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The Mighty Oak2011 Annual Report

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Message From the Board of TrusteesWe are excited to provide you with this inaugural annual report. As the theme suggests, Royal Oaks has stood the test of time, and 2011 has been an especially rewarding year. As our community enters its 29th year, we find ourselves on solid financial ground, planting seeds for the future while continuing to provide engaging, inspired, vibrant retirement living.

The world around us is changing, and we must adapt and find ways to thrive. We must build on what we do best — serving seniors — and look for better ways to make a difference in the lives we touch.

This past year, the Board and managers engaged in a full-day strategic planning session identifying our priorities for 2012 and beyond. Among these are to restore our occupancy to 95 percent or better; enhance programs for staff and resident education; plan for physical improvements throughout the campus including Health Care Center and apartment building hallway enhancements; improve technology throughout the campus; and formalize and adopt a plan for succession preparation for staff and the Board. We have a lot of busy years and exciting work ahead of us.

We are committed to living our mission every day: To provide the facilities and services, which will promote a high degree of comfort, security, independence and life satisfaction.

And we are proud to share with you the Royal Oaks story for 2011.

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From Inspired Sapling to Mighty OakRoyal Oaks Lifecare Community took root as a dream of Dr. J. Davis Illingworth and Mr. Roe Walker, opening its doors in 1983. Through the years, the community has made many improvements, built new structures and acquired additional land.

Today, Royal Oaks is home to approximately 600 residents, employs more than 300 people, and maintains a strong and stable financial standing. It is one of only a handful of continuing care retirement communities (CCRCs) in the nation that has received an “A” rating from Fitch, a global credit rating agency. Our beautiful 38-acre campus includes independent living apartments and garden homes, assisted living apartments, and a 125-bed skilled nursing facility. A sampling of our many amenities include a fitness center, library, computer lab, residents’ garden, wood shop, craft rooms, auditorium, wellness center and walking paths.

Royal Oaks is a non-profit organization and residents are assured their fees will come back to them during their life stay. These promises are also backed by the People of Faith Foundation, Inc. which holds more than $12 million in investment assets. The reserves are set aside to ensure that any Royal Oaks resident who, through no fault of their own, becomes unable to make their monthly service fee payment, would not be asked to leave. This is an astounding promise, and it has been kept for thousands of Royal Oaks’ residents for nearly three decades.

“Faith sees a beautiful blossom in a bulb, a lovely garden in a seed, and a giant oak in an acorn.”

— William Arthur Ward

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“We ought to think that we are one of the leaves of a tree, and the tree is all humanity. We cannot live without the others, without the tree.”

— Pablo Casals

2011 Community Highlights• Health Care Center received yet another “excellent” rating

from the Arizona Department of Health Services, scoring 99 out of 100 points in 2011. An “excellent” rating has been achieved now for more than 15 straight years.

• Royal Oaks maintained an “A” rating from Fitch, a global credit rating organization, confirming our strong financial outlook. Fewer than 10 communities in the country received an “A” rating.

• The annual Spring Festival appreciation dinner, hosted jointly by the Foundation and the Fund Development Committee, raised more than $260,000. The evening featured authentic Hawaiian dancers and an elegant dinner enjoyed by nearly all of our 600 residents.

• Volunteer Appreciation Social recognized more than

250 residents who give back in their community.

• Scholarship Fund enabled six staff members to earn degrees.

• Construction was completed on new data center to house and upgrade information technology for the entire campus.

• Interactive website and lobby kiosk was launched to rave reviews.

• Record number of new residents introduced friends to Royal Oaks.

• Research began on a formalized continuing education program for residents.

Resident Fred MacFarlane and Ken Kropp, IT manager

Residents enjoy the new luxury bus

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• Beautiful new apartment models opened.

• The Arbors Fine Dining restaurant debuted and its popularity was immediately evident, as reservations were continually sold out.

• Residents enjoyed dozens of fun, organized outings throughout the year, including trips to the ballet, the opera, casinos, the Mogollon Rim, sporting events, horse shows, rodeos, botanical gardens, holiday light displays, cruises, balloon trips, the Arizona State Fair, the Heard Museum and many more. A new luxury bus transported them.

• Employee Appreciation Breakfast boasted record attendance and residents said “thank you” to our staff by switching roles and serving employees. Four 25-year pins were awarded, bringing the total number of employees who have worked at Royal Oaks 25 years or more to 13 people. Chief Executive Officer Kendra Eberhart and Chief Financial Officer Don May were among those celebrating 25 years of service in 2011.

• The Employee Wellness program incentivized staff to eat healthy, cease tobacco use, and exercise regularly. In return, participating employees received awards and a decrease on health insurance costs.

2012 Resident Satisfaction SurveyWould residents recommend Royal Oaks?

Most likely or absolutely Absolutely not or most likely not

2011 Employee Satisfaction SurveyDo employees enjoy working at Royal Oaks?

Agree or strongly agree Disagree or strongly disagree

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Welcome from the Chief Executive OfficerOne of the things I love most about my job is interacting with residents, their families and our staff members.

In 2011, we welcomed 72 new residents to the Royal Oaks family. We are honored and excited they chose Royal Oaks. Our residents have led incredible lives, and I continue to be inspired by all they have accomplished.

Many who now call Royal Oaks home were leaders, innovators and trendsetters during their careers. Among our residents are former corporate presidents and vice-presidents, politicians, lobbyists, teachers, inventors, scientists, professors, religious leaders and many others — all movers and shakers, from many walks of life. These vibrant individuals want to continue to make a difference in the lives of those around them. They chose to live at Royal Oaks because we value and encourage lifelong learning, community involvement and the pursuit of excellence.

At Royal Oaks, we are so much more than just bricks and mortar. Family members often say they are impressed by the quality of care, the beauty of our campus and the security afforded to their loved ones. Many have even added their own names to our Priority List and intend to become future residents.

We also provide meaningful employment to 325 staff members in a respectful, supportive environment that promotes productivity, continuing education and positive relationships with staff and residents.

This amazing group of individuals empowers us to be confident about our future. Throughout 2012 and in the years ahead, Royal Oaks will continue to position ourselves to meet the current and future needs and desires of older adults, as well as our employees and the community at large. Your active participation keeps Royal Oaks engaged, inspired and vibrant.

Kendra Eberhart

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Our biggest distinction and pride lies in the spirit of our residents and hospitality of our well-trained staff. The incredible ladies and gentlemen who live here flourish in our comfortable community where our employees are attentive, activities are plentiful, and health and wellness services give retirees complete peace of mind.

Resident Judi Didcoct gets a warm welcome

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Deeply RootedFor many residents, the Royal Oaks lifestyle is a family tradition.

Chuck and Joan Lundeen

The son of former resident Mildred Whitaker, Chuck Lundeen became familiar with Royal Oaks when his mother moved here. During her tenure (1994–2007), Chuck became increasingly impressed with Royal Oaks’ superior care, elegant atmosphere and commitment to excellence. When he and his wife, Joan, began their own search for a retirement community, they researched many places. Yet, they always came back to Royal Oaks, and they moved to the community in January 2012.

Avid travelers, Chuck and Joan believe in enjoying life to the fullest. They are timeshare and RV enthusiasts and often spend their summers in the cooler mountain air in Flagstaff. They also enjoy cruising, fine dining and playing cards. Chuck is a retired Hewlett-Packard engineer. Joan is a retired cardiologist from New York. Through the years, they have been involved with various Royal Oaks committees including facilities, human resources and health services.

The Lundeens have been vivacious ambassadors for Royal Oaks, introducing many of their friends to our campus, including Joan’s sister Virginia who moved into Royal Oaks in 2004. They have also attended numerous conferences on aging services for the purpose of bringing innovation and vitality to the services we offer our residents. Chuck has been a member of our Board of Trustees for the past eight years and served as President of the Board in 2010 and 2011.

Lowell and Janet Spooner

The Spooners made their home in Arizona, with careers as educators spanning 30 years. They moved to Royal Oaks in 2007 after seeing the lifestyle and care Janet’s mother and father, Janet and John Keller, received here.

Janet’s mother was an Army nurse and then one of the original registered nurses who helped open up Boswell Hospital in Sun City. Janet’s father, after retiring from the Air Force, turned his hobby into a second career by creating stained-glass windows for churches. Her parents moved into Royal Oaks in 1993 and lived a happy life here for years.

A self-described Air Force brat, Janet doesn’t let any grass grow under her feet. One of our most active volunteers, she keeps busy on campus as president of our Resident Council, an area rep and a boutique volunteer. Janet also gives back to the Sun City community by serving as Board secretary at Sunshine Services and President of the Parish Advisory Board at her church, where she also teaches religion classes.

Lowell and Janet share a love of railroads and model trains. They’re active members in the Pacific Southwest Region of the National Model Railroad Association, where Janet has served as Railette Chairwoman for 18 years.

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Cathy Gordon and Fran Kraus

Sisters Cathy Gordon and Fran Kraus are part of our ever-growing “second generation” at Royal Oaks — children of former residents.

These siblings are well aware of the “you never know what can happen” life situations. Both of their husbands passed away in their late 50s, leaving the two sisters on opposite coasts. They looked forward to their trips to visit their mom, Doris Fillinger, at Royal Oaks — not only for family time, but also for the friendliness and warmth of the campus and its residents. Cathy and Fran were so pleased with their mom’s experience here (tenure 1993-2002) that they both moved in, Cathy in 2005 from California and Fran in 2008 from Connecticut.

Fran is a retired speech pathologist, and Cathy worked as a teacher and a real estate professional. Avid travelers, they are the new face of Royal Oaks — youthful, vibrant, funny and involved.

Now that they live in the same community, the sisters enjoy doing volunteer work together. Meals on Wheels service is one activity they find particularly satisfying.

Dale and Shirley Hall

In 1985, when Royal Oaks was a just a “sapling,” Helen and Cullen Moore arrived as residents. During the next 10 years, they started and cultivated many programs that are still in existence today, such as the computer club, the in-house TV channel and the New Horizons lecture series. They were a big influence on Royal Oaks history and an even bigger influence on daughter Shirley Hall, who moved into Royal Oaks in 2005 with her husband Dale. Shirley and Dale live in a lovely garden home right next door to the one where her parents lived.

After graduating from Columbia University as a nurse, Shirley was fortunate to have lived in lots of interesting places with her late-husband, who was with the forest service. After her husband’s passing, Shirley and Dale fell in love, married and moved into Royal Oaks in 2005. Dale owned an interior carpentry business after retiring from the Air Force; he is a “frequent flyer” in our woodshop, helping residents with repairs and even building some furniture. Using her computer and embroidery equipment, Shirley keeps busy embellishing garments with fun “tattoos.”

Shirley and Dale have explored the United States in their motor home and have also done extensive traveling in rented motor homes in Australia, New Zealand and Canada. Traveling is their passion, and they love sharing tales of their many adventures.

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Compassion and KnowledgeRoyal Oaks has provided a clinical site for nursing students since 1999, hosting students from Maricopa County Community College District schools, primarily from Glendale and Paradise Valley community colleges, and Arizona State University. In 2008, we added an educational partnership with Midwestern University, providing community service and clinical rotation opportunities for its pharmacy and dental students.

As a leader in the health care field, Royal Oaks is able to give students a positive experience and prepare them for their careers. By working in our skilled nursing center, for example, students get hands-on experience in their clinical rotations working with older adults. At the same time, these programs provide Royal Oaks with the opportunity to attract and retain qualified staff who are already familiar with our residents and standards of excellence.

For several years, pharmacy students from Midwestern University have completed community-service learning opportunities at Royal Oaks. We accept two to three classes of first-year pharmacy students to complete specific 10-week projects; the objective is to meet a need of the organization and to directly interact with residents in an ongoing mutually-agreed-upon educational experience. Last year, we increased student interactions on campus through an onsite Midwestern Dental Institute, in which graduating dental students provide services under the direct supervision of a dentist. We also allow for graduating podiatry students to provide services with licensed podiatrist oversight.

Employees in our Assisted Living Center

Dr. Tom Sigrist, DDS

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Community ConnectionsRoyal Oaks, its residents and its staff have supported many organizations through leadership, volunteer time, facility space or financial support, including:

In 2011, we continued and expanded our partnership with Midwestern University by welcoming pharmacy and dental students to participate in clinical rotations at our community.

These unique community partnerships have many benefits. Not only do we assist future health care providers in understanding and appreciating our resident population and the associated needs of people in this age group, but this experience also allows students to fill specific needs on our campus. Students have performed research, for example, to determine correlations in certain staff actions and treatment modalities, and with resident behaviors or infection occurrences. This information helps Royal Oaks to make changes in care actions that can increase the quality of care. Students have also provided meaningful activity programs and resident education in medication interactions with food and exercise. They have learned about specific disease processes such as Alzheimer’s Disease and have learned how behavior mapping is an effective way to construct a positive and consistent routine for these residents.

As evidence of the program’s success, several registered nursing students have requested to complete their final 90-hour preceptorship (a graduation requirement) at Royal Oaks. In addition, upon completion of their Royal Oaks rotation, many students have applied for employment here.

In 2012, we will be expanding our student opportunities to include occupational therapy and optometry.

Aging Services of Arizona

American Legion Post #62

AZ Stand Down for Homeless Veterans

Banner Boswell Memorial Hospital

Benevilla

Blue Star Mothers

City of Phoenix

Deer Valley Unified School District

Desert Sky Middle School

Development Enrichment Centers

Friendship Village of Tempe

Habitat for Humanity

Heard Museum

Homeless Connect

Hospice of the Valley

Joni and Friends Wheels for the World

Kiwanis International

Leading Age Arizona

Lions Clubs International

Military Family Support Group

Operation Homefront

Patriot Guard Riders

Peoria Foster Care

Peoria Unified School District

Phoenix Rescue Mission

Price Care Hospice

Scottsdale Center for the Performing Arts

St. Mary’s Food Bank

Sun City Fire Department

Sun City Lions

Sun City Sheriff’s Posse

Sun City Visitors Center

Sun Health Foundation

Trilogy Players

Valley View Community Food Bank

Valley View Thrift Store

Westside Food Bank

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Ed and Joan Sullivan

High school sweethearts Ed and Joan Sullivan have been married for 57 years. The Denver, Colorado natives moved to Arizona in the 1990s. Joan answered an employment listing for a buyer at the Royal Oaks gift shop and got the job. Shortly thereafter, Royal Oaks Chief Executive Officer Kendra Eberhart approached the Sullivans about running the employee auction. They accepted the offer. During their time working at Royal Oaks, Ed and Joan became increasingly impressed by the excellent care our residents received. They decided Royal Oaks was the best place to live and, in 2006, they moved in.

The energy and excitement Ed and Joan bring to everything they do keeps them, and Royal Oaks, young at heart. Joan now runs the Oak Leaf Boutique with Ed and a host of volunteers. In addition, Ed and Joan continue to work on the employee auction. Residents donate items for the auction and staff can bid on the furnishings. So many wonderful donations are received that an auction is held every month. It is a monumental task to sort, organize, orchestrate and tally bids on so many items, yet Ed and Joan make it look easy. In 2011, donations generated from the employee auction raised more than $44,000 for the Foundation.

VibrantA spirit of family and sense of community keeps our residents and staff active and involved.

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Taking Care of Business... and Family

Those who work at Royal Oaks know it is simply the best retirement community in Arizona. And who doesn’t want the best for their families? There is no greater recommendation than to bring your own family members to live where you work; and several of our Royal Oaks staff have done just that.

Chief Financial Officer Don May moved his parents Bob and Ruth May into Royal Oaks in 2002. Lori Waltz, our Resident Services Manager, convinced her father Walter Oleszkowicz to move here in 2005. Attorney and Royal Oaks Board of Trustees member Mike Chambers’ parents, Bob and Mary Lee Chambers, became residents last year.

John and Sheila Farrell

John Farrell was first introduced to Sheila Nietfeld while line dancing in Sun City West about seven years ago. They fell in love and have been inseparable ever since. John grew up in Illinois, but spent most of his life in Massachusetts pursuing a career in accounting, finance and administration with General Electric and Honeywell before forming his own company. Sheila was born in Omaha, Nebraska but calls Oregon home, where she loved volunteering as a nursing-home activity director. When asked why they moved to Royal Oaks, John and Sheila said they looked at many other places, but loved the “bright, light, fresh and active” atmosphere of our Health Care Center (HCC). John and Sheila moved into Royal Oaks in 2010 and were married in our chapel on April 2, 2011. Everyone living or working at Royal Oaks was invited to celebrate. That kind of inclusive, giving and loving spirit exemplifies the Farrells and the Royal Oaks community. Sharing a passion for helping others, John and Sheila are active volunteers. Together, they call bingo in the HCC, volunteer with Highway Christian Hospice, and are Spirit Lifters. John is part of the Royal Oaks sing-a-long group and editor of our resident newsletter. He also volunteers as a tax preparer for AARP.

Ruth, Don, and Bob May

Walter Oleszkowicz and Lori Waltz

Mike, Mary Lee, and Bob Chambers

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InspiredThe foresight and generosity of the Royal Oaks community helps develop strong, future leaders every year through the Scholarship Fund. The program began in 1988 with an initial donation from one of our founders, Roe Walker. Since then, many others have generously contributed to and sustained this inspired and vital program.

Scholarships enable Royal Oaks employees to gain additional training and education in their field of service. This allows them to become more proficient in their work or prepares them for broader responsibilities within the Royal Oaks community. A formal and rigorous application process ensures that only the most committed and promising employees receive scholarship awards.

“I am so grateful for the support and encouragement I get

from Royal Oaks.”

“I could not have achieved this without scholarship assistance.

Thank you, Royal Oaks residents.”

“He that plants trees loves others besides himself.” — English proverb

Two-time Scholarship Fund recipient Felicia Chouteau initially became certified in medical billing, and is continuing her education to include health information management. Both skills serve Royal Oaks well, as Felicia handles confidential health information with professional finesse. The words capable, confident and caring come to mind when you interact with Felicia and we certainly see a bright future for her at Royal Oaks.

Stefany Breuer works in the Acorn Grill and dreams of becoming a registered nurse (RN). Thanks to the Scholarship Fund, Stephany is in the middle of a four-year nursing program through Grand Canyon University. Next year she will complete the transition from food service worker to registered nurse and celebrate a dream come true.

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“Royal Oaks is a wonderful place to work. I am very thankful for the scholarship support and the encouragement I receive from residents and staff.”

“The scholarship from Royal Oaks is one of the greatest gifts I have ever received. It’s a gift that keeps on giving because the things I am learning

will improve the rest of my life.”

Lynnae Monson was a licensed practical nurse (LPN) when she joined our Health Care Center team in 2009. The desire to improve her skills so that she could provide enhanced services for our residents led Lynnae to ask the Scholarship Committee for assistance. Lynnae began classes in April 2011 and will complete her registered nurse degree (RN) in 2014. Currently a floor nurse, she hopes to become a charge nurse; but most important to Lynnae is providing the best possible service and assistance to our residents.

Stop by Royal Retreat to watch Marie Lemerand at work and you’ll see first-hand why she was voted “most likely to succeed.” Marie learned about Royal Oaks at a job fair and was impressed with our commitment to excellence in service. She joined our team as a Registered Nurse (RN) in June of 2011 and is working toward her Bachelor of Science in Nursing at Grand Canyon University. Marie’s long-term goal is to provide superior care to our residents from a whole-body wellness perspective, with a focus on cognitive, emotional, spiritual and social needs in addition to the physical.

Standing StrongOur Financial Picture

At Royal Oaks, financial stability continues to be achieved through shared resources provided by our diverse blend of residents and investments.

We prove there is strength in numbers, with a diversity of revenue streams from entrance fees, monthly service fees, per-diems from non-Lifecare residents in Assisted Living (AL) and the Health Care Center (HCC), generous outright gifts, gift annuity contracts, dividend and interest earnings on investments. In addition, the long-term capital appreciation of substantial equity investments in our portfolios are a stabilizing strategy for long-term success. These distinct revenue sources and reserves ensure our ability to meet obligations for the future service needs of our Lifecare residents, the bond holders on our debt, and the annuity payment obligations of our gift annuitants. Correspondingly, $44 million in property and equipment assets along with $50 million in liquid investments far exceed our $35 million contractual obligations for future Lifecare services to our residents and $30 million in bond debt. Royal Oaks’ net assets remain in excess of $30 million.

A Very Strong Year In the 2011 fiscal year, our marketing department brought in more than $8.5 million in entrance fees — our second highest in Royal Oaks’ history.

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The 3 percent increase in fees to residents was below our average 3.5 percent increase of the last several years. Increases are related to operational expenses and escalations in health-related services that are rising much faster than the overall rate of inflation. Additionally, Royal Oaks spent close to $2 million last year on capital improvements that extend the useful life or improve the efficiency of buildings and equipment. Our focus has been on enhancing our overall curb-appeal and upgrading the resident living spaces as part of modernizing our campus.

During 2011, more than 455 Lifecare residents lived independently in apartments and garden homes; another 55 occupied Assisted Living and 90 resided in our Health Care Center. Altogether, including non-Lifecare residents (who enjoy our quality care in the AL and HCC at a significantly higher price), we provided quality care and service to more than 600 persons, who averaged 87 years of age. Almost 70 percent of our population was female, and about 75 percent lived alone. There were 210 residents aged 90 years or older (more than one-third of them still living independently); and we had 18 residents age 100 years or older.

Royal Oaks provides more than 300 employees with a safe, clean and stable place to work, and we are proud of our staffing ratio of one full-time equivalent staff person for every two residents.

The Bonus of A Gift Annuity

Gift annuity participation helped many residents avoid having to purchase low-return investments. With nearly 300 annuitants, Royal Oaks has been able to pool together these funds and invest in higher-yielding investments with greater returns. Again, the shared resources of the group investing together provide safety to the community and all its individual residents.

Our operating account held $35 million in equity and bonds and was managed by a committee of the Board through professional portfolio managers. Performance continued to exceed benchmarks and total returns were strong and stable. These invested assets diversify our revenue streams in addition to providing the reserves necessary to fulfill the promises made to residents in the Lifecare agreement.

Royal Oaks is still an attractive credit risk, as Fitch rating agency reaffirmed our “A” rating. Fitch reviews an organization’s financial strengths, as well as its management, policies, procedures and best practices, to provide a broad overview of its quality.

As always, independent living occupancy is the key to Royal Oaks’ financial health and where our focus remains. We reconfirm our commitment to fulfill our mission statement to our residents, the larger community, and the Board of Trustees.

Our Mission StatementThe mission of Royal Oaks is to provide the facilities and services which will promote a high degree of comfort, security, independence and life satisfaction for its residents and future residents. Royal Oaks is committed to the belief that the retirement years can be the most fulfilling years of life and all programs and supportive services are dedicated to encouraging wellness and independence.

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People of Faith, Inc. dba Royal Oaks and People of Faith Foundation, Inc.Combined Balance Sheets — February 29, 2012 and February 28, 2011

Current Assets 2012 2011 Cash and cash equivalents $3,454,000 $3,001,000 Accounts receivable, inventories and prepaid expenses 398,000 359,000 Total current assets 3,852,000 3,360,000 Long Term Investments Unrestricted investments 52,790,000 49,600,000 Amounts invested under gift annuity contracts 7,725,000 6,906,000 Total long-term investments 60,515,000 56,506,000 Physical Assets (Includes buildings, equipment, furniture, 43,087,000 43,386,000 vehicles and land at cost, less a portion expensed in operations each year) Total Assets $107,454,000 $103,252,000

Liabilities 2012 2011 Current liabilities $1,781,000 $1,460,000 (Accounts payable, accruals, priority list deposits) Deferred entrance fees 38,518,000 35,658,000 (A portion of entrance fees is taken into income each year) Future payments for gift annuities 1,934,000 2,134,000 Long-term debt 28,625,000 29,330,000 Total liabilities 70,858,000 68,582,000 Net Assets Unrestricted 32,034,000 30,122,000 Temporarily restricted for donor obligations 4,562,000 4,549,000 Total net assets 36,596,000 34,671,000 Total Liabilities and Net Assets $107,454,000 $103,252,000

Statement oƒ Financial Position

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People of Faith, Inc. dba Royal Oaks and People of Faith Foundation, Inc.Combined Statements of Operations — February 29, 2012 and February 28, 2011

Revenues 2012 2011 Amounts collected from residents to provide care $15,542,000 $15,618,000 Entrance fee revenue 5,469,000 4,955,000 Contributions received 572,000 400,000 Investment income 2,926,000 2,913,000 Other income 759,000 867,000 Total Revenues 25,268,000 24,753,000 Expenses Direct costs of providing care to our residents 18,429,000 18,309,000 Depreciation expense 3,599,000 3,469,000 Interest expense on our debt 401,000 485,000 Total Expenses 22,429,000 22,263,000 Market increase (decrease) in value of investments (913,000) 5,363,000 Increase in Net Assets $1,926,000 $7,853,000

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Branching OutA few things we’re planting for the future...

• Development of a continuing education program for our residents, The Learning Tree at Royal Oaks.

• Remodel of Royal Plaza to promote activity and improve resident care.

• Attain Regional Learning Center designation under the direction of Morrison to recognize the achievement of exemplary standards and showcase Royal Oaks as a culinary center of excellence.

• Attain Magnet Status, the highest and most prestigious international distinction a healthcare organization can receive for nursing excellence and quality resident care, by the American Nurses Credentialing Center for the Health Care Center.

• Enrich the apartment hallways with new moldings, paint, apartment doors and keyless locks.

• Add and utilize technology in conjunction with personal care to assist residents in all walks of life.

• Enhance current and develop new programs in Assisted Living and Memory Care to provide stimulation for residents and comfort for family members.

• Add guest suites for visiting family members.

Chef Adam Rozewicz

Residents Doris Marum and Esther Crane

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“Someone’s sitting in the shade today because someone planted a tree a long time ago.”

— Warren Buffett

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GratefulThe oak tree is one of the longest-living trees, spanning generations upon generations. The People of Faith Foundation, like the mighty oak, strives for longevity and strength to provide for residents for years to come.

The Foundation is committed to the belief that aging with dignity and grace includes freedom from financial worry. It strengthens the mission of Royal Oaks by providing financial support to residents through a confidential financial assistance program for those who can no longer partially or entirely pay for their residency. Royal Oaks is fortunate to have such generous donors to help facilitate the means of support and services to provide comfort, security and life satisfaction for the residents whose personal financial situations become uprooted.

Generosity is the core of our community, and it continues to bloom each year. There is no greater evidence of appreciation for the residents’ generosity than the amounts given back through the monthly subsidy program that is granted to all residents. The strength of the Foundation’s assets made it possible for all residents to reap the rewards of the seeds our donors have sown. In 2011, the Foundation granted an extra .05 percent subsidy to all residents to fulfill its mission of giving back to the residents by continuing a tradition of philanthropy that began with the first gift in 1983. In the last three years, the Foundation has received more than $1.2 million from contributions and bequests, and subsidized approximately $900,000 to provide care and support to residents.

Every donation counts. As we all know, from little acorns mighty oaks grow.

Foundation Board of Directors

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People of Faith Foundation, Inc. Donors

Ms. Janice Affleck

Mr. and Mrs. Clifford Ahlgren

Mr. and Mrs. Richard Albrecht

All Aboard America

All At Home Health Care LLC

Ms. Barbara Allen

Mr. and Mrs. Norman Anderson

Mr. and Mrs. Louis Arau

Ms. Diane Astros

Mr. and Mrs. Harold Bachman

Ms. Bea Backen

Ms. Charlotte Baierschmitt

Mr. and Mrs. Donald Ballard

Mr. and Mrs. Michael Baran

Ms. Joyce Barrett

Ms. Florence Bartz

Mr. and Mrs. Lewis Belden

Ms. Loraine Bell

Mr. and Mrs. Billy Bell

Ms. Cortna Billings

Mr. and Mrs. Samuel Borah

Mr. and Mrs. John Boulware

Ms. Hilde Bowers

Ms. Mary Louise Bradford

Mr. and Mrs. William Brandel

Mr. Clifford Brelsford

Ms. Lavere Brinkman

Ms. Madge Buehler

Ms. Marguerite Bushnell

Mr. and Mrs. Donald Byrne

Ms. Norma Cameron

Mr. and Mrs. Harry Carlson

Mr. and Mrs. Dennis Carroll

Ms. Zana Carter

Ms. Inez Chilcutt

Ms. Lucille Clark

Mr. and Mrs. Harold Cleveland

Mr. and Mrs. Billy Coats

Ms. Mary Catherine Conley

Mr. George Conroy

Ms. Dorothy Cook

Ms. Eleanor Cottingham

Ms. Rosamond Cuchna

Mr. and Mrs. Donald Cummings

Ms. Barbara Davis

Mr. and Mrs. Richard Davis

Mr. Kim Deal

Ms. Norma Denham

Ms. Phyllis Diamond

Ms. Mary Duncan

Mr. and Mrs. Robert Durrenberger

Ms. Shirley Eberspacher

Mr. William Egan

Ms. Irene Ehler

Ms. Charlotte Emmons-Scudder

Ms. Lorraine Engstrom

Ms. Darlene Fagan

Mr. and Mrs. Robert Faust

Mr. and Mrs. Richard Faytinger

Mr. and Mrs. Donald Finch

Mr. and Mrs. Joseph Fleming

Mr. Gail Flint

Ms. Maita Floyd

Mr. and Mrs. David Forsberg

Mr. and Mrs. Charles Fox

Ms. Margaret Francis

Mr. and Mrs. Robert Gard

Mr. and Mrs. James Garvin

Dr. and Mrs. Earl Gilbert

Mr. and Mrs. Donald Gill

Mr. and Mrs. Edward Glander

Ms. Beverly Goke

Mr. Andrew Gorde

Mr. and Mrs. George Gottlieb

Mr. and Mrs. Jim Green

Ms. Milada Gregor

Ms. Lenore Powell-Gill

Mr. and Mrs. Donald Hall

Ms. Jean Hallman

Mr. and Mrs. Harold Hammond

Ms. Trudy Harris

“I count my blessings every day to be here. Royal Oaks encourages people to keep active and healthy and that’s what life is all about. I love mentoring the staff and helping residents to stay here through donations to the Foundation. I will continue to support Royal Oaks in any way I can.”

— Robert Wellhausen

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Ms. Darlene Harrison

Mr. James Hauer

Ms. Peggy Hawley

Mr. Jerome Hayes

Ms. Loretta Herger

Ms. Ruth Herman

Ms. Helen Herrboldt

Mr. and Mrs. James Hill

Ms. Dorothy Hills

Mr. and Mrs. Dean Hilst

Ms. Shirley Hochstein

Ms. Joyce Holland

Mr. and Mrs. Delmar Hollenbeck

Ms. Mary Horn

Ms. Marylyn Hubert

Ms. Barbara Hurd

Rev. Davis Illingworth

Ms. Carol Jaslow

Ms. Marjorie Jeffers

Mr. and Mrs. Dennis Jensen

Ms. Lois E. Johnson

Rev. and Mrs. I. Murray Johnson

Ms. Jean Katrulya

Mr. and Mrs. Walter Kennedy

Mr. and Mrs. David Kennicott

Mr. and Mrs. Richard King

Mr. James Kirschbaum

Ms. Marilyn Kluge

Ms. Alice Knipe

Mr. William Kratz

Mr. and Mrs. Nathan Kuznitz

Mr. and Mrs. Kenneth Lamberty

Mr. and Mrs. Kennedy Legler, III

Ms. Lillian Longley

Mr. and Mrs. Charles Lundeen

Mr. and Mrs. John Lupton

Ms. Martha MacCorkell

Mr. and Mrs. Fred MacFarlane

Mr. and Mrs. Darrell Mack

Ms. Bette Mann

Mr. and Mrs. Robert May

Ms. Dolores McCaskey

Mr. and Mrs. Robert McCracken

Ms. Anna Mae McCracken

Mr. and Mrs. Michael McDonald

Ms. Teen McNichol

Medical Leasing, LLC

Ms. Ruth Mehl

Mr. Mich Michaud

Ms. Connie Mielke

Ms. Esther Miller

Ms. Gertrude Miller

Ms. Lea Miller

Ms. Mildred Miller

“I feel it is incumbent on those who can give to do so for the support and strength of future generations.”

— Carol Jaslow

Resident Marge Lupton

26

Ms. Virginia Milligan

Mr. Stanley Mills

Mr. and Mrs. Charles Monroe

Ms. Agnes Moore

Ms. Layne Moss

Ms. Margaret Nelson

Ms. Mary Nichols

Oak Leaf Boutique

Mr. Ralph Oberlink

Mr. and Mrs. Oscar Ojeda

Mr. and Mrs. Walter Oleszkowicz

Mr. and Mrs. Arnold Olson

Mr. and Mrs. Earl Olson

Ms. Louise Ormsbee

Mr. and Mrs. Frank O’Shaughnessy

Mr. and Mrs. Jack Otto

Mr. and Mrs. Stanley Pappas

Mr. and Mrs. Robert Papsdorf

Mr. and Mrs. Richard Parsons

Ms. Jean Petersen

Ms. Marie Petrie

Mr. and Mrs. Harry Phillips

Mr. and Mrs. William Pint

Ms. Norma Pitcairn

Mr. and Mrs. David Pollack

Mr. and Mrs. Burt Poole

Premiere Hearing

Mr. and Mrs. Jim Price

Mr. and Mrs. Arthur Rasi

Mr. and Mrs. Donald Rawson

Ms. Karen Reese

Ms. Marilee Reetz

Mr. and Mrs. Lonnie Rice

Mr. Wayne Rieke

Ms. Edie Riley

Ms. Betty Roberts

Ms. Beverly Roeger

Ms. Jeanne Rosenquist

Royal Oaks Crafts

Royal Oaks Employees

Ms. Ruth Saathoff

Ms. Ardith Sachtjen

Ms. Rosella Saelinger

Ms. Peggy Salisbury

Ms. Lilly Salzberg

Ms. Sylvia Sanders

Ms. Joan Schlutter

Mr. and Mrs. Conrad Schneider

“Having been a teacher, I like to give to the Scholarship Fund because I feel it is important to support others who are trying to better themselves. It makes me feel good to know that my money helps our staff finish their education, earn a degree and have a better life.”

— Helene Tighe

Residents, their family members, and staff enjoy all kinds of celebrations

27

Ms. Velma Schreiner

Ms. Dorothy Scordato

Ms. Diane Seeley

Ms. Joyce Sheker

Ms. Thelma Sherrill

Mr. and Mrs. Thomas Smiley

Mr. and Mrs. Lowell Spooner

Ms. Margaret Stahl

Ms. Grace Stough

Mr. and Mrs. Ed Sullivan

Ms. May Sutton

Ms. Beverly Swanson

Mr. Edward Swanson

Ms. Patricia Swinger

Ms. Betty Teeson

Ms. Becky Tenpas

Mr. Alex Thompson, Jr.

Ms. Maxine Thompson

Mr. Tommy Thompson

Mr. and Mrs. Arthur Tiffany

Ms. Helene Tighe

Mr. and Mrs. Galen Tuma

Mr. and Mrs. Jack Tuma

Ms. Genevieve Turner

Ms. Hope Underwood

Ms. Lori Vaichinger

Mr. and Mrs. Ed Vetter

Ms. Jeannette Volkman

Mr. and Mrs. Loyd Waite

Ms. Helen Weiss

Mr. Robert Wellhausen

Ms. Anne Wells

Ms. Rose Wetmore

Mr. and Mrs. Bruce Wheeler

Ms. Mona Wheeler

Mr. and Mrs. Charles Wilbur

Ms. Helen Williamson

Mr. Walter Wittich

Ms. Carol Lee Wold

Mr. and Mrs. Paul Wold

Ms. Bette Woodward

Ms. Kris Woodward

Ms. Grace Woofter

Ms. Mary Wylie

Ms. Shirley Zengler

“I like the concept of helping those who might need financial assistance and I applaud our founders for having the foresight to set up the Foundation so that no one at Royal Oaks will ever be asked to leave for lack of money. To me, that is the most important part of being in this ‘Royal’ family.”

— Shirley Brandel

28

Illingworth

Assisted Living Center

Ms. Ruth Sutphen

Mildred Elliott Walker Chapel

Ms. Michelle Barker

Ms. Pamela Bleakney

Mr. and Mrs. Thomas Cummings

Mr. and Mrs. Richard Faytinger

Ms. Marie Maxwell

Ms. Tracy Steele

Oak Room

Ms. Barbara Barth

General Outright

Mr. and Mrs. Clifford Ahlgren

Ms. Barbara Allen

Ms. Carol Anderson

Ms. Marilyn Anderson

Ms. Yvonne Ascher

Mr. and Mrs. Harold Bachman

Mr. and Mrs. Donald Ballard

Ms. Florence Bartz

Ms. Loraine Bell

Ms. Gail Bohac

Mr. and Mrs. John Boyle

Mr. and Mrs. Clayton Brower

Ms. Madge Buehler

Rev. David Burrows

Mr. and Mrs. Donald Byrne

Ms. Charlotte Carrico

Church of Christ

Ms. Lucille Clark

Ms. Lucille Clemons

Mr. and Mrs. Arthur Colwell

Ms. Dorothy Cook

Ms. Eleanor Cottingham

Ms. Millie Cundy

Ms. Barbara Davis

Ms. Norma Denham

Ms. Eleanor Durkee

Ms. Lorraine Engstrom

Ms. Charlotte Erb

Mr. and Mrs. John Farrell

Ms. Shirley Ferriegel

Mr. and Mrs. Donald Finch

Mr. Melvin Franck

Mr. and Mrs. Robert Gard

Mr. and Mrs. Ham Geisbert

Mr. and Mrs. Edward Glander

Ms. Louise Goodwin

Ms. Cathy Gordon

Mr. Jack Graham

Mr. and Mrs. Donald Hall

Ms. Darlene Harrison

Mr. and Mrs. Earl Hartman

Ms. Peggy Hawley

Mr. Jerome Hayes

Ms. Sylvia Hays

Ms. Helen Herrboldt

Mr. and Mrs. James Hill

Ms. Ruth Hoffman

Ms. Joyce Holland

Mr. and Mrs. Delmar Hollenbeck

Ms. Marylyn Hubert

Mr. and Mrs. James Hudgens, Sr.

Mr. and Mrs. Gerhard Huggenvik

Mr. Ed Hughes

Rev. Davis Illingworth

Ms. Helen Ingman

Mr. and Mrs. Dennis Jensen

Rev. and Mrs. I. Murray Johnson

Mr. Jack Jordan

Ms. Jean Katrulya

Mr. and Mrs. Walter Kennedy

Mr. and Mrs. David Kennicott

Mr. and Mrs. Richard King

Mr. and Mrs. Nathan Kuznitz

Ms. Ruth Clark

Mr. and Mrs. Charles Lundeen

Royal Oaks Development Fund Donors“Royal Oaks gives so many things to us, we like to give back in return.”

— John and Laura Lyon

29

Mr. and Mrs. Darrell Mack

Mr. and Mrs. Robert May

Ms. Lois McMaster

Ms. Ruth Mehl

Ms. Mildred Miller

Mr. and Mrs. Glenn Modeen

Ms. Agnes Moore

Mr. and Mrs. Arnold Olson

Ms. Shirley Orban

Mr. and Mrs. Robert Papsdorf

Ms. Virginia Pitre

Mr. and Mrs. Ray Porter

Mr. and Mrs. Arthur Rasi

Rev. and Mrs. David Rathjen

Mr. and Mrs. Jack Reynolds

Ms. Edie Riley

Mr. and Mrs. Dean Robison

Ms. Beverly Roeger

Ms. Jeanne Rosenquist

Royal Oaks Crafts

Ms. Harmony Rud

Ms. Ruth Saathoff

Ms. Peggy Salisbury

Mr. Al Schmode

Ms. Diane Seeley

Ms. Joyce Sheker

Ms. Thelma Sherrill

Mr. and Mrs. Robert Showers

Mr. and Mrs. Lowell Spooner

Ms. Margaret Stahl

Mr. and Mrs. Al Staples

Ms. May Sutton

Mr. and Mrs. Arthur Taylor

Mr. and Mrs. Arthur Tiffany

Mr. Norman Uhl

Ms. Hope Underwood

Mr. and Mrs. Richard Vegso

Mr. and Mrs. Anthony Vinci

Ms. Jeannette Volkman

Mr. and Mrs. Thomas Voros

Mr. and Mrs. Loyd Waite

Ms. Helen Weiss

Ms. Alice Wiskirchen

Ms. Sally Wold

Ms. Vivian Wood

Ms. Mary Wylie

Ms. Doris Yock

Health Care Center

Ms. Pamela Bleakney

Don Ingman Library

Ms. Jacquelyn Cronin

Mr. and Mrs. George Powers

“In the nine years I have volunteered in the Health Care Center, I have seen our residents cared for with respect, love and goodness regardless of whether they are people of means or not. I know when I give to the People of Faith Foundation, my contribution is used to ensure that everyone is treated with equal dignity and respect.”

— Alice Davis

Residents Joyce Sheker, Lucy Kelly, Kay Howard, Marketing Director Vicki Ullery, Char Baierschmitt, Millie Steere, Marguerite Bushnell, and Shirley Hochstein

30

Scholarship Fund

Ms. Carol Anderson

Ms. Waneta Anderson

Ms. Anne Baker

Bakorp, LLC

Biological Resource

Ms. Pamela Bleakney

Dependable Medical

Mr. and Mrs. Joseph Fleming

Foot Solutions

Ford’s World Travel

Guardian Pharmacy

Highway Christian Hospice

Mr. and Mrs. Chet Hill

Hospice of the Valley

Ms. Marleen Huff

Ms. Virginia Milligan

New Beginnings

Phoenix Care Service

Mr. and Mrs. John Sponseller

Ms. Nancy Stephens

Summit Therapy

Sun City Caregivers

Ms. Betty Teeson

Wood Butcher’s Den

Mr. and Mrs. Michael Baran

Ms. Joyce Barrett

Mr. and Mrs. Billy Bell

Mr. and Mrs. Robert Benell

Mr. Clifford Brelsford

Mr. and Mrs. Clayton Brower

Mr. and Mrs. Kenneth Cornish

Mr. Stan Cwanar

Mr. and Mrs. Allen Denson

Ms. Helen Ernest

Mr. and Mrs. John Farrell

Mr. and Mrs. Joseph Fleming

Ms. Dorothy Hills

Ms. Joyce Holland

Mr. Ed Hughes

Ms. Carol Jaslow

Mr. Richard Johnson

Ms. Jean Katrulya

Ms. Helen Kucharski

Ms. Betty Leeke

Ms. Virginia Milligan

Mr. and Mrs. Charles Monroe

Mr. and Mrs. Robert Munter

Mr. and Mrs. Walter Oleszkowicz

Mr. and Mrs. Jack Otto

Mr. and Mrs. Donald Rawson

Ms. Edie Riley

Ms. Betty Roberts

Royal Oaks Library

Ms. Charlotte Emmons-Scudder

Mr. and Mrs. John Sponseller

Ms. Margaret Stahl

Ms. Millie Steere

Ms. Florence Wiggins

Ms. Kris Woodward

Ms. Grace Woofter

“I like to give to the Development Fund and to the Foundation because I so appreciate the great care we get at Royal Oaks, and donating is one way I can express that appreciation.”

— Ken Lamberty

Residents Wini and Bob Gard

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Who We Are

2011–2012 Board of Trustees

Chuck LundeenPresident

Janis RyanPresident Elect

Richard HerrmannVice President

Jim GarvinTreasurer

Norma MackSecretary

Dan BrusnahanMike ChambersHoward PochWill RichàrdHarmony RudEric SholbergDr. Eugene StevensDavid Van ArsdaleDr. Jane Winston

People of Faith Foundation, Inc. Board of Directors

Dick MalcomsonPresident

Mary Lou RoofVice President

William DoranTreasurer

Zane PorterSecretary

Susan FilsonDavis IllingworthBeaux TreguboffRobert Wellhausen

Resident Council

George ConroyPresident

Janet SpoonerVice President

Martha MacCorkellSecretary

Ruthe HillFood Committee Chairman

Management Team

Kendra EberhartChief Executive Officer

Don May Chief Financial Officer

Janet AdamsDirector of Human Resources

Dina CapekDirector of Health Services

Gretchen Cobb Controller

Wayne Esposito Facilities Manager

Ken Kropp Information Technology Manager

Mark SchroederFood Services Manager

Vicki UlleryMarketing Manager

Lori WaltzResidential Services Manager

CEO Kendra Eberhart and Resident Vic Dourte

10015 West Royal Oak RoadSun City, AZ 85351

(623) 933-2807www.RoyalOaks.com