2015-04-29T19:53:58-05:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP 3000 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2014-01-01 990290103 KAHALA SENIOR LIVING COMMUNITY INC KAHA 8082187000 4389 MALIA STREET HONOLULU HI 96821 PATRICK DUARTE CEO/PRESIDENT 8082187000 2015-04-28 1 DANIEL M FREIN CPA P00856532 4252506100 2014 2016-02-25 16:41:14Z PATRICK DUARTE 4389 MALIA STREET HONOLULU HI 96821 43247729 0 X WWW.KAHALANUI.COM X 1989 HI TO PROVIDE A CONTINUUM OF HIGH QUALITY RESIDENTIAL AND HEALTH CARE SERVICES TO RESIDENTS. 11 11 375 260 0 0 1192117 510905 26091793 25845141 2311506 2373903 20519842 4059658 50115258 32789607 239043 343031 0 0 11897880 12139357 0 0 0 18111020 16989628 30247943 29472016 19867315 3317591 185805921 198235865 272776881 281699507 -86970960 -83463642 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. 0 0 26204203 343031 25845141 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 WHICH 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 WHICH 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. 26204203 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 1 0 1 0 0 0 0 0 0 0 0 1 51 0 375 1 0 1 CJ 0 0 0 0 0 0 0 0 0 X 11 11 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 H CHING CHAIR 10.00 X X 0 0 0 WENDELL BROOKS JR VICE CHAIR 5.00 X X 0 0 0 ROY KING JR SECRETARY 5.00 X X 0 0 0 LISA SAKAMOTO TREASURER 5.00 X X 0 0 0 EVELYN CHAR RN MS DIRECTOR 3.00 X 0 0 0 SHEILA CHONG DIRECTOR 3.00 X 0 0 0 JEFFREY S GRAD 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 MD DIRECTOR 3.00 X 0 0 0 STEVE ROBERTSON DIRECTOR 5.00 X 0 0 0 LAURA THOMPSON DIRECTOR 3.00 X 0 0 0 PATRICK DUARTE CEO/PRESIDENT 50.00 X 264481 0 5378 WENDY WONG EXECUTIVE DIRECTOR 50.00 X 211994 0 5393 JAY DUQUETTE ADMINISTRATOR 50.00 X 125906 0 12664 HUILAN KAMITA DIRECTOR OF BUSINESS OFFICE 50.00 X 113635 0 3375 CHRISTINE CAGUIOA DIRECTOR OF NURSING 50.00 X 108661 0 16793 DARYN MURAI SALES COUNSELOR 40.00 X 107242 0 16716 DANA MATLIN DIRECTOR OF HR 50.00 X 102386 0 15907 1034305 0 76226 8 0 1 0 UNITED LAUNDRY SERVICES INC 2291 ALAHAO PL HONOLULU HI 96819 LAUNDRY 254961 ZIEGLER LOTSOFF CAPITAL MANAGEMENT LLC 70 W MADISON ST STE 2400 CHICAGO IL 60602 ASSET MANAGEMENT 133448 2 510905 43693 510905 MONTHLY SERVICES FEES 623000 22787349 22787349 ENTRANCE FEES 623000 1572723 1572723 SKILLED NURSING ANCILLARY & THERA 623000 1485069 1485069 25845141 1784005 1784005 32229 0 32229 32229 32229 11048020 10458122 589898 589898 589898 FUTURE SERVICE OBLIGATION 900099 3596159 3596159 MISCELLANEOUS REVENUE 900099 431270 431270 4027429 32789607 25845141 0 6433561 296831 296831 46200 46200 604256 217387 386869 9040515 8031259 1009256 177215 157431 19784 1564243 1389616 174627 753128 669051 84077 13352 13352 50200 4500 45700 153277 153277 1024230 1008206 16024 221706 221706 985671 796288 189383 57077 14495 42582 3630432 3630432 2038 2038 4750 4750 3460715 3460715 4692059 3565965 1126094 510039 510039 FOOD COSTS 1913447 1913447 REPAIRS & MAINTENANCE 256100 256100 EXCISE TAX EXPENSE 12122 12122 EQUIPMENT RENTAL EXPENS 2413 2413 29472016 26204203 3267813 0 901964 4070659 13650482 6410394 647457 379041 66286 104077 65831 47987 330207 392331 157088298 41526959 119331131 115561339 42145214 62752671 1442877 1282467 7224472 7234899 185805921 198235865 1337980 1320401 5145780 5423720 73213752 71367621 1172338 1127147 191907031 202460618 272776881 281699507 X -88163077 -85169719 183872 341096 1008245 1364981 -86970960 -83463642 185805921 198235865 3317591 189727 0 X X 0 1 X 1 0 X 200565 137000 206589 1192117 510905 2247176 25949807 28245968 28690570 26091793 25845141 134823279 26150372 28382968 28897159 27283910 26356046 137070455 0 0 0 137070455 1048652 1107498 1053576 1396709 1816234 6422669 1048652 1107498 1053576 1396709 1816234 6422669 -82491 398896 421675 431270 1169350 27199024 29407975 30349631 29102294 28603550 144662474 0.94750 0.95870 0.04440 0.03620 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 1059178 356736 59278 1475192 0 1008245 50933 1059178 0.00000 0.92530 0.07470 0 0 148494763 36623311 111871452 3395702 1365889 2029813 5182353 3537759 1644594 15480 15480 115561339 RESIDENT LIABILITIES 737561 ACCRUED INTEREST 426442 ENTRANCE FEE LIABILITY 201296615 202460618 X 26363891 55251 55251 26308640 151777 6329190 6480967 32789607 29320239 0 29320239 151777 151777 29472016 PART IV, LINE 2B: ESCROW ACCOUNTS ARE RELATED TO A 10% 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 ENDOWMENT FUNDS SUPPORT VARIOUS PROGRAMS INCLUDING: 1. SUPPORTING RESIDENTS THAT HAVE EXHAUSTED THEIR FINANCIAL RESOURCES 2. TRAINING OF PERSONNEL IN THE HEALTH CARE CENTER 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 STATEMENTS. 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. THE TAX RETURNS FOR THE YEARS 2011 TO THE CURRENT YEAR ARE OPEN TO EXAMINATION BY FEDERAL, LOCAL, AND STATE AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: NET ASSETS RELEASED FROM RESTRICTION FOR OPERATIONS 55,251. PART XI, LINE 4B - OTHER ADJUSTMENTS: TEMPORARILY RESTRICTED CONTRIBUTIONS 154,169. PERMANENTLY RESTRICTED CONTRIBUTIONS 356,736. EARNINGS ON ENDOWMENTS 42,773. INVESTMENT INCOME 1,589,455. DECREASE IN OBLIGATION TO PROVIDE FUTURE SERVICES 3,596,159. REALIZED GAIN ON SALE OF INVESTMENTS 589,898. CENTRAL AMERICA AND THE CARIBBEAN - ANTIGUA & BARBUDA, ARUBA, BAHAMAS, 0 0 INVESTMENTS 0 0 0 0 0 0 0 0 0 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 THEIR U.S. BANK ACCOUNT TO $25,000 ON A NIGHTLY BASIS. THAT MONEY IS INVESTED BY THE CAYMAN ISLANDS BANK UNTIL KAHALA WITHDRAWS THE FUNDS. 0 ALZHEIMER'S ASSOCIATION 1050 ALA MOANA BLVD 2610 HONOLULU HI 96814 990212360 501C(3) 21895 11443 FAIR MARKET VALUE EVENT COST, BOARD MTG HRS TO SUPPORT EDUCATION/AWARENESS CATHOLIC CHARITIES HAWAII 1822 KEEAUMOKU ST HONOLULU HI 96822 990073547 501C(3) 29754 SENIOR HOUSING ASSISTANCE KOKUA KALIHI VALLEY 2239 N SCHOOL ST HONOLULU HI 96819 990149797 501C(3) 20705 1135 FAIR MARKET VALUE WALKERS & WHEELCHAIRS SENIOR HEALTH/PROG. ASSISTANCE PALAMA SETTLEMENT 810 N VINEYARD BLVD HONOLULU HI 96817 990074140 501C(3) 0 13310 FAIR MARKET VALUE GIFT BAGS, WALKERS & WHEELCHAIRS SENIOR PROGRAM & HOLIDAY GIFT PROJECT DANA 2720 NAKOOKOO ST HONOLULU HI 96826 990143990 501C(3) 22772 SUPPORT SENIOR PROGRAM AMERICAN NATIONAL RED CROSS 4155 DIAMOND HEAD ROAD HONOLULU HI 96816 060914385 501C(3) 5645 FAIR MARKET VALUE NURSE TRAINING NURSE TRAINING KAPIOLANI COMMUNITY COLLEGE 4303 DIAMOND HEAD ROAD HONOLULU HI 96816 996000354 501C(3) 1500 22230 FAIR MARKET VALUE COOKING DEMONSTRATIONS TRAIN OCCUPATIONAL THERAPISTS HAWAII MEALS ON WHEELS PO BOX 61194 HONOLULU HI 96839 990198132 501C(3) 21863 55461 FAIR MARKET VALUE MEALS HOT MEAL FOR COMM. SENIORS CHAMINADE UNIVERSITY 3140 WAIALAE AVE HONOLULU HI 96816 990272261 501C(3) 15498 FAIR MARKET VALUE NURSE TRAINING NURSE TRAINING HAWAII COMMUNITY FOUNDATION 827 FORT STREET MALL HONOLULU HI 96813 990261283 501C(3) 46200 SCHOLARSHIPS UNIVERSITY OF HAWAII SCHOOL OF SOCIAL WORK & NURSING 2500 CAMPUS ROAD HAWAII HALL ROOM 001 HONOLULU HI 96822 996000354 501C(3) 5000 2420 FAIR MARKET VALUE SOCIAL WORKER TRAINING SOCIAL WORK AND NURSE EDUCATION 11 0 SCHOLARSHIP PROGRAM 15 46200 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. THE HAWAII COMMUNITY FOUNDATION 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 DUARTE CEO/PRESIDENT 224481 0 40000 0 0 0 5378 0 0 0 269859 0 0 0 WENDY WONG EXECUTIVE DIRECTOR 177994 0 34000 0 0 0 5393 0 0 0 217387 0 0 0 PART I, LINE 1A SOCIAL CLUB DUES ARE PROVIDED FOR PATRICK J. DUARTE, CEO AND ARE NOT INCLUDED IN HIS TAXABLE COMPENSATION. PART I, LINE 1B NO WRITTEN POLICY IS FOLLOWED; HOWEVER, THE SOCIAL CLUB MEMBERSHIP WAS APPROVED BY THE EXECUTIVE COMMITTEE AND THE ORGANIZATION REQUIRES SUBSTANTIATION PRIOR TO REIMBURSEMENT FOR SOCIAL CLUB EXPENSES. PART I, LINE 5 THE OFFICERS, KEY EMPLOYEE, AND HIGHEST COMPENSATED EMPLOYEES 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 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 1 A 1 B 1 (F) DESCRIPTION OF PURPOSE: TO FUND THE CONSTRUCTION AND EQUIPPING OF KAHALA NUI F) DESCRIPTION OF PURPOSE: I: ADVANCE REFUND THE OUTSTANDING PRINCIPAL AMOUNT OF THE DEPARTMENT'S $72,750,000 SPECIAL PURPOSE REVENUE BONDS SERIES 2003A, $68,790,000 OF WHICH WAS OUTSTANDING. II: TO FUND A DEBT SERVICE RESERVE FUND III: TO PAY CERTAIN EXPENSES INCURRED IN CONNECTION WITH THE ISSUANCE OF THE BOND AND THE REFUNDING OF THE SERIES 2003A BONDS JON DUARTE SON OF PATRICK DUARTE, CEO 40424 GRAPHIC DESIGN SERVICES PROVIDED TO KAHALA SENIOR LIVING COMMUNITY 0 X 10 31400 FMV X 1 12293 DAILY TRADING PRICE 0 0 1 1 PART I, LINE 32B: FIRST HAWAIIAN BANK SELLS ANY DONATED STOCKS FOR THE ORGANIZATION. MANHEIM HAWAII AUCTIONS OFF ANY DONATED VEHICLES ON BEHALF OF THE ORGANIZATION. 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 OF MERGER; (E) ADOPT A PLAN OF CONSOLIDATION WITH ANOTHER ORGANIZATION; (F) AUTHORIZE THE SALE, LEASE, EXCHANGE OR MORTGAGE OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE ORGANIZATION; (G) AUTHORIZE THE VOLUNTARY DISSOLUTION OF THE ORGANIZATION OR ANY PETITION TO OR APPLICATION FOR RELIEF FROM ANY BANKRUPTCY COURT, OR REVOKE PROCEEDINGS THEREFOR; (H) ADOPT A PLAN FOR THE DISTRIBUTION OF THE ASSETS OF THE ORGANIZATION; (I) OR AMEND, ALTER OR REPEAL ANY RESOLUTION OF THE BOARD OF DIRECTORS WHICH BY ITS TERMS 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 IS PROVIDED TO OFFICERS AND KEY MANAGEMENT PRIOR TO BOARD REVIEW. UPON THE APPROVAL OF OFFICERS AND KEY MANAGEMENT, THE FORM IS SUBMITTED TO THE BOARD OF DIRECTORS. IF THE BOARD OF DIRECTORS HAS ANY COMMENTS, QUESTIONS, OR SUGGESTIONS, THESE ARE CONSIDERED PRIOR TO FILING. AFTER ALL ISSUES ARE ADDRESSED, THE DRAFT IS FINALIZED AND FILED BY THE ORGANIZATION'S ACCOUNTANTS. 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 DISCLOSE 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 A MEMBER OF HIS OR HER IMMEDIATE 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, PAT DUARTE, ALONG WITH INDUSTRY-RELATED INFORMATION GATHERED FROM AN INDEPENDENT THIRD PARTY EXECUTIVE RECRUITER AND INTERNAL SALARIES FOR MANAGEMENT PERSONNEL. IN 2014, THE PROCESS INCLUDED COMPARABILITY DATA, REVIEW AND APPROVAL BY INDEPENDENT PERSONS, AND CONTEMPORANEOUS SUBSTANTIATION. FORM 990, PART VI, SECTION C, LINE 19 THE CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE 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.