VI. Exhibits A. Residency Agreement--90% Return of Entrance Fee Residency Agreement B. List of Extra Charges C. Financial Statements (audited) of Arden Retirement, LLC D. Compilation of Financial Projections of Arden Retirement, LLC E. Interim Financial Statement for Arden Retirement, LLC for the period January 1-May 31, 2018 F. Explanation of Material Differences G. Actuarial Analysis Summary H. Financial Statement of Ardenwoods, LLC for the period of January 1, 2017-August 31, 2017
Exhibit F EXPLANATION OF MATERIAL DIFFERENCES Pursuant to Section 58-64-30(a) of the North Carolina General Statutes, we are required to provide a narrative explaining any material differences between the previous forecast financial statements and the actual results of operations. All differences between forecasted results and actual results of $100,000 or more are deemed material and the Provider has provided an explanation of each line item herein.
Arden Retirement, LLC Narrative of Material Variances Comparison between Forecast and Actual For the Calendar year 2017 Notes: a) Forecast shows cash accumulating in investments, however still part of restricted assets as of 12/31/2017. b) Limited use accounts were not funded as part of initial purchase. c) Value assigned to fixed assets at purchase were less than anticipated. Forecast also assumed straight line depreciation and actual depreciation is on an accelerated basis. d) Difference in PP&E and Resident loans resulted in increase in Goodwill valuation at purchase. e) Costs were not funded as part of original purchase transaction. f) Line of credit was part of initial funding at close of purchase. g) Resident loans refunds pending, not shown as part of original forecast. h) Less nonrefundable entrance fees than forecasted, due delay in sale of community. i) Borrowing was less than anticipated in the original forecast. j) Actual Assisted Living occupancy was less than anticipated when forecast was completed. k) Actual results reflect accelerated depreciation vs. straight line in forecast. l) Forecast did not include any projection for goodwill amortization.
Exhibit H Financial Statement of Ardenwoods, LLC for the period of January 1, 2017-August 31, 2017
Ardenwoods LLC Statement of Income Period Ending - August 31, 2017 YTD Actual SUMMARY Operating Revenue Total Independent Living Revenue $ 2,099,779 Total Assisted Living Revenue 1,489,984 Total Other Operating Revenue 3,172 Total Operating Revenue 3,592,936 Operating Expense Total General and Administrative Expense 1,082,521 Total Plant Expenses 486,934 Total Environmental Service Expense 134,089 Total Food & Beverage Service Expense 695,925 Total Resident Services Expense 133,903 Total Assisted Living Expense 487,411 Total Operating Expense 3,020,783 Net Operating Income 572,153 Total Other Income 209,877 Total Other Expenses (307,616) Net Income/(Loss) $ 474,415
Ardenwoods LLC Balance Sheet August 31, 2017 Assets Current Month Ending August 31, 2017 Total Cash and Cash Equivalents $ 3,107,979 Total Current Assets Whose Use is Limited or Restricted 87,848 Total Accounts/Notes Receivable 25,066 Total Inventory 29,782 Total Prepaid and Deferred 133,039 Total Current Assets 3,383,714 Net Depreciable Assets 3,810,733 Total Other Assets 1,001,645 Total Assets $ 8,196,092 Liabilities Total Accounts Payable - Total Accrued Payroll Liabilities 136,824 Total Accrued Liabilities 61,444 Total Other Current Liabilities 1,599,430 Total Current Liabilities 1,797,698 Total Long-Term Liabilities 15,356,357 Total Deferred Revenue - Non Refundable 1,246,029 Total Liabilities 18,400,084 Equity Total Equity (10,203,993) Total Liabilities and Equity $ 8,196,092