1. Cedar Sinai Park FY 2015 Financial Report and FY2016 Budget Report Sandra C. Simon, Chief Operating Officer Bobbie J. Jenkins, Chief Financial Officer August 25, 2015 Board Presentation

2. Fiscal Year 2015 Successes Improved Accounting/Finance Department due to process improvements and accurate system implementation(s), examples noted below, but not limited to three items: Revenue/billing cycle ongoing – Vision System AP – updated to current as of June 30, 2015, to avoid continuous and historical late fees; as of July 1, 2015 having to hold AP due to three pay periods in July and low cash flow Simplified and consolidated banking operations Improvements in Culinary Department in both expense reductions and improved quality Improved RSM census Reduction in overtime management and continuous monitoring and tracking Improved Quality Oversight Page 2

3. Fiscal Year 2015 Financial Report Executive Summary Highlights Statement of Financial Position ASSETS  Cash and Cash Equivalents decreased from prior year $180,311. Days cash in hand is 7.5 days (includes only operating cash and excludes capital reserves which is for the Capital Campaign). The days cash on hand represents the number of days of operating expenses that CSP could pay with its current cash available. Industry standard is typically 75 to 90 days cash in hand, 2.5 to 3.0 months.  Total current assets decreased approximately $350,000 compared to prior year due to decrease in pledge receivables.  Net property, plant and equipment increased from prior year due to increases in construction in progress related to the new building.  Total other assets decreased approximately $1.5 million compared to prior year due to the collection of the developer fee receivable, which was transferred to CSP investment accounts and is recorded on the Statement of Financial Position under board designated. These funds are currently being held for the Capital Campaign and not used for operating purposes.  Total assets compared to prior year increased approximately 4.3 percent, representing an increase of approximately $1.4 million. LIABILITES and NET ASSETS  Total liabilities decreased approximately $845,000 compared to prior year mainly due to decreases in interdivisional payables and prepaid resident fees.  Total net assets increased approximately $2.3 million compared to prior year due to increases in unrestricted net assets. Working capital, excluding Capital Campaign funds, represented 1.3 times compared to prior year of 0.7 times The working capital ratio (Current Assets/Current Liabilities) indicates whether a company has enough short term assets to cover its short term debt. Anything below 1 indicates negative working capital. Summarized Statement of Activities  Total revenues remained fairly flat compared to budget at $22.5 million.  Total operating expenses decreased slightly compared to budget by approximately $191,000.  Total change in unrestricted net assets representing $2.6 million increased slightly compared to budget by approximately $99,000.  However, management expects unrestricted net loss to be greater due to potential adjustments not incorporated within the draft unaudited financial results as of the current date. Page 3

4. CSP - Assets Statement of Financial Position as of June 30, Page 4

5. CSP – Liabilities and Net Asset Statement of Financial Position as of June 30, 2015 Page 5

6. CSP - Foundation Statement of Financial Position as of June 30, 2015 Page 6

7. CSP – O’Brien Statement of Financial Position as of June 30, 2015 Page 7

8. CSP Statement of Activities Excludes Sinai, Kehillah, and Affordable Housing For the Fiscal Year Ended June 30, 2015 Page 8

9. Fiscal Year 2016 Budget Process Zero-based Budget implementation, consideration of historical information and data Executive Staff set financial targets for both RSM and RJHC Payroll set at 2-percent increase Expenses to remain flat or reduced where controllable Administrators and Managers did first iteration of the budget Page 9

10. Fiscal Year 2016 Budget Assumptions Increased RSM census from actual average of approximately 90 percent to 96 percent RJHC census to remain at 89 percent, payor mix changes to occur during 2015-2016 fiscal year Reduced overtime from approximately 9 to 10 percent to 3 percent Staff to receive pay increase of 2 percent retroactive to August 1, 2015 Budgeted to add Chief Operating Officer in November 2015 Budgeted to add Senior Development Director in January 2016 Page 10

11. Fiscal Year 2016 Potential Risks Unable to maintain budgeted census due to construction Staff recruitment issues due to competition in the current market place could result in increased overtime Possible variances in FY2016 budget due to continuous right sizing of operations, and based on the fact that historical information has not been always accurate Finance team continuing ongoing process improvements; continuing to build the foundation Staff training costs due to Green House Project and SNF could be higher than expected, construction budget estimated at $100,000 Resident relocation could increase costs, construction budget estimated at $100,000 Page 11

12. Draft Budget Fiscal Year 2016 Financial Report Executive Summary Highlights  Total revenues are anticipated to remain stable from FY2015 unaudited financial results at $19.5 million.  Total expenses are anticipated to remain stable from FY2015 unaudited financial results at $19.8 million.  Total change in unrestricted net assets for the FY2016 budget compared to the FY2015 unaudited financial results represents a net loss of approximately $373,000, compared to a net loss of $459,000 respectively. However, management expect loss to exceed $459,000 due to potential adjustments.  To address a census risk with regard to RSM, the sensitivity draft budget represents RSM at 90-percent capacity and no changes to operating expense. A 90-percent capacity without any consideration to changes in operating expenses reports a net loss for RSM of approximately $51,000.  However, if management were to notice a potential reduction in census compared to the FY2016 budget, certain cost-savings measures and cost-cutting would be taken into consideration in order to be budget neutral. Management is currently looking to be more proactive with its operations at RSM regarding census rather than reactive. Page 12

13. CSP DRAFT Summarized Statement of Activities For the Fiscal Year Ended June 30, Page 13