2023-02-08T15:24:35-06:00 2022-06-30 540504608 BROWN EDWARDS & COMPANY LLP 3906 ELECTRIC ROAD ROANOKE VA 24018 990 2021-07-01 454983293 FRIENDSHIP HEALTH AND REHAB CENTER SOUTH FRIE 5402652177 367 HERSHBERGER RD NW ROANOKE VA 24012 C MICHAEL SHANNON CFO 5402652177 2023-02-04 1 C MICHAEL SHANNON 999009999 PATRICK PITTMAN P00587461 5403450936 2023-02-04 3 AAL1 IAL1 2021 2023-03-07 01:45:13Z C MICHAEL SHANNON 367 HERSHBERGER RD NW ROANOKE VA 24012 15562461 0 X WWW.FRIENDSHIP.US X 2012 VA SUPPORTING FRIENDS BY PROVIDING PEACE OF MIND 9 9 239 28 0 0 0 0 15652404 15498335 591 1699 24987 31791 15677982 15531825 0 0 0 0 7979451 7474832 0 0 0 5826213 6742500 13805664 14217332 1872318 1314493 24240987 18559390 24452255 17456165 -211268 1103225 SUPPORTING FRIENDS BY PROVIDING PEACE OF MIND 0 0 10780348 14799400 FRIENDSHIP HEALTH AND REHAB CENTER SOUTH OPERATED A 120 BED SKILLED NURSING FACILITY, WITH AN OCCUPANCY RATE OF 93.79% FOR THE FISCAL YEAR. THE FACILITY HAD TOTAL CENSUS DAYS FOR ALL RESIDENTS OF 41,080 AND SERVED RESIDENTS WITH A VARIETY OF FINANCIAL RESOURCES. THE FACILITY PROVIDED SKILLED AND LONG TERM CARE. THE SERVICES INCLUDE NURSING, PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY, DISCHARGE PLANNING, DIETARY, ENVIRONMENTAL, LAUNDRY, AND A WIDE RANGE OF ACTIVITIES. THE FACILITY HAS ALSO DEVELOPED A SPECIALTY IN WOUND CARE. 960082 721450 THE CORPORATION HAS A THERAPY DEPARTMENT THAT PROVIDES PHYSICAL, OCCUPATIONAL, AND SPEECH SERVICES ON AN INPATIENT BASIS TO THE RESIDENTS. 11740430 1 0 0 1 0 0 0 0 1 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 17 0 1 239 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 1 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X VALLEY MANAGEMENT CO INC 5402652177 367 HERSHBERGER RD NW ROANOKE VA 24012 X EDWIN R FEINOUR DIRECTOR 1.00 4.00 X 0 39500 0 GLEN C COMBS CHAIRMAN 1.00 6.00 X X 0 63500 0 EDGAR K BAKER DIRECTOR 1.00 2.70 X 0 8250 0 LUCIAN Y GROVE JR DIRECTOR 1.00 3.00 X 0 42600 0 CYNDA JOHNSON DIRECTOR 1.00 1.00 X 0 42600 0 ROBERT C LAWSON VICE CHAIRMAN 1.00 4.00 X X 0 52000 0 KATHRYN K OELSCHLAGER DIRECTOR 1.00 3.00 X 0 46600 0 ROBERT H SANDEL DIRECTOR 1.00 4.00 X 0 43050 0 JOSEPH M HOFF PRESIDENT & CEO 10.00 30.00 X 0 483993 36018 C MICHAEL SHANNON CFO 10.00 30.00 X 0 365298 14130 CINDY MITCHELL BOARD SECRETARY 10.00 30.00 X 0 66228 1255 JOHN B WILLIAMS III DIRECTOR 1.00 5.00 X 0 22650 0 ANGELA HUGHES VP HUMAN RESOURCES & COMPL 10.00 30.00 X 0 178488 11431 BRANDON EVANS DIRECTOR OF HEALTHCARE SER 40.00 X 148464 0 9475 MARY RODGER DIRECTOR OF ACCOUNTING 10.00 30.00 X 0 149927 15466 STEPHANIE DUNCAN DIRECTOR OF REVENUE CYCLE 10.00 30.00 X 0 124502 12253 TODD LOWE DIRECTOR OF IT 10.00 30.00 X 0 119539 19852 STACEY MULKEY DIRECTOR OF NURSING SERVIC 40.00 X 113110 0 12371 261574 1848725 132251 2 0 1 0 0 ROOM & BOARD 623000 14620190 14620190 PT/OT/ST 623000 721450 721450 MISCELLANEOUS 623000 146598 146598 BEAUTY SHOP 623000 10097 10097 15498335 1699 1699 9276 0 9276 9276 9276 53151 30636 22515 22515 15531825 15520850 0 10975 6422035 5946219 475816 105282 96706 8576 465140 427249 37891 482375 447560 34815 1490516 1490516 3518 3518 3768 3768 108600 108600 138929 18182 120747 60442 60442 674924 532340 142584 144 144 255423 233113 22310 664333 606307 58026 157566 143803 13763 PURCHASED SERVICES & TE 1568339 1565748 2591 ANCILLARY AND THERAPY S 960082 960082 DIETARY SUPPLIES 378646 378646 CONSULTANTS 115670 115670 161600 160061 1539 14217332 11740430 2476902 0 6122624 1195763 854762 630928 240475 235816 44444 44432 21011035 4655508 16881270 16355527 97412 96924 24240987 18559390 901225 1000713 2060 150441 16800521 16208087 97412 96924 6651037 0 24452255 17456165 X -211268 1103225 -211268 1103225 24240987 18559390 1314493 0 X X 0 1 X 1 1 1 X 13936861 13453718 14068434 15668175 15551486 72678674 13936861 13453718 14068434 15668175 15551486 72678674 0 0 0 72678674 12654 9845 10626 9807 10975 53907 12654 9845 10626 9807 10975 53907 13949515 13463563 14079060 15677982 15562461 72732581 0.99930 0.99920 0.00070 0.00080 X 0 0 0 0 0 0 0 0 1 1120 1120 0 PART II-B, LINE 1: FRIENDSHIP HEALTH AND REHAB CENTER SOUTH ATTEMPTS TO INFLUENCE LEGISLATION THROUGH MEMBERSHIP IN THE VIRGINIA HEALTH CARE ASSOCIATION AND THE AMERICAN HEALTH CARE ASSOCIATION WHO LOBBY ON OUR BEHALF. THE AMOUNT ON PART II-B IS THE AMOUNT ALLOCATED TO LOBBYING BY THE VIRGINIA HEALTH CARE ASSOCIATION OF FEES PAID BY ITS MEMBERS TO THE ORGANIZATION. 0 1 X 2040207 2040207 14837328 2432727 12404601 1796769 572119 1224650 2336731 1650662 686069 16355527 X 15490269 30636 30636 15459633 72192 72192 15531825 14175776 30636 30636 14145140 72192 72192 14217332 PART IV, LINE 2B: FUNDS MAINTAINED BY ORGANIZATION FOR RESIDENTS IN ACCORDANCE WITH REGULATIONS. PART X, LINE 2: FRIENDSHIP HEALTH AND REHAB CENTER SOUTH IS A NOT-FOR-PROFIT COMPANY UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS NOT GENERALLY SUBJECT TO INCOME TAXES UNDER PRESENT TAX LAWS. FRIENDSHIP HEALTH AND REHAB CENTER SOUTH HAS DETERMINED IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF JUNE 30, 2022. PART XI, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD SHOWN NET ON 990 30,636. PART XI, LINE 4B - OTHER ADJUSTMENTS: BAD DEBTS SHOWN NET ON FINANCIAL STATEMENTS 72,192. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD SHOWN NET ON 990 30,636. PART XII, LINE 4B - OTHER ADJUSTMENTS: BAD DEBTS SHOWN NET ON FINANCIAL STATEMENTS 72,192. X X X X X X 0 1 0 0 0 1 1 0 0 JOSEPH M HOFF PRESIDENT & CEO 0 356712 0 107014 0 20267 0 7014 0 29004 0 520011 0 0 C MICHAEL SHANNON CFO 0 284599 0 68335 0 12364 0 7936 0 6194 0 379428 0 0 ANGELA HUGHES VP HUMAN RESOURCES & COMPL 0 151115 0 27294 0 79 0 4534 0 6897 0 189919 0 0 MARY RODGER DIRECTOR OF ACCOUNTING 0 143848 0 6000 0 79 0 4331 0 11135 0 165393 0 0 BRANDON EVANS DIRECTOR OF HEALTHCARE SER 139885 0 8500 0 79 0 1771 0 7704 0 157939 0 0 0 PART I, LINE 4B C. MICHAEL SHANNON RECEIVED $8,784 FOR A NON-QUALIFIED RETIREMENT PROGRAM. JOE HOFF RECEIVED $20,367 FOR A NON-QULAIFIED RETIREMENT PROGRAM. THE PROGRAM IS AN EXECUTIVE INVESTMENT TRUST PLAN FOR HIGHLY COMPENSATED AND MANAGEMENT EMPLOYEES. EACH PRESENT AND FUTURE EMPLOYEE OF THE COMPANY AND ITS SUBSIDIARIES WHOM THE COMMITTEE (THE EMPLOYMENT COMPENSATION COMMITTEE OF THE BOARD) DETERMINES TO BE AN ELIGIBLE EMPLOYEE SHALL BE ELIGIBLE TO RECEIVE AN AWARD UNDER THE PLAN. THE EMPLOYEE MUST BE A FULL-TIME ACTIVE PARTICIPANT TO RECEIVE THE AWARD. PART I, LINE 6 THE INDIVIDUALS RECEIVED VARIABLE COMPENSATION PAYMENTS BASED ON A PERFORMANCE SCORECARD. IN TURN, THE SCORECARD MEASURES ARE BASED ON A NUMBER OF MEASURES IN THE CATEGORIES OF FINANCIAL PERFORMANCE, QUALITY PERFORMANCE, INNOVATION AND GROWTH. FOR THE AFFILIATED CORPORATIONS, JOSEPH HOFF, PRESIDENT AND CEO, RECEIVED $107,014, C. MICHAEL SHANNON, CFO, RECEIVED $68,335, CINDY MITCHELL, SECRETARY, RECEIVED $3,000, AND BRANDON EVANS, DIRECTOR OF HEALTHCARE SERVICES, RECEIVED $8,500. A VIRGINIA SMALL BUSINESS FINANCING AUTHORITY 2014-07-01 19649522 CONSTRUCTION OF 120 BED SKILLED NURSING FACILITY 0 0 0 A 3441435 19649522 71593 321892 19256037 0 0 1 1 A 0 0 1 1 0 0 0 0 A 0 1 0 1 0 1 BB&T 7.000000000000 0 0 0 0 0 A 1 990 SCH K, PART I, LINE A(F) THE PROCEEDS FOR THE OBLIGATION ARE USED TO REIMBURSE FRIENDSHIP FOUNDATION FOR COSTS INCURRED IN FUNDING THE CONSTRUCTION OF A 120 BED SKILLED NURSING FACILITY (FRIENDSHIP HEALTH AND REHAB SOUTH). PART V, LINE 2B FRIENDSHIP HEALTH AND REHAB CENTER, INC, EIN 23-7126857 IS THE PAYMASTER FOR TEN RELATED C CORPORATIONS WHICH HAVE EMPLOYEES. THIS CORPORATION PAYS ALL EMPLOYEES AND PREPARES AND FILES ALL REQUIRED FEDERAL PAYROLL RETURNS. EACH CORPORATION AND ITS EMPLOYEES ARE AS FOLLOWS: FRIENDSHIP HEALTH AND REHAB CENTER INC 381 EMPLOYEES FRIENDSHIP APARTMENT VILLAGE CORP 37 EASTWOOD ASSISTED LIVING, INC 68 PROFESSIONAL HEALTH CARE SERVICES, INC 59 FRIENDSHIP PHARMACY, INC 27 VALLEY MANAGEMENT CO, INC 49 LTC SERVICES, INC 24 FRIENDSHIP OUTPATIENT & WELLNESS SERVICES, INC 9 FRIENDSHIP FOUNDATION 2 FRIENDSHIP HEALTH AND REHAB CENTER SOUTH 239 TOTAL 895 FORM 990, PART VI, SECTION A, LINE 3 THE CORPORATION PAYS MANAGEMENT FEES TO FRIENDSHIP FOUNDATION AND VALLEY MANAGEMENT CO, INC TO PROVIDE MANAGEMENT OF ALL ASPECTS OF THE OPERATION, INCLUDING, BUT NOT LIMITED TO, HUMAN RESOURCES SERVICES, ACCOUNTING, BILLING, COLLECTIONS, PAYROLL, AND GENERAL ADMINISTRATION. VALLEY MANAGEMENT CO, INC IS RESPONSIBLE FOR COORDINATING THE PREPARATION OF MONTHLY FINANCIAL STATEMENTS, MAINTAINING AND MANAGING BANK ACCOUNTS AND WORKING CAPITAL. FRIENDSHIP FOUNDATION AND VALLEY MANAGEMENT ARE ALSO RESPONSIBLE FOR APPLYING FOR, OBTAINING, AND MAINTAINING ALL NECESSARY LICENSES, PERMITS, CONSENTS, AND APPROVALS FROM ALL GOVERNMENTAL AGENCIES WHICH HAVE JURISDICTION OVER THE OPERATION OF THE ORGANIZATION. THE TWO COMPANIES AGREE TO OPERATE AND MAINTAIN THE ORGANIZATION IN COMPLIANCE WITH THE REQUIREMENTS OF ANY STATUTE, ORDINANCE, LAW, RULE, REGULATION OR ORDER OF ANY GOVERNMENTAL OR REGULATORY BODY HAVING JURISDICTION OVER THE ORGANZATION. FORM 990, PART VI, SECTION A, LINE 6 THE CORPORATION HAS ONE MEMBER, FRIENDSHIP FOUNDATION. FORM 990, PART VI, SECTION B, LINE 11B AN INDEPENDENT ACCOUNTING FIRM PREPARES THE FORM 990 AND FORWARDS IT TO THE CFO AND CEO FOR REVIEW. THE CFO AND CEO RETURN THE FORM 990 TO THE CPA TO RESOLVE QUESTIONS AND MAKE CHANGES. THE FORM 990 GOES BACK TO THE CFO AND CEO TO ENSURE QUESTIONS AND CHANGES HAVE BEEN MADE. A COPY OF THE FORM 990 IS THEN PROVIDED TO EACH BOARD MEMBER BY THE CFO APPROXIMATELY TWO WEEKS PRIOR TO THE DUE DATE. THEY ARE GIVEN ONE WEEK TO REVIEW AND FORWARD QUESTIONS TO THE CFO. REVIEW QUESTIONS ARE RESOLVED AND THE FORM 990 IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY IS INCLUDED IN BOTH THE EMPLOYEE HANDBOOK AND THE CODE OF CONDUCT, WHICH IS ISSUED TO AND DISCUSSED WITH EACH EMPLOYEE AND BOARD MEMBER. AN ANNUAL LETTER AFFIRMING THE POLICY AND ASKING FOR WRITTEN DECLARATIONS OF ANY POTENTIAL CONFLICTS IS SENT TO ALL BOARD MEMEBRS AND APPROXIMATELY 20% OF EMPLOYEES (ALL MANAGERS, BUSINESS OFFICE STAFF, PURCHASING DEPARTMENT STAFF, HUMAN RESOURCES STAFF, ETC). RESPONSES ARE REVIEWED BY THE CORPORATE COMPLIANCE OFFICER, REPORTED TO THE BOARD, AND ACTED UPON AS NEEDED. ALSO, THE CORPORATION IS AWARE OF THE BUSINESS AFFILIATIONS OF OFFICERS AND DIRECTORS AND ENSURES THAT EACH IS AWARE OF THE AFFILIATIONS. WHENEVER DISCUSSIONS OCCUR IN WHICH A CONFLICT EXISTS, THE INDIVIDUAL RECUSES THEMSELF FROM THE PROCEEDINGS SO THE OTHER MEMBERS CAN DISCUSS THE MATTER FREELY. EACH YEAR AT ITS CORPORATE GOVERNANCE COMMITTEE MEETING AND ANNUAL BOARD MEETING A REPORT IS MADE TO THE BOARD OF DIRECTORS DESCRIBING THE BUSINESS AFFILIATIONS AND ANY BUSINESS TRANSACTIONS THAT OCCURRED DURING THE YEAR BETWEEN THE CORPORATION AND THE EXTERNAL BUSINESSES IN WHICH THE DIRECTORS OR OFFICERS ARE INVOLVED. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE BOARD ROUTINELY ENGAGES AN EXTERNAL CONSULTANT TO REVIEW BENCHMARK COMPENSATION DATA FOR THE CEO AND OTHER KEY MANAGEMENT POSITIONS. A NUMBER OF NATIONALLY RECOGNIZED SALARY SURVEYS ARE UTILIZED AS PART OF THIS PROCESS AND THE CONSULTANT'S WRITTEN REPORT IS RECEIVED BY THE COMPENSATION COMMITTEE AND THE FULL BOARD ANNUALLY. THE COMPENSATION COMMITTEE REVIEWS THE COMPENSATION FOR EACH MEMBER OF THIS GROUP UTILIZING THE BENCHMARK DATA AND ANY ADJUSTMENTS IN COMPENSATION ARE RECOMMENDED FROM THE COMPENSATION COMMITTEE TO THE FULL BOARD FOR CONSIDERATION AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THE COMPANY WILL PROVIDE COPIES OF GOVERNING DOCUMENTS, POLICIES, FINANCIAL STATEMENTS, AND FORM 990S TO PERSONS ASKING FOR THE DOCUMENTS. PART VII THE ORGANIZATION SHARES BOARD MEMBERS AND OFFICERS WITH RELATED ORGANIZATIONS. THE AVERAGE HOURS A WEEK THAT EACH INDIVIDUAL SPENDS WITH EACH ORGANIZATION IS AS FOLLOWS: VALLEY MANAGEMENT CO, INC: EDWIN R. FEINOUR .87 GLEN C. COMBS .66 ROBERT C. LAWSON 2.62 ROBERT H. SANDEL .87 KATHRYN K. OELSCHLAGER .87 JOSEPH M. HOFF 2.00 C. MICHAEL SHANNON 2.00 FRIENDSHIP FOUNDATION: EDWIN R. FEINOUR 3.13 EDGAR K. BAKER 2.11 GLEN C. COMBS 2.34 LUCIAN Y. GROVE, JR 2.34 ROBERT C. LAWSON 9.38 ROBERT H. SANDEL 3.13 CYNDA A. JOHNSON 1.56 KATHRYN K. OELSCHLAGER 3.13 PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FRIENDSHIP FOUNDATION 367 HERSHBERGER RD NW ROANOKE VA 24012 541427948 CONTROLLING ORGANIZATION, MANAGEMENT SERVICES VA 501(C)(3) LINE 12D, III-O 1 FRIENDSHIP APARTMENT VILLAGE CORP 367 HERSHBERGER RD NW ROANOKE VA 24012 540847686 INDEPENDENT LIVING HOUSING VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 EASTWOOD ASSISTED LIVING INC 367 HERSHBERGER RD NW ROANOKE VA 24012 540738784 ASSISTED LIVING FACILITY VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP OUTPATIENT & WELLNESS SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 260152373 OUTPATIENT THERAPY SERVICES VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP HEALTH AND REHAB CENTER INC 367 HERSHBERGER RD NW ROANOKE VA 24012 237126857 LONG TERM NURSING CARE VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP PROPERTIES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541262492 LEASING COMPANY VA N/A C 0 PROFESSIONAL HEALTH CARE SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541421581 HOME CARE SERVICES VA N/A C 0 FRIENDSHIP PHARMACY INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461437 PHARMACY SERVICES VA N/A C 0 VALLEY MANAGEMENT COMPANY INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461444 MANAGEMENT VA N/A C 0 LTC SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461441 MAINTENANCE VA N/A C 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 1 0 0 0 VALLEY MANAGEMENT CO INC M 1487713 CASH FRIENDSHIP HEALTH AND REHAB CENTER INC P 7406605 CASH FRIENDSHIP PHARMACY INC P 453696 CASH LTC SERVICES INC P 106106 CASH