2016-11-14T12:14:08-06:00 2016-06-30 232932984 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2015-07-01 231458000 MESSIAH HOME MESS 7176974666 100 MT ALLEN DRIVE MECHANICSBURG PA 17055 CAROLYN N JACOBS SECRETARY/TREASURER 7176974666 2016-11-10 1 JULIUS C GREEN CPA P00350393 2159720701 2015 2017-02-10 21:41:12Z MESSIAH LIFEWAYS AT MESSIAH VILLAGE CURTIS D STUTZMAN 100 MT ALLEN DRIVE MECHANICSBURG PA 17055 49616188 0 X WWW.MESSIAHVILLAGE.ORG X 1896 PA MINISTRY THAT RESPONSIBLY ENHANCES THE LIVES OF OLDER ADULTS WITH CHRIST-LIKE LOVE. 4 1 674 425 0 0 868413 886316 36967495 37320563 4329585 3368432 1319021 1119240 43484514 42694551 0 0 0 0 17308156 18134537 0 0 0 21833597 21403756 39141753 39538293 4342761 3156258 115378667 129196878 67666362 83761125 47712305 45435753 X THE ORGANIZATION'S MISSION IS TO BE "A MINISTRY THAT RESPONSIBLY ENHANCES THE LIVES OF OLDER ADULTS WITH CHRIST-LIKE LOVE." INTENTIONAL AND MEANINGFUL COMMUNITY LIFE IS CENTRAL TO ACHIEVING THE ORGANIZATION'S MISSION OF LIVING "LIFE.EMBRACED." WE BELIEVE LIFE CAN BE ENHANCED WHEN PERSONS HAVE OPPORTUNITIES TO PURSUE THEIR OWN GROWTH WITH AN INWARD JOURNEY OF THE BODY, MIND AND SOUL, HAVE OPPORTUNITIES TO JOURNEY OUTWARD AND CARE FOR AND SHARE THEIR HEARTS AND HANDS WITH OTHERS, AND HAVE OPPORTUNITIES TO JOYOUSLY JOURNEY TOGETHER WITH OTHERS AND BUILD RESPECTFUL, PARTICIPATORY RELATIONSHIPS.OUR DREAM IS TO INSPIRE EVERYONE 55 AND BETTER TO MORE FULLY EMBRACE LIFE; TO NOT FEAR GROWING OLDER, BUT TO RE-IMAGINE THE JOURNEY OF AGING AS A TIME OF PURPOSE, ZEST, AND FAITH-FILLED LIVING. 0 0 29839402 37320563 THE YEAR ENDING JUNE 30, 2016 WAS ONE OF POSITIVE GROWTH AND NEW ACCOMPLISHMENTS AS THE ORGANIZATION CELEBRATED ITS 120-YEAR ANNIVERSARY. THE GIFT DEVELOPMENT OFFICE RECEIVED SEVERAL SPECIAL GIFTS THIS YEAR INCLUDING A GIFT FROM THE HARRY E. HAMSHER ESTATE FOR $50,283.14 AND ALSO A GIFT FROM THE ESTATE OF DR. HAROLD H. ENGLE FOR $120,000.00. BOTH WERE DESIGNATED FOR THE PROJECT ENVISION CAPITAL CAMPAIGN. IN ADDITION, THERE WAS A LILA BRAUEN LIFE INSURANCE DEATH BENEFIT OF $25,513.70 DESIGNATED FOR ENDOWMENT FUND FOR BENEVOLENT CARE. IN ADDITION TO THE ESTATE GIFTS, THE GIFT DEVELOPMENT OFFICE HAS BEEN RAISING MONEY TO SUPPORT THE PROJECT ENVISION CAPITAL CAMPAIGN. TOTAL DONATIONS RECORDED AT 06/30/16, BEFORE ADJUSTMENT FOR THE TIME VALUE OF MONEY, IS $1,936,289.46. THIS IS NOT THE SAME AS DONATIONS ACTUALLY RECEIVED AS IT INCLUDES UNPAID PLEDGES. TOTAL DONATIONS RECEIVED AT 06/30/16 ARE $1,608,808.83 WHICH IS COMPRISED OF PLEDGE PAYMENTS OF $132,949.37, UNRESTRICTED BEQUESTS OF $1,259,916.71, AND RESTRICTED CONTRIBUTIONS OF $215,942.75. THIS YEAR, $560,000 OF BENEVOLENT CARE WAS PROVIDED IN ENHANCED LIVING, AND $2,268,000 WAS PROVIDED IN NURSING.ANOTHER ENTHUSIASTIC GROUP ON THE CAMPUS IS THE MESSIAH VILLAGE AUXILIARY. FOR MANY YEARS, THE AUXILIARY HAS GENEROUSLY SUPPORTED THE ENDOWMENT FUND BY DONATING TO ANNUAL APPEAL EFFORTS AND BY DONATING MONEY FROM THEIR GIFT SHOP AND COFFEE SHOP SALES, QUILT SALES, AND CLOTHING SALES TO SUPPORT BENEVOLENT CARE. BEHIND THE SCENES, AUXILIARY MEMBERS SERVE QUIETLY BUT CONFIDENTLY, KNOWING THAT THEIR EFFORTS MAKE A DIFFERENCE TO THIS COMMUNITY. FROM TRANSPORTING RESIDENTS TO REHAB AND HAIR APPOINTMENTS, TO PLANTING FLOWERS AND HOSTING AT THE FIRESIDE GRILLE, VOLUNTEERS' GENEROSITY OF GIVING TIME AND TALENT IMPACT NEARLY EVERY ASPECT OF LIFE AT MESSIAH VILLAGE. THIS YEAR, 458 VOLUNTEERS GAVE 31,840 HOURS OF SERVICE TO MESSIAH VILLAGE. BASED ON THE BUREAU OF LABOR AND STATISTICS FIGURES, VOLUNTEERS PROVIDED $680,109 WORTH OF SERVICE. ONE OF THE MOST NOTABLE WAYS IN WHICH MESSIAH VILLAGE ENHANCES THE LIVES OF ITS RESIDENTS IN RESIDENTIAL LIVING IS THROUGH THE PATHWAYS INSTITUTE FOR LIFELONG LEARNING. THE PATHWAYS INSTITUTE PROVIDES RESIDENTS WITH OPPORTUNITIES TO ENGAGE IN MENTAL, CULTURAL AND SPIRITUAL ACTIVITIES PROMOTING THEIR OVERALL WELLNESS. GROUNDBREAKING TOOK PLACE ON OCTOBER 29, 2015 FOR PHASE 1 OF "PROJECT ENVISION: A 20-YEAR PLAN FOR A MISSION-DRIVEN MESSIAH VILLAGE." THIS PROJECT HAS DEFINED A CLEAR COURSE TO ENSURE MESSIAH VILLAGE MEETS THE CHANGING NEEDS OF FUTURE GENERATIONS OF RESIDENTS WHILE REMAINING FISCALLY STRONG AND MISSION-FOCUSED. THE PROJECT AIMS TO INCREASE RESIDENTIAL LIVING AND ENHANCED LIVING (LICENSED AS PERSONAL CARE) OPTIONS, OFFER SMALLER NURSING NEIGHBORHOODS WITH PRIVATE ROOMS, AND ADD NUMEROUS LIFESTYLE AMENITIES. THE CENTERPIECE OF PHASE ONE IS THE VILLAGE SQUARE, WHICH FEATURES A BLEND OF LIVELY COMMON SPACES THAT PROMOTE VITALITY AND 84 PRIVATE APARTMENTS WITH UNDERGROUND PARKING. IT WILL INCLUDE A WELLNESS CENTER WITH A WARM, SALT WATER POOL, DAY SPA, ENRICHMENT CENTER, A CAFE AND AN UPSCALE CASUAL RESTAURANT. THE VILLAGE SQUARE WILL NOT ONLY BE THE HUB OF ENRICHMENT ACTIVITY FOR RESIDENTS, BUT IT WILL HOUSE THE PATHWAYS INSTITUTE FOR LIFELONG LEARNING AND MESSIAH LIFEWAYS WELLNESS, WHICH HUNDREDS OF COMMUNITY MEMBERS FROM ACROSS OUR REGION ENJOY ON A WEEKLY BASIS. THE FIRST PHASE OF PROJECT ENVISION WILL ALSO INCLUDE THE ADDITION OF 26 NEW LARGE APARTMENTS IN ENHANCED LIVING CALLED THE HOPEWELL NEIGHBORHOOD AND A NEW ADDITION ONTO NURSING THAT WILL INCLUDE TWO NURSING NEIGHBORHOODS CALLED GREENWOOD AND ENGLE, WHICH SERVE 16 RESIDENTS EACH. WITH THIS ADDITION, MESSIAH LIFEWAYS WILL BE ABLE TO OFFER 66 PRIVATE ACCOMMODATIONS THROUGHOUT ITS NURSING NEIGHBORHOODS. THIS FIRST PHASE IS PROJECTED TO BE COMPLETE IN LATE SUMMER OF 2017 OR EARLY FALL 2017. BY JUNE 30, 2016, 49 RESERVATIONS WERE RECEIVED FOR THE NEW VILLAGE SQUARE APARTMENT HOMES. OVER THE YEAR THE WELCOME CENTER RECEIVED 8 CANCELATIONS RESULTING IN 41 ACTIVE RESERVATIONS BY FISCAL YEAR END.IN ADDITION TO THIS EXPANSION PLAN, MESSIAH LIFEWAYS HAS ALSO BEEN WORKING ON PLANS TO RENOVATE FOUR NURSING NEIGHBORHOODS - DONEGAL, MANCHESTER, HAMPDEN AND WAGNER. THE WORK IS SCHEDULED TO START IN FALL 2016 AND WILL FEATURE RENOVATION OF RESIDENT ROOMS, COMMON SPACES, DINING ROOMS, FAMILY ROOMS, CLINICAL AREAS AND THE REHAB AREA. THE RENOVATION PROJECT IS EXPECTED TO BE COMPLETE BY SPRING 2018.TO LEARN MORE, VISIT MESSIAHVILLAGE.ORG. 29839402 1 1 0 0 0 0 0 0 1 1 1 0 0 1 1 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 1 148 0 1 674 1 0 0 0 0 0 0 0 0 0 0 X 4 1 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X X CAROLYN N JACOBS 7176974666 100 MT ALLEN DRIVE MECHANICSBURG PA 17055 CURTIS D STUTZMAN CHAIR/PRESIDENT/CEO 10.00 30.00 X X 0 182343 24843 CAROLYN N JACOBS CHIEF FINANCIAL OFFICER 14.00 26.00 X X 0 146172 8854 NICOLE M SARVER VICE CHAIR/VP CAMPUS OPS 18.00 22.00 X X 0 127837 9515 MONA ENGLE MEMBER 1.00 0.00 X 0 0 0 LINDA FISHER DIRECTOR OF NURSING 40.00 0.00 X 113933 0 7445 113933 456352 50657 1 0 1 0 MESSIAH LIFEWAYS 100 MT ALLEN DRIVE MECHANICSBURG PA 17055 MANAGEMENT SERVICES 5073996 CURA HOSPITALITY PO BOX 827276 PHILADELPHIA PA 19182 DINING SERVICES PROVIDER 2993506 STEWART & COMMERS ARCHITECTS PLLC 3731 LATROBE DR STE 100 CHARLOTTE NC 28211 ARCHITECTS 1674084 REHABCARE GROUP INC PO BOX 503534 ST LOUIS MO 63105 THERAPY SERVICES 1419477 GREENBRIER DEVELOPMENT LLC 3232 MCKINNEY AVE STE 1160 DALLAS TX 75204 PROJECT MANAGEMENT 1207795 13 886316 10078 886316 NET RESIDENT SERVICE 623000 37122691 37122691 RENTAL INCOME - AFFILIATE 531120 197872 197872 37320563 2031293 2031293 68991 61581 7410 7410 7410 8197195 6833314 26742 1363881 -26742 1337139 1337139 MEAL REVENUE 722210 457507 457507 BARBER-BEAUTY SHOP 812900 257538 257538 INTERDEPARTMENT CHARGES/REIMB 900099 191447 191447 205338 205338 1111830 42694551 37320563 0 4487672 14122802 11128464 2994338 308077 242758 65319 2658678 2094981 563697 1044980 823422 221558 5195257 121261 5073996 162555 162555 3082614 3082614 1041854 917515 124339 68145 68145 1639187 1639187 7473 5431 2042 19943 14987 4956 1479583 1479583 4808719 4692346 116373 364308 364308 FOOD EXPENSE 1412489 1412489 MEDICAL SUPPLIES 851223 851223 NURSING HOME ASSESSMENT 445652 445652 REPAIRS AND MAINTENANCE 384338 20939 363399 440416 434097 6319 39538293 29839402 9698891 0 3350 3250 3084336 3336627 114927 310853 4443230 3586743 185432 194576 369203 264479 124038414 60338153 50004533 63700261 51392858 51195343 5780798 6604746 115378667 129196878 3272741 6238356 20020373 19370363 35102628 47429590 25720 17005 9244900 10705811 67666362 83761125 X 30099311 28068302 5335944 4944007 12277050 12423444 47712305 45435753 115378667 129196878 X 3156258 -3410634 -2022176 X 0 1 X 1 0 X 798306 608801 1168929 868413 886316 4330765 34076326 34919149 36400080 36967495 37122691 179485741 34874632 35527950 37569009 37835908 38009007 183816506 15140 10250 25390 0 15140 10250 25390 183791116 750098 1058102 1319012 2719736 2298156 8145104 750098 1058102 1319012 2719736 2298156 8145104 969467 761517 1065272 1049987 1111830 4958073 36594197 37347569 39953293 41605631 41418993 196919683 0.93330 0.94200 0.04140 0.03370 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2011 AMOUNT: $ 293,111. 2012 AMOUNT: $ 196,073. 2013 AMOUNT: $ 274,758. 2014 AMOUNT: $ 129,439. 2015 AMOUNT: $ 114,241. MEAL REVENUE - 2011 AMOUNT: $ 364,570. 2012 AMOUNT: $ 394,285. 2013 AMOUNT: $ 453,062. 2014 AMOUNT: $ 489,263. 2015 AMOUNT: $ 457,507. BARBER-BEAUTY - 2013 AMOUNT: $ 212,673. 2014 AMOUNT: $ 247,828. 2015 AMOUNT: $ 257,538. PATHWAYS - 2011 AMOUNT: $ 93,300. 2012 AMOUNT: $ 84,960. 2013 AMOUNT: $ 81,637. 2014 AMOUNT: $ 83,960. 2015 AMOUNT: $ 85,297. INTERDEPENDENT CHARGES/REIMBURSEMENTS - 2011 AMOUNT: $ 218,486. 2012 AMOUNT: $ 86,199. 2013 AMOUNT: $ 43,142. 2014 AMOUNT: $ 99,497. 2015 AMOUNT: $ 191,447. TRANSPORTATION - 2015 AMOUNT: $ 5,800. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 17441856 146394 -14370 887000 16686880 17475317 167068 686159 886688 17441856 15216966 313858 2691669 747176 17475317 13995438 232566 1667684 678722 15216966 13846675 498792 148227 498256 13995438 1.00000 0 0 1687156 1687156 71834527 36976360 34858167 25465066 19602310 5862756 25051665 3759483 21292182 63700261 DEFERRED FINANCING COSTS, NET 1662378 CASH SURRENDER VALUE OF LIFE INSURANCE 674914 SPLIT INTEREST AGREEMENT 88319 INTERCOMPANY RECEIVABLES 4179135 6604746 DERIVATIVE FINANCIAL INSTRUMENT 2512151 REFUNDABLE ENTRANCE FEES 7681680 SPLIT INTEREST OBLIGATIONS 511980 10705811 X 37660767 -3410634 -1684731 -5095365 42756132 -61581 -61581 42694551 39937319 561581 561581 39375738 162555 162555 39538293 PART IV, LINE 2B: MESSIAH LIFEWAYS AT MESSIAH VILLAGE MAINTAINS TRUST FUND ACCOUNTS, PRIMARILY FOR ANY RESIDENT WHO HAS EXHAUSTED THEIR FUNDS AND ARE BENEVOLENT OR ON MEDICAL ASSISTANCE. EACH RESIDENT HAS AN INDIVIDUAL BANK ACCOUNT IN HIS OR HER NAME AND ANY SOCIAL SECURITY OR PENSION MONEY THEY RECEIVE IS DEPOSITED INTO THAT ACCOUNT. FUNDS IN THE INDIVIDUAL RESIDENT ACCOUNTS ARE THEN SWEPT OR PULLED INTO A MESSIAH VILLAGE ACCOUNT AND THE APPROPRIATE FUNDS ARE APPLIED TO THE COST OF THE RESIDENTS' CARE. ANY REMAINING FUNDS ARE AVAILABLE FOR THE RESIDENTS' PERSONAL USE. THE VILLAGE ALSO MAINTAINS AN ESCROW ACCOUNT WHICH HOLDS FUNDS ON DEPOSIT FROM PROSPECTIVE RESIDENTS FOR RESIDENTIAL LIVING UNITS UNDER CONSTRUCTION. FUNDS ARE HELD IN THE ESCROW ACCOUNT UNTIL 50% OF ANTICIPATED ENTRANCE FEES ARE RECEIVED AND THE VILLAGE RECEIVES PERMISSION FROM THE DEPARTMENT OF INSURANCE TO TRANSFER THE FUNDS TO THE VILLAGE'S OPERATING ACCOUNT AND APPLY THEM TO THE RESIDENT'S ENTRANCE FEE. IF THE PROSPECTIVE RESIDENT CHANGES HIS OR HER MIND AND WANTS THE DEPOSIT BACK, THE FUNDS ARE RETURNED TO THEM. PART V, LINE 4: INVESTMENT RETURN ON THE PERMANENTLY RESTRICTED ENDOWMENT FUNDS ARE AVAILABLE FOR TRANSFER TO OPERATIONS TO HELP OFFSET CHARITY CARE. THE INVESTMENT POLICY OF MESSIAH VILLAGE ESTABLISHES THE METHOD FOR DETERMINING THE AMOUNT THAT CAN BE TRANSFERRED WHICH MUST BE APPROVED BY THE BOARD PRIOR TO THE BEGINNING OF THE YEAR. PART X, LINE 2: THE CORPORATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY PRESCRIBING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. MANAGEMENT DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THE RECOGNITION THRESHOLD IN 2016 AND 2015. THE FEDERAL RETURNS OF ORGANIZATIONS EXEMPT FROM INCOME TAX FOR YEARS ENDED PRIOR TO JUNE 30, 2013 ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT-INTEREST OBLIGATIONS -80,942. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENT -1,414,918. CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE -26,316. INVESTMENT EXPENSES NETTED TO REVENUES ON THE FINANCIALS -162,555. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -61,581. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 61,581. EQUITY TRANSFER TO AFFILIATE 500,000. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT EXPENSES NETTED TO REVENUES ON THE FINANCIALS 162,555. X 0 0 0 0 0 0 0 0 0 1 0 CURTIS D STUTZMAN CHAIR/PRESIDENT/CEO 0 182343 0 0 0 0 0 8703 0 16140 0 207186 0 0 CAROLYN N JACOBS CHIEF FINANCIAL OFFICER 0 142084 0 4088 0 0 0 1461 0 7393 0 155026 0 0 PART I, LINE 1A LINDA FISHER, DIRECTOR OF NURSING, RECEIVED A HOUSING ALLOWANCE AS PART OF HER EMPLOYMENT DURING 2015. PART I, LINE 3 THE PRESIDENT'S COMPENSATION IS DETERMINED BY MESSIAH LIFEWAYS (RELATED ORGANIZATION) USING THE FOLLOWING METHOD: COMPENSATION SURVEY/STUDY, COMPENSATION COMMITTEE, BOARD/COMPENSATION COMMITTEE APPROVED. PART I, LINE 7 BONUSES, WHICH ARE BASED ON NON-FINANCIAL MEASURES, ARE INCLUDED IN THE ANNUAL SALARY AND WAGE DECISIONS, AND ARE APPROVED BY THE BOARD OF DIRECTORS. A CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614CX5 2008-02-14 10005536 CCRC RENOVATION AND EXPANSION 0 0 0 B WEST SHORE AREA AUTHORITY 232179305 95581QAL3 2015-05-01 25999920 SEE PART VI 0 0 0 C WEST SHORE AREA AUTHORITY 232179305 2015-10-28 72975000 SEE PART VI 0 0 0 A 1065000 10321389 1021848 713857 200000 8379157 6052 475 2010 0 0 1 1 B 570000 26002035 1908886 519998 365297 17554941 5652914 1 0 0 1 C 13249461 262733 12915083 71645 0 0 0 1 A 0 1 1 1 0 0.00100 0.00000 0.00100 0 0 1 B 0 1 1 1 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 1 1 PNC BANK NATIONAL ASSOCIATION 10.000000000000 0 0 0 0 1 A 1 B 1 C 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: CUMBERLAND COUNTY MUNICIPAL AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 02/14/2013 SCHEDULE K, PART II, LINE 3: TOTAL PROCEEDS OF ISSUE FOR BONDS A & B REPORTED ON PART II LINE 3 EXCEED THE ISSUE PRICE LISTED IN PART I DUE TO INVESTMENT EARNINGS. TOTAL PROCEEDS OF ISSUE FOR BOND C REPORTED ON PART I EXCEED THE ISSUE PRICE LISTED IN PART II LINE 3. MESSIAH HOME IS DRAWING DOWN ON THIS BORROWING AS CONSTRUCTION PROGRESSES. THE ISSUE PRICE IN PART I IS THE TOTAL BOND ISSUANCE WHILE THE AMOUNT IN PART II LINE 3 IS THE AMOUNT OF PROCEEDS DRAWN DOWN AS OF 6/30.16. SCHEDULE K, PART I, COLUMN F, BOND B PURPOSE OF BOND: REFINANCE SERIES B 2008 AND 2009 BANK QUALIFIED DEBT; CAPITAL RENOVATIONS THE REFUNDED BONDS WERE ISSUED FEBRUARY 14, 2008. SCHEDULE K, PART I, COLUMN F, BOND C PURPOSE OF BOND: CONSTRUCTION OF PROJECT ENVISION AND PAYMENT OF PARTIAL COSTS OF ISSUANCE FORM 990, PART VI, SECTION A, LINE 3 REHAB CARE IS UNDER CONTRACT TO PERFORM ALL REHABILITATIVE SERVICES FOR RESIDENTS OF MESSIAH HOME AND IS UNDER THE SUPERVISION OF THE VP OF CAMPUS OPERATIONS. CURA HOSPITALITY IS UNDER CONTRACT TO PERFORM ALL DINING SERVICES FOR MESSIAH HOME AND IS UNDER THE SUPERVISION OF THE VP OF CAMPUS OPERATIONS. THERE IS A MANAGEMENT AGREEMENT BETWEEN MESSIAH HOME AND ITS PARENT, MESSIAH LIFEWAYS, FOR CERTAIN MANAGEMENT FUNCTIONS, INCLUDING ACCOUNTING, HR, ADMINISTRATION, INFORMATION SERVICES, ETC. FORM 990, PART VI, SECTION A, LINE 6 MESSIAH LIFEWAYS ("ML") IS THE SOLE MEMBER OF MESSIAH HOME. FORM 990, PART VI, SECTION A, LINE 7A MESSIAH LIFEWAYS IS THE SOLE MEMBER OF MESSIAH HOME AND ELECTS THE BOARD OF DIRECTORS. THE CEO OF ML SERVES AS CHAIR OF THE BOARD AND THE CFO OF ML SERVES AS SECRETARY-TREASURER ACCORDING TO BY-LAWS. A VICE CHAIR IS ELECTED ANNUALLY FROM THE REMAINING BOARD MEMBERS WHICH CURRENTLY INCLUDE 1 INDEPENDENT MEMBER AND 1 ADDITIONAL OFFICER OF ML. FORM 990, PART VI, SECTION A, LINE 7B SOLE MEMBER, MESSIAH LIFEWAYS, MUST APPROVE CERTAIN TRANSACTIONS (IE BORROWING, BUDGETS, PURCHASES, FUNDRAISING, CHANGE IN OPERATIONS ETC), AMENDMENTS TO ARTICLES AND BY LAWS ETC. AS LISTED IN ARTICLE IV SECTION 4.2. FORM 990, PART VI, SECTION B, LINE 11 MANAGEMENT REVIEWED THE FORM 990 IN DETAIL. THE FORM 990 WAS THEN POSTED ON THE BOARD WEBSITE FOR MEMBER ACCESS AND REVIEW. DURING THEIR NOVEMBER MEETING OF THE FINANCE & SHARED SERVICES COMMITTEE OF THE MESSIAH LIFEWAYS BOARD, THE FORMS 990 OF MESSIAH LIFEWAYS AND EACH OF ITS CONTROLLED ENTITIES WERE REVIEWED BEFORE BEING FILED WITH THE IRS. THE REVIEW WAS LED BY THE CFO. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY BOARD MEMBERS AND EXECUTIVE TEAM AFFIRM IN WRITING THEIR AWARENESS AND COMPLIANCE WITH THE CODE OF ETHICS AND CONDUCT POLICY AND CONFLICT OF INTEREST POLICY. ALL ARE ASKED TO DISCLOSE ANY CONFLICTS OF INTEREST AND AGREE TO REFRAIN FROM PARTICIPATING IN ANY DELIBERATIONS, DECISIONS, OR VOTING RELATING TO THE MATTER. THE POLICY IS MONITORED BY MANAGEMENT OF MESSIAH LIFEWAYS (KARL BRUMMER, VP OF HR, CSS & ENRICHMENT) BY VERIFYING ALL FORMS ARE COMPLETED AND SIGNED ANNUALLY. ANY VIOLATIONS OF THE POLICY WILL BE HANDLED AS DEEMED NECESSARY IN ACCORDANCE WITH THE POLICY. ANY MEMBER WHO INTENTIONALLY VIOLATES THE POLICY MAY BE REMOVED FROM THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 THE MESSIAH LIFEWAYS BOARD OF DIRECTORS HAS A "PRESIDENTIAL RELATIONS COMMITTEE" WHICH CONDUCTS AN ANNUAL REVIEW OF THE PRESIDENT. THIS COMMITTEE HAS THE SAME COMPOSITION AS THE EXECUTIVE COMMITTEE. IN ADDITION TO ESTABLISHING THIS COMMITTEE THE BOARD HAS ESTABLISHED A POLICY TO GUIDE THE WORK OF THE COMMITTEE. THE PURPOSE OF THE COMMITTEE IS TO CONDUCT THE ANNUAL PERFORMANCE EVALUATION OF THE PRESIDENT, REVIEW PAST GOALS AND ESTABLISH FUTURE GOALS, SHARE A SUMMARY OF THE EVALUATION WITH THE FULL BOARD, AND RECOMMEND TERMS OF COMPENSATION TO THE FULL BOARD. IN DETERMINING COMPENSATION, THE BOARD REVIEWS SALARY DATA FROM VARIOUS SOURCES SUCH AS TRADE ASSOCIATION AND HEALTHCARE ALLIANCES. THEIR REVIEW IS DOCUMENTED IN THE BOARD MINUTES. REGARDING OTHER OFFICERS OF THE ORGANIZATION, THE PRESIDENT CONDUCTS AN ANNUAL PERFORMANCE EVALUATION. IN DETERMINING THE OFFICERS' COMPENSATION, THE PRESIDENT REVIEWS SALARY DATA FROM APPROPRIATE TRADE ASSOCIATIONS AND ALLIANCES. THE BOARD OF DIRECTORS GIVES FINAL APPROVAL OF THE COMPENSATION OF THESE OFFICERS INDIRECTLY THROUGH REVIEW AND APPROVAL OF THE ANNUAL BUDGET. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE FOR INSPECTION UPON REQUEST. THE ORGANIZATION'S FINANCIAL STATEMENTS ARE AVAILABLE ON ITS WEBSITE (WWW.MESSIAHLIFEWAYS.ORG), AND UPON REQUEST. ADDITIONALLY THE FINANCIAL STATEMENTS ARE INCORPORATED INTO THE DISCLOSURE STATEMENT PREPARED FOR MESSIAH HOME AND MESSIAH FAMILY SERVICES, AS REQUIRED BY THE DEPARTMENT OF INSURANCE. MESSIAH ALSO POSTS THE AUDITED STATEMENTS OUT TO THE EMMA WEBSITE (WWW.EMMA.MSRB.ORG) FORM 990, PART XI, LINE 9: CHANGE IN VALUE OF SPLIT-INTEREST OBLIGATIONS -80,942. CHANGE IN FAIR VALUE OF DERIVATIVE FINANCIAL INSTRUMENT -1,414,918. CHANGE IN CASH SURRENDER VALUE OF LIFE INSURANCE -26,316. EQUITY TRANSFER -500,000. MESSIAH FAMILY SERVICES DBA MESSIAH LIFEWAYS AT MOUNT JOY COUNTRY HOMES 106 BAYBERRY DRIVE MOUNT JOY PA 17552 231484171 HOUSING FOR SENIOR ADULTS PA 501(C)(3) 9 MESSIAH LIFEWAYS 0 CAPITAL AREA HEALTH ASSOCIATES 100 MOUNT ALLEN DRIVE MECHANICSBURG PA 17055 202199588 SENIOR HEALTHCARE PA 501(C)(3) 11A MESSIAH HOME DBA MESSIAH LIFEWAYS AT MESSIAH VILLLAGE 1 MESSIAH LIFEWAYS COMMUNITY SUPPORT SERVICES 100 MOUNT ALLEN DRIVE MECHANICSBURG PA 17055 320375859 SENIOR HEALTHCARE PA 501(C)(3) 9 MESSIAH LIFEWAYS 0 MESSIAH LIFEWAYS 100 MOUNT ALLEN DRIVE MECHANICSBURG PA 17055 352443724 SENIOR HEALTHCARE PA 501(C)(3) 11B N/A 0 1 0 0 1 0 0 0 0 0 1 0 0 1 1 1 1 0 0 0 CAPITAL AREA HEALTH ASSOCIATES D 850531 COST CAPITAL AREA HEALTH ASSOCIATES A 17500 COST