2016-09-07T13:43:59-05:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP 600 WASHINGTON AVENUE SUITE 1800 ST LOUIS MO 63101 990 2015-01-01 430654862 LUTHERAN SENIOR SERVICES LUTH 3149689313 1150 HANLEY INDUSTRIAL COURT ST LOUIS MO 63144 PAUL OGIER CFO 3149689313 2016-09-06 1 AMANDA TINNEY P00028482 3149254300 2015 2016-12-15 16:53:06Z JOHN KOTOVSKY 1150 HANLEY INDUSTRIAL COURT ST LOUIS MO 63144 216140911 0 X WWW.LSSLIVING.ORG X 1863 MO FAITH BASED ORGANIZATION WHICH PROVIDES A NETWORK OF SUPPORTIVE SERVICES FOR OLDER ADULTS. SEE BELOW FOR SUMMARY OF LSS CONSOLIDATED OPERATIONS. 14 14 4215 3882 0 0 1857695 1927513 132437938 140357100 7841419 7987805 2817887 2652439 144954939 152924857 17403 26793 0 0 72865764 79979310 0 0 0 66173218 70066141 139056385 150072244 5898554 2852613 471496720 440496214 416908450 392188612 54588270 48307602 TO PROVIDE A NETWORK OF SUPPORTIVE SERVICES THAT MEET THE NEEDS OF OLDER ADULTS AT ALL INCOME LEVELS IN ORDER TO LIVE OUT OUR MISSION OF "OLDER ADULTS LIVING LIFE TO THE FULLEST". 0 0 125166159 26793 136503375 OPERATIONS FOR FIVE CONTINUING CARE RETIREMENT COMMUNITIES (CCRC) THAT OFFER A CONTINUUM OF CARE THAT INCLUDES INDEPENDENT LIVING, ASSISTED LIVING, MEMORY CARE, AND SKILLED NURSING, THE MAJORITY OF WHICH ARE MEDICARE/MEDICAID CERTIFIED. IN ADDITION, OPERATIONS OF ONE ASSISTED LIVING AND ONE SKILLED NURSING FACILITY NOT ASSOCIATED WITH A CCRC. A TOTAL OF 3,275 UNITS ARE OFFERED WITH A SUSTAINED OCCUPANCY RATE EXCEEDING 92%. MORE THAN 3,300 CLIENTS ARE SERVED ANNUALLY. 8860207 A VARIETY OF HOME COMMUNITY BASED SERVICES FOR OLDER ADULTS WHO REMAIN IN THEIR OWN HOMES, INCLUDING MEDICARE CERTIFIED HOME HEALTH, PRIVATE DUTY HOME HEALTH SERVICES, HOSPICE SERVICES AND THREE PROGRAMS IN PARTNERSHIP WITH THE UNITED WAY: OUTREACH SOCIAL SERVICES, THE GOOD NEIGHBOR PROGRAM, AND VOLUNTEER MONEY MANAGEMENT. -5006482 A BENEVOLENT CARE FUND EXISTS TO PROVIDE FINANCIAL ASSISTANCE TO RESIDENTS OR CLIENTS WHO OUTLIVE THEIR ABILITY TO PAY.TOTAL BENEVOLENT CARE ASSISTANCE PROVIDED WAS $5,006,482, OF WHICH, $5,006,482 IS OFFSETTING PROGRAM SERVICE REVENUE. THERE WAS ADDITIONAL BENEVOLENT CARE ASSISTANCE PROVIDED BY OTHER ENTITIES WITHIN THE LUTHERAN SENIOR SERVICES AFFILIATED GROUP BRINGING THE TOTAL TO APPROXIMATELY $7,200,000. 125166159 1 1 0 1 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 358 0 4215 1 0 0 0 0 0 0 0 0 0 0 X 14 14 0 0 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X PAUL OGIER 3149689313 1150 HANLEY INDUSTRIAL COURT ST LOUIS MO 63144 REV WILLIAM T SIMMONS CHAIRPERSON 0.20 2.00 X X 0 0 0 LEE H BODENDIECK SECRETARY 0.20 2.00 X X 0 0 0 SCOTT M HARTWIG ASSISTANT SECRETARY 0.20 2.00 X X 0 0 0 RICHARD J BAGY JR BOARD MEMBER 0.20 2.00 X 0 0 0 NORMA J BARR BOARD MEMBER 0.20 2.00 X 0 0 0 KARL A DUNAJCIK BOARD MEMBER 0.20 2.00 X 0 0 0 JEFFREY L DUNN BOARD MEMBER 0.20 2.00 X 0 0 0 KATHLEEN T MUELLER VICE CHAIRPERSON 0.20 2.00 X X 0 0 0 DR F MATT KUHLMANN BOARD MEMBER 0.20 2.00 X 0 0 0 WILLIAM F ROTH BOARD MEMBER 0.20 2.00 X 0 0 0 REV DR SCOTT K SEIDLER BOARD MEMBER 0.20 2.00 X 0 0 0 JOHN A KOMLOS BOARD MEMBER 0.20 2.00 X 0 0 0 SHERRI C STRAND BOARD MEMBER 0.20 2.00 X 0 0 0 DIANE R DROLLINGER BOARD MEMBER 0.20 2.00 X 0 0 0 JOHN KOTOVSKY PRESIDENT AND CEO 40.00 5.00 X 450477 0 40569 PAUL J OGIER CHIEF FINANCIAL OFFICER/TREASURER 40.00 5.00 X 313081 0 70959 DONALD BELL CHIEF OPERATING OFFICER 40.00 5.00 X 239137 0 40833 DALE KREIENKAMP VP OF HUMAN RESOURCES 40.00 5.00 X 216292 0 25400 MARK W SCHOEDEL VP OF CONSTRUCTION AND IT 40.00 5.00 X 221022 0 39230 MIKE RASO REGIONAL VICE PRESIDENT 40.00 5.00 X 186388 0 12789 CARLA BAUM REGIONAL VICE PRESIDENT 40.00 5.00 X 179498 0 7852 ILLA DAVID CHIEF INFORMATION OFFICER 40.00 5.00 X 168268 0 2312 GARY ANDERSON VICE PRESIDENT CLINICAL EFFECTIVENESS 40.00 5.00 X 164800 0 5997 MARY LAZARE VICE PRESIDENT OF HCBS 40.00 5.00 X 145234 0 6509 DAVE NEWTON VICE PRESIDENT BUILDING & DINING SER 40.00 5.00 X 35532 0 35 TERRY ETLING EXECUTIVE DIRECTOR 40.00 5.00 X 156499 0 11795 VALERIE COOPER EXECUTIVE DIRECTOR 40.00 5.00 X 147477 0 12536 WILLIAM KIRKWOOD EXECUTIVE DIRECTOR 40.00 5.00 X 144273 0 15372 RITA VICARY ADMIN OF MARKETING & SALES 40.00 5.00 X 142274 0 13534 DAVID LUETHY SCN EXECUTIVE DIRECTOR 40.00 5.00 X 142382 0 7889 3052634 0 313611 36 0 1 0 ALLIANCE REHAB 1520 KENSINGTON RD SUITE 110 OAK BROOK IL 60523 THERAPY SERVICES 7142179 MUCCIGROSSO CONSTRUCTION INC 6633 OLIVE BLVD ST LOUIS MO 63130 CONSTRUCTION CONTRACTOR 2389032 PERKINS EASTMAN ARCHITECTS PC 351 WEST HUBBARD STREET SUITE 708 CHICAGO IL 60654 ARCHITECT 1070428 HEALTHCARE SERVICES MANAGEMENT INC 1 BATTERYMARCH PARK SUITE 311 QUINCY MA 02169 SOFTWARE PROVIDER 581294 METEORIX LLC 260 FRANKLIN ST BOSTON MA 02110 IT PROVIDER 559527 38 1542821 384692 1927513 CONTINUING CARE RETIREMENT COMMUN 623000 120668148 120668148 MANAGEMENT FEES 623000 13072776 13072776 HCBS REVENUE 623000 8860207 8860207 AMORTIZATION OF ENTRANCE FEES 623000 2762451 2762451 BENEVOLENT CARE EXPENSES 623000 -5006482 -5006482 140357100 2664062 2664062 421236 421236 202495 25000 177495 177495 177495 55331599 12761962 53435992 9755062 1895607 3006900 4902507 4902507 LAUNDRY 623000 821062 821062 BARBER AND BEAUTY 623000 609712 609712 MEAL INCOME 623000 577123 577123 467047 467047 2474944 152924857 140357100 0 10640244 26793 26793 2572216 2572216 61612885 49649546 11963339 1347684 1086005 261679 9859668 7945222 1914446 4586857 3696230 890627 8759953 8759953 595395 595395 170315 170315 45600 45600 7683 7683 12592844 12199222 393622 640927 640927 4067595 3428096 639499 704771 704771 4945673 4590895 354778 618810 376731 242079 81864 81864 8986712 8342050 644662 16316523 15146057 1170466 1168989 1168989 DIETARY 5634492 5634492 PHARMACY EXPENSES 2503334 2503334 NURSING / THERAPY SUPPL 1627266 1627266 BAD DEBT EXPENSE 346870 346870 250525 154267 96258 150072244 125166159 24906085 0 196566 455868 13325814 12370916 6087130 7656540 5560334 4650900 313383 339805 964111 1619280 392042423 140911336 258726032 251131087 179808341 156034462 466481 493050 4879950 4785166 1168578 959140 471496720 440496214 21793934 23824643 10367075 11317911 228071120 221760329 7293 24339 156669028 135261390 416908450 392188612 X 54221239 47980865 367031 326737 54588270 48307602 471496720 440496214 X 2852613 -5814975 -3318306 X X 0 1 X 1 0 X 407295 1841541 1892923 1989444 1927513 8058716 108838559 113233286 123541647 132378822 140357100 618349414 109245854 115074827 125434570 134368266 142284613 626408130 0 130914 62347 193261 130914 62347 193261 626214869 3495604 4112265 2819393 4112741 3287793 17827796 3495604 4112265 2819393 4112741 3287793 17827796 2626987 2474944 5101931 112741458 119187092 128253963 141107994 148047350 649337857 0.96440 0.96620 0.02750 0.02920 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MEAL INCOME - 2014 AMOUNT: $ 534,556. 2015 AMOUNT: $ 577,123. TRANSPORTATION - 2014 AMOUNT: $ 90,651. 2015 AMOUNT: $ 91,858. TELEPHONE - 2014 AMOUNT: $ 12,547. 2015 AMOUNT: $ 10,688. MISCELLANEOUS - 2014 AMOUNT: $ 148,485. 2015 AMOUNT: $ 126,698. GIFT SHOP - 2014 AMOUNT: $ 21,461. 2015 AMOUNT: $ 20,949. MAINTENANCE - 2014 AMOUNT: $ 13,299. 2015 AMOUNT: $ 20,383. LAUNDRY - 2014 AMOUNT: $ 745,869. 2015 AMOUNT: $ 821,062. HOUSEKEEPING - 2014 AMOUNT: $ 17,728. 2015 AMOUNT: $ 11,339. GUEST ROOM - 2014 AMOUNT: $ 65,516. 2015 AMOUNT: $ 78,678. GARAGE FEES - 2014 AMOUNT: $ 61,950. 2015 AMOUNT: $ 55,955. DEVELOPMENT FEES - 2014 AMOUNT: $ 241,597. CHAPEL - 2014 AMOUNT: $ 23,584. 2015 AMOUNT: $ 24,289. BARBER AND BEAUTY - 2014 AMOUNT: $ 625,076. 2015 AMOUNT: $ 609,712. ACTIVITIES - 2014 AMOUNT: $ 24,668. 2015 AMOUNT: $ 26,210. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 45600 0 0 45600 0 PART II-B, LINE 1: THE ORGANIZATION UTILIZES THE SERVICES OF A LOBBYIST TO KEEP THE ORGANIZATION ABREAST OF LEGISLATIVE ACTS PERTAINING TO THE ORGANIZATION'S INDUSTY AND OCCASIONALLY HAVE EMPLOYEES ATTEND HEARINGS TO SPEAK ABOUT INDUSTRY ISSUES. 0 1 X 87532584 -1959622 16213 85556749 83574389 3958195 87532584 78528152 5046237 83574389 64593854 8191477 5742821 78528152 75909651 3258624 14574421 64593854 1.00000 1 0 16051991 16051991 322591296 113880781 208710515 16523964 8724735 7799229 30249949 18305820 11944129 6625223 6625223 251131087 REFUNDABLE ADMISSION FEES 122060035 RESIDENT DEPOSITS 4418394 INTEREST RATE SWAP AGREEMENT 1503079 INTERCOMPANY PAYABLE 7279882 135261390 X PART IV, LINE 2B: RESIDENT FUNDS ARE HELD BY THE ORGANIZATION FOR THE BENEFIT OF THE RESIDENT. PART V, LINE 4: THE FUND'S PRIMARY PURPOSE OF THE ENDOWMENT FUNDS IS TO SUPPORT THE SERVICES AND ACTIVITIES OF LUTHERAN SENIOR SERVICES IN ITS WORK OF CARING FOR THE AGED AND INFIRMED PERSONS THROUGH THE BENEVOLENT CARE PROGRAM. IT ALSO FUNDS CLINICAL PASTORAL EDUCATION. PART X, LINE 2: THE ORGANIZATION, EXCEPT FOR THE WHOLLY OWNED SUBSIDIARY, PROVIDENT GROUP, INC., AND THE WHOLLY OWNED LIMITED LIABILITY COMPANIES, MACKENZIE PLACE HTC MASTER TENANT, L.P., AND MACKENZIE PLACE LIHTC, L.P., QUALIFIES AS TAX-EXEMPT CORPORATIONS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, THE ORGANIZATION IS NOT SUBJECT TO FEDERAL INCOME TAXES UNDER SECTION 501(A) OF THE CODE. THE ORGANIZATION IS CLASSIFIED AS A PUBLICLY SUPPORTED CHARITABLE ORGANIZATION UNDER THE CODE, AND CONTRIBUTIONS TO THE ORGANIZATION QUALIFY AS A CHARITABLE TAX DEDUCTION FOR THE CONTRIBUTOR. PROVIDENT GROUP IS ORGANIZED AS A TAXABLE NON-PROFIT FOR FEDERAL AND STATE INCOME TAX PURPOSES. MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS. 1 NURSING SCHOLARSHIP 6 26793 PART I, LINE 2: THE ORGANIZATION HAS SET CRITERIA THAT EMPLOYEES MUST MEET IN ORDER TO QUALIFY FOR ASSISTANCE. ONCE THE CRITERIA HAS BEEN MET, THE EMPLOYEE'S SUPERVISOR MUST RECOMMEND THEM. THEN THE DIRECTOR OF NURSING RECOMMENDS THEM AND THE CC ADMINISTRATOR APPROVES ALONG WITH THE EXECUTIVE DIRECTOR'S APPROVAL AND THE VP OF HR'S APPROVAL. AFTER ALL OF THE APPROVALS, THE ORGANIZATION TAKES A LOOK AT THE EXPENSES THE INDIVIDUAL SUBMITTED AND ISSUES THE APPROPRIATE AMOUNT OF ASSISTANCE. X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 JOHN KOTOVSKY PRESIDENT AND CEO 315000 0 0 0 135477 0 20677 0 19892 0 491046 0 26913 0 PAUL J OGIER CHIEF FINANCIAL OFFICER/TREASURER 286525 0 0 0 26556 0 51428 0 19531 0 384040 0 25545 0 DONALD BELL CHIEF OPERATING OFFICER 235562 0 3331 0 244 0 31330 0 9503 0 279970 0 0 0 DALE KREIENKAMP VP OF HUMAN RESOURCES 186344 0 2436 0 27512 0 18807 0 6593 0 241692 0 26869 0 MARK W SCHOEDEL VP OF CONSTRUCTION AND IT 188381 0 2436 0 30205 0 32635 0 6595 0 260252 0 29237 0 MIKE RASO REGIONAL VICE PRESIDENT 172615 0 1244 0 12529 0 8308 0 4481 0 199177 0 0 0 CARLA BAUM REGIONAL VICE PRESIDENT 168447 0 1244 0 9807 0 3375 0 4477 0 187350 0 0 0 ILLA DAVID CHIEF INFORMATION OFFICER 166904 0 0 0 1364 0 2011 0 301 0 170580 0 0 0 GARY ANDERSON VICE PRESIDENT CLINICAL EFFECTIVENES 161846 0 2436 0 518 0 0 0 5997 0 170797 0 0 0 MARY LAZARE VICE PRESIDENT OF HCBS 142153 0 2436 0 645 0 0 0 6509 0 151743 0 0 0 TERRY ETLING EXECUTIVE DIRECTOR 146180 0 1244 0 9075 0 7353 0 4442 0 168294 0 0 0 VALERIE COOPER EXECUTIVE DIRECTOR 136702 0 2138 0 8637 0 6348 0 6188 0 160013 0 0 0 WILLIAM KIRKWOOD EXECUTIVE DIRECTOR 132970 0 3331 0 7972 0 6063 0 9309 0 159645 0 0 0 RITA VICARY ADMIN OF MARKETING & SALES 129709 0 487 0 12078 0 7060 0 6474 0 155808 0 0 0 DAVID LUETHY SCN EXECUTIVE DIRECTOR 121843 0 0 0 20539 0 7108 0 781 0 150271 0 19272 0 PART I, LINE 1A JOHN R. KOTOVSKY HAS A HOUSING ALLOWANCE RELATED TO HIS PASTORAL DUTIES THAT IS INCLUDED IN HIS OTHER REPORTABLE COMPENSATION. PART I, LINE 4B JOHN KOTOVSKY SEC 457(F) PLAN $20,000 PAUL OGIER SEC 457(F) PLAN $20,000 MARK SCHOEDEL SEC 457(F) PLAN $20,000 DALE KREIENKAMP SEC 457(F) PLAN $20,000 DONALD BELL SEC 457(F) PLAN $20,000 PART I, LINE 7 THE ORGANIZATION PROVIDES INCENTIVE PAYMENTS TO EMPLOYEES IF CERTAIN WELLNESS CRITERIA ARE MET. SCHEDULE J PART II LUTHERAN SENIOR SERVICES IS A LARGE COMPLEX ORGANIZATION THAT IS COMPRISED OF 19 SEPARATE LEGAL ENTITIES, EACH OF WHICH FILES ITS OWN TAX RETURN. DUE TO THE REQUIREMENTS FOR COMPLETING THESE 990'S (WHICH ARE FILED BY 16 OF THE 19 LSS ENTITIES), SOME OF THE INFORMATION CONTAINED WITHIN THE FORM, SUCH AS REVENUE AND EXPENSES, IS RELATED ONLY TO THAT PARTICULAR ENTITY. HOWEVER, SOME OF THE INFORMATION, SUCH AS EXECUTIVE COMPENSATION, RELATES TO THE ENTIRE ORGANIZATION. TO HELP MAKE THIS INFORMATION MORE MEANINGFUL, THE FOLLOWING PARAGRAPH PROVIDES A SUMMARY OF THE OVERALL OPERATIONS OF LSS. LUTHERAN SENIOR SERVICES IS A NOT FOR PROFIT ORGANIZATION OWNED BY 104 LUTHERAN CHURCHES AND WAS INITIALLY FOUNDED IN 1858. LUTHERAN SENIOR SERVICES OPERATES 10 SENIOR LIVING COMMUNITIES SERVING OVER 3,000 OLDER ADULTS, NINE AFFORDABLE HOUSING COMMUNITIES SERVING OVER 570 OLDER ADULTS AND A VARIETY OF IN HOME SERVICES PROGRAMS SERVING OVER 5,000 OLDER ADULTS. IN 2015, LSS HAD TOTAL ASSETS OF $723,211,100, PROVIDED APPROXIMATELY $7,200,000 IN BENEVOLENT CARE, HAD OVER 75,000 VOLUNTEER HOURS, AND EMPLOYED 18 CHAPLAINS. A HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI 431178966 60635HC49 2007-02-08 61166776 REFUNDING OF 1997 BONDS AND CAPITAL IMPROVEMENTS TO MERIDIAN VILLAGE 0 0 0 B HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI 431178966 60635HZA0 2005-11-03 22311871 REFUNDING PRIOR BOND ISSUANCE FROM SERIES 1996A, FUND DEBT SERVICE RESERVE 0 0 0 C HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI 431178966 60635HK40 2010-10-14 38277316 CAP IMPROVEMENTS TO LSS, HEISINGER LUTHERAN HOME, LRCA AND MVIII 0 0 0 D HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI 431178966 60635HM55 2011-09-29 47187481 CAPITAL IMPROVEMENTS TO LUTHERAN SENIOR SERVICES 0 0 0 A 12240000 61395133 4300454 829916 151835 9724889 46388039 2007 1 1 1 1 B 4120000 22311871 1730009 300327 18321 20263214 2007 1 0 1 1 C 260000 38434289 3777233 915404 631973 2054508 31055171 2011 0 0 1 1 D 870000 47452221 871285 751862 5541743 40287331 2013 0 0 1 1 A 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 D 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 1 0 0 0 0 1 B 0 0 0 1 0 0 1 JPMORGAN (ORIGINALLY TMG 30.300000000000 1 0 1 C 0 0 0 1 0 0 0 0 1 D 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 D 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: HEALTH AND EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOU DATE THE REBATE COMPUTATION WAS PERFORMED: 02/02/2015 SCHEDULE K, ENTITY 1, PAGE 1, PART I, LINE (B), COLUMN (F) THE CAPITAL IMPROVEMENTS BENEFITTED LUTHERAN SENIOR SERVICES, HEISINGER LUTHERAN HOME, LUTHERAN RETIREMENT CENTER ASSOCIATION, AND MERIDIAN VILLAGE ASSOCIATION III. SCHEDULE K, ENTITY 1, PAGE 1, PART II, LINE (A), COLUMN (A) THE 2007 SERIES A BONDS FUNDED PROJECTS AT THE FOLLOWING FACILITIES: MERIDIAN VILLAGE RETIREMENT COMMUNITY IN GLEN CARBON, IL, ST. JOSEPH'S HOME IN JEFFERSON CITY, MO, LUTHERAN CONVALESCENT HOME IN WEBSTER GROVES, MO, BREEZE PARK RETIREMENT COMMUNITY IN ST. CHARLES, MO, LENOIR WOODS IN COLUMBIA, MO, AND HIDDEN LAKE RETIREMENT COMMUNITY IN SPANISH LAKE, MO. THE 2007 SERIES B BONDS FUNDED PROJECTS AT MERIDIAN VILLAGE ASSOCIATION IN GLEN CARBON, IL. THE 2007 SERIES C BONDS FUNDED PROJECTS AT MERIDIAN VILLAGE ASSOCIATION II IN GLEN CARBON, IL. SCHEDULE K, PAGE 1, ENTITY 1, PART II, LINE 3, COLUMN A PROCEEDS DIFFERS FROM ISSUANCE PRICE DUE TO INCLUSION OF ACCUMULATED INTEREST INCOME THROUGH 12/31/15 OF $228,357. SCHEDULE K SERIES 2005 A BONDS THE SERIES 2005A BONDS WERE REDEEMED IN FEBRUARY 2015 WITH THE PROCEEDS FROM THE SERIES 2014C BONDS. AS A RESULT, THESE BONDS WERE REMOVED FROM SCHEDULE K. SCHEDULE K, PAGE 1, ENTITY 1, PART II, LINE 3, COLUMN C PROCEEDS DIFFERS FROM ISSUANCE PRICE DUE TO INCLUSION OF ACCUMULATED INTEREST INCOME THROUGH 12/31/14 OF $156,973. SCHEDULE K, PAGE 1, ENTITY 1, PART II, LINE 3, COLUMN D PROCEEDS DIFFERS FROM ISSUANCE PRICE DUE TO INCLUSION OF ACCUMULATED INTEREST INCOME THROUGH 12/31/15 OF $264,740. SCHEDULE K, ENTITY 1, PAGE 1, PART II, LINE 4, COLUMN (C) - RESERVE FUNDS THE TOTAL AMOUNT OF GROSS PROCEEDS IN RESERVE FUNDS AT 12/31/15 EQUALS $3,842,665. THIS AMOUNT IS REDUCED BY $65,432, WHICH REPRESENTS THE DIFFERENCE BETWEEN CURRENT MARKET VALUE OF DEBT RESERVE FUNDS AND THE INITIAL FUNDING AMOUNT. SCHEDULE K, ENTITY 1, PAGE 1, PART II, LINE 4, COLUMN (A)-RESERVE FUNDS THE TOTAL AMOUNT OF GROSS PROCEEDS IN RESERVE FUNDS AT 12/31/15 EQUALS $4,625,255. THIS AMOUNT IS DECREASED BY $324,801, WHICH REPRESENTS THE DIFFERENCE BETWEEN CURRENT MARKET VALUE OF DEBT RESERVE FUNDS AND THE INITIAL FUNDING AMOUNT. SCHEDULE K, ENTITY 1, PAGE 1, PART II, LINE 4, COLUMN (D) - RESERVE FUNDS THE TOTAL AMOUNT OF GROSS PROCEEDS IN RESERVE FUNDS AT 12/31/15 EQUALS $3,617,317. THIS AMOUNT IS REDUCED BY $96,032, WHICH REPRESENTS THE DIFFERENCE BETWEEN CURRENT MARKET VALUE OF DEBT RESERVE FUNDS AND THE INITIAL FUNDING AMOUNT AND $2,650,000, WHICH REPRESENTS AN LSS EQUITY CONTRIBUTION. SCHEDULE K, ENTITY 2, PAGE 1, PART II, LINE 4, COLUMN (A) - RESERVE FUNDS THE TOTAL AMOUNT OF GROSS PROCEEDS IN RESERVE FUNDS AT 12/31/15 EQUALS $5,622,834. THIS AMOUNT IS REDUCED BY $1,581,704, WHICH REPRESENTS THE DIFFERENCE BETWEEN CURRENT MARKET VALUE OF DEBT RESERVE FUNDS AND THE INITIAL FUNDING AMOUNT. SCHEDULE K, PAGE 1, ENTITY 2, PART II, LINE 3, COLUMN A PROCEEDS DIFFERS FROM ISSUANCE PRICE DUE TO INCLUSION OF ACCUMULATED INTEREST INCOME THROUGH 12/31/15 OF $305,256. A HEALTH & EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI SERIES 2014A 431178966 60635HS26 2014-06-04 84146040 REFUNDING OF 2004 BONDS AND CAPITAL IMPROVEMENTS 0 0 0 B HEALTH & EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI SERIES 2014B 431178966 2014-06-04 50000000 REFUNDING OF 2008 BONDS 0 0 0 C HEALTH & EDUCATIONAL FACILITIES AUTHORITY OF STATE OF MISSOURI SERIES 2014C 431178966 2015-02-02 28755000 REFUNDING OF SERIES 2005A BONDS 0 0 0 A 390000 84451297 4041130 1104310 284416 552085 54739476 19384946 4344934 2016 1 0 0 1 B 50000000 50000000 2015 1 0 1 1 C 28755000 336434 28418566 2015 1 0 1 1 A 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 B 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 FORM 990, PAGE 1, PART I CONTINUATION LUTHERAN SENIOR SERVICES IS A LARGE COMPLEX ORGANIZATION THAT IS COMPRISED OF 19 SEPARATE LEGAL ENTITIES, EACH OF WHICH FILES ITS OWN TAX RETURN. DUE TO THE REQUIREMENTS FOR COMPLETING THESE 990'S (WHICH ARE FILED BY 16 OF THE 19 LSS ENTITIES), SOME OF THE INFORMATION CONTAINED WITHIN THE FORM, SUCH AS REVENUE AND EXPENSES, IS RELATED ONLY TO THAT PARTICULAR ENTITY. HOWEVER, SOME OF THE INFORMATION, SUCH AS EXECUTIVE COMPENSATION, RELATES TO THE ENTIRE ORGANIZATION. TO HELP MAKE THIS INFORMATION MORE MEANINGFUL, THE FOLLOWING PARAGRAPH PROVIDES A SUMMARY OF THE OVERALL OPERATIONS OF LSS. LUTHERAN SENIOR SERVICES IS A NOT FOR PROFIT ORGANIZATION OWNED BY 104 LUTHERAN CHURCHES AND WAS INITIALLY FOUNDED IN 1858. LUTHERAN SENIOR SERVICES OPERATES NINE SENIOR LIVING COMMUNITIES SERVING OVER 3,000 OLDER ADULTS, NINE AFFORDABLE HOUSING COMMUNITIES SERVING OVER 570 OLDER ADULTS AND A VARIETY OF IN HOME SERVICES PROGRAMS SERVING OVER 5,000 OLDER ADULTS. IN 2015, LSS HAD TOTAL OPERATING INCOME OF APPROXIMATELY $187,000,000, PROVIDED APPROXIMATELY $7,200,000 IN BENEVOLENT CARE, HAD OVER 75,000 VOLUNTEER HOURS, AND EMPLOYED 18 CHAPLAINS. FORM 990 IN AUGUST 2015, THE ORGANIZATION ENTERED INTO AN AGREEMENT WITH MERCY HOSPITAL TO PURCHASE THE ASSETS (INCLUDING THE LICENSE FOR 120 SNF BEDS) AND ASSUME THE OPERATION OF AN EXISTING 120-BED CARE CENTER LOCATED ON THE MERCY HOSPITAL CAMPUS IN WEST ST. LOUIS COUNTY. THE ORGANIZATION NOW OPERATES THE MERCY FACILITY UNDER THE NAME "REACH WEST COUNTY". FORM 990, PART VI, SECTION A, LINE 7A THE GOVERNING BOARD MEMBERS ARE ELECTED BY ASSOCIATED CHURCHES. FORM 990, PART VI, SECTION B, LINE 11 THE GOVERNING BODY IS PROVIDED A COPY OF THE FORM 990 FOR REVIEW PRIOR TO FILING. APPROVAL OF THE FORM 990 IS DELEGATED TO THE AUDIT COMMITTEE OF THE GOVERNING BODY PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS AND EMPLOYEES WILL DISCLOSE A CONFLICT OF INTEREST ON THE "CONFLICT OF INTEREST FORM" IN THE FOLLOWING SITUATIONS AND IN OTHER CIRCUMSTANCES WHICH HE/SHE THINKS MIGHT CAUSE A CONFLICT BETWEEN HIS/HER PERSONAL INTERESTS AND HIS/HER FIDUCIARY DUTY: FINANCIAL INTERESTS, INSIDE INFORMATION, CONFLICTING INTEREST OTHER THAN FINANCIAL, GIFTS AND FAVORS. THE FOLLOWING LSS EMPLOYEES ARE REQUIRED TO SIGN A "CONFLICT OF INTEREST FORM" ANNUALLY: PRESIDENT, CHIEF OPERATING OFFICER, CHIEF FINANCIAL OFFICER/TREASURER, VICE PRESIDENT OF CONSTRUCTION AND IT, VICE PRESIDENT OF HUMAN RESOURCES, ALL DIRECTORS, ADMINISTRATORS AND ASSISTANT ADMINISTRATORS. THE CORPORATE COMPLIANCE OFFICER FOLLOWS UP WITH ANY CONFLICTS OF INTERESTS AND DOCUMENTS THE RESOLUTIONS OF THE CONFLICTS. THESE FORMS ARE KEPT BY THE CORPORATE COMPLIANCE OFFICE. FORM 990, PART VI, SECTION B, LINE 15A THE BOARD OF DIRECTORS ESTABLISHED A SEPARATE COMPENSATION COMMITTEE CHARGED WITH PERFORMING AN ANNUAL PERFORMANCE REVIEW OF THE CEO AND REVIEWING THE CEO'S COMPENSATION PACKAGE. THE COMPENSATION COMMITTEE ENGAGED A THIRD-PARTY GLOBAL HUMAN CAPITAL CONSULTING FIRM TO: (1) DEVELOP AN ANNUAL CEO PERFORMANCE REVIEW PROCESS, INCLUDING A NEW EVALUATION FORM, AND (2) DEVELOP A COMPENSATION PACKAGE BASED ON ITS KNOWLEDGE OF SIMILARLY SIZED NON-PROFIT ORGANIZATIONS IN ORDER TO ENSURE THAT THE COMPENSATION PAID TO THE CEO IS REASONABLE. ALL MEMBERS OF THE BOARD COMPLETE AN ANNUAL EVALUATION, WHICH THE COMPENSATION COMMITTEE SUMMARIZES AND REVIEWS. THE COMPENSATION COMMITTEE THEN MAKES A RECOMMENDATION TO THE FULL BOARD OF DIRECTORS FOR ANY COMPENSATION ADJUSTMENTS. FORM 990, PART VI, SECTION C, LINE 19 ALTHOUGH NOT A REQUIREMENT, THE ORGANIZATION PROVIDES PHOTOCOPIES OF ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS, AND OTHER DOCUMENTS TO ALL WHO REQUEST ONE OR MORE OF THE ITEMS. FORM 990, PART XI, LINE 9: NET PERIODIC PENSION COST -231,503. CHANGE IN VALUE OF INTEREST RATE SWAP -641,323. OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS -2,433,511. EQUITY TRANSFER -380,434. GAIN/LOSS ON REFINANCING 368,465. FORM 990, PART XII, LINE 2C THE ORGANIZATION HAS AN AUDIT COMMITTEE THAT IS RESPONSIBLE FOR THE OVERSIGHT OF THE AUDIT. THIS PROCESS IS CONSISTENT WITH PRIOR YEARS. FORM 990, PAGE 12, PART XI LINE 9 - DISCONTINUED OPERATIONS ON JULY 10, 2015, LUTHERAN SENIOR SERVICES ENTERED INTO AN AGREEMENT FOR THE SALE OF HIDDEN LAKE'S ASSETS AND TRANSFER OF ITS OPERATIONS FOR $12,758,872. THIS SALE CLOSED ON JULY 31, 2015. THE SALE PRICE EXCEEDED THE CARRYING VALUE OF THE ASSETS SOLD BY $3,006,790, WHICH IS INCLUDED IN THE INCOME FROM DISCONTINUED OPERATIONS. THIS SALE ACCOUNTED FOR LESS THAN 25% OF THE ORGANIZATIONS NET ASSETS AND AS A RESULT, SCHEDULE N HAS NOT BEEN COMPLETED. FORM 990, PAGE 10, PART IX, LINE 11A THE MANAGEMENT FEE EXPENSE REPRESENTS ONLY INTERCOMPANY CHARGES THAT ARE OFFSET BY MANAGEMENT FEE REVENUES INCLUDED IN PROGRAM SERVICE REVENUES ON PAGE 9. 8594 HL PROPERTY LLC ALLOCATION CLASS III ASSETS ARE REFUNDABLE ENTRANCE FEES THAT MAY OR MAY NOT HAVE TO BE REMITTED TO CURRENT RESIDENTS. DUE TO THE OFFSETTING LIABILITY, IT IS DETERMINED THE CLASS III ASSET DOES NOT HAVE A FMV. 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