2016-05-04T12:31:53-05:00 2015-12-31 410746749 CLIFTONLARSONALLEN LLP 3000 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2015-01-01 990290103 KAHALA SENIOR LIVING COMMUNITY INC KAHA 8082187000 4389 MALIA STREET HONOLULU HI 96821 PATRICK DUARTE CEO/PRESIDENT 8082187000 2016-04-28 1 DANIEL M FREIN CPA P00856532 4252506100 2015 2016-09-27 15:27:22Z PATRICK DUARTE 4389 MALIA STREET HONOLULU HI 96821 59406061 0 X WWW.KAHALANUI.COM X 1989 HI TO PROVIDE A CONTINUUM OF HIGH QUALITY RESIDENTIAL AND HEALTH CARE SERVICES TO RESIDENTS. 12 12 396 140 0 0 510905 684852 25845141 26181240 2373903 2941275 4059658 6145195 32789607 35952562 343031 281874 0 0 12139357 13028264 0 0 0 16989628 16918330 29472016 30228468 3317591 5724094 198235865 197544207 281699507 279338580 -83463642 -81794373 X IN THE SPIRIT OF OHANA, KAHALA SENIOR LIVING COMMUNITY AND ITS ASSOCIATES ARE DEDICATED TO SERVING THE UNMET CARE NEEDS OF SENIORS IN HAWAII. WE ARE A NOT-FOR-PROFIT ORGANIZATION THAT PROVIDES A CONTINUUM OF HIGH QUALITY RESIDENTIAL AND HEALTH CARE SERVICES ENABLING OUR RESIDENTS TO LIVE A GRACIOUS HAWAIIAN LIFESTYLE IN AN ENVIRONMENT OF DIGNITY, RESPECT, TRUST, AND FRIENDSHIP. 1 0 26570321 281874 26181240 KAHALA NUI IS A SENIOR LIVING COMMUNITY LOCATED IN HONOLULU, HAWAII THAT PROVIDES A CONTINUUM OF RESIDENTIAL AND HEALTHCARE SERVICES TO SENIORS. FOUR DISTINCT LEVELS OF CARE ARE OFFERED: INDEPENDENT LIVING, ASSISTED LIVING, MEMORY SUPPORT, AND SKILLED NURSING. KAHALA NUI HAS 270 INDEPENDENT LIVING UNITS FOR SENIORS WHO DON'T REQUIRE ASSISTANCE WITH ACTIVITIES OF DAILY LIVING. HI'OLANI IS KAHALA NUI'S HEALTHCARE CENTER THAT PROVIDES ASSISTED LIVING SERVICES, MEMORY SUPPORT, AND SKILLED NURSING TO RESIDENTS WHO TRANSFER FROM INDEPENDENT LIVING AND TO INDIVIDUALS FROM THE COMMUNITY. HI'OLANI IS LICENSED FOR 67 ASSISTED LIVING BEDS (INCLUDING MEMORY SUPPORT) AND 60 SKILLED NURSING BEDS. IN ADDITION TO HEALTHCARE SERVICES, KAHALA NUI OFFERS A VARIETY OF SERVICES THAT INCLUDE CASUAL AND FORMAL IN-HOUSE DINING, WELLNESS PROGRAMS, RECREATIONAL EVENTS, HOUSEKEEPING AND LINEN SERVICES, SCHEDULED TRANSPORTATION TO ALL MAJOR SHOPPING MALLS AND VARIOUS RELIGIOUS AND MEDICAL FACILITIES, BUILDING AND GROUNDS MAINTENANCE, 24-HOUR SECURITY, AND BUSINESS SERVICES. IN OCTOBER 2015, KAHALA NUI OPENED AN ADULT WELLNESS CENTER THAT CAN SERVE UP TO 50 INDIVIDUALS. 26570321 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 49 0 396 1 0 1 CJ 0 0 0 0 0 0 0 1 0 X 12 12 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 HI X HUILAN KAMITA 8082187022 4389 MALIA STREET HONOLULU HI 96821 PHILIP CHING CHAIR 10.00 X X 0 0 0 STEVE ROBERTSON VICE CHAIR 5.00 X X 0 0 0 ROY KING JR SECRETARY 5.00 X X 0 0 0 LISA SAKAMOTO CPA TREASURER 5.00 X X 0 0 0 WENDELL BROOKS JR DIRECTOR 3.00 X 0 0 0 EVELYN CHAR RN MS DIRECTOR 3.00 X 0 0 0 SHEILA CHONG DIRECTOR 3.00 X 0 0 0 CHARLES KELLEY MD DIRECTOR 3.00 X 0 0 0 SHARI KOGAN MD DIRECTOR 3.00 X 0 0 0 KENNETH MILLER CFA DIRECTOR 3.00 X 0 0 0 LAURA THOMPSON DIRECTOR 3.00 X 0 0 0 ADRIENNE YOSHIHARA DIRECTOR 3.00 X 0 0 0 PATRICK DAURTE CEO/PRESIDENT 50.00 X 298893 0 5619 WENDY WONG EXECUTIVE DIRECTOR 50.00 X 224750 0 5647 HUILAN KAMITA CFO 50.00 X 140165 0 4167 JAY DUQUETTE ADMINISTRATOR 50.00 X 133575 0 5257 DARLENE CANTO DIRECTOR OF MARKETING 50.00 X 117448 0 5413 CHRISTINE CAGUIOA DIRECTOR OF NURSING 50.00 X 110915 0 6549 DANA MATLIN DIRECTOR OF HR 50.00 X 108345 0 4538 1134091 0 37190 10 0 1 0 UNITED LAUNDRY SERVICES INC 2291 ALAHAO PLACE HONOLULU HI 96819 LAUNDRY 246955 ZIEGLER LOTSOFF CAPITAL MANAGEMENT 20 N CLARK ST 34TH FL CHICAGO IL 60602 ASSET MANAGEMENT 139413 HEIDE & COOK LTD 1714 KANAKANUI STREET HONOLULU HI 96819 EQUIPMENT MAINTENANCE 132407 3 684852 10500 684852 MONTHLY SERVICE FEES 623000 23156489 23156489 ENTRANCE FEES 623000 1621655 1621655 SKILLED NURSING ANCILLARY & THERA 623000 1403096 1403096 26181240 2582066 2582066 41897 0 41897 41897 41897 23812708 23453499 359209 359209 359209 FUTURE SERVICE OBLIGATIONS 900099 5706909 5706909 MISCELLANEOUS REVENUE 900099 396389 396389 6103298 35952562 26181240 0 9086470 239884 239884 41990 41990 534909 230397 304512 9648133 8349557 1298576 182045 157543 24502 1894403 1639429 254974 768774 665302 103472 46318 46318 57595 4900 52695 268277 268277 1027172 1018992 8180 230153 230153 1087707 933858 153849 57576 11395 46181 3304864 3304864 3525 3525 3403493 3403493 4554524 3461438 1093086 512321 512321 FOOD COSTS 2015573 2015573 REPAIRS AND MAINTENANCE 254285 254285 RESIDENTS AND COMMUNITY 80164 80164 EXCISE TAX EXPENSE 12895 12895 1888 1888 30228468 26570321 3658147 0 4070659 3928132 6410394 7719171 379041 975473 104077 143186 47987 47920 392331 447362 158345634 46013273 115561339 112332361 62752671 63752477 1282467 1224164 7234899 6973961 198235865 197544207 1320401 1613466 5423720 5701661 71367621 69466491 1127147 1194309 202460618 201362653 281699507 279338580 X -85169719 -83853240 341096 358226 1364981 1700641 -83463642 -81794373 198235865 197544207 5724094 -4054825 0 X X 0 1 X 1 0 X 137000 206589 1192117 510905 684852 2731463 28245968 28690570 26091793 25845141 26181240 135054712 28382968 28897159 27283910 26356046 26866092 137786175 0 0 0 137786175 1107498 1053576 1396709 1816234 2623963 7997980 1107498 1053576 1396709 1816234 2623963 7997980 -82491 398896 421675 431270 396389 1565739 29407975 30349631 29102294 28603550 29886444 147349894 0.93510 0.94700 0.05430 0.04440 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 1475192 335660 -22834 1788018 1059178 356736 59278 1475192 0 1008245 50933 1059178 0.00000 0.95110 0.04890 0 0 148494763 40335680 108159083 3980028 1727756 2252272 5768214 3949837 1818377 102629 102629 112332361 ENTRANCE FEE LIABILITY 200306189 ACCRUED BOND INTEREST EXPENSE 418395 RESIDENT LIABILITY 638069 201362653 X 26902976 -48168 271963 223795 26679181 262777 9010604 9273381 35952562 29965691 0 29965691 262777 262777 30228468 PART IV, LINE 2B: ESCROW ACCOUNTS ARE RELATED TO A $5,000 DEPOSIT RECEIVED FROM INTERESTED INDIVIDUALS WHO HAVE DEPOSITED MONEY IN ORDER TO HOLD A SPOT ON THE CCRC WAIT LIST. PART V, LINE 4: THE ENDOWEMENT FUNDS SUPPORT VARIOUS PROGRAMS INCLUDING: 1. SUPPORTING RESIDENTS THAT HAVE EXHAUSTED THEIR FINANCIAL RESOURCES 2. TRAINING OF PERSONNEL 3. GENERAL SUPPORT 4. SCHOLARSHIPS 5. SUPPORTING PROGRAMS AND SERVICES IN THE HEALTH CENTER 6. SUPPORTING VARIOUS PROGRAMS IN INDEPENDENT LIVING, TRAINING IN THE HEALTH CENTER, COMMUNITY OUTREACH, AND GENERAL SUPPORT PART X, LINE 2: THE ORGANIZATION IS A NOT-FOR-PROFIT CORPORATION, EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, NO PROVISION HAS BEEN MADE FOR INCOME TAXES IN THE FINANCIAL STATMENTS. THE ORGANIZATION'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES. THE ORGANIZATION IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE ITS TAX-EXEMPT STATUS AND IS NOT AWARE OF ANY ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINESS INCOME OR EXCISE OR OTHER TAXES. PART XI, LINE 2D - OTHER ADJUSTMENTS: NET ASSETS RELEASED FROM RESTRUCTION FOR OPERATION 271,963. PART XI, LINE 4B - OTHER ADJUSTMENTS: TEMPORARILY RESTRICTED CONTRIBUTIONS 337,705. PERMANENTLY RESTRICTED CONTRIBUTIONS 335,660. EARNING ON ENDOWMENTS -22,834. NVESTMENT INCOME 2,293,955. DECREASE IN OBLIGATION TO PROVIDE FUTURE SERVICES 5,706,909. REALIZED GAIN ON SALE OF INVESTMENTS 359,209. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT MANAGEMENT FEES 262,777. CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS 0 0 INVESTMENTS 991282 0 0 0 0 0 0 991282 0 991282 0 0 0 0 0 0 PART I, LINE 2: KAHALA USES A SWEEP ACCOUNT AT A BANK IN THE CAYMAN ISLANDS TO DECREASE THE BALANCE IN THE THEIR U.S. BANK ACCOUNT TO $25,000 ON A NIGHTLY BASIS. THAT MONEY IS INVESTED BY THE CAYMANY ISLAND BANK UNTIL KAHALA WITHDRAWS THE FUNDS. 0 ALZHEIMER'S ASSOCIATION 1050 ALA MOANA BLVD 2610 HONOLULU HI 96814 990212360 501(C)(3) 35450 TO SUPPORT EDUCATION AND AWARENESS CATHOLIC CHARITIES HAWAII 1822 KEEAUMOKU ST HONOLULU HI 96822 990073547 501(C)(3) 36070 SENIOR HOUSING ASSISTANCE KOKUA KALIHI VALLEY 2239 N SCHOOL ST HONOLULU HI 96819 990149797 501(C)(3) 24095 SENIOR HEALTH PROGRAM ASSISTANCE PALAMA SETTLEMENT 810 N VINEYARD BLVD HONOLULU HI 96817 990074140 501(C)(3) 2660 17464 FAIR MARKET VALUE HOLIDAY GIFT BASKETS PROVIDE FOOD AND TOILETRIES FOR HOMEBOUND SENIOR CITIZENS IN THE KALIHI-PALAMA DISTRICT PROJECT DANA 2720 NAKOOKOO ST HONOLULU HI 96826 990143990 501(C)(3) 31515 SUPPORT SENIOR PROGRAMS KAPIOLANI COMMUNITY COLLEGE 4303 DIAMOND HEAD ROAD HONOLULU HI 96816 996000354 501(C)(3) 1579 5846 BOOK VALUE FOOD & INGREDIENTS OCCUPATIONAL THERAPIST TRAINING HAWAII MEALS ON WHEELS PO BOX 61194 HONOLULU HI 96839 990198132 501(C)(3) 35575 HOT MEALS FOR COMMUNITY SENIORS UNIVERSITY OF HAWAII FOUNDATION 2444 DOLE STREET BACHMAN HALL 105 HONOLULU HI 96822 990085260 501(C)(3) 14500 SCHOLARSHIPS AND GENERAL OPERATING SUPPORT 8 0 SCHOLARSHIP PROGRAM 12 41990 PART I, LINE 2: EACH GRANT TO AN UNRELATED ORGANIZATION IS APPROVED AND INCLUDED IN THE BUDGET; ALL EXPENDITURES ARE PRESENTED TO THE BOARD OF DIRECTORS. PART III THE HAWAII COMMUNITY FOUNDTION MONITORS THE USE OF SCHOLARSHIP FUNDS ON BEHALF OF KAHALA SENIOR LIVING COMMUNITY X 0 1 X X X X X 0 0 0 1 0 0 0 0 0 PATRICK DAURTE CEO/PRESIDENT 258893 0 40000 0 0 0 5619 0 0 0 304512 0 0 0 WENDY WONG EXECUTIVE DIRECTOR 190750 0 34000 0 0 0 5647 0 0 0 230397 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES ARE PROVIDED FOR PATRICK J. DUARTE, CEO, AND ARE NOT INCLUDED IN THIS TAXABLE COMPENSATION. PART I, LINE 1B NO WRITTEN POLICY IS FOLLOWED; HOWEVER, THE SOCIAL CLUD MEMBERSHIP WAS APPROVED BY THE EXECUTIVE COMMITTEE AND THE ORGANIZATION REQUIRES SUBSTANTIATION PRIOR TO REIMBURSEMENT FOR SOCIAL CLUB EXPENSES. PART I, LINE 5 THE CEO/PRESIDENT AND EXECUTIVE DIRECTOR RECEIVE BONUSES THAT ARE BASED ON SEVERAL VARIABLES INCLUDING FINANCIAL PERFORMANCE, RESIDENT SATISFACTION, AND GROWTH. A STATE OF HAWAII DEPARTMENT OF BUDGET AND FINANCE 990266961 419800EU7 2003-01-23 140709368 SEE PART VI 0 0 0 B STATE OF HAWAII DEPARTMENT OF BUDGET AND FINANCE 990266961 41980SAY2 2012-08-15 73400000 SEE PART VI 0 0 0 A 68790000 140709368 6647561 17258643 2035015 3500000 125500054 2005 0 0 1 1 B 5575000 75450742 5188205 1437467 1 1 1 1 A 0 1 1 1 0 0.00150 0.00150 0 1 0.00020 0 0 B 0 1 1 1 0 0.00150 0.00150 0 0 0 A 1 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 A 1 B 1 SCHEDULE K, PART I, BOND ISSUES: (F) DESCRIPTION OF PURPOSE: FUND THE CONSTRUCTION AND EQUIPPING OF KAHALA NUI (F) DESCRIPTION OF PURPOSE: I. ADVANCE REFUND THE OUTSTANDING PRINCIPLE AMOUNT OF THE DEPARTMENT'S $72,750,000 SPECIAL PURPOSE REVENUE BONDS SERIES 2003A, $68,790,000 OF WHICH WAS OUSTANDING. II. FUND A DEBT SERVICE RESERVE FUND III. PAY CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BONDS AND THE REFUNDING OF THE SERIES 2003A BONDS FORM 990, PART III, LINE 2 IN OCTOBER 2015, KAHALA NUI OPENED AN ADULT WELLNESS CENTER THAT CAN SERVE UP TO 50 INDIVIDUALS. FORM 990, PART VI, SECTION A, LINE 1 KAHALA SENIOR LIVING COMMUNITY HAS AN EXECUTIVE COMMITTEE COMPRISED OF THE OFFICERS OF THE BOARD OF DIRECTORS AND THE CEO. THE EXECUTIVE COMMITTEE HAS AND EXERCISES THE AUTHORITY OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE ORGANIZATION; PROVIDED, HOWEVER, THAT IT DOES NOT HAVE THE AUTHORITY TO (A) AMEND, ALTER OR REPEAL THE BYLAWS; (B) ELECT, APPOINT OR REMOVE ANY MEMBER OF THE EXECUTIVE COMMITTEE OR ANY DIRECTOR OR OFFICER OF THE ORGANIZATION; (C) AMEND OR RESTATE THE ARTICLES OF INCORPORATION; (D) ADOPT A PLAN MERGER; (E) ADOPT A PLAN OF CONSOLIDATION WITH ANOTHER ORGANIZATION ;(F) AUTHORIZE THE SALE, LEASE, EXCHANGE OR MORTGAZE OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE ORGANIZATIONS; (G)AUTHORIZE THE VOLUNTARY DISSOLUTION OF THE ORGANIZATION OR ANY PETITION TO OR APPLICATION FOR RELIEF FROM ANY BANKRUPTCY COURT; OR REVOKE PROCEEDINGS THEREOF; (H) ADOPT A PLAN FOR DISTRIBUTION OF THE ASSETS OF THE ORGANIZATION; (I) OR AMEND, ALTER OR REPEAL ANY RESOLUTION OF THE BOARD OF DIRECTORS WHICH BY ITS TERM PROVIDES THAT IT SHALL NOT BE AMENDED, ALTERED, OR REPEALED BY SUCH COMMITTEE. FORM 990, PART VI, SECTION B, LINE 11 A FORM 990 DRAFT WAS PROVIDED TO OFFICERS AND KEY MANAGEMENT PRIOR TO BOARD REVIEW. UPON THE APPROVAL OF OFFICERS AND KEY MANAGEMENT, THE FORM WAS SUBMITTED TO THE BOARD OF DIRECTORS. IF THE BOARD OF DIRECTORS HAD ANY COMMENTS, QUESTIONS, OR SUGGESTIONS, THESE WERE CONSIDERED PRIOR TO FILING. AFTER ALL ISSUES WERE ADDRESSED, THE DRAFT WAS FINALIZED AND FILED BY THE ORGANIZATION'S ACCOUNANTS. FORM 990, PART VI, SECTION B, LINE 12C BY SIGNING AN ANNUAL CONFLICT OF INTEREST STATEMENT, ALL OFFICERS, DIRECTORS, OR TRUSTEES AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSURE WHETHER THEY HAVE CONFLICTS OF INTEREST IN REGARDS TO THE ORGANIZATION. NO MEMBER OF THE BOARD OF DIRECTORS SHALL PARTICIPATE IN ANY DISCUSSION OR VOTE ON ANY MATTER IN WHICH HE OR SHE OR MEMBER OF HIS OR HER IMMDIATE FAMILY HAS POTENTIAL CONFLICT OF INTEREST DUE TO HAVING MATERIAL ECONOMIC INVOLVEMENT REGARDING THE MATTER BEING DISCUSSED. WHEN SUCH A SITUATION PRESENTS ITSELF, THE DIRECTOR MUST ANNOUNCE HIS OR HER POTENTIAL CONFLICT, DISQUALIFY HIMSELF OR HERSELF, AND BE EXCUSED FROM THE MEETING UNTIL DISCUSSION IS OVER ON THE MATTER INVOLVED. FORM 990, PART VI, SECTION B, LINE 15A IN THE ORGANIZATION'S DETERMINATION OF THE CURRENT CEO/PRESIDENT'S COMPENSATION, ITS EXECUTIVE COMMITTEE REVIEWED THE QUALIFICATIONS OF THE EXISTING CEO/PRESIDENT, PATRICK DUARTE, ALONG WITH INDUSTRY-RELATED INFORMATION GATHERED FROM AN INDEPENDENT THIRD PARTY EXECUTIVE RECRUITER AND INTERNAL SALARIES MANAGEMENT PERSONNEL. IN 2015, THE PROCESS INCLUDED COMPARABILITY DATA, REVIEW AND APPROVAL BY INDEPENDENT PERSONS, AND CONTEPORANEOUS SUBSTANTIATION. FORM 990, PART VI, SECTION C, LINE 19 THE CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILALE TO THE PUBLIC THROUGH POSTING ON THE ELECTRONIC MUNICIPAL MARKET ACCESS (EMMA) WEBSITE. FORM 990, PART XII, LINE 2C: THE PROCESS USED TO SELECT THE INDEPENDENT AUDIT FIRM HAS NOT CHANGED FROM THE PROCESS USED IN PRIOR YEARS.