation on interest rate swap agreements Decrease in receivables Decrease in inventory and other current assets Decrease in accounts payable Increase (decrease) in other current and noncurrent liabilities Increase in deferred revenue from entrance fees and deposits Net cash provided by operating activities 21,426,070 6,677,778 33,703 102,796 (129,467) (3,000) (2,937,258) (18,869) (26,125,816) (1,376,271) 1,602,935 62,881 (4,216,721) 521,311 5,418,916 1,038,988 (11,841,312) 5,930,403 29,052 87,946 (123,709) (2,707,828) (7,915) 6,309,005 2,376,896 445,065 389,302 (1,385,171) (386,856) 3,300,720 2,415,598 Cash flows from investing activities: Purchase of property and equipment Increase in assets whose use is limited Proceeds from the sale of investments Purchases of investments Decrease in other noncurrent assets Net cash used in investing activities (4,163,736) (29,932,454) 4,322,277 (3,594,363) (33,368,276) (6,269,909) (1,115,017) 2,185,173 (3,012,373) (8,212,126) Cash flows from financing activities: Proceeds from contributions and income restricted for investment Decrease in deferred revenue from landfill settlement Proceeds from 2017 Bonds Premium received from 2017 Bonds Payments for bond issue costs Principal payment on bonds Net cash provided by financing activities 18,869 (2,500) 29,000,000 2,274,247 (492,486) 30,798,130 7,915 (2,500) 5,415 Net decrease in cash and cash equivalents (1,531 '158) (5,791 '113) Beginning cash and cash equivalents 22,862,928 23,914,124 Ending cash and cash equivalents 21,331,770 18,123,011 6

MARCH 31, 2017 AND 2016 SCHEDULE 1 Cash and cash equivalents Unrestricted 18,400,355 14,847,765 T emporarily restricted 2,931,415 3,275,246 21,331,770 18,123,011 SCHEDULE 2 Resident accounts receivable Medicaid Private payor Medicare and other third party payors Less: Allowance for uncollectible accounts 4,752,966 5,278,202 727,831 1,630,275 2,188,335 2,574,366 7,669,132 9,482,843 767,000 752,000 6,902,132 8,730,843 SCHEDULE 3 Assets whose use is limited under indenture agreement and held by trustee Cost Fair Value Cash and short-term investments 32,400,426 4,653,397 Less: Assets required for current pri ncipal and interest liabilities 3,640,654 4,653,397 28,759,772 32,400,426 4,653,397 3,640,654 4,653,397 28,759,772 7

MARCH 31,2017 AND 2016 SCHEDULE 4 Investments Investments in Consolidated Fund Unrestricted Cost 2017 2016 140,420 65,955 Fair Value 140,420 65,955 Unrestricted- Board Designated Masonic Villages Reserve Fund Masonic Temple Preservation Fund Childrens Home Fund ligen Trust C. Austin Buck Administration Fee 174,583,742 11,952,340 7,883,818 11,886,688 3,052,859 180,640,738 12,386,762 7,805,796 11,265,931 2,853,072 183,162,162 183,875,789 12,251,932 12,302,079 7,822,918 7,483,008 11,614,126 10,624,390 2,906,419 2,615,432 Charitable Gift A nnuity Reserve Fund Building and Improvement Funds: Masonic Eastern Star Homes Masonic Village at Warminster Masonic Eastern Star Endowment Masonic Village at Lafayette Hill Funds 11,188,768 973,258 3,452,176 1,505,250 24,496,851 11,615,219 928,937 3,234,630 1,436,783 20,631,853 11,451 '179 11,514,252 829,220 758,556 3,022,048 2,709,918 1,280,991 1,171,827 24,216,609 19,635,361 Masonic Village at Dallas Fund Masonic Village at Sewickley Fund Pennsylvania Acacia Insurance Co. Total Board Designated 2,164,728 112,197,742 10,658,039 375,996,259 2,017,696 104,467,384 9,783,403 369,068,204 2,138,965 1,924,815 112,458,766 101 '199,575 11,060,323 9,717,577 384,215,658 365,532,579 Total unrestricted 376,136,679 369,134,159 384,356,078 365,598,534 Temporarily restricted 3,685,718 3,765,930 3,820,884 3,794,342 Permanently restricted 228,126,855 219,924,174 245,013,525 229,396,670 Total investments in Consolidated Fund 607,949,252 592,824,263 633,190,487 598,789,546 Investments with State Street Bank & Trust Unrestricted - 457 (b) plan assets Investments with Lincoln Financial Group Unrestricted- 457 (b) plan assets 536,803 Investments with National Financial Services, LLC Unrestricted - Designated for C. Austin Buck Charitable Gift Annuity Payments Investments with BNY Mellon Financial Temporarily restricted Investments with various financial institutions Unrestricted- Split interest agreements 520,776 Investments held by outside trusts Permanently restricted 24,023,201 395,667 26,703,214 60,157 548,589 24,044,557 395,667 536,803 25,917,495 60,157 526,929 540,755 39,348,204 40,539,620 633,030,032 644,576,447 673,602,423 666,243,240 8

MARCH 31, 2017 AND 2016 SCHEDULE 5 Property and equipment Land Land improvements Buildings Equipment T otal depreciable assets Accumulated depreciation Net depreciable asets Construction in progress and current year additions 5,175,608 21,712,3 14 403,818,366 247,818,091 678,524,379 327,414,095 351,110,284 9,061,532 360,171,816 5,139,578 18,057,367 389,724,866 221,743,078 634,664,889 301,689,143 332,975,746 24,941,173 357,916,919 SCHEDULE 6 Current installments of long-term debt consist of: Series of 1996 Series of 2008 A Series of 2008 B Series of 2008 D Series of 2013 Series of 2015 Series of 2017 875,000 1,345,000 1,170,000 1,230,000 1,220,000 3,925,000 350,000 10,115,000 845,000 1,285,000 1,120,000 1,175,000 1,190,000 3,810,000 9,425,000 SCHEDULE 7 Accrued Expenses Net payroll Accumulated employee vacation Employer contributions to the 403 (b) retirement plan and defined benefit pension plan administration costs Employee healthcare benefit costs Workers compensation costs Net self-insurance costs - Pennsylvania Acacia Insurance Company, L TO Swap agreement payments for 2008 Bonds, Series A - D Bond interest expense Arbitrage rebate payable to the IRS for bond issues Other, primarily withholding liabilities 2,252,691 2,574,746 397,003 2,544,860 263,513 821,918 396,046 1,373,766 2,029,017 12,653,560 1,955,050 2,420,780 362,922 2,928,701 435,786 1,014,917 409,536 1,264,440 1,191,669 1,936,528 13,920,329 9

MARCH 31, 2017 AND 2016 Long-term debt SCHEDULE 8 Lancaster County Hospital Authority (Series of 1996) - variable rate demand/fixed rate bonds, maturing through 2027 Lancaster County Hospital Authority (Series of 2008 A) - variable rate demand/fixed rate bonds, maturing through 2031 Lancaster County Hospital Authority (Series of 2008 B) variable rate demand/fixed rate bonds, maturing through 2032 Lancaster County Hospital Authority (Series of 2008 D) - variable rate demand/fixed rate bonds, maturing through 2034 Lancaster County Hospital Authority (Series of 2013) - variable rate demand/fixed rate bonds, maturing through 2038 Lancaster County Hospital Authority (Series of 2015) - fixed rate bonds, maturing through 2030 Lancaster County Hospital Authority (Series of 2017) fixed rate bonds, maturing through 2038 Total long-term debt 11,685,000 12,530,000 27,595,000 28,880,000 26,145,000 27,265,000 34,495,000 35,670,000 35,415,000 36,605,000 40,140,000 43,950,000 29,000,000 204,475,000 184,900,000 Add: Less: Premiums on 2017 and 2015 Bonds Deferred financing costs for various debt issues 6,556,217 4,782,564 (1,565,843) (1 '194,217) Less: Current installments of long-term debt (Schedule 6) (1 0, 115,000) (9,425,000) 199,350,37 4 179,063,347 Deferred financing costs for various debt issues consist of: Bond issuance costs - 1996 Bonds Bond issuance costs - 2008 Bonds Bond issuance costs - 2013 Bonds Bond issuance costs - 2015 Bonds Bond issuance costs - 2017 Bonds 163,661 179,627 194,774 216,398 147,448 163,106 570,416 635,086 489,544 1,565,843 1,194,21 7 10

I: MARCH 31, 2017 AND 2016 SCHEDULE 9 Resident service revenue Nursing Care Personal Care Retirement Living Children's Home Pharmacy Medical clinics Billable medical supplies Residential Care Program Hospice Wellness Center Home Care Services Adult Daily Living Child Day Care Center Other resident service revenue: Gift and beauty shop sales Resident, employee and guest meals Laundry Transportation Parking Communications services Gross resident service revenue 95,588,000 92,610,000 17,764,000 16,641,000 42,676,000 41,690,000 2,452,000 2,543,000 13,396,000 11,154,000 11,022,707 12,024,000 202,000 196,000 332,000 324,000 3,051,000 2,891,000 297,000 255,000 1,388,000 1,313,000 471,000 467,000 2,043,000 1,809,000 868,000 873,000 2,631,000 2,289,000 501,000 353,000 243,000 213,000 165,000 156,000 1,570,000 1,402,000 196,660,707 189,203,000 Actual March 31 23,159,942 22,606,725 4,358,945 3,931,582 10,355,580 10,163,412 583,200 635,745 3,009,909 2,731,657 2,573,864 2,697,277 62,756 46,729 81,270 80,568 641,789 652,921 79,650 70,268 253,776 283,688 91,051 98,086 498,119 462,040 178,843 184,757 514,713 468,903 120,628 126,080 59,965 60,049 40,815 40,696 357,808 362,332 47,022,623 45,703,515 Less: Third party contractual allowances and charity care allowances 49,736,707 44,993,000 12,668,013 11,594,515 146,924,000 144,210,000 34,354,610 34,109,000 11

MARCH 31, 2017 AND 2016 - -.. - - - - - - - - - - -:-:-:-. -:- ::::..:::: : :... - -..-:-:- 201 7 2016 March 31 SCHEDULE10 Amortization of entrance fees Retirement Living 11,527,000 11,075,000 2,937,258 2,707,828 Personal Care 8,000 28,000 11,535,000 11,103,000 2,937,258 2,707,828 SCHEDULE11 Other revenue - unrestricted Sale of farm products Rental income Professional services provided to non-affiliated organizations Professional services provided to affiliated organizations Retirement Living Clinical provider support Child day care center grant Other government grants Miscellaneous income 1,400,000 780,000 1,375,000 83,000 149,000 104,000 101,000 1,550,000 596,000 1,505,000 89,000 62,000 87,000 84,000 142,715 212,707 289,44 1 225,561 309,581 462,508 6,855 9,210 48,387 17,237 32,320 23,085 69,736 951 24,468 35,780 3,992,000 3,973,000 923,503 987,039 12

MARCH 31, 2017 AND 2016 SCHEDULE 12 Investment income- unrestricted 2017 2016 March 31 Investment income from: Unrestricted assets 78,000 78,000 17,726 24,033 Masonic Villages Reserve Fund 3,265,000 3,345,000 858,676 1,007,042 Masonic Villages Charitable Gift Annuities Fund 173,000 222,000 49,929 62,961 Masonic Temple Preservation Fund 193,000 211,000 58,167 64,987 C. Austin Buck Charitable Gift Annuity investments 950,000 796,000 229,403 C. Austin Buck Administration Fee Fund 49,000 31,000 14,320 14,644 Children's Home Fund 139,000 134,000 37,612 42,272 ligen Trust 200,000 55,756 60,291 Masonic Eastern Star Home Building and Improvement Funds 14,000 13,000 3,982 4,284 Masonic Eastern Star Home Unrestricted Endowment Fund 22,000 21,000 6, 150 6,620 Masonic Village at Sewickley Fund 1,876,000 1,765,000 537,298 566,559 Masonic Village at Dallas Fund 36,000 34,000 10,219 10,776 Masonic Village at Lafayette Hi ll Funds 371,000 397,000 112,126 116,292 Pennsylvania Acacia Insurance Co. 173,000 157,000 31,689 29,146 Temporarily and Permanently Restricted assets required by donor restriction to be used for operations 4,040,000 3,932,000 1 '154,977 1,271,680 11,579,000 11,136,000 2,948,627 3,510,990 13

MARCH 31, 2017 AND 2016 SCHEDULE13 Nonoperating gains (losses)- unrestricted Bequests Realized gains on sale of investments Gain on sale of property and equipment Contributions Contri butions under split-interest agreements Contributions from Pennsylvania Masonic Youth Foundation Contributions from Grand Lodge Permanently Restricted net assets Income from perpetual trusts held by third parties 4,407,000 4,468,000 15,134,000 12,975,000 983,000 994,000 400,000 500,000 1 '162,000 1,205,000 1,752,000 1,728,000 Actual March 31 354,319 595,232 12,113,695 8,629,015 3,000 244,181 211,149 166,808 20,602 36,000 82,176 79,149 453,348 436,760 23,838,000 21,870,000 13,417,527 10,007,907 14

MARCH 31, 2017 AND 2016 SCHEDULE14 Operating expenses - unrestricted by natural classification Actual March 31 Wages, salaries and benefits 109,429,338 103,380,777 Supplies 19,451,301 18,938,272 Purchased services 19,869,149 20,736,492 Energy and utilities 7,996,178 8,296,276 Depreciation and amortization 26,750,480 24,367,905 Interest 6,257,402 6,553,740 Other operating expenses 8,542,617 9,809,738 26,923,485 26,290,047 4,458,572 4,309,228 5,208,574 4,816,924 1,837,360 1,923,783 6,677,778 5,930,403 1,575,397 1,606,742 1,857,800 2,077,223 Allocated administrative costs 198,296,465 192,083,200 48,538,966 46,954,350 15

MARCH 31,2017 AND 2016 SCHEDULE15 Operating expenses - unrestricted by functional classification Program services: Nursing Care 62,684,712 59,163,020 Medical ancillary clinics 6,959,875 6,669,562 Pharmacy 5,791,157 5,087,701 Personal Care 9,890,255 9,156,712 Retirement Living 42,857,811 42,006,603 Children's Home 2,144,366 2,154,058 Adult Daily Living Center 346,067 338,025 Residential Care Program 289,777 275,173 Hospice 2,524,172 2,659,812 Wellness Center 1,141,238 1,049,049 Home Health Care Services Home Care Services 1,044,544 939,059 Community Services 233,456 160,624 Child Day Care Center 2,395,290 2,222,903 Conference Facilities 2,362,705 2,513,332 Contributions to Affiliates 2,907,634 4,063,462 Member Services 1,333,333 Employee Housing and Rental Property 943,220 1,004,301 Farm 2,005,063 2,155,202 Communications Services 653,429 762,906 Admissions and Resident Services 2,742,477 2,681,879 Support Services 4,659,360 4,595,039 Maintenance 8,733,400 8, 751,808 Food Services 5,736,206 5,612,275 Total program services expense 170,379,547 164,022,505 Actual March 31 15,659,692 15,280,617 1,603,41 4 1,717,174 1,344,135 1,415,716 2,548,329 2,213,902 10,529,281 10,173,152 523,892 503,389 71,348 81,459 65,816 69,430 620,903 545,234 275,569 246,536 24,064 195,563 201,039 98,687 60,672 626,266 522,544 570,418 611,667 547,838 737,019 367,044 281,263 240,051 371,499 352,383 143,517 137,203 655,046 638,200 1,071,52 1 1,093,854 2,183,914 1,980,365 1,373,568 1,328,1 16 41,752,587 40,149,722 Management and general - Administration 26,276,884 26,428,989 6,422,641 6,479,545 Fundraising - Gift Planning 1,640,034 1,631,706 198,296,465 192,083,200 363,738 325,083 48,538,966 46,954,350 16

MARCH 31, 201 7 AND 2016 SCHEDULE16 Summary of gift planning revenues and expenses Actual March 31 Revenues generated from gift planning activities: Bequests 4,407,000 4,468,000 354,319 595,232 Contributions 983,000 994,000 244,181 21 1,149 Contributions under split-interest agreements 400,000 500,000 166,808 20,602 I nco me from perpetual trusts held by third parties 1,752,000 1,728,000 453,348 436,760 Total revenues generated from gift planning activities 7,542,000 7,690,000 1,218,656 1,263,743 Expenses incurred by gift planning activities 1,640,034 1,631,706 363,738 325,083 Excess of revenues over expenses 5,901,966 6,058,294 854,918 938,660 Excess of revenues over expenses expenses as a percentage of total gift planning revenues 78.25% 78.78% 70.15% 74.28% Ratio of gift planning revenues to gift planning expenses 4.60 4.71 3.35 3.89 17

MARCH 31, 2017 AND 2016 SCHEDULE 17 Comparison of Spending Policy Maximum to -to-date Cash Transfers from Consolidated Fund Unrestricted Permanently Restricted Total Fair value of Masonic Villages' share of the Consolidated Fund at December 31, 2013 2014 2015 357,895,250 366,300,028 368,241,922 239,491,573 244,730,859 235,540,555 597,386,823 611,030,887 603,782,477 Three-year total 1,092,437,200 719,762,987 1,812,200,187 Three-year average 364,145,733 239,920,996 604,066,729 Spending policy percentage approved by the Consolidated Fund Trustees 5.00% 5.00% 5.00% Spending policy maximum for 2017 18,207,287 11,996,050 30,203,336 -to-date cash transfers from the Consolidated Fund 3,000,000 1,322,277 4,322,277 -to-date excess (deficiency) of spending policy maximum over year-to-date cash transfers 15,207,287 10,673,773 25,881,059 NOTE: The source of the fair values of Masonic Villages' share of Consolidated Fund investments is the "Investments" footnote to the internal financial statements for the applicable year. The three years to be used are the most recent completed statements available as of the annual December meeting of the Trustees of the Consolidated Fund. The annual December meeting is when the Trustees of the Consolidated Fund select the spending percentage to be used for the coming year. The Consolidated Fund's investment policy permits the use of unrestricted assets in excess of the spending maximum to the extent that unrestricted assets are available. The use of unrestricted assets is partially affected by Masonic Villages' practice of initially placing unrestricted bequests of 1 million or more into the Masonic Villages Reserve Fund. 18

MARCH 31, 2017 AND 2016 SCHEDULE18 Combining balance sheet as of March 31, 2017 Unrestricted Donor Restricted Total Current Assets: Cash and cash equivalents (Schedule 1) Assets whose use is limited and that are required for current liabilities (Schedule 3) Accounts receivable Resident (Schedule 2) Masonic Charities Fund Pennsylvania Masonic Youth Foundation Estimated third party settlements receivable Investment income receivable Inventory, at cost Other current assets Notes receivable Contributions receivable 18,400,355 2,931,415 3,640,654 6,902,132 38,938 820 762,165 405,148 972,734 2,714,852 2,857,369 2,367,480 70,671 21,331,770 3,640,654 6,902,132 38,938 820 762,165 1,377,882 2,714,852 2,857,369 2,367,480 70,671 Total current assets 38,089,913 3,974,820 42,064,733 Contributions receivable, net of current portion 326,918 326,918 Assets whose use is limited, net of current portion (Schedule 3) 28,759,772 28,759,772 Investments at fair value (Schedule 4) 385,419,810 288,182,613 673,602,423 Property and equipment, net of accumulated depreciation of 327,414,095 (Schedule 5) 360,171,816 360,171,816 Other noncurrent assets, net of accumulated amortization of 752,400 307,573 307,573 Total Assets 812,748,884 292,484,351 1 '1 05,233,235 19

............. -:::: :::.:::::::::::_:-:::. :::-::. : :-: : -.. Unrestricted Donor Restricted Total Current Liabilities: Current installments of long-term debt (Schedule 6) Accounts payable Masonic Library and Museum of Pennsylvania Grand Lodge of Pennsylvania Other Accrued expenses (Schedule 7) Deferred revenue from estates and trusts Residents' personal funds Deposits on unoccupied units Annuities payable 10,115,000 736 32,238 4,923,701 12,653,560 831,625 2,985,059 1 '111 '157 42,697 10,115,000 736 32,238 4,923,701 12,653,560 42,697 831,625 2,985,059 1 '111 '157 Total current liabilities 32,653,076 42,697 32,695,773 Accrued pension costs Annuities payable, net of current portion Refundable fees Deferred revenue from entrance fees Interest rate swap agreements Deferred revenue from landfi ll settlement Long-term debt and unamortized bond premium, less current installments (Schedule 8) 12,947,660 5,435,014 83,952,767 100,684,182 20,504,995 25,000 199,350,374 12,947,660 5,435,014 83,952,767 100,684,182 20,504,995 25,000 199,350,374 Total liabilities 455,553,068 42,697 455,595,765 Net Assets Unrestricted Temporarily restricted Permanently restricted Total net assets 357,195,816 357,195,816 83,391,342 209,050,312 292,441,654 357,195,816 83,391,342 209,050,312 649,637,470 Total Liabilities and Net Assets 812,748,884 292,484,351 1 '1 05,233,235 20

MASONIC VILLAGES OF THE GRAND LODGE OF PENNSYLVAN IA MARCH 31, 2017 AND 201 6 r::.. SCHEDULE19 Masonic Villages Consolidated Statements of Operations and Changes in Unrestricted Net Assets Operating revenue Resident service revenue Provision for bad debts Net resident service revenue 2017 146,924,000 (270,000) 146,654,000 2016 144,210,000 ( 2 1 0, 000~ 144,000,000 Actual March 31 34,354,610 34,109,000 (102,796) (87,946) 34,251,814 34,021,054 Amortization of entrance fees Other operating revenue Investment income Total operating revenue 11,535,000 3,992,000 11,579,000 173,760,000 11,103,000 3,973,000 11,1 36,000 170,212,000 2,937,258 2,707,828 923,503 987,039 2,948,627 3,510,990 4 1,061,202 41,226,91 1 Operating expenses Wages, salaries and benefits Supplies Purchased services Energy and utilities Depreciation and amortization Interest Other operating expenses Allocated administrative costs 109,429,338 19,451,301 19,869,149 7,996,178 26,750,480 6,257,402 8,542,617 103,380,777 18,938,272 20,736,492 8,296,276 24,367,905 6,553,740 9,809,738 26,923,485 26,290,047 4,458,572 4,309,228 5,208,574 4,816,924 1,837,360 1,923,783 6,677,778 5,930,403 1,575,397 1,606,742 1,857,800 2,077,223 T otal operating expenses 198,296,465 192,083,200 48,538,966 46,954,350 Loss from operations before change in fair value of derivative financial instruments (24,536,465) (21,871,200) (7,477,764) (5,727,439) Net unrealized appreciation (depreciation) on interest rate swap agreements 1,746,000 1,370,000 1,376,271 (2,376,896) Loss from operations (22' 790,465) (20,501,200) (6,101,493) (8, 1 04,335) Nonoperating gains 23,838,000 21,870,000 13,417,527 10,007,907 Excess of revenues & gains over expenses 1,047,535 1,368,800 7,316,034 1,903,572 Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases Total net assets released from restrictions 18,423 13,366 492,612 511,035 13,366 Net unrealized appreciation (depreciation) on investments Increase (decrease) in net assets Net assets at January 1 Net assets at March 3 1 3,628,516 (12,497,641) 11,455,585 (10,580,703) 345,740,231 337,421,782 357,195,816 326,841,079 21

MARCH 31, 2017 AND 2016 SCHEDULE 20 Masonic Villages Corporate Function Statements of Operations and Changes in Unrestricted Net Assets Operating revenue Resident service revenue Provision for bad debts Net resident service revenue 20 17 2016 Actual March 31 201 7 2016 Amortization of entrance fees Other operating revenue Investment income Total operating revenue 84,000 1,389,000 1,473,000 89,000 1,287,000 1,376,000 7,825 128,537 136,362 10,808 378,137 388,945 Operating expenses Wages, salaries and benefits Supplies Purchased services Energy and utilities Depreciation Interest Other operating expenses Allocated administrative costs Total operating expenses 12,331,825 152,806 5,065,809 364,700 2,963,149 (241,523) 3,631,198 (17,490,091) 6,777,873 11,234,237 166,533 6,312,980 320,710 1,637,752 (207,394) 5,006,827 (17,870,439) 6,601,206 3,080,579 16,529 1,190,216 96,480 851,777 504,800 (4,372,523) 1,367,858 2,791,100 27,633 1,276,570 98,375 459,004 736,332 (4,467,610) 921,404 Loss from operations before change in fair value of derivative financial instruments (5,304,873) (5,225,206) (1,231,496) (532,459) Net unrealized appreciation (depreciation) on interest rate swap agreements 1,746,000 1,370,000 1,376,271 (2,376,896) Income (loss) from operations (3,558,873) (3,855,206) 144,775 (2,909,355) Nonoperating gains (losses) 1,355,000 1,330,000 1,039,911 415,017 Excess (deficiency) of revenue and gains over expenses (2,203,873) (2,525,206) 1,184,686 (2,494,338) Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases Total net assets released from restrictions 1,452 1,452 1,138 1,138 Net unrealized appreciation (depreciation) on investments Increase (decrease) in net assets 272,784 1,458,922 (590,504) (3,083,704) Net assets at January 1 Add: Dividend payment from Ashlar Creative Solutions, LLC Less: Equity transfer to Ashlar Home Health and Hospice Services, LLC Net assets at March 31 (28,587,656) (28,057,556) (1 53,000) (27,281,734) (31,141,260) 22

MARCH 31, 2017 AND 2016 SCHEDULE 21 Masonic Village at Elizabethtown Statements of Operations and Changes in Unrestricted Net Assets Operating revenue Resident service revenue Provision for bad debts Net resident service revenue 99,487,000 96,816,000 (150,000) (140,000) 99,337,000 96,676,000 Actual March 31 23,263,697 23,063,786 (31,786) (81,457) 23,231,911 22,982,329 Amortization of entrance fees Other operating revenue Investment income Total operating revenue 7,370,000 6,910,000 2,113,000 2,122,000 7,636,000 7,403,000 116,456,000 11 3,1 11,000 1,738,868 1,782,208 461,284 388,340 2,099,571 2,379,930 27,531,634 27,532,807 Operating expenses Wages, salaries and benefits Supplies Purchased services Energ y and utilities Depreciation and amortization Interest Other operating expenses Allocated administrative costs Total operating expenses 66,510,680 63,900,655 14,296,029 13,673,148 7,592,851 7,221,882 4,672,236 4,766,513 15,755,058 14,903,358 2,908,216 3,055,948 2,967,476 2,875,682 12,128,971 12,471,995 126,831,517 122,869,181 16,418,695 16,437,109 3,236,946 3,099,459 2,170,358 1,826,532 1,015,401 1,021,572 3,864,224 3,531,264 719,346 723,847 830,087 792,163 3,032,243 3,117,999 31,287,300 30,549,945 Loss from operations (1 0,375,517) (9,758,181) (3,755,666) (3,017,138) Nonoperating gains 16,053,000 15,206,000 7,360,479 6,175,445 Excess of revenues and gains over expenses 5,677,483 5,447,819 3,604,813 3,158,307 Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases Total net assets released from restrictions Net unrealized appreciation (depreciation) on investments Increase (decrease) in net assets Net assets at January 1 Net assets at March 31 16,534 12,228 431,41 6 447,950 12,228 1,895,571 (7,017,708) 5,948,334 (3,847,173) 405,015,817 395,623,11 4 410,964,151 391,775,941 23

MARCH 31, 2017 AND 2016....... _._._:_:_:_:_._.~:::.. _._::.. -.:?=::::::::::::: SCHEDULE 22 Masonic Village at Warminster Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 201 7 2016 Operating revenue Resident service revenue 5,788,000 5,483,000 1 '188, 186 1,334,303 Provision for bad debts (40,000) (10,000) (63,078) (1,580) Net resident service revenue 5,748,000 5,473,000 1,125,108 1,332,723 Other operating revenue 13,000 14,000 8,675 9,711 Investment income 72,000 68,000 20,744 21,840 Total operating revenue 5,833,000 5,555,000 1,154,527 1,364,274 Operating expenses Wages, salaries and benefits 4,184,521 3,720,915 1,092,444 960,973 Supplies 580,1 10 550,684 141,219 143,854 Purchased services 631,874 508,705 155,114 173,553 Energy and utilities 192,293 198,626 42,893 44,708 Depreciation 400,094 375,124 90,305 86,220 Interest Other operating expenses 141,477 99,240 33,416 39,858 Allocated administrative costs 551,677 504,802 137,919 126,200 Total operating expenses 6,682,046 5,958,096 1,693,310 1,575,366 Loss from operations (849,046) (403,096) (538,783) (211,092) Nonoperating gains 276,000 248,000 103,891 71,386 Deficiency of revenues and gains over expenses (573,046} (155,096) (434,892) (139,706) Net assets released from restrictions - Satisfaction of program restrictions For use in operations For capital purchases 1,400 Total net assets released from restrictions 1,400 Net unrealized appreciation (depreciation) on investments 28,898 (96,058) Decrease in net assets (404,594) (235,764) Net assets at January 1 (6,328,183) (5,137,364) Net assets at March 31 (6, 732, 777) (5,373, 128) 24

MASONIC VI LLAGES OF THE GRAND LODGE OF PENNSYLVANIA 1 -....=:.. =.=.=.=.=.=.=.=.==.. =.=.=.=.=.=.=.=.=.=.=.=.=.=. =.. ==.. ==...=.==.. =.=..=.=.. =.=... :......-............ : : : :=:= = = = :.-.:.. :;:;:_:_:;:;:;:;:;:;:::.._-;:;:;:::;:;:;:;:::;:::;:... - -. -. MARCH 31, 2017 AND 201 6 SCHEDULE 23 Masonic Village at Dallas Statements of Operations and Changes in Unrestricted Net Assets Yea r 201 7 2016 Operating revenue Resident service revenue 1,376,000 1,349,000 Provision for bad debts Net resident service revenue 1,376,000 1,349,000 Amortization of entrance fees 147,000 165,000 Other operating revenue 195,000 28,000 Investment income 36,000 34,000 Total operating revenue 1,754,000 1,576,000 Operating expenses Wages, salaries and benefits 473,965 459,954 Supplies 82,850 81,200 Purchased services 423,911 419,622 Energy and utilities 285,050 269,250 Depreciation 898,769 930,524 Interest 224,661 239,844 Other operating expenses 104,362 168,186 Allocated administrative costs 175,712 227,003 Total operating expenses 2,669,280 2,795,583 Loss from operations (915,280) (1,219,583) Nonoperating gains 87,000 73,000 Deficiency of revenues and gains over expenses (828,280) (1'146,583) Actual Ma rch 31 341,478 342, 5~3 341,478 342,503 53,572 39,503 79,233 64,202 10,313 10,803 484,596 457,011 116,340 113,798 34,522 15,982 122,310 71,437 66,165 59,893 227,893 222,105 57,219 60,728 25,409 46,227 43,928 56,751 693,786 646,921 (209,190) (189,91 0) 69,657 48,655 (139,533) (141,255) Net assets released from restrictions - Satisfaction of prog ram restrictions For use in operations For capital purchases Total net assets released from restrictions Net unrealized appreciation (depreciation) on investments Decrease in net assets Net assets at January 1 Net assets at March 31 20,472 (68,412) (1 19,061) (209,667) (14,334,439) (13,694,691) (14,453,500) (13,904,358) 25

MARCH 31, 2017 AND 2016 SCHEDULE 24 Masonic Village at Sewickley Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 Operating revenue Resident service revenue 24,847,000 25,275,000 5,996,559 5,923,510 Provision for bad debts (60,000) (50,000) (1,880) (2,335) Net resident service revenue 24,787,000 25,225,000 5,994,679 5,921,175 Amortization of entrance fees 2,520,000 2,590,000 626,435 547,103 Other operating revenue 143,000 159,000 40,815 37,091 Investment income 1,898,000 1,786,000 544,691 573,946 Total operating revenue 29,348,000 29,760,000 7,206,620 7,079,315 Operating expenses Wages, salaries and benefits 15,780,119 14,377,633 3,818,314 3,649,139 Supplies 2,290,805 2,515,965 582,928 599,498 Purchased services 4,073,433 4,105,986 1,038,592 989,128 Energy and utilities 1,750,414 1,836,327 461,734 529,207 Depreciation 4,454,496 4,381,902 1,078,375 1,072,252 Interest 2,614,307 2,730,587 667,914 688,113 Other operating expenses 1,400,881 1,335,815 414,418 343,362 Allocated administrative costs 2,053,321 2,363,917 513,330 590,979 Total operating expenses 34,417,776 33,648,132 8,575,605 8,461,678 Loss from operations (5,069,776) (3,888, 132) (1,368,985) (1,382,363) Nonoperating gains 4,616,000 3,945,000 3,630,387 2,560,424 Excess (deficiency) of revenues and gains over expenses {453,776) 56,868 2,261,402 1,178,061 Net assets released from restrictions - Satisfaction of program restrictions For use in operations 126 For capital purchases Total net assets released from restrictions 126 Net unrealized appreciation (depreciation) on investments 1,076,356 (3,354,529) Increase (decrease) in net assets 3,337,884 (2, 176,468) Net assets at January 1 (4,405,587) (5,791,884) Net assets at March 31 {1,067,703) (7,968,352) 26

MARCH 31, 201 7 AND 201 6 SCHEDULE 25 Masonic Village at Lafayette Hill Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 Operating revenue Resident service revenue 14,032,000 14,123,000 3,376,936 3,257,378 Provision for bad debts (20,000) (1 0,000) (6,052) (2,574) Net resident service revenue 14,012,000 14,113,000 3,370,884 3,254,804 Amortization of entrance fees 1,498,000 1,438,000 518,383 339,014 Other operating revenue 64,000 54,000 14,555 14,151 Investment income 371,000 397,000 112,465 116,556 Total operating revenue 15,945,000 16,002,000 4,016,287 3,724,525 Operating expenses Wages, salaries and benefits 9,355,160 8,908,929 2,214,875 2,165,136 Supplies 1,407,567 1,413,090 339,742 320,499 Purchased services 1,564,301 1,587,657 388,643 384,454 Energy and utilities 71 1,865 888,890 148,882 164,878 Depreciation 2,278,250 2,138,581 565,038 559,392 Interest 510,218 527,361 130,918 134,054 Other operating expenses 284,123 300,988 49,670 119,006 Allocated administrative costs 1,126,879 1,310,269 281,720 327,567 Total operating expenses 17,238,363 17,075,765 4,119,488 4,174,986 Loss from operations (1,293,363} (1,073, 765) (1 03,201) (450,461) Nonoperating gains 1,266,000 875,000 867,307 495,549 Excess (deficiency) of revenues and gains over expenses (27,363) p98,765) 764,106 45,088 Net assets released from restrictions - Satisfaction of program restrictions For use in operations 31 1 For capital purchases 59,796 Total net assets released from restrictions 60,107 Net unrealized appreciation (depreciation) on investments 231,419 (916,538) Increase (decrease) in net assets 1,055,632 (871,450) Net assets at January 1 (6,192,402) (6,363,892) Net assets at March 31 (5,136,770) (7,235,342) 27

MARCH 31, 2017 AND 2016 SCHEDULE 26 Pennsylvania Acacia Insurance Company, L TO Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 2017 2016 Operating revenue Net resident service revenue Amortization of entrance fees Other operating revenue Investment income 173,000 157,000 31,689 Total operating revenue 173,000 157,000 31,689 29,146 29,146 Operating expenses Wages, salaries and benefits Supplies Purchased services 126,458 121,348 (8,265) Energy and utilities Depreciation Interest Other operating expenses 2,100 2,000 Total operating expenses 128,558 123,348 (8,265) Income from operations 44,442 33,652 39,954 Nonoperating gains 185,000 193,000 345,895 Excess of revenues and gains over expenses 229,442 226,652 385,849 601 (27,025) (26,424) 55,570 241,431 297,001 Net unrealized appreciation (depreciation) on investments 103,016 Increase (decrease) in net assets 488,865 Net assets at January 1 7,247,800 Net assets at March 31 7,736,665 (453,892) (156,891) 6,375,897 6,219,006 NOTE: For purposes of consolidation, the premium revenue charged by the Pennsylvania Acacia Insurance Company, L TO to the individual locations of Masonic Villages has been "netted" against the premium expense recorded by the individual Masonic Villages as "Purchased Services" on these schedules. Premium revenue reported in the "Purchased Services" line on this schedule totaled 0 and 0 for the three months ended March 31, 2017 and 2016, respectively. 28

MARCH 31,2017 AND 2016 SCHEDULE 27 Ashlar Home Health and Hospice Services, LLC Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 Operating revenue Net resident service revenue Amortization of entrance fees Other operating revenue Investment income 23 Total operating revenue 23 Operating expenses Wages, salaries and benefits 15,895 Supplies 1,937 Purchased services 8,545 Energy and utilities 400 Depreciation Interest Other operating expenses Total operating expenses 26,777 Loss from operations (26,754) Nonoperating gains Deficiency of revenues and gains over expenses (26,754) Net assets at January 1 Add: Equity transfer from Corporate Division 153,000 Net assets at March 31 126,246 NOTE: Ashlar Home Health and Hospice Services, LLC (AHHH) was formed in October 2016. Separate financial reporting for this entity began on January 1, 2017 in anticipation of commencing operating activities during the second quarter of 2017. AHHH incurred start-up costs totaling 79,322 for the period October 1, 2016 through December 31, 2016. These costs were recogn ized as expenses of the Masonic Village at Elizabethtown during the year ended December 31, 2016. 29

MARCH 31, 2017 AND 2016..: I SCHEDULE 28 Acacia Services, LLC Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 2017 2016 Operating revenue Resident service revenue 1,394,000 1,164,000 187,754 187,520 Provision for bad debts Net resident service revenue 1,394,000 1,164,000 187,754 187,520 Amortization of entrance fees Other operating revenue 5,000 2,000 1,535 Investment income 3,000 3,000 232 Total operating revenue 1,402,000 1 '169,000 189,521 Operating expenses Wages, salaries and benefits 793,068 778,454 165,282 Supplies 641,134 537,652 104,749 Purchased services 384,512 451,812 132,151 Energ y and utilities 19,620 15,960 5,065 Depreciation 664 664 166 Interest 241,523 207,394 Other operating expenses 10,000 20,000 Allocated administrative costs 185,427 149,934 46,357 Total operating expenses 2,275,948 2,1 61,870 453,770 Loss from operations (873,948) (992,870) (264,249) 228 238 187,986 171,031 102,303 113,079 4,919 166 275 37,484 429,257 (241,271) Nonoperating gains Deficiency of revenues and gains over expenses (873,948) (992,870) (264,249) (241,271) Net assets at January 1 (7,374,033) Net assets at March 31 (7,638,282) (6,382, 154) {6,623,425) NOTE: Masonic Villages of the Grand Lodge of Pennsylvania (MV) has entered a revolving promissory note with Acacia to provide funds that will enable Acacia to conduct operations. Acacia pays interest to MV at the prime rate of interest in effect at the beginning of each year for advances made that yea r. For purposes of consolidation, interest received by MV from Acacia has been reported as a reduction in interest expense in the Statement of Operations and Changes in Unrestricted Net Assets. 30

MARCH 31, 2017 AND 2016 SCHEDULE 29 Ashlar Creative Solutions, LLC Statements of Operations and Changes in Unrestricted Net Assets Actual March 31 2017 2016 Operating revenue Net resident service revenue Amortization of entrance fees Other operating revenue 1,375,000 1,505,000 309,581 Investment income 1,000 1,000 362 Total operating revenue 1,376,000 1,506,000 309,943 462,508 394 462,902 Operating expenses Wages, salaries and benefits 1,061 Supplies Purchased services 6,000 6,500 10,910 Energy and utilities 340 Depreciation Interest Other operating expenses 1,000 1,000 Allocated administrative costs 1,268, 104 842,519 317,026 Total operating expenses 1,275, 104 850,019 329,337 Income (loss) from operations 100,896 655,981 (1 9,394) 1,160 9,196 231 210,630 221,217 241,685 Nonoperating gains Excess (deficiency) of revenues and gains over expenses 100,896 655,981 (19,394) Net assets at January 1 698,914 679,520 241,685 850,312 1,091,997 Less: Dividend paid to Masonic Villages Net assets at March 31 679,520 1,091,997 NOTE: Masonic Villages of the Grand Lodge of Pennsylvania (MV) has entered a revolving promissory note with Ashlar to provide funds that will enable Ashlar to conduct operations. Ashlar pays interest to MV at the prime rate of interest in effect at the beginning of each year for advances made that year. For purposes of consolidation, interest received by MV from Ashlar has been reported as a reduction in interest expense in the Statement of Operations and Changes in Unrestricted Net Assets. 31