2015-02-16T08:05:19-06:00 2014-06-30 390859910 BAKER TILLY VIRCHOW KRAUSE LLP 1650 MARKET STREET SUITE 4500 PHILADELPHIA PA 19103 990 2013-07-01 222717623 MORNINGSTAR SENIOR LIVING INC MORN 6107461000 175 WEST NORTH STREET NAZARETH PA 180641410 SUSAN C DRABIC PRESIDENT & CEO 6107461000 2015-02-13 1 JULIUS C GREEN CPA JD P00350393 2159720701 2013 2016-02-25 16:41:14Z SUSAN C DRABIC 175 WEST NORTH STREET NAZARETH PA 180641410 35106746 0 X WWW.MORAVIAN.COM X 1984 PA MORNINGSTAR SENIOR LIVING PROVIDES HOUSING AND SUPPORTIVE SERVICES TO OLDER ADULTS. 20 20 424 204 51892 1768 254194 232691 19065221 19333545 955134 848275 126619 503595 20401168 20918106 0 0 0 0 10227747 11111162 0 0 109745 10812576 9661646 21040323 20772808 -639155 145298 57841862 60386653 46939444 48526838 10902418 11859815 MORNINGSTAR SENIOR LIVING HONORS THE UNIQUE VALUE OF OLDER ADULTS BY PROVIDING LIFESTYLE CHOICES, SUPPORTIVE SERVICES AND SECURITY TO ENRICH THE JOURNEY OF AGING. 0 0 7138076 0 7629099 MORNINGSTAR SENIOR LIVING PROVIDED NURSING CARE AND SUPPORT SERVICES (INCLUDING THERAPEUTIC SERVICES) FOR AN AVERAGE OF 58 RESIDENTS PER MONTH. 6122453 0 6543613 MORNINGSTAR SENIOR LIVING PROVIDED PERSONAL CARE SUPPORTIVE SERVICES , INCLUDE SPECIALIZED DEMENTIA ACCOMMODATIONS, IN A SAFE AND SUPERVISED LIVING ENVIRONMENT FOR AN AVERAGE OF 80 RESIDENTS PER MONTH. 4839367 0 5160833 MORNINGSTAR SENIOR LIVING'S APARTMENT RESIDENTS ARE PROVIDED WITH A CONTINUING CARE CONTRACT AGREEMENT GIVING THEM THE FINANCIAL SECURITY THAT THEIR FUTURE HEALTHCARE NEEDS WILL BE MET. THE COMMUNITY PROVIDED ACCOMMODATION AND SUPPORTIVE SERVICES FOR AN AVERAGE OF 141 RESIDENTS PER MONTH. 18099896 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 1 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 80 0 1 424 1 1 1 0 0 0 0 1 1 0 0 0 0 X 20 20 0 1 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X SUSAN C DRABIC PRESIDENT AND CEO 6107461000 175 WEST NORTH ST NAZARETH PA 18064 CYNTHIA DI RENZO CHAIR 1.00 0.50 X X 0 0 0 DARRELL CROOK CHAIR ELECT 1.00 X X 0 0 0 ALMA ANNE MILES SECRETARY 1.00 0.50 X X 0 0 0 VICTOR LESKY TREASURER 1.00 X X 0 0 0 REV DAVID BENNETT MEMBER 1.00 X 0 0 0 JAMES CHRIN MEMBER 1.00 X 0 0 0 JAN CHRISTENSEN MEMBER 1.00 X 0 0 0 RT REV C HOPETON CLENNON MEMBER 1.00 X 0 0 0 KURT EICHMAN MEMBER 1.00 X 0 0 0 REV CHRISTIAN EICHORN MEMBER 1.00 X 0 0 0 THOMAS ELY MEMBER 1.00 X 0 0 0 DEBORAH ESPOSITO MEMBER 1.00 X 0 0 0 SHIRLEY FLAGLER MEMBER 1.00 X 0 0 0 JOHN GARDNER MEMBER 1.00 X 0 0 0 CASEY HOCH MEMBER 1.00 X 0 0 0 MARGARET KRAWIEC MEMBER 1.00 X 0 0 0 EDWARD NAWROCKI MEMBER 1.00 X 0 0 0 BARBARA SEIFERT-SIGMON MEMBER 1.00 X 0 0 0 REV JOSEPH TOBIAS MEMBER 1.00 X 0 0 0 RAPLH WANNAMAKER MEMBER 1.00 X 0 0 0 SUSAN C DRABIC PRESIDENT & CEO 50.00 2.00 X 225476 0 32437 CHRISTOPHER T HUNT CHIEF FINANCIAL OFFICER 50.00 2.00 X 164338 0 37169 SUSAN CAPOBIANCO CHIEF MARKETING OFFICER 50.00 2.00 X 107527 0 29957 MONICA BUSTAMANTE CHIEF INFORMATION OFFICER 50.00 X 118450 0 27566 JOSEPH SHADID DIRECTOR OF NURSING (FORMER) 40.00 X 100828 0 17887 POLLYANNA FRANKS COO (FORMER) 40.00 X 108736 0 16782 825355 0 161798 6 0 1 0 WARFEL CONSTRUCTION COMPANY 1110 ENTERPRISE ROAD EAST PETERSBURG PA 17520 CONSTRUCTION & CONSULTING 1789897 RAW CORP 2222 SULLIVAN TRAIL EASTON PA 18040 THERAPY SERVICES 713803 CHARLES HOFFMAN & SONS INC 2450 ALDER STREET EASTON PA 18042 CONSTRUCTION SVC. 451341 CORPORATE ENVIRONMENTS INC 605 EAST BROAD STREET BETHLEHEM PA 18016 INTERIOR DESIGN SVC. 413709 SFCS INC 305 SOUTH JEFFERSON ST ROANOKE VA 24011 ARCHITECTURAL SVC. 136545 13 7865 224826 232691 NET SERVICE REVENUE 623000 19333545 19333545 19333545 472120 472120 59821 28921 30900 30900 30900 14487947 14111792 376155 376155 376155 19620 7865 6267 13353 13353 46373 41660 4713 4713 CAFE SALES 900099 156054 156054 BEAUTY SHOP INCOME 900099 105556 105556 TRANSPORTATION INCOME 900099 45415 45415 147604 51892 95712 454629 20918106 19333545 51892 1299978 481677 481677 8401528 7666756 668721 66051 315103 283392 31711 1529223 1367368 139737 22118 383631 335932 47699 139725 122352 17373 52438 52438 62629 62629 82235 82235 981246 949908 30404 934 303920 266132 37788 674128 583421 83727 6980 131866 115470 16396 1342652 1172117 170535 92825 81183 11527 115 1295423 1295423 2269854 1987631 282223 154488 135280 19208 FOOD COSTS 909092 796060 113032 MEDICAL SUPPLIES 444118 444118 STAFF DEV/EMPLOYEE EXP. 321972 281395 39955 622 PROP. DEMOLITION LOSS 163473 163473 239562 215958 10679 12925 20772808 18099896 2563167 109745 4769119 1045921 21293 10741 1391419 1199205 609880 702934 22397 78433 1227947 1059941 67110445 32944763 29432176 34165682 20331701 21793887 31544 31544 4386 298365 57841862 60386653 2910848 3281676 11061107 13375922 30735048 30383978 2232441 1485262 46939444 48526838 X 10266107 11072516 444145 595133 192166 192166 10902418 11859815 57841862 60386653 145298 812099 0 X 0 1 X 1 0 X 336127 200383 220017 254194 232691 1243412 17065938 17919622 18696326 19065221 19357472 92104579 17402065 18120005 18916343 19319415 19590163 93347991 167341 44229 68855 12500 292925 1008247 1622901 2008873 1877768 2542003 9059792 1175588 1667130 2008873 1946623 2554503 9352717 83995274 345332 356750 378682 381993 537376 2000133 345332 356750 378682 381993 537376 2000133 18286 864 19150 468730 468730 17747397 18476755 19295025 19719694 20597133 95836004 0.87640 0.89000 0.02090 0.02070 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: NON-CHARITABLE FUNDRAISING RECEIPTS - 2013 AMOUNT: $ 19,620. CAFE SALES - 2013 AMOUNT: $ 156,054. GIFT SHOP INCOME - 2013 AMOUNT: $ 46,373. BEAUTY SHOP INCOME - 2013 AMOUNT: $ 105,556. TRANSPORTATION - 2013 AMOUNT: $ 45,415. OTHER - 2013 AMOUNT: $ 95,712. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1617142 86792 269684 1973618 1371138 70956 175048 1617142 1425264 7064 -20506 40684 1371138 1121491 34346 269427 1425264 934431 47667 139393 1121491 0.79840 0.09740 0.10430 0 0 847233 847233 51194897 25700020 25494877 6859349 5251849 1607500 8208966 1992894 6216072 34165682 ENTRANCE FEE DEPOSITS 1485262 1485262 X 21724818 812099 812099 20912719 82235 -76848 5387 20918106 20767421 76848 76848 20690573 82235 82235 20772808 PART V, LINE 4: THE GENERAL ENDOWMENT IS A PERPETUAL FUND THAT ENABLES THE BOARD OF DIRECTORS OF MORNINGSTAR SENIOR LIVING, INC. TO ADDRESS CAMPUS PRESERVATION NEEDS AND TO MEET THE EVER-INCREASING COSTS OF FACILITY UPKEEP. EARNINGS MAY BE USED AT THE DISCRETION OF THE BOARD OF DIRECTORS FOR BOTH CAPITAL AND OPERATING NEEDS AT MORNINGSTAR SENIOR LIVING, INC. THE GOOD SAMARITAN ENDOWMENT WAS ESTABLISHED IN 1989 TO PROVIDE ONGOING FINANCIAL SUPPORT TO RESIDENTS WHO SPENT DOWN THEIR FINANCIAL RESOURCES IN PAYMENT FOR HEALTHCARE. PART X, LINE 2: THE CORPORATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES USING 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 2014 OR 2013. THE COMMUNITY'S FEDERAL RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX RETURNS FOR THE YEARS ENDED PRIOR TO 2011 ARE NO LONGER SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD -41,660. FUNDRAISING EXPENSES -6,267. RENTAL EXPENSES -28,921. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOOD SOLD 41,660. FUNDRAISING EXPENSES 6,267. RENTAL EXPENSES 28,921. HARVEST OF FRIENDS 27485 7865 19620 4000 415 1852 27485 7865 19620 4000 415 1852 6267 13353 X X 1 0 0 0 0 1 0 1 0 SUSAN C DRABIC PRESIDENT & CEO 198540 0 14438 0 12498 0 21261 0 11176 0 257913 0 0 0 CHRISTOPHER T HUNT CHIEF FINANCIAL OFFICER 148274 0 16004 0 60 0 14754 0 22415 0 201507 0 0 0 PART I, LINE 4A POLLYANNA FRANKS RECEIVED SEVERANCE PAYMENTS AS PART OF HER SEPARATION AGREEMENT WITH THE ORGANIZATION. PART I, LINE 6 CERTAIN MEMBERS OF THE COMMUNITY'S MANAGEMENT, INCLUDING THE PRESIDENT AND CEO AND THE CHIEF FINANCIAL OFFICER, ARE ELIGIBLE TO RECEIVE NET BONUSES OF EITHER $500 OR $1,000 DEPENDING ON EACH MANAGER'S POSITION. THE NET BONUS IS PAYABLE IF THE COMMUNITY'S NET EARNINGS FROM PROVIDING RESIDENT SERVICES EXCEEDS THE CORRESPONDING BUDGETED AMOUNT BY FIVE PERCENT OR MORE AS OF DECEMBER 31 AND JUNE 30 OF EACH YEAR. THE PRESIDENT AND CEO AND THE CHIEF FINANCIAL OFFICER ARE EACH ELIGIBLE FOR $1,000 NET BONUS. PART I, LINE 7 AS PART OF THE ANNUAL PERFORMANCE REVIEW PROCESS OF THE PRESIDENT AND CEO, THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS AT ITS DISCRETION MAY APPROVE THE PAYMENT OF AN ANNUAL BONUS BASED ON THE OVERALL PERFORMANCE OF THE PRESIDENT AND CEO COMPARED TO THE STRATEGIC AND OPERATING GOALS OF THE COMMUNITY. THE PRESIDENT AND CEO, AT HER DISCRETION MAY APPROVE THE PAYMENT OF AN ANNUAL BONUS FOR CERTAIN MEMBERS OF THE COMMUNITY'S MANAGEMENT TEAM BASED ON THE PERFORMANCE OF THOSE PERSONS COMPARED TO INDIVIDUAL GOALS. SUSAN DRABIC, CHRISTOPHER HUNT, AND MONICA BUSTAMANTE ARE PARTICIPANTS IN THE ORGANIZATION'S DEFINED CONTRIBUTION RETIREMENT PLAN. IF THE EMPLOYER CONTRIBUTIONS EXCEED THE LIMIT OF THE NONDISCRIMATORY RULES OF THE PLAN, THE OVERAGE IS PAID AS A BONUS IN THE FOLLOWING YEAR. A NORTHAMPTON COUNTRY INDUSTRIAL DEVELOPMENT AUTHORITY 231971754 663549NS8 2012-12-27 30753053 REFINANCING AND CONSTRUCTION IMPROVEMENT OF MORAVIAN HALL SQUARE 0 0 0 A 315000 30754057 2149968 675066 5431010 20808745 1653076 2015 1 0 0 1 A 0 1 1 1 0 0.00000 0.00300 0.00300 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 SCHEDULE K, PART I, COLUMN F - A: THE PURPOSE OF THE ISSUANCE INCLUDED (A) THE CURRENT REFUNDING OF THE AUTHORITY'S MORTGAGE REVENUE BONDS (MORAVIAN HALL SQUARE PROJECT). SERIES OF 1996 AND THE AUTHORITY'S MORTGAGE REVENUE BONDS (MORAVIAN HALL SQUARE PROJECT), SERIES OF 2002, THE PROCEEDS OF WHICH WERE USED TO FINANCE OR REFINANCE THE ACQUISITION, CONSTRUCTION IMPROVEMENT AND EQUIPPING OF THE ORGANIZATION'S CONTINUING CARE RETIREMENT COMMUNITY KNOWN AS MORAVIAN HALL SQUARE LOCATED ON THE CURRENT CAMPUS AND CURRENTLY CONSISTING OF 129 INDEPENDENT LIVING APARTMENTS, 86 PERSONAL CARE UNITS, 61 NURSING BEDS AND COMMON AREAS (THE "COMMUNITY"), (B) FINANCING THE RENOVATION OF PERSONAL CARE AREAS OF THE COMMUNITY AND OTHER MISCELLANEOUS CAPITAL EXPENDITURES WITH RESPECT TO THE COMMUNITY LOCATED ON THE CURRENT CAMPUS, (C) FINANCING THE ACQUISITION OF APPROXIMATELY 45 ACRES OF LAND AT THE FUTURE CAMPUS AND THE PAYMENT OR REIMBURSEMENT OF CERTAIN PRELIMINARY EXPENDITURES WITH RESPECT TO PLANNED NEW FACILITIES TO BE LOCATED ON SUCH FUTURE CAMPUS, (D) THE FUNDING OF A DEPOSIT TO A DEBT SERVICE RESERVE FUND, AND (E) THE PAYMENT OF CERTAIN COSTS OF ISSUANCE RELATED TO THE AUTHORITY'S BONDS. SCHEDULE K, PART II, LINE 11 $20,808,745 TO REFUND BONDS ISSUED IN 1996 AND 2002, AND $120,758 FOR TITLE FEE AND NORTHAMPTON COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY FEE. FORM 990, PART VI, SECTION A, LINE 1 (1) THE EXECUTIVE COMMITTEE CONSISTS OF THE BOARD CHAIRPERSON, CHAIRPERSON ELECT, TREASURER, SECRETARY, EASTERN DISTRICT EXECUTIVE BOARD PRESIDENT, ONE MEMBER OF THE CURRENT BOARD OF DIRECTORS, AND FOR AT LEAST ONE YEAR THE IMMEDIATE PAST PRESIDENT OF THE BOARD OF DIRECTORS IF HE OR SHE IS STILL A MEMBER OF THE BOARD OF DIRECTORS. (2) THE EXECUTIVE COMMITTEE ACTS FOR THE FULL BOARD OF DIRECTORS IN THE INTERIM BETWEEN REGULAR BOARD MEETINGS. IT MAY EXERCISE ANY AND ALL POWERS GRANTED TO ALL OTHER STANDING COMMITTEES. THE EXECUTIVE COMMITTEE DOES NOT HAVE THE POWER AND AUTHORITY TO ELECT OFFICERS, AMEND BYLAWS, FILL VACANCIES ON THE BOARD OR CREATE COMMITTEES AND APPOINT MEMBERS. FORM 990, PART VI, SECTION A, LINE 3 MORNINGSTAR SENIOR LIVING, INC. USES A MANAGEMENT COMPANY TO MANAGE THE COMMUNITY'S DINING SERVICE FUNCTIONS. DINING SERVICE MANAGERS ARE EMPLOYED BY THE MANAGEMENT COMPANY AND REPORT DIRECTLY TO THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MORNINGSTAR SENIOR LIVING, INC. ALL OTHER DINING STAFF ARE EMPLOYED BY MORNINGSTAR SENIOR LIVING, INC. FORM 990, PART VI, SECTION A, LINE 7A THE MORAVIAN CHURCH AT ITS EASTERN DISTRICT SYNOD DIRECTLY ELECTS FOUR MEMBERS TO THE MORNINGSTAR SENIOR LIVING BOARD AND THE EASTERN DISTRICT EXECUTIVE BOARD ELECTS ANOTHER FOUR MEMBERS. THE REMAINING UP TO 16 ADDITIONAL BOARD MEMBERS ARE ELECTED FROM THE GREATER COMMUNITY AT LARGE, BASED UPON THEIR PROFESSIONAL EXPERTISE. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 AND RELATED SCHEDULES ARE PREPARED AN EXTERNAL ACCOUNTING FIRM AND REVIEWED BY THE CHIEF FINANCIAL OFFICER AND THE PRESIDENT & CEO. THE REVIEWED FORM 990 AND RELATED SCHEDULES ARE PRESENTED TO THE FINANCE AND AUDIT REVIEW COMMITTEE OF THE BOARD OF DIRECTORS FOR APPROVAL PRIOR TO FILING. AFTER APPROVAL BY THE FINANCE AND AUDIT REVIEW COMMITTEE AND BEFORE FILING, THE FORM 990 AND RELATED SCHEDULES ARE PROVIDED TO THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, EACH BOARD MEMBER, OFFICER, AND KEY EMPLOYEE IS GIVEN A COPY OF THE MORNINGSTAR SENIOR LIVING, INC. CONFLICT OF INTEREST AND CONFIDENTIALITY STATEMENT AS WELL AS RELATED QUESTIONNAIRE TO BE COMPLETED AND SIGNED. THE QUESTIONNAIRE REQUIRES EACH SIGNER TO LIST BUSINESSES IN WHICH THE SIGNER OR SPOUSE IS A MEMBER, EMPLOYEE, OR OWNER WITH WHICH MORNINGSTAR SENIOR LIVING, INC. MIGHT REASONABLY ENTER INTO A TRANSACTION AS WELL AS ANY OTHER RELATIONSHIP OR ACTIVITY THAT MIGHT GIVE RISE TO A CONFLICT OF INTEREST. IF A BOARD MEMBER HAS A SIGNIFICANT FINANCIAL INTEREST IN A TRANSACTION UPON WHICH ACTION IS TO BE TAKEN OR WITHHELD BY THE BOARD, THE POLICY DOES NOT PERMIT SUCH BOARD MEMBER TO VOTE ON OR USE ANY PERSONAL INFLUENCE REGARDING SUCH MATTER. IF ANY OFFICER OR KEY EMPLOYEE HAS A SIGNIFICANT FINANCIAL OR OTHER INTEREST IN A TRANSACTION, THE PRESIDENT AND CHIEF EXECUTIVE OFFICER, IN CONJUNCTION WITH THE BOARD, MUST APPROVE THE TRANSACTION. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER IS DETERMINED ANNUALLY AS A RESULT OF A PERFORMANCE REVIEW PROCESS CHAIRED BY THE CHAIRPERSON OF THE BOARD OF DIRECTORS. THIS PROCESS INVOLVES THE BOARD'S EXECUTIVE COMMITTEE MEMBERS (COMPRISED OF THE OFFICERS OF THE BOARD; ONE ADDITIONAL BOARD MEMBER APPOINTED TO THIS COMMITTEE AS AN "AT LARGE" MEMBER; AND THE PRESIDENT OF THE EASTERN DISTRICT OF THE MORAVIAN CHURCH). THE PERFORMANCE REVIEW PROCESS FOR THE PRESIDENT AND CHIEF EXECUTIVE OFFICER FOCUSES UPON THE ACHIEVEMENT (OR LACK THEREOF) OF AGREED UPON STRATEGIC AND OPERATING PERFORMANCE GOALS FOR MORNINGSTAR SENIOR LIVING, INC. THE COMPENSATION OF THE CHIEF FINANCIAL OFFICER AND THE OTHER KEY EMPLOYEES IS DETERMINED BY A PERFORMANCE REVIEW/EVALUATION TOOL AND SCORING PROCESS (LEADERSHIP DEVELOPMENT PLAN) COMPLETED BY THE PRESIDENT AND CHIEF EXECUTIVE OFFICER. FORM 990, PART VI, SECTION C, LINE 19 MORNINGSTAR SENIOR LIVING, INC. MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON WRITTEN REQUEST. MORNINGSTAR SENIOR SOLUTIONS INC 175 WEST NORTH STREET NAZARETH PA 18064 461046466 HOME CARE AND CARE MANAGEMENT PA 501(C)(3) 9 MORNINGSTAR SENIOR LIVING INC 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 MORNINGSTAR SENIOR SOLUTIONS INC A 9027 ACCRUAL METHOD, BASED ON TERMS OF MORNINGSTAR SENIOR SOLUTIONS INC D 702934 ACCRUAL METHOD, BASED ON CASH VAL