2014-08-01T12:48:20-05:00 2013-12-31 520783935 SMITH ELLIOTT KEARNS & COMPANY LLC 480 N POTOMAC STREET HAGERSTOWN MD 21740 990 2013-01-01 521892688 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC HOME 3015821626 PO BOX 250 WILLIAMSPORT MD 217950250 GEORGE C MCCULLOUGH JR VP-FINANCE/CFO 3015821626 2014-06-27 1 TIMOTHY E PETERS CPA P00957675 3017335020 2013 2015-11-30 17:44:51Z GEORGE C MCCULLOUGH JR 16107 ELLIOTT PARKWAY WILLIAMSPORT MD 217950250 3851092 0 X WWW.HOMEWOOD.COM X 1994 MD PROVIDE COMPASSIONATE, PROFES- SIONAL, CARING SERVICE TO ENHANCE THE QUALITY OF LIFE FOR RESIDENTS, CLIENTS AND CO-WORKERS. 15 15 1496 0 0 0 0 0 0 0 1472 5104 3579391 3845988 3580863 3851092 0 0 0 0 3157809 3235931 0 0 0 716824 882830 3874633 4118761 -293770 -267669 3685261 3793021 1169133 1544562 2516128 2248459 X HOMEWOOD'S MISSION IS TO PROVIDE COMPASSIONATE, PROFESSIONAL AND CARING SERVICE IN ORDER TO ENHANCE THE QUALITY OF LIFE FOR RESIDENTS, CLIENTS AND CO-WORKERS. 0 0 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. IS A PARENT COMPANY WHICH SERVES THE HOMEWOOD COMMUNITIES WITH ADMINISTRATIVE SUPPORT, CENTRALIZED ACCOUNTING INCLUDING BILLING AND COLLECTIONS, COMPUTER AND TECHNICAL SUPPORT, HUMAN RESOURCES, PURCHASING, AND FUNDRAISING THROUGH THE HOMEWOOD FOUNDATION. ALL OF THE SUBSIDIARY COMPANIES ARE TAX EXEMPT ORGANIZATIONS. THE HOMEWOOD GROUP OF COMPANIES PRIMARILY PROVIDES A CONTINUUM OF CARE FOR ELDERLY PERSONS IN BEAUTIFUL RETIREMENT COMMUNITIES AND NURSING HOMES IN FIVE LOCATIONS: FREDERICK, MARYLAND; WILLIAMSPORT, MARYLAND; HANOVER, PENNSYLVANIA; MARTINSBURG, PENNSYLVANIA; AND EVERETT, PENNSYLVANIA. THESE FACILITIES CONTAIN A TOTAL OF 906 INDEPENDENT LIVING COTTAGES AND APARTMENTS, 277 ASSISTED LIVING UNITS, AND 451 NURSING HOME BEDS. THE NURSING HOME BEDS ARE PROVIDED FOR SKILLED AND SPECIAL MEMORY CARE. 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 X 333 0 1 1496 1 0 0 0 0 0 0 0 0 0 0 X 15 15 0 0 0 0 0 0 0 1 1 0 0 0 1 1 0 1 1 1 1 0 X WENDY S CRAMPTON CONTROLLER 3015821626 16107 ELLIOTT PARKWAY WILLIAMSPORT MD 217950250 ERNEST W ANGELL PRESIDENT/CEO 40.00 7.00 X X 443482 0 145228 WAYNE D HILL EX OFFICIO 1.00 1.00 X 0 0 0 FRED N IMLER EX OFFICIO 1.00 1.00 X 0 0 0 DAVID P CHAPIN CHAIRMAN 1.00 2.00 X X 0 0 0 LYNN P BRUMBELOW DIRECTOR 1.00 1.00 X 0 0 0 ESTELLE B KING DIRECTOR 1.00 1.00 X 0 0 0 LINDA W MCKONLY DIRECTOR 1.00 1.00 X 0 0 0 RICHARD M BICE DIRECTOR 1.00 2.00 X 0 0 0 RITA BUSH DIRECTOR 1.00 2.00 X 0 0 0 JUDITH CRUM DIRECTOR 1.00 1.00 X 0 0 0 JAMES K KLUTTZ VICE CHAIRMAN 1.00 1.00 X X 0 0 0 REV RAYMOND SHORT SECRETARY 1.00 1.00 X X 0 0 0 RICHARD C MARSHALL DIRECTOR 1.00 1.00 X 0 0 0 KARLYS KLINE DIRECTOR 1.00 2.00 X 0 0 0 ROGER MELLOTT DIRECTOR 1.00 1.00 X 0 0 0 GEORGE C MCCULLOUGH JR VP-FINANCE/CFO 40.00 7.00 X 259728 0 73330 CONRAD D PEACHEY VP-OPERATIONS/COO 40.00 7.00 X 303780 0 91991 LINFORD J YODER VP-HUMAN RESOURCES 40.00 7.00 X 223863 0 69593 GARY LEE RECHER DIRECTOR OF INFO SYSTEMS 40.00 X 191228 0 18240 WENDY S CRAMPTON CONTROLLER 40.00 X 102531 0 20857 JAMES W SWOPE INFORMATION SYSTEM TECH. 40.00 X 101003 0 10610 BRYAN G WILES INFORMATION SYSTEM TECH. 40.00 X 116794 0 11252 1742409 0 441101 8 0 1 0 CRAWFORD ADVISORS LLC 200 INTERNATIONAL CIRCLE SUITE 450 HUNT VALLEY MD 21031 HEALTH 1432766 CARE HERE LLC 5141 VIRGINIA WAY SUITE 500 BRENTWOOD TN 37027 MEDICAL 524271 SYCOM TECHNOLOGIES PO BOX 70909 RICHMOND VA 23228 INFORMATION TECHNOLOGY 106893 3 2436 2436 61764 0 61764 61764 61764 2668 0 2668 2668 2668 MANAGEMENT FEES-FROM S 541610 3783600 3783600 MISCELLANEOUS 900099 624 624 3784224 3851092 3784224 0 66868 1494193 1494193 1384197 1384197 41905 41905 167025 167025 148611 148611 19541 19541 27473 27473 101392 101392 737 737 164507 164507 133280 133280 79877 79877 42031 42031 42323 42323 146851 146851 6986 6986 COMPLIANCE EXPENSE 80930 80930 EDUCATION & SEMINARS 12555 12555 PUBLIC RELATIONS 10269 10269 DUES, LICENSES, & SUBSC 8372 8372 5706 5706 4118761 0 4118761 0 500 500 649515 669270 13392 15224 260 1132655 841310 104488 161182 5004569 3617706 1268520 1386863 515931 718672 3685261 3793021 1169133 1544562 1169133 1544562 X 2516128 2248459 2516128 2248459 3685261 3793021 -267669 0 X X 0 1 X 1 0 X 3014676 3158400 3392400 3528000 3783600 16877076 3014676 3158400 3392400 3528000 3783600 16877076 0 0 0 16877076 67931 67903 58165 52090 64200 310289 67931 67903 58165 52090 64200 310289 642 697 805 773 624 3541 3083249 3227000 3451370 3580863 3848424 17190906 0.98170 0.97960 0.01800 0.02010 X 97092 97092 2066336 1143171 923165 96729 88284 8445 2744412 2386251 358161 1386863 DEFERRED COMPENSATION 718672 718672 X 3851092 0 3851092 0 3851092 4118761 0 4118761 0 4118761 PART X, LINE 2: ALL COMPANIES OF THE HOMEWOOD CONSOLIDATED GROUP ARE NOT-FOR-PROFIT CORPORATIONS AS DESCRIBED IN INTERNAL REVENUE CODE SECTION 501(C)(3) AND ARE EXEMPT FROM FEDERAL INCOME TAX PURSUANT TO SECTION 509(A)(3) OF THE INTERNAL REVENUE CODE. HOMEWOOD FOLLOWS THE FASB ACCOUNTING STANDARDS CODIFICATION, WHICH PROVIDES GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTERPRISE'S FINANCIAL STATEMENTS. AS OF DECEMBER 31, 2013 AND 2012, HOMEWOOD HAD NO UNCERTAIN TAX POSITIONS THAT QUALIFY FOR EITHER RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. HOMEWOOD'S POLICY IS TO RECOGNIZE INTEREST AND PENALTIES ON UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE IN THE FINANCIAL STATEMENTS. NO INTEREST AND PENALTIES WERE RECORDED DURING THE YEARS ENDED DECEMBER 31, 2013 AND 2012. GENERALLY, THE TAX YEARS BEFORE 2010 ARE NO LONGER SUBJECT TO EXAMINATION BY FEDERAL, STATE OR LOCAL TAXING AUTHORITIES. X X X X 0 1 0 0 0 1 1 0 0 ERNEST W ANGELL PRESIDENT/CEO 389475 0 27787 0 26220 0 135822 0 9406 0 588710 0 45287 0 GEORGE C MCCULLOUGH JR VP-FINANCE/CFO 254774 0 0 0 4954 0 63924 0 9406 0 333058 0 4954 0 CONRAD D PEACHEY VP-OPERATIONS/COO 269291 0 12003 0 22486 0 78344 0 13647 0 395771 0 29503 0 LINFORD J YODER VP-HUMAN RESOURCES 200511 0 23352 0 0 0 53403 0 16190 0 293456 0 23352 0 GARY LEE RECHER DIRECTOR OF INFO SYSTEMS 106061 0 0 0 85167 0 5496 0 12744 0 209468 0 0 0 PART I, LINE 4B 457(F) PLAN FOR GEORGE C. MCCULLOUGH, JR. $10,000 457(F) PLAN FOR LINFORD J. YODER $10,000 PART I, LINE 6 THE COMMITTEE WILL REVIEW BEST PRACTICE BENCHMARK INFORMATION INCLUDING FINANCIAL RATIOS AND TREND ANALYSIS WITH COMPARABLE MULTI-FACILITY CONTINUING CARE RETIREMENT COMMUNITIES. PERFORMANCE BENCHMARKS USED: A) MISSION B) OPERATING MARGIN RATIO C) BUDGET COMPARED TO ACTUAL D) DAYS IN ACCOUNTS RECEIVABLE E) RESIDENT/CO-WORKER SATISFACTION SURVEYS F) CENSUS G) DEBT SERVICE RATIO IN ORDER TO BE ELIGIBLE, EXCESS INCOME OVER BUDGET, EXCLUDING CONTRIBUTIONS, MUST BE $200,000 OR GREATER. FORM 990, PART V, LINE 2(A): REGARDING NUMBER OF EMPLOYEES: AS THE PARENT ORGANIZATION, THE HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. PROCESSES THE PAYROLL FOR ALL OF THE SUBSIDIARY ORGANIZATIONS. ALL OF THE PAYROLL TAX REPORTS ARE SUBMITTED BY THE HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. BELOW IS A BREAKDOWN OF THE NUMBER OF EMPLOYEES WORKING AT THE PARENT ORGANIZATION AND EACH OF THE SUBSIDIARY ORGANIZATIONS: NUMBER OF NAME OF ORGANIZATION EMPLOYEES HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. 24 HOMEWOOD AT WILLIAMSPORT MD, INC. 255 HOMEWOOD AT HANOVER PA, INC. 458 HOMEWOOD AT MARTINSBURG PA, INC. 375 HOMEWOOD AT FREDERICK MD, INC. 349 HOMEWOOD FOUNDATION, INC. 2 HOMEWOOD AT SPRING HOUSE ESTATES, INC. 32 HOMEWOOD AT THE SHENANDOAH VALLEY, INC. 1 FORM 990, PART V, LINE 1(A): REGARDING NUMBER OF U.S. INFORMATION RETURNS: AS THE PARENT ORGANIZATION, THE HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. PROCESSES ALL THE PAYABLES FOR THE SUBSIDIARY ORGANIZATIONS AND PROCESSES AND FILES ALL OF THE U.S. INFORMATION RETURNS. NO U.S. INFORMATION RETURNS ARE FILED BY ANY OF THE SUBSIDIARY ORGANIZATIONS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PROVIDED TO THE CHIEF FINANCIAL OFFICER FOR SIGNATURE AND AT THAT TIME A CURSORY REVIEW TAKES PLACE. THE FORM 990 IS NOT PRESENTED TO THE BOARD OF TRUSTEES. THE TRUSTEES ARE TOLD THE FORM 990 HAS BEEN FILED AND IS AVAILABLE UPON REQUEST. FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE COMPENSATION PHILOSOPHY FOR THE ORGANIZATION'S CEO, EXECUTIVE DIRECTOR, AND TOP MANAGEMENT OFFICIAL: THE INDEPENDENT EXECUTIVE COMPENSATION COMMITTEE OF THE HOMEWOOD RETIREMENT CENTER'S BOARD OF TRUSTEES WILL DETERMINE THE TOTAL COMPENSATION PHILOSOPHY AND COMPENSATION PACKAGES FOR SENIOR MANAGEMENT (PRESIDENT/CEO AND VICE PRESIDENTS). THE EXECUTIVE COMPENSATION COMMITTEE WILL BE STRUCTURED, AND WILL OPERATE, IN A MANNER INTENDED TO SATISFY THE REQUIREMENTS OF THE IRS "INTERMEDIATE SANCTIONS" RULES. HOMEWOOD'S GOAL FOR SALARY RANGES AND INCENTIVE PLANS ARE LINKED TO THE MID-MARKET LEVELS FOR CONTINUING CARE RETIREMENT COMMUNITIES (CCRC) AND SENIOR HOUSING/SERVICES ORGANIZATIONS REFLECTING REGIONAL AND NATIONAL BENCHMARKS. THE USE OF DEFERRED OR SUPPLEMENTAL BENEFITS/COMPENSATION PLANS WILL BE USED TO SUPPORT RETENTION AND SMOOTH SUCCESSION PLANNING FOR SENIOR MANAGMENT WITH BENEFIT LEVELS TARGETED AT MID MARKET LEVELS FOR THE CEO AND FOR THE VICE PRESIDENTS. BENEFITS AND PERQUISITES FOR SENIOR MANAGEMENT WILL RELFECT MID MARKET PRACTICES. THE EXECUTIVE PAY PLAN ARCHITECTURE USED FOR IMPLEMENTATION OF THIS PHILOSOPHY WILL BE APPROVED BY THE EXECUTIVE COMPENSATION COMMITTEE FROM TIME TO TIME. THE CEO WILL BE RESPONSIBILE FOR MAKING RECOMMENDATIONS TO THE COMMITTEE CONCERNING SUBORDINATE PAY, ENSURING THAT THOSE RECOMMENDATIONS REFLECT HOMEWOOD'S OVERALL PHILOSOPHY. THE EXECUTIVE COMPENSATION COMMITTEE WILL KEEP THE FULL BOARD INFORMED OF KEY DECISIONS, AND WILL CONSIST OF INDEPENDENT DECISION MAKERS WHO DO NOT PERFORM PAID SERVICES FOR HOMEWOOD AND WHO OTHERWISE MEET THE "NO CONFLICT-OF-INTEREST" RULES OF THE IRS INTERMEDIATE SANCTIONS RULES. WAGE ADMINISTRATION GUIDELINES FOR THE CALENDAR BUDGET YEAR 2013: HOMEWOOD'S WAGE ADMINISTRATION PROGRAM LOOKS AT BASE PAY RATES THAT TAKE INTO CONSIDERATION IF IT IS: (1) INTERNALLY EQUITABLE. (2) EXTERNALLY COMPETITIVE. (3) AFFORDABLE/COST EFFECTIVE. (4) LEGAL/DEFENSIBLE. (5) UNDERSTANDABLE. (6) APPROPRIATE FOR THE ORGANIZATION. (7) APPROPRIATE FOR THE WORKFORCE. HOMEWOOD'S WAGE ADMINISTRATION PROGRAM APPLIES PRINCIPLES TO ASSIST IN THE RETENTION AND RECRUITMENT OF CO-WORKERS. HOMEWOOD'S GOAL IS TO PAY WAGES IN THE 60TH PERCENTILE IN THE LONG TERM CARE INDUSTRY FOR MOST POSITIONS TAKING INTO CONSIDERATION THE GEOGRAPHIC AREA. SOME POSITIONS REQUIRE A HIGHER PERCENTAGE DUE TO THE MARKET CONDITIONS. HOMEWOOD WILL USE THE PANPHA WAGE SURVEY TO BENCHMARK STARTING WAGES, IMPLEMENT MARKET WAGE ADJUSTMENTS AND REVIEW WAGE CEILINGS. OTHER WAGE SURVEYS WILL ALSO BE USED TO COMPARE DATA IN OUR INDUSTRY AS WELL AS OTHER INDUSTRIES. HOMEWOOD'S GOAL FOR THE STARTING WAGE AND AVERAGE WAGE WILL BE THE 60TH PERCENTILE. WHEN EITHER THE AVERAGE WAGE OR STARTING WAGE DOES NOT MEET THIS STANDARD A MARKET WAGE ADJUSTMENT WILL BE CONSIDERED. IT IS AT HOMEWOOD'S DISCRETION TO HAVE A HIGHER PERCENTILE THAN THE 60TH FOR SOME POSITIONS. A MARKET ADJUSTMENT IS CONSIDERED WHEN A SPECIFIC POSITION IS DETERMINED TO BE BELOW THE 60TH PERCENTILE FOR THAT GEOGRAPHIC AREA. THE MARKET ADJUSTMENT IS DETERMINED BY THE DOLLARS NEEDED TO REACH THE 60TH PERCENTILE. A FIXED DOLLAR AMOUNT IS GIVEN TO CO-WORKERS IN THAT JOB CATEGORY. HOMEWOOD DOES NOT WANT TO HAVE A PRACTICE WHERE POSITIONS ARE IN THE 95TH OR ABOVE PERCENTILE OF THE PA LEADINGAGE STATE WAGE SURVEY. WAGE INCREASES FOR CO-WORKERS AT OR ABOVE THE 95TH PERCENTILE WILL RECEIVE 50% OF THEIR PERFORMANCE WAGE INCREASE. HOMEWOOD'S UNDERLYING PHILOSOPHY FOR WAGE INCREASES WILL BE BASED ON PERFORMANCE, ON THE POSITION, ON THE CURRENT PAY RATE AND MARKET COMPARISONS. HOMEWOOD EVALUATES AND CONSIDERS HOW SOMEONE IS CURRENTLY PAID BEFORE DETERMINING THE APPROPRIATE WAGE ADJUSTMENT. THE WAGE ADMINISTRATION PROGRAM IS PROVIDED TO SERVE AS A GUIDELINE IN THE SYSTEMATIC APPROACH TO WAGE INCREASES. WAGE INCREASES FOR THE CALENDAR YEAR 2013 ARE SEPARATED INTO THE FOLLOWING THREE COMPONENTS: 1. THE AVERAGE WAGE OF EACH JOB CATEGORY (OR ANOTHER DETERMINED WAGE BASED ON WAGE SURVEYS) WILL BE USED AS THE BASIS TO ESTABLISH THE WAGE INCREASE. A PAY GRID IS ESTABLISHED FOR EACH POSITION WHICH HAS A DOLLAR/CENTS AMOUNT LINKED TO THE EVALUATION POINTS. WAGE ADJUSTMENTS ARE ADMINISTERED BASED ON THE CO-WORKER'S PERFORMANCE AND DOES NOT TAKE INTO CONSIDERATION LONGEVITY. EXAMPLE: IF ALL CO-WORKERS IN A JOB CATEGORY HAVE THE SAME TOTAL POINTS FROM THE EVALUATION THEY ALL WILL RECEIVE THE SAME DOLLAR/CENTS PER HOUR INCREASE. 2. AN ADDITIONAL INCREASE MAY BE APPROVED IF PARTICULAR POSITION(S) ARE DETERMINED TO BE BELOW THE MARKET VALUE FOR THAT AREA. THIS INCREASE IS NOT REFLECTIVE OF THE CO-WORKER'S PERFORMANCE OR LONGEVITY. IT IS SOLELY BASED ON THE NEED TO BECOME MORE COMPETITIVE WITH THE SALARY. THE VICE PRESIDENT-HUMAN RESOURCES WILL MAKE RECOMMENDATIONS FOR SPECIAL CONSIDERATION. SITE EXECUTIVES WILL MAKE FINAL RECOMMENDATIONS TO THE VICE PRESIDENT-HUMAN RESOURCES FOR SENIOR MANAGEMENT FINAL APPROVAL. 3. THE FOLLOWING WILL BE USED FOR THE DEPARTMENT DIRECTOR POSITIONS. AN INCREASE OF UP TO A MAXIMUM OF 3.0% MAY BE AWARDED WHERE PERFORMANCE EXCEEDS THE NORM IN ALL AREAS AND IS DOCUMENTED IN WRITING IN THE PERFORMANCE APPRAISAL PROCESS. THIS INCREASE WOULD BE CONSISTENT WITH OTHER DIRECTOR'S WHOSE PERFORMANCE IS SIMILAR. THE PERFORMANCE WAGE ADJUSTMENT GRID WILL USE THE PARAMETER OF THE AVERAGE WAGE BEING SET AT 2.5% FOR THE 2013 YEAR. CO-WORKERS ACTIVELY EMPLOYED AS OF JANUARY 6, 2013 MAY BE ELIGIBLE FOR THE WAGE INCREASE. GENERALLY, CO-WORKERS WHO HAVE NOT COMPLETED THE INTRODUCTORY PERIOD WOULD RECEIVE A 1.5% ADJUSTMENT. (IN LIEU OF ANY ADJUSTMENT, A CO-WORKER WHO IS HIRED IN DECEMBER MAY BE PAID THE NEW 2013 STARTING RATE.) WAGE INCREASES WILL BE EFFECTIVE THE PAY PERIOD OF JANUARY 6, 2013 TO JANUARY 19, 2013 FOR THE JANUARY 25, 2013 PAY DAY. PERFORMANCE IS THE KEY FACTOR- NOT THE LENGTH OF SERVICE- FOR WAGE INCREASE CONSIDERATION. THE MERE FACT THAT A CO-WORKER HAS CONTINUED TO BE EMPLOYED BY HOMEWOOD IS NOT JUSTIFICATION FOR A WAGE ADJUSTMENT. WAGE ADJUSTMENTS MUST BE BASED UPON A THOROUGH REVIEW OF A CO-WORKER'S PERFORMANCE. EACH SUPERVISOR WILL CONDUCT A FORMAL PERFORMANCE EVALUATION ANNUALLY. THIS TIME IS USED TO PROVIDE OPPORTUNITY FOR FURTHER DEVELOPMENT TO THE CO-WORKER, SUMMARIZING EVENTS ALREADY DISCUSSED THROUGHOUT THE YEAR. THE EVALUATIONS SHOULD BE DONE DURING THE MONTHS OF NOVEMBER AND DECEMBER. IF A CO-WORKER'S JOB PERFORMANCE DOES NOT JUSTIFY ANY INCREASE, THE CO-WORKER SHOULD BE PLACED ON PROBATION AND IF IMPROVEMENT IS NOT EVIDENT, TERMINATION OF EMPLOYMENT IS APPROPRIATE. STARTING WAGE RATES FOR POSITIONS WILL BE ESTABLISHED THROUGH THE BUDGET PROCESS. HUMAN RESOURCES WILL DISTRIBUTE A WORKSHEET TO INITIATE THE PROCESS. THESE RATES ARE ESTABLISHED FOR EACH FACILITY WITH FINAL HUMAN RESOURCES APPROVAL. STARTING PAY RATES ARE INTENDED TO KEEP EACH POSITION COMPETITIVE WITHIN THE JOB MARKET. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. MUCH OF THE INFORMATION IS MADE AVAILABLE TO THE RESIDENTS AS PART OF THE DISCLOSURE STATEMENTS REQUIRED BY THE STATES. FORM 990, PART XI, LINE 2(C): THE FINANCE COMMITTEE IS RESPONSIBLE FOR SELECTING THE AUDITOR AND REVIEWING THE MANAGEMENT LETTER AND FINANCIAL STATEMENTS. BECAUSE OF THE SIGNIFICANCE, AUDIT FINDINGS ARE PRESENTED TO THE FULL BOARD OF TRUSTEES BY THE AUDITORS. THIS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990: STATEMENT REGARDING CORPORATE STRUCTURE: HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. 52-1892688 YEAR ENDED DECEMBER 31, 2013 STATEMENT REGARDING CORPORATE STRUCTURE THE HOMEWOOD GROUP OF COMPANIES CONSISTS OF A PARENT CORPORATION, SIX SUBSIDIARY OPERATING COMPANIES AND A SUBSIDIARY FOUNDATION AS OF DECEMBER 31, 2013. THIS CORPORATION STRUCTURE RESULTS FROM THE RESTRUCTURING OF A FORMER SINGLE CORPORATION EFFECTIVE JANUARY 1, 1996. THE COMPANIES CONSTITUTING THE HOMEWOOD GROUP ARE AS FOLLOWS: PARENT: HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC. 52-1892688 SUBSIDIARIES: HOMEWOOD AT WILLIAMSPORT MD, INC. 52-0619001 (FORMER SINGLE CORPORATION BEFORE RESTRUCTURING) HOMEWOOD AT HANOVER PA, INC. 52-1931788 HOMEWOOD AT MARTINSBURG PA, INC. 52-1931790 HOMEWOOD AT FREDERICK MD, INC. 52-1931794 HOMEWOOD FOUNDATION, INC. 52-1892689 HOMEWOOD AT SPRING HOUSE ESTATES, INC. 20-5189952 (BECAME PART OF THE GROUP IN 2007.) HOMEWOOD AT SHENANDOAH VALLEY, INC. 26-2624652 (BECAME PART OF THE GROUP IN 2008.) AS REQUIRED BY THE INTERNAL REVENUE SERVICE, EACH COMPANY IN THE HOMEWOOD GROUP FILES A SEPARATE FORM 990. HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST, INC., THE PARENT COMPANY, SERVES EACH OF THE SUBSIDIARY COMPANIES WITH ADMINISTRATIVE SUPPORT, CENTRALIZED ACCOUNTING INCLUDING BILLING AND COLLECTION, COMPUTER AND TECHNICAL SUPPORT, HUMAN RESOURCES, PURCHASING, AND FUNDRAISING THROUGH THE HOMEWOOD FOUNDATION. ACCORDINGLY, ALL ITS FUNCTIONAL EXPENSES ARE REPORTED AS "MANAGEMENT AND GENERAL" ON ITS FORM 990. THE SUBSIDIARY OPERATING COMPANIES HAVE THE SOLE PURPOSE OF PROVIDING SERVICES TO CLIENTS. ACCORDINGLY, ALL OF THEIR FUNCTIONAL EXPENSES ARE REPORTED AS "PROGRAM SERVICES" ON THEIR RESPECTIVE FORM 990. THE SUBSIDIARY FOUNDATION IS INVOLVED IN PROMOTIONAL AND PUBLIC RELATIONS SUPPORT FOR THE OPERATING COMPANIES AND FUNDRAISING ACTIVITIES FOR THE BENEVOLENT FUND. IN ADDITION, THE FOUNDATION MANAGES INVESTMENTS AND MAKES GRANTS TO THE OPERATING COMPANIES IN SUPPORT OF CHARITY SERVICES. THE FOUNDATION CLASSIFIES GRANTS AS "PROGRAM SERVICES" AND ALLOCATES OTHER EXPENSES BETWEEN "MANAGEMENT AND GENERAL" AND "FUNDRAISING". FORM 990: SUMMARY FROM 2013 SOCIAL ACCOUNTABILITY REPORT: "A CULTURE OF SERVICE" HOMEWOOD RETIREMENT CENTERS 2013 SOCIAL ACCOUNTABILITY REPORT HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST IS A FAITH-BASED, NOT-FOR-PROFIT 501(C)(3) ORGANIZATION ESTABLISHED TO "PROVIDE COMPASSIONATE, PROFESSIONAL, AND CARING SERVICE; AND ENHANCE THE QUALITY OF LIFE FOR RESIDENTS, CLIENTS, AND CO-WORKERS (MISSION STATEMENT)." HOMEWOOD RETIREMENT CENTERS HAS CONSISTENTLY PARTICIPATED IN AND HAS HELPED TO DEVELOP PROGRAMS THAT SERVE THE BROADER COMMUNITY, THOSE WITH LIMITED RESOURCES, AS WELL AS ITS OWN RESIDENTS. WE ARE PLEASED TO PROVIDE THIS SUMMARY FROM OUR ANNUAL SOCIAL ACCOUNTABILITY REPORT. AS A NOT-FOR-PROFIT, TAX-EXEMPT ORGANIZATION, HOMEWOOD RETIREMENT CENTERS FROM ITS VERY BEGINNINGS HAS PROVIDED RESOURCES TO HELP SERVE OUR COMMUNITY WHILE ALSO PROVIDING OPPORTUNITIES FOR COMMUNITY MEMBERS TO LEARN FROM AND INTERACT WITH SENIOR CITIZENS. THE COMPLETE ANNUAL REPORT ON SOCIAL ACCOUNTABILITY IS AVAILABLE TO THE PUBLIC ON REQUEST. THE FOLLOWING REFLECTS ACTIVITIES IN 2013, AND INCLUDES THE ACTIVITIES FOR THE CORPORATE CENTER IN WILLIAMSPORT, MARYLAND, AND FOR HOMEWOOD'S SUBSIDIARY OPERATIONS IN WILLIAMSPORT AND FREDERICK, MARYLAND; HANOVER, MARTINSBURG, AND EVERETT, PENNSYLVANIA. "EXECUTIVE SUMMARY" HOMEWOOD RETIREMENT CENTERS HAS CONSISTENTLY PARTICIPATED IN AND HAS HELPED TO DEVELOP PROGRAMS THAT SERVE THE BROADER COMMUNITY, THOSE WITH LIMITED RESOURCES, AS WELL AS ITS OWN RESIDENTS. "VOLUNTEER HOURS DONATED" RESIDENTS AND CO-WORKERS CONTRIBUTED THE FOLLOWING IN 2013 AND 2012 (VALUES ARE BASED ON ACCEPTABLE RATES ESTABLISHED BY MARYLAND AND PENNSYLVANIA): HOMEWOOD AT WILLIAMSPORT, WILLIAMSPORT, MARYLAND CONTRIBUTED 14,721 HOURS VALUED AT $339,319 IN 2013, AND 13,123 HOURS VALUED AT $298,811 IN 2012; HOMEWOOD AT CRUMLAND FARMS, FREDERICK, MARYLAND, CONTRIBUTED 50,176 HOURS VALUED AT $1,156,557 IN 2013, AND 45,611 HOURS VALUED AT $1,038,562 IN 2012; HOMEWOOD AT PLUM CREEK, HANOVER, PENNSYLVANIA, CONTRIBUTED 40,000 HOURS VALUED AT $850,000 IN 2013, AND 41,556 HOURS VALUED AT $866,858 IN 2012; HOMEWOOD AT MARTINSBURG, MARTINSBURG, PENNSYLVANIA, CONTRIBUTED 33,040 HOURS VALUED AT $702,100 IN 2013, AND 29,000 HOURS VALUED AT $604,940 IN 2012; HOMEWOOD AT SPRING HOUSE ESTATES, EVERETT, PENNSYLVANIA, WHICH IS A RELATIVELY NEW SITE WITH A SMALL STAFF, CONTRIBUTED 1,043 HOURS VALUED AT $22,164 IN 2013, AND 866 HOURS VALUED AT $18,065 IN 2012; A TOTAL OF 138,980 HOURS WERE CONTRIBUTED IN 2013 VALUED AT $3,070,140 VS. 2012 TOTALS OF 130,156 HOURS VALUED AT $2,827,236. THAT IS AN INCREASE OF 8.6 PERCENT. "MONETARY CONTRIBUTIONS REPORTED BY THE SITES" TOTAL CONTRIBUTIONS IN DOLLARS REPORTED BY ALL SITES AND CORPORATE FROM RESIDENTS, CO-WORKERS, AND AUXILIARY GROUPS WERE $347,696 FOR 2013. NOTE: THIS IS EXCLUSIVE OF CONTRIBUTIONS RECEIVED BY THE HOMEWOOD FOUNDATION FOR THE SAME PERIOD WHICH WAS REPORTED AS $1,018,991. "SUBSIDIES" THE HOMEWOOD FAMILY PRIDES ITSELF ON ITS ABILITY TO PROVIDE BENEVOLENT CARE TO RESIDENTS WHO HAVE DEPLETED THEIR ASSETS THROUGH NO FAULT OF THEIR OWN AND FOR SHORTFALLS NOT REIMBURSED UNDER MEDICAID. FOR 2013, SUBSIDIZED ALLOWANCES TO RESIDENTS UNABLE TO PAY FULLY ESTABLISHED RATES AND PAYMENTS FOR ITEMS NOT REIMBURSED UNDER MEDICAID TOTALED $8,774,088. NOTE THE FOLLOWING: HOMEWOOD AT WILLIAMSPORT $1,584,913 HOMEWOOD AT CRUMLAND FARMS $2,045,663 HOMEWOOD AT PLUM CREEK $2,550,667 HOMEWOOD AT MARTINSBURG $2,592,845 HOMEWOOD AT SPRING HOUSE ESTATES AND HOMEWOOD AT SHENANDOAH VALLEY HAD NO REIMBURSEMENT ACTIVITY IN 2013 BECAUSE OF THE NATURE OF THEIR FACILITIES. 2013 SOCIAL ACCOUNTABILITY SNAPSHOTS FOLLOWING ARE SOME HIGHLIGHTS OF EACH HOMEWOOD SITE'S ENGAGEMENT IN SOCIAL ACCOUNTABILITY FOR 2013. IT'S INTERESTING TO OBSERVE HOW DIVERSE EACH HOMEWOOD OPERATING SITE IS. AT WILLIAMSPORT, MORE THAN 100 STUDENTS IN NURSING PROGRAMS, AS WELL AS PHYSICAL THERAPY AND THERAPEUTIC RECREATION, GAINED VALUABLE EXPERIENCE AND TRAINING COMPLETING CLINICAL ROTATIONS WITH OUR PROFESSIONAL STAFF. RESIDENTS PUT THEIR KNITTING AND SEWING SKILLS TO WORK CREATING BLANKETS, BABY ITEMS TO DONATE TO LOCAL HOSPITALS, WOMEN'S SHELTERS AND LOCAL DAY CARE PROGRAMS. DEVELOPMENTALLY DISABLED STUDENTS FROM WILLIAMSPORT HIGH SCHOOL WORK WITH HOUSEKEEPING STAFF AND INTERACT WITH RESIDENTS. HEALTH CARE RESIDENTS RECEIVED CHRISTMAS GIFTS THROUGH THE TRADITIONAL "OPERATION SANTA" THANKS TO THE LOCAL CHURCHES, AREA RESIDENTS, HOMEWOOD RESIDENTS AND CO-WORKERS. HOMEWOOD CO-WORKERS PARTICIPATE IN COMMUNITY SERVICE THROUGH MEMBERSHIP IN CIVIC ORGANIZATIONS SUCH AS ROTARY AND SERVE OUR YOUTH AS GIRL SCOUT LEADERS. NUMEROUS ORGANIZATIONS BENEFITED FROM THE GENEROSITY OF HOMEWOOD RESIDENTS AND CO-WORKERS INCLUDING THE RED CROSS, THE ALZEHEIMER'S DISEASE ASSOCIATION, HOSPICE, THE LIONS CLUB, AND THE HUMANE SOCIETY WHERE NURSING HOME RESIDENTS MADE HOMEMADE DOG TREATS. AT CRUMLAND FARMS, THE ARC OF FREDERICK COUNTY BENEFITS FROM OUR SITE PROVIDING A LEARNING ENVIRONMENT AND SUPPORT SERVICES FOR LOCAL CITIZENS WITH DISABILITIES. STUDENTS FROM THE "CHALLENGES IV PROGRAM," A SCHOOL-BASED PROGRAM FOR STUDENTS DEVELOPING THEIR COMMUNICATION AND WORK FORCE SKILLS, SPEND CONSIDERABLE TIME HELPING RESIDENTS. IN JANUARY HOMEWOOD PLAYED HOST TO A GROUP OF RUSSIAN STUDENTS FROM ST. PETERSBURG UNIVERSITY TO LEARN ABOUT RETIREMENT LIVING IN THE US AND THE CHALLENGES AND PERSPECTIVES OF SENIORS IN OUR CULTURE. GUIDING EYES FOR THE BLIND USES HOMEWOOD AS A TRAINING SITE FOR ITS LEADER DOGS. HOMEWOOD REACHES OUT TO THE "WAY STATION" BY PROVIDING A WORK OPPORTUNITY FOR ADULTS WHO HAVE MENTAL ILLNESS AND DEVELOPMENTAL DISABILITIES. PERHAPS THE MOST POPULAR ACTIVITY FOR OUR RESIDENTS IS THEIR PARTICIPATION AS VOLUNTEERS FOR THE "SUNSHINE READERS" PROGRAM AT LOCAL ELEMENTARY SCHOOLS. THE RESIDENTS SPEND TIME EACH WEEK WITH STUDENTS TO ENHANCE READING AND MATH SKILLS. BOTH CAREER TECH AND SHEPHERD UNIVERSITY UTILIZE CRUMLAND FARMS FOR A RN AND LPN CLINICAL TRAINING SITE. THE RELIGIOUS LIFE COMMITTEE DIRECTS WEEKLY CHAPEL OFFERINGS TO A VARIETY OF LOCAL AND GLOBAL CAUSES. AT PLUM CREEK, THE GETTYSBURG ASSOCIATION OF MINISTERS IS A FREQUENT VISITOR TO HOMEWOOD HOSTING DINNERS AND PROGRAMS AT OUR FACILITY. HOMEWOOD ALSO PROVIDES A PARISH SETTING FOR AN INTERNATIONAL SEMINARY GRADUATE STUDENT. NUMEROUS PERFORMANCE OPPORTUNITIES WERE MADE AVAILABLE DURING THE YEAR TO PROMISING AREA MUSICIANS AND VOCALISTS. RESIDENTS KNITTED BEANIES FOR PREMATURE BABIES HERE IN THE US AND AFRICA. HAPPY TRAILS THERAPY DOGS VISIT HOMEWOOD RESIDENTS WEEKLY. BOOKS WERE DONATED TO PRISON MINISTRIES AND AMVETS. HOMEWOOD'S CHAPLAINS PROVIDE PASTORAL CARE TO LOCAL STATE POLICE UNITS AND FIRE DEPARTMENTS. HOMEWOOD PROVIDED MORE THAN 1,000 HOURS TO RN, LPN, AND NA CANDIDATES FOR CLINICAL TRAINING. AT MARTINSBURG, THE CO-WORKERS AND RESIDENTS PUT TOGETHER CHRISTMAS CARE PACKAGES FOR THE "OPERATION S.O.S." PROGRAM FOR THE LOCAL SOLDIERS SERVING IN AFGHANISTAN. THE SAME EFFORT WAS CONDUCTED WITH THE DUNCANSVILLE VFW POST LADIES AUXILIARY. "THE CROSSROADS BRIDGE PROJECT" PROVIDES A VENUE FOR AN INTERGENERATIONAL EXPERIENCE FOR RESIDENTS AND AT-RISK AND UNDERPRIVILEGED YOUTH. STAFF EXPERTS OFFERED EDUCATIONAL SESSIONS ON A VARIETY OF HEALTH TOPICS. THE RESIDENTS AND CO-WORKERS PROVIDED A SIGNIFICANT MONETARY CONTRIBUTION TO THE UCC RELIEF FUND FOR U.S. DISASTER RELIEF. HEIFER INTERNATIONAL, LOCAL ORGANIZATIONS AND AREA SCHOOLS WERE AMONG THE NUMEROUS PROJECTS SUPPORTED. PENN STATE RN AND CNA STUDENTS BENEFIT FROM HOMEWOOD AS A CLINICAL SITE ALL YEAR LONG. AT SPRING HOUSE ESTATES, HOMEWOOD LENDS ITS FACILITIES AND CO-WORKERS HELP OUT AT THE ANNUAL UPMC HEALTH FAIR. BEDFORD AND EVERETT AREA RESIDENTS GET FREE HEALTH SCREENINGS, IMPORTANT HEALTH INFORMATION, PHYSICIAN REFERRAL, AND MULTIPHASIC BLOOD SCREENINGS. MORE THAN 35 VENDORS ATTEND THIS FAIR. RESIDENTS PARTICIPATE IN THE PRAYER SHAWL MINISTRY AND LEND SUPPORT TO THE BREEZEWOOD TRUCK TRAVELERS MINISTRY. THE AMERICAN CANCER SOCIETY USES THE HOMEWOOD SITE AS A PLANNING VENUE FOR ITS ANNUAL "RELAY FOR LIFE" EVENT. SNAKE SPRING CHRISTIAN ACADEMY HOLDS ITS ANNUAL FUNDRAISER AT HOMEWOOD. HOMEWOOD AT WILLIAMSPORT MD INC 16505 VIRGINIA AVENUE WILLIAMSPORT MD 21795 520619001 CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD AT HANOVER PA INC 425 WESTMINSTER AVENUE HANOVER PA 17331 521931788 CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD AT MARTINSBURG PA INC 437 GIVLER DRIVE MARTINSBURG PA 16662 521931790 CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD AT FREDERICK MD INC 7407 WILLOW ROAD FREDERICK MD 21701 521931794 CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD FOUNDATION INC 16107 ELLIOTT PARKWAY PO BOX 250 WILLIAMSPORT MD 217950250 521892689 FUNDRAISING MD 501(C)(3) LINE 11, TYPE I HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD AT SPRING HOUSE ESTATES INC 114 VICTORIA AVENUE EVERETT PA 15537 205189952 CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 HOMEWOOD AT THE SHENANDOAH VALLEY INC 33859 OLD VALLEY PIKE STRASBURG VA 22657 262624652 STARTUP CONTINUING CARE RETIREMENT COMMUNITY (CCRC) MD 501(C)(3) LINE 9 HOMEWOOD RETIREMENT CENTERS OF THE UNITED CHURCH OF CHRIST INC 0 0 0 0 1 1 0 0 0 0 0 0 1 0 0 0 0 1 0 0