2024-08-05T09:09:24-05:00 2023-12-31 410746749 CLIFTONLARSONALLEN LLP 227 WEST TRADE STREET SUITE 800 CHARLOTTE NC 28202 990 2023-01-01 581598135 THE PINES AT DAVIDSON INC PINE 7048961100 400 AVINGER LANE DAVIDSON NC 28036 DAVID A GENTRY VICE PRESIDENT AND CFO 7048961100 2024-07-26 1 0 JOHN NORMAN P01506766 7049985200 2024-07-26 2023 2024-08-08 14:25:15Z DAVID A GENTRY 400 AVINGER LANE DAVIDSON NC 28036 36762550 0 X WWW.THEPINESATDAVIDSON.ORG X 1983 NC PROVIDE (TO OLDER ADULTS) HIGH QUALITY HOUSING, HEALTHCARE, AND SERVICES TO EXCEED RESIDENTS' EXPECTATIONS 22 22 443 60 0 0 531852 736820 31224602 34593150 995789 1361913 54501 62937 32806744 36754820 643844 832920 0 0 16082652 16860679 0 0 130440 15611624 15797999 32338120 33491598 468624 3263222 164376747 167525833 122379682 121315407 41997065 46210426 X THE MISSION OF THE PINES AT DAVIDSON IS TO PROVIDE (TO OLDER ADULTS) HIGH QUALITY HOUSING, HEALTH CARE AND OTHER SERVICES THAT EXCEED RESIDENTS' EXPECTATIONS.(CONTINUED ON SCHEDULE O)THE PINES AT DAVIDSON WILL SET ITSELF APART BY THE FOLLOWING: BEING EVER MINDFUL OF THE NEEDS OF RESIDENTS, ATTRACTING AND RETAINING A PROFESSIONAL AND CARING STAFF COMMITTED TO THE SERVICE AND WELL-BEING OF RESIDENTS, LEVERAGING COLLABORATIVE OPPORTUNITIES, EXHIBITING INNOVATION THROUGH BOLD INVESTMENTS IN TECHNOLOGIES AND FACILITIES, AND MAINTAINING ITS IDENTITY AS A NONPROFIT COMMUNITY ESTABLISHED BY MEMBERS AND FRIENDS OF DAVIDSON COLLEGE PRESBYTERIAN CHURCH AND THE TRUSTEES OF DAVIDSON COLLEGE. 0 0 9118297 16480553 PROVISION OF HOUSING AND RELATED SERVICES TO RESIDENTS 9058812 10425336 PHYSICIAN SERVICES AND NURSING CARE - PROVIDES MEDICAL CARE TO RESIDENTS INCLUDING SERVICES DESIGNED TO ENHANCE THE QUALITY OF OLDER ADULTS' LIVES 6704120 171652 CULINARY AND DINING SERVICES - PROVIDES WELL-BALANCED, NUTRITIOUS MEALS TO RESIDENTS AND THEIR GUESTS 6016559 832920 7515609 ALL OTHER SERVICES TO MEET THE PHYSICAL, EMOTIONAL, INTELLECTUAL AND SPIRITUAL NEEDS OF RESIDENTS INCLUDING MAINTENANCE, SECURITY, HOUSEKEEPING AND LAUNDRY 6016559 832920 7515609 30897788 1 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 71 0 443 1 0 0 0 0 0 0 0 0 0 0 0 0 X 22 22 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X DAVID A GENTRY 7048961100 400 AVINGER LANE DAVIDSON NC 28036 HARRISON L MARSHALL JR DIRECTOR 1.00 X 0 0 0 DR JOSEPH L TRASK CHAIRPERSON 1.00 X X 0 0 0 JAMES E HARRIS JR DIRECTOR 1.00 X 0 0 0 AMELIA T BEZANSON DIRECTOR 1.00 X 0 0 0 SARAH P BOEHMLER DIRECTOR 1.00 X 0 0 0 JASON CAMERON DIRECTOR 1.00 X 0 0 0 MARY WEEKS FOUNTAIN VICE CHAIRPERSON 1.00 X X 0 0 0 JOHN N GILBERT III DIRECTOR 1.00 X 0 0 0 DR JOSEPH C KONEN DIRECTOR 1.00 X 0 0 0 LINDA NEED DIRECTOR 1.00 X 0 0 0 CARRANZA M PRYOR DIRECTOR 1.00 X 0 0 0 BETH YOUNCE DIRECTOR 1.00 X 0 0 0 REV DR PETER JM HENRY DIRECTOR (EX OFFICIO) 1.00 X 0 0 0 DR JW DAVID ATCHISON DIRECTOR 1.00 X 0 0 0 DR JOHN BARKLEY DIRECTOR 1.00 X 0 0 0 KEVIN DAVIS DIRECTOR 1.00 X 0 0 0 PAUL LEONARD DIRECTOR 1.00 X 0 0 0 RICHARD LOCKRIDGE SECRETARY 1.00 X X 0 0 0 SCOTT LAWS DIRECTOR 1.00 X 0 0 0 GRACE MITCHELL DIRECTOR 1.00 X 0 0 0 KATHERINE BUNN DIRECTOR 1.00 X 0 0 0 DOUG HICKS DIRECTOR (EX OFFICIO) 1.00 X 0 0 0 VERNON M BAKER PRESIDENT AND CEO 50.00 X 316586 0 23689 DAVID C RAINEY VP/CFO (RETIRED) 50.00 X 144405 0 702 DAVID GENTRY VICE PRESIDENT / CFO 50.00 X 212113 0 5810 CAROLYN R PICTON DIRECTOR OF MARKETING 50.00 X 203770 0 23251 THOMAS M BUMMEL DIRECTOR OF DINING SERVICES 50.00 X 178126 0 10223 LESLEY CHAMBLESS DIRECTOR OF HUMAN RESOURCES 50.00 X 159423 0 12042 STEPHANIE CLONTZ DIRECTOR OF RESIDENT SERVICES 51.00 X 164376 0 4061 DAVID SAMEC DIRECTOR OF FACILITIES 50.00 X 181406 0 3598 1560205 0 83376 18 0 1 0 CCAC BUILDING SOLUTIONS 1800-A FAIRFAX ROAD GREENSBORO NC 27407 CONSTRUCTION DESIGN & CONSULTING 475440 PROPEL INSURANCE AGENCY PO BOX 2940 TACOMA WA 98401 INSURANCE COVERAGE 216461 MONTANA DRYWALL 365 ALLMAN ROAD MOORESVILLE NC 28115 CONSTRUCTION SERVICES 214676 LANCAST COUNTY BACKYARD 211 S NEW HOLLARD ROAD KINZERS PA 17535 CONSTRUCTION SERVICES 198900 TRU-COMFORT HEATING AND COOLING 801 OLD HOMESTEAD LANE DENVER NC 28037 HVAC SERVICE 139744 8 736820 736820 HOUSING & RELATED 721310 16480553 16480553 PHYSICIAN & NURSING 713990 10425336 10425336 CULINARY & DINING 722100 171652 171652 7515609 7515609 34593150 1369643 1369643 62937 0 62937 62937 62937 7730 -7730 -7730 -7730 36754820 34593150 0 1424850 561000 561000 271920 271920 789794 463925 247526 78343 11960611 10976911 961786 21914 225565 181211 44354 2890214 2555193 335021 994495 853486 133342 7667 197701 145047 52654 499242 365169 118386 15687 139344 24219 115125 317322 242422 68071 6829 43547 43547 3389527 3389527 15342 8012 7330 47961 33682 14279 2400216 2380934 19282 5759987 5713712 46275 404463 401213 3250 UNIFORMS, LINEN & LAUND 247799 247799 PHYSICIAN SERVICES 156250 156250 CABLE TV, BEAUTY PARLOR 126384 126384 MISCELLANEOUS SUPPLIES 59143 57133 2010 1993771 1699092 294679 33491598 30897788 2463370 130440 6656593 7402622 972062 990362 55083 103253 625597 655454 163893717 60571065 105661505 103322652 44252683 42403839 5978721 12489130 174503 158521 164376747 167525833 3866044 2700175 50486948 51393215 62335269 60915742 5691421 6306275 122379682 121315407 X 27354857 30932520 14642208 15277906 41997065 46210426 164376747 167525833 X 3263222 2185747 -1235608 X X 0 1 X 1 0 X 493545 1246020 2033707 531852 736820 5041944 21734399 22069747 27156273 31224602 34593150 136778171 22227944 23315767 29189980 31756454 35329970 141820115 28263 28727 84068 175947 292825 609830 0 28263 28727 84068 175947 292825 609830 141210285 1254174 1029959 924153 1050290 1432580 5691156 1254174 1029959 924153 1050290 1432580 5691156 23482118 24345726 30114133 32806744 36762550 147511271 0.95730 0.95750 0.03860 0.03980 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 8117286 8117286 122747225 42292175 80455050 11401130 5491933 5909197 20232484 12786957 7445527 1395592 1395592 103322652 CASH EQUIVALENT - UNRESTRICTED 9839253 F '15 BONDS INTEREST ACCT 86802 F '15 BONDS PRINCIPAL ACCT 791081 F INTEREST ACCT 2013 BONDS 154527 F SINKING FUND 2013 BONDS 515700 F 2019A BOND FUND INTEREST 1021652 F 2019A BOND FUND PRINCIPAL 80115 F 12489130 INTEREST PAYABLE 1259241 REFUNDABLE ENTRANCE FEES AND DEPOSITS 5047034 6306275 X PART X, LINE 2: THE PINES IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE PINES QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170 AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION UNDER SECTION 509(A)(2). THE PINES FILES AS A TAX-EXEMPT ORGANIZATION. MANAGEMENT IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE TAX-EXEMPT STATUS OF THE ORGANIZATION. MANAGEMENT IS NOT AWARE OF ANY SIGNIFICANT ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINESS INCOME OR EXCISE OR OTHER TAXES FOR THE ORGANIZATION. THE PINES FOLLOWS GUIDANCE ON THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE IMPLEMENTATION HAS HAD NO IMPACT ON THE PINES' CONSOLIDATED FINANCIAL STATEMENTS. 1 TOWN OF DAVIDSON PO BOX 579 DAVIDSON NC 28036 566001212 115 199000 0 VOLUNTARY CONTRIBUTION MECKLENBURG COUNTY PO BOX 34486 CHARLOTTE NC 28234 566000319 115 362000 0 VOLUNTARY CONTRIBUTION RESIDENT SUPPORT 6 271920 PART I, LINE 2: NOTWITHSTANDING THE FACT THAT THE PINES IS EXEMPT FROM PROPERTY TAXES, THE PINES MAKES VOLUNTARY CONTRIBUTIONS TO THE TOWN OF DAVIDSON AND MECKLENBURG COUNTY TO HELP OFFSET THE COST OF SERVICES PROVIDED TO THE PINES BY SUCH GOVERNMENTAL ENTITIES. AS A GENERAL RULE SUCH CONTRIBUTIONS ARE UNRESTRICTED AND REQUIRE NO MONITORING. IN THE EVENT SUCH CONTRIBUTIONS ARE RESTRICTED FOR A SPECIFIC PURPOSE OR USE, SUCH AS BY THE FIRE DEPARTMENT, THE ORGANIZATION RELIES UPON COMMUNICATIONS WITH APPROPRIATE GOVERNMENT OFFICIALS TO VERIFY SUCH CONTRIBUTIONS ARE USED FOR THE RESTRICTED PURPOSE. A RESIDENT MAY MAKE APPLICATION FOR ASSISTANCE WITH MONTHLY FEES. THE PINES RECONCILES A RESIDENT'S NET WORTH AS REPORTED AT THE TIME OF ADMISSION TO THE PINES TO CONFIDENTIAL FINANCIAL STATEMENT SUBMITTED AT THE TIME OF APPLICATION FOR ASSISTANCE TO THE PINES TO DETERMINE IF THE DEPLETION OF THE RESIDENT'S FINANCIAL RESOURCES HAS BEEN FOR REASONABLE AND JUSTIFIABLE REASONS. DOCUMENTATION REQUIRED MAY INCLUDE BUT IS NOT LIMITED TO PAST AND PRESENT TAX RETURNS, STATEMENTS FROM BROKERAGE/INVESTMENT ACCOUNTS, BANK ACCOUNT STATEMENTS, SETTLEMENT STATEMENT FOR SALE OF RESIDENCE. ALL APPLICANTS GO THROUGH THIS PROCESS AND ARE TREATED CONSISTENTLY. 1 X X X X X X 1 0 0 0 0 0 0 1 0 VERNON M BAKER PRESIDENT AND CEO 234855 0 65520 0 16211 0 3511 0 20178 0 340275 0 0 0 CAROLYN R PICTON DIRECTOR OF MARKETING 57607 0 81598 0 64565 0 4916 0 18335 0 227021 0 0 0 DAVID GENTRY VICE PRESIDENT / CFO 181441 0 14937 0 15735 0 0 0 5810 0 217923 0 0 0 THOMAS M BUMMEL DIRECTOR OF DINING SERVICES 148126 0 30000 0 0 0 0 0 10223 0 188349 0 0 0 DAVID SAMEC DIRECTOR OF FACILITIES 139000 0 28456 0 13950 0 0 0 3598 0 185004 0 0 0 LESLEY CHAMBLESS DIRECTOR OF HUMAN RESOURCES 129138 0 22305 0 7980 0 0 0 12042 0 171465 0 0 0 STEPHANIE CLONTZ DIRECTOR OF RESIDENT SERVICES 117894 0 30228 0 16254 0 4056 0 5 0 168437 0 0 0 PART I, LINE 4A NAME: CAROLYN R. PICTON, DESCRIPTION: SEVERANCE, CURRENT YEAR AMOUNT: $44,119. PLAN DESCRIPTION: SEVERANCE PAID UPON TERMINATION PART I, LINE 7 ALL BONUSES ARE DISCRETIONARY AND BASED ON INDIVIDUAL AND OVERALL COMPANY PERFORMANCE. FOR FURTHER INFORMATION ABOUT HOW THE PINES SETS COMPENSATION, SEE PAGE 2 OF SCHEDULE O UNDER THE HEADING "FORM 990, PART VI, SECTION B, LINE 15". A NC MEDICAL CARE COMMISSION 521309402 2013-09-17 14645000 FACILITY EXPANSION 0 0 0 B NC MEDICAL CARE COMMISSION 521309402 2015-10-07 11125000 REFUNDING 0 0 0 C NC MEDICAL CARE COMMISSION 521309402 65820YQG4 2019-03-28 57575241 FACILITY EXPANSION 0 0 0 A 3640000 14645000 512324 292900 13839776 2014 0 0 1 1 B 5095000 11125000 171586 10953414 1 0 1 1 C 15085241 57575241 2665146 885423 48406793 2022 0 0 0 1 A 0 0 1 0 0 0 0 0 B 0 0 1 0 0 0 0 0 C 0 0 1 0 0 0 0 0 A 0 0 0 1 1 0 0 0 0 B 0 0 0 1 1 0 0 0 0 C 0 0 0 1 0 0 0 0 0 FORM 990, PART VI, SECTION A, LINE 1A EX OFFICIO MEMBERS DO NOT HAVE VOTING RIGHTS FORM 990, PART VI, SECTION B, LINE 11B THE BOARD OF DIRECTORS OF THE PINES AT DAVIDSON MAINTAINS A FINANCE COMMITTEE AS ONE OF ITS STANDING COMMITTEES. ALL MEMBERS OF THE FINANCE COMMITTEE ARE VOLUNTEER DIRECTORS WHO ARE INDEPENDENT OF MANAGEMENT. ALL MEMBERS OF THE FINANCE COMMITTEE ARE EXPERIENCED BUSINESS PEOPLE OR CPAS. THE CHAIRPERSON ALSO SERVES AS A MEMBER OF THE EXECUTIVE COMMITTEE OF THE ORGANIZATION'S BOARD OF DIRECTORS AND REPORTS AS NEEDED DIRECTLY TO THE BOARD OF DIRECTORS. THE FINANCE COMMITTEE MEETS AT LEAST ANNUALLY IN EXECUTIVE SESSION WITH THE AUDITORS WITHOUT MANAGEMENT PRESENT. CLIFTONLARSONALLEN AUDITS THE ORGANIZATION AND ALSO PREPARES ITS FORM 990 BASED ON INFORMATION PROVIDED BY THE PINES' MANAGEMENT. PRIOR TO FILING THE FORM 990 TAX RETURN THE FORM 990 IS REVIEWED BY THE FINANCE COMMITTEE. A COPY OF THE FORM 990 IS ALSO PROVIDED TO ALL DIRECTORS PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION MONITORS THE CONFLICT OF INTEREST POLICY BY SENDING A QUESTIONNAIRE PREPARED BY THE ORGANIZATION'S ATTORNEY AT LEAST ANNUALLY TO ALL DIRECTORS. THE DIRECTORS RETURN THE SIGNED QUESTIONNAIRES. MANAGEMENT OF THE PINES WORKS CLOSELY WITH ITS LEGAL AND TAX ADVISORS IN THE EVENT ANY DIRECTORS INDICATE POTENTIAL CONFLICTS AND PROVIDE ASSISTANCE IN DETERMINING PROPER TREATMENT AND DISCLOSURE. THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS AND/OR THE BOARD OF DIRECTORS IS ALSO APPRISED OF ANY POTENTIAL CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE OF THE PINES' BOARD OF DIRECTORS ("BOARD") SERVES AS THE COMPENSATION COMMITTEE, EVALUATING PERFORMANCE AND SETTING COMPENSATION FOR THE PRESIDENT/CEO. THE EXECUTIVE COMMITTEE IS COMPRISED OF THOSE DIRECTORS OF THE CORPORATION WHO ARE THE CHAIRPERSON, VICE CHAIRPERSON, SECRETARY OF THE CORPORATION, AND THE CHAIRPERSONS OF THE COMMITTEES OF THE BOARD OF DIRECTORS. THE COMPENSATION COMMITTEE MEETS AT LEAST ANNUALLY. THE COMMITTEE ASSESSES JOB PERFORMANCE AGAINST OBJECTIVES ESTABLISHED BY THE BOARD AS PART OF THE CORPORATION'S STRATEGIC PLAN, WHICH FOR 2021 INCLUDED EIGHT KEY STRATEGIC GOALS: (1) DELIGHTED RESIDENTS; (2) HIGH QUALITY HEALTHCARE AND OTHER SERVICES; (3) A CARING, TALENTED AND LOYAL STAFF; (4) STATE-OF-THE-ART FACILITIES; (5) STRONG COMMUNITY RELATIONS; (6) AN INNOVATIVE CULTURE AND A SPIRIT OF INQUIRY; (7) EFFECTIVE BOARD GOVERNANCE; AND (8) FINANCIAL STRENGTH. THE BOARD ALSO ADOPTED QUANTIFIABLE, MEASUREABLE OBJECTIVES FOR EACH OF THESE EIGHT KEY GOALS TO HELP MEASURE PERFORMANCE OF THE PINES' MANAGEMENT TEAM. SOME EXAMPLES OF SUCH OBJECTIVES INCLUDE (NUMBERS IN PARENTHESES REFER TO THE RELATED STRATEGIC GOAL): MAINTAINING A PASSING HEALTH DEPARTMENT RATING ON THE POOLS (4); ACHIEVING A COUNTY HEALTH DEPARTMENT RESTAURANT SANITATION SCORE OF 95 OR BETTER (2); HAVING NO INCIDENTS OF RESIDENT ABUSE OR NEGLECT (2); MEETING EMPLOYEE TURNOVER AND SATISFACTION OBJECTIVES (3); MEETING RESIDENT SATISFACTION OBJECTIVES (1); ANSWERING NURSING CALL BELLS WITHIN THREE MINUTES 95% OF THE TIME (1); STRIVING TO RESPOND TO ALL LIFE SAFETY RELATED AND HIGH PRIORITY WORK ORDERS IN A TIMELY MANNER (1); RAISING GIFTS TO GROW THE ENTRY ASSISTANCE FUND (5); SCORING AT THE MEDIAN OR BETTER ON 17 KEY FINANCIAL RATIOS CALCULATED ANNUALLY ON APPROXIMATELY 92 SINGLE-SITE, NONPROFIT, ACCREDITED CONTINUING CARE RETIREMENT COMMUNITIES (8); STRIVING TO MAINTAIN A 'BBB+' FITCH RATING OR BETTER THROUGH DECEMBER 31, 2028, AND THEREAFTER STRIVE TO ACHIEVE AND MAINTAIN A FITCH INVESTMENT GRADE RATING OF 'A- OR BETTER) (8); OPERATING THE FACILITY AT AN OPERATING MARGIN OF 3% TO 5% OR BETTER (8); MAINTAINING POSITIVE CASH FLOW EACH YEAR AS MEASURED BY CASH USED OR PROVIDED FROM OPERATIONS (8); AND MAINTAINING 95% OCCUPANCY OR BETTER IN INDEPENDENT LIVING (6). THE COMPENSATION COMMITTEE CONSIDERS COMPENSATION FOR SIMILAR POSITIONS AT OTHER NONPROFIT ORGANIZATIONS IN THE SAME INDUSTRY WITH COMPARABLE TOTAL REVENUES. THE PINES' INDEPENDENT COMPENSATION CONSULTANT GATHERS SUCH INFORMATION ON OTHER NONPROFIT CONTINUING CARE RETIREMENT COMMUNITIES (MAINLY IN NC, SC, AND VA) . THE COMPENSATION COMMITTEE ALSO CONSIDERS A NATIONAL COMPENSATION SURVEY DONE FOR LEADING AGE THAT PROVIDES REGIONAL AND NATIONAL COMPENSATION DATA FOR SIMILAR POSITIONS AT APPROXIMATELY 350 NONPROFIT CONTINUING CARE RETIREMENT COMMUNITIES. THE PRESIDENT AND VICE PRESIDENT EACH RANK BELOW THE 50TH PERCENTILE WHEN THEIR ANNUAL COMPENSATION IS COMPARED TO THE COMPENSATION SURVEY INFORMATION REFERRED TO ABOVE. FORM 990, PART VI, SECTION C, LINE 19 FORM 990 AS WELL AS THE CONFLICT OF INTEREST POLICY AND THE CORPORATE BYLAWS ARE AVAILABLE ON REQUEST AT THE BUSINESS OFFICE OF THE PINES. THE AUDITED FINANCIAL STATEMENTS ARE ALSO AVAILABLE ON REQUEST AND A COPY IS KEPT IN THE LIBRARY OF THE PINES AT DAVIDSON. THE ORGANIZATION FILES A DISCLOSURE STATEMENT ANNUALLY WITH THE NORTH CAROLINA DEPARTMENT OF INSURANCE AND IS AVAILABLE ON THE NCDOI WEBSITE. SUCH DISCLOSURE STATEMENT CONTAINS SIGNIFICANT INFORMATION ABOUT THE STATUS AND OPERATIONS OF THE PINES. SUCH DISCLOSURE STATEMENT IS ALSO AVAILABLE IN THE LIBRARY OF THE PINES AND IS DISTRIBUTED TO ALL APPLICANTS FOR RESIDENCE. FORM 990, PART XI, LINE 9: NET ASSET RELEASED FROM RESTRICTION FOR BUILDINGS AND EQUIPMENT 879,419. NET ASSETS RELEASED FROM DONOR RESTRICTIONS -1,914,019. CHANGE IN VALUE OF PLEDGES WITH DONOR RESTRICTIONS 33,300. NONOPERATING EXPENSES -234,308. FORM 990, PART XII, LINE 2C: NO CHANGE IN METHOD SINCE THE PRIOR YEAR. FORM 990, PART I, LINE 19 RECONCILIATION THE REVENUE LESS EXPENSES FOR THE FISCAL YEAR 2023, AS REPORTED ON PART I, LINE 19 OF THE FORM 990, RECONCILES TO THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS IN THE FOLLOWING MANNER: TOTAL OPERATING REVENUE AND SUPPORT 35,309,683 TOTAL OPERATING EXPENSES 33,219,678 INCREASE IN UNRESTRICTED NET ASSETS 2,090,005 FORM 990, PART I, LINE 19 -- REVENUE LESS EXPENSES 3,263,222 RESTRICTED CONTRIBUTIONS (629,282) UNRESTRICTED CONTRIBUTIONS (107,538) RESTRICTED INTEREST INCOME (444,127) RESTRICTED REALIZED LOSS 7,730 PER AUDITED FINANCIAL STATEMENTS 2,090,005 IN DECEMBER OF 2017 THE PINES' CREDIT RATING WAS REVISED BY FITCH FROM AN 'A-' TO AN 'A' CREDIT RATING. IN FEBRUARY 2019, AS EXPECTED THE PINES' CREDIT RATING WAS REVISED BY FITCH FROM AN 'A' TO A 'BBB+' CREDIT RATING IN RESPONSE TO THE PROJECTED CHANGES IN THE PINES' FINANCIAL POSITION AS A RESULT OF UNDERTAKING THE PROJECT. AN ORGANIZATION WITH AN INVESTMENT GRADE RATING (CONSIDERED TO BE 'BBB- OR HIGHER) CAN TYPICALLY BORROW FUNDS AT LOWER, MORE FAVORABLE INTEREST RATES. IN MARCH 2019, THE PINES BORROWED $46 MILLION IN TAX EXEMPT PUBLIC DEBT AND ARRANGED TO BORROW AN ADDITIONAL $12 MILLION IN TAX EXEMPT BANK DEBT. THE PINES' INVESTMENT BANKING FIRM (ZIEGLER) ESTIMATES THAT THE PINES' "BBB+" CREDIT RATING RESULTED IN A COST OF BORROWING THAT WAS 0.65% LOWER THAN IF THE TRANSACTION WERE NON-RATED, RESULTING IN A GROSS CASH FLOW SAVINGS OF $9,768,326. IN ADDITION, THE "BBB+" CREDIT RATING ENABLED THE PINES TO BORROW FUNDS WITHOUT MAINTAINING A DEBT SERVICE RESERVE FUND, WHICH REDUCED THE BORROWING NEED BY APPROXIMATELY $3.5 MILLION. AS OF JUNE 6, 2024, FITCH CONFIRMED THE PINES' BBB+ STATUS WITH A STABLE OUTLOOK. MECKLENBURG REAL ESTATE HOLDINGS LLC PO BOX 33429 CHARLOTTE NC 28233 471154878 REAL ESTATE INVESTMENTS NC 183806 THE PINES AT DAVIDSON INC SDK ENTERPRISES PO BOX 33429 CHARLOTTE NC 28233 842170164 REAL ESTATE INVESTMENTS NC 695000 THE PINES AT DAVIDSON INC