2014-11-14T11:08:29-06:00 2013-12-31 410746749 CliftonLarsonAllen LLP 5001 Spring Valley Road Suite 600W Dallas TX 75244 990 2013-01-01 752707608 Sears Permian Retirement Corporation SEAR 3256915519 One Village Drive No 400 Abilene TX 79606 Randal Crosswhite Interim CFO 3256915519 2014-11-13 1 Michael Siegel P01587323 9723835700 2013 2015-11-30 17:44:51Z Parks Methodist Retirement Village & Desert Haven Susan Whittle 1114 Lost Creek Blvd Ste 210 Austin TX 78746 7570447 0 X www.sears-methodist.org X 1997 TX The mission of Sears is to provide leadership in response to the needs of our aging population. We believe we have a responsibility for studying, planning, developing, and implementing quality service to the aging where appropriate needs are found for health care and residential living services and can be provided in a Christian environment. 9 9 239 15 0 0 29351 8228 7707703 7545383 2814 -2871 0 16836 7739868 7567576 63552 31160 0 0 3782784 3612549 0 0 0 4126498 4586284 7972834 8229993 -232966 -662417 15597337 15873698 9380672 11929177 6216665 3944521 X The mission of Sears is to provide leadership in response to the needs of our aging population. We believe we have a responsibility for studying, planning, developing, and implementing quality service to the aging where appropriate needs are found for health care and residential living services and can be provided in a Christian environment. 0 0 6779455 31160 7545383 Sears Permian Retirement Corporation, DBA: Parks Methodist Retirement Village is a non-profit 501(c)(3) organization, which consists of 55 independent living apartments and cottages and 23 assisted living units as well as a 90 bed nursing facility in Odessa, Texas. The facility provides nursing home and long-term nursing care to elderly as well as a Medicare skilled unit for rehabilitation. Sears Permian Retirement Corporation, DBA: Desert Haven consists of 40 independent living apartments and is also located in Odessa, Texas. 6779455 1 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 0 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 1 0 0 0 1 33 0 239 1 0 0 0 0 0 0 0 0 0 0 X 9 9 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Randal Crosswhite Interim CFO 3256915519 One Village Drive Suite 400 Abilene TX 79606 Larry Dodson Chairman 1.00 8.00 X X 0 0 0 Rick Rhodes Vice Chairman 1.00 8.00 X X 0 0 0 Carol Denton Secretary 1.00 8.00 X X 0 0 0 David Lynn Treasurer 1.00 8.00 X X 0 0 0 Quintan Chamness Trustee 1.00 8.00 X 0 0 0 Barbara Cherry Trustee 1.00 8.00 X 0 0 0 Bita Kash Trustee 1.00 8.00 X 0 0 0 Dan Olson Trustee 1.00 8.00 X 0 0 0 Mike Sullivan Trustee 1.00 8.00 X 0 0 0 Keith Perry President, CEO and Ex-Officio Trustee 2.00 38.00 X 0 314193 136832 Terry Myers Senior Vice President & CFO 2.00 38.00 X 0 253127 45939 Gary Anderson Executive Vice President & COO 2.00 38.00 X 0 187944 21578 Michael Sims Senior Vice President - Operations 2.00 38.00 X 0 191709 62402 Kenneth Fincher Senior Vice President and Director of Sears Method 2.00 38.00 X 0 139459 21063 Windell Hawkins Senior Vice President - Risk Management 2.00 38.00 X 0 113519 39992 Kent Herring Regional Vice President & Executive Director 2.00 38.00 X 0 135898 42349 Randal Crosswhite Vice President & Controller 2.00 38.00 X 0 141963 22867 Melanie Juel Vice President - Human Resources 2.00 38.00 X 0 141143 4794 Gordon Shoger Vice President - Financial Operations 2.00 38.00 X 0 123812 13948 Terry Huskey Vice President - Information Technology 2.00 38.00 X 0 103225 29342 Mary Goodin Vice President - Clinical Services 2.00 38.00 X 0 87105 7761 Stephen Illingworth Vice President - Veterans Services 2.00 38.00 X 0 49539 0 0 1982636 448867 0 0 1 0 Bibby Financials 2945 Townsgate Rd Westlake Village CA 91361 Contract Nursing 286205 Select Rehabilitation Inc PO Box 809056 Chicago IL 60680 Therapy Services 276183 Ben E Keith PO Box Amarillo Amarillo TX 79105 Food Service 209079 MP2 Energy PO Box 75320-2829 Dallas TX 75320 Electric Utility 162020 Evans Pharmacy PO Box 4474 Odessa TX 79762 Pharmacy 119640 5 8228 8228 Resident Charges 623000 7545383 7545383 7545383 2871 -2871 -2871 -2871 Other Revenue 900099 16836 16836 16836 7567576 7545383 0 13965 X 31160 31160 3160764 2828390 332374 219553 194775 24778 232232 208083 24149 431667 431667 45025 45025 7587 7587 1193353 1115936 77417 22523 21974 549 63223 63223 373076 335170 37906 32220 19622 12598 3324 3238 86 685302 667554 17748 129301 126362 2939 Food 658765 658765 Supplies 503530 467030 36500 Bad Debt 230000 230000 Equipment Rental and Ma 51749 50989 760 155639 50407 105232 8229993 6779455 1450538 0 264 364 77445 155439 595780 1170148 16137 0 8375 2177 19636492 8065553 10920765 11570939 2419170 2681018 1559401 293613 15597337 15873698 796488 951462 2655331 3797007 5928853 7180708 9380672 11929177 X 4274065 2001921 1942600 1942600 6216665 3944521 15597337 15873698 X -662417 -1054021 -555706 X X 0 0 1 1 X 15525 136254 74952 29351 8228 264310 7036463 6802211 6935934 7707703 7545383 36027694 7051988 6938465 7010886 7737054 7553611 36292004 0 0 0 36292004 205 480 2864 2814 6363 205 480 2864 2814 6363 16836 16836 7052193 6938945 7013750 7739868 7570447 36315203 0.99940 0.99960 0.00020 0.00040 X Schedule A, Part III, Line 12, Explanation of Other Income: Other Income - 2013 Amount: $ 16,836. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 638991 638991 16082987 6000925 10082062 624960 413285 211675 2205975 1568265 637710 83579 83078 501 11570939 Investment in Sears Methodist Foundation 2463464 F Other Investments 217554 F 2681018 Due to Other Campuses 19616 Resident Security Deposits 46059 Sweep Account - Intercompany Liabilities 7115033 7180708 X Part X, Line 2: The System adopted the income tax standard for uncertain tax positions. This standard clarifies the accounting for uncertainty in income taxes recognized in an organization's financial statements in accordance with the income tax standard. This standard prescribes recognition and measurement of tax positions taken or expected to be taken on a tax return that are not certain to be realized. The System's income tax returns are subject to review and examination by federal, state, and local authorities. The System is not aware of any activities that would jeopardize its tax-exempt status. The System 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 2010 to 2013 are open to examination by federal, local, and state authorities. 1 Charitable Discounts to Residents 8 31160 Part I, Line 2: The recipients fill out a detailed application which requires the CEO's approval before the funds are released for assistance. X X X 1 1 0 0 0 0 0 0 0 Keith Perry President, CEO and Ex-Officio Truste 0 277027 0 33338 0 3828 0 136832 0 0 0 451025 0 0 Terry Myers Senior Vice President & CFO 0 238000 0 15000 0 127 0 45939 0 0 0 299066 0 0 Gary Anderson Executive Vice President & COO 0 37944 0 0 0 150000 0 21578 0 0 0 209522 0 0 Michael Sims Senior Vice President - Operations 0 185276 0 0 0 6433 0 62402 0 0 0 254111 0 0 Kenneth Fincher Senior Vice President and Director o 0 135684 0 0 0 3775 0 21063 0 0 0 160522 0 0 Windell Hawkins Senior Vice President - Risk Managem 0 113224 0 0 0 295 0 39992 0 0 0 153511 0 0 Kent Herring Regional Vice President & Executive 0 127222 0 8500 0 176 0 42349 0 0 0 178247 0 0 Randal Crosswhite Vice President & Controller 0 141530 0 0 0 433 0 22867 0 0 0 164830 0 0 Part I, Lines 4a-b Per Form 990, Schedule J, Part 1, Line 4a, the following people received severance payments. Here are their names and the amounts received: Gary Anderson $150,000 Mary Goodin $24,958 Per Form 990, Schedule J, Part 1, Line 4b, the following people participated in, or received payment from, a supplemental nonqualified retirement plan. Here are their names and the amounts received: Keith Perry $136,832 Terry Myers $45,939 Gary Anderson $21,578 Michael Sims $62,402 Kenneth Fincher $21,063 Windell Hawkins $39,992 Kent Herring $42,349 Randal Crosswhite $22,867 Melanie Juel $4,794 Gordon Shoger $13,948 Terry Huskey $29,342 Mary Goodin $7,761 Cheryl Harding $16,336 Pamela McGrew $31,160 Diana Zarate $29,972 Wendy Grimes $14,068 Cy Jenkins $6,942 Form 990, Part VI, Section A, line 1 The Executive Committee often makes decisions for the Board; however, the Board is always notified of any action the Executive Committee takes. The Executive Committee is composed of the Chairman, Vice Chairman, Secretary, Treasurer, and President. The President is a non-voting member with voice. With regard to scope, the Executive Committee "shall possess and may exercise all the powers of the Board of Trustees except as subject to the provisions of Article 7.07. The Executive Committee shall exercise these powers only when it is impractical to convene a called meeting of the Board of Trustees. The Board of Trustees may delegate specific authority or responsibility to the Executive Committee." The Executive Committee may not: Amend the Articles of Incorporation; Adopt a plan of merger or a plan of consolidation with another corporation; Authorize the sale, lease, exchange, or mortgage of all or substantially all of the property and assets of the Corporation; Authorize the voluntary dissolution of the Corporation; Revoke proceedings for the voluntary dissolution of the Corporation; Adopt a plan for the distribution of the assets of the Corporation; Amend, alter or repeal the bylaws; Elect, appoint, or remove a member of a committee or a Trustee or officer of the Corporation; Approve any transaction to which the Corporation is a party and that involves a potential conflict of interest as defined in paragraph 10.05, below; Take any action outside the scope of authority delegated to it by the Board of Trustees; Take final action on a matter that requires the approval of the Board of Trustees. Form 990, Part VI, Section A, line 3 The Organization delegates management duties including supervising personnel, operations, and budgeting to Sears Methodist Retirement System, Inc., the parent company, who in turn has a management contract with Life Care Services. Form 990, Part VI, Section B, line 11 A copy of the form 990 was made available to all board members for review and approval before filing the return. Form 990, Part VI, Section B, line 12c Conflict of interest statements are completed annually by Sears Methodist Retirement System Board of Trustees, Sears Permian Retirement Corporation Board of Directors and all senior staff. Any new Board Members or senior staff are required to complete the statement upon hire. Form 990, Part VI, Section B, line 15 The compensation for the CEO is determined by the performance/compensation committee and is approved by the board in an annual review. Any raise or bonus is discussed and voted on by the board. Every few years an outside compensation specialist is hired to help determine compensation for the CEO. Each senior VP or executive VP review or salary increase is determined by the CEO in an annual review process. Each senior VP has key officers under them that are reviewed in the same manner. Form 990, Part VI, Section C, line 19 Although not required, the organization will provide photocopies of its governing documents, conflict of interest policy, and financial statements to those who request one or more of these items. Form 990, Part IX, line 11g Other Services: Program service expenses 1,115,936. Management and general expenses 77,417. Fundraising expenses 0. Total expenses 1,193,353. Form 990, Part XI, line 9: Debt Service Payments -600,000. Change in SMF Investment 44,294. Form 990, Part XII, Line 2C: The Organization has a committee which assumes responsibility for choosing the independent auditor and oversight of the independent audit. This process is consistent with prior years. Form 990, Part XI, Line 8 During the year ended December 31, 2013, the Organization adopted ASU 2012-01. The adoption results in an adjustment increasing net deficit and increasing the liability for refundable fees by $968,171 as of January 1, 2012. The entrance fee amotization for the year ended December 31, 2012 was decreased by $85,850 due to the adoption of the standard. The cumulative effect of the change in accounting as of December 31, 2012 is $1,054,021. Form 990, Part IX, Line 11g Contract Nursing - 444,905 Contract Therapy - 571,486 Contract Labor - 24,199 Purchased Services - 152,763 Sears Methodist Centers Inc One Village Drive Suite 400 Abilene TX 79606 751234917 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Methodist Retirement System Inc One Village Drive Suite 400 Abilene TX 79606 752516330 Senior Living TX 501(c)(3) Line 11b, II N/A 0 Sears Panhandle Retirement Corporation One Village Drive Suite 400 Abilene TX 79606 752503233 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Methodist Foundation One Village Drive Suite 400 Abilene TX 79606 752692545 Manages charitable funds for all SMRS related entities TX 501(c)(3) Line 11c, III-FI Sears Methodist Retirement System 0 Sears Plains Retirement Corporation One Village Drive Suite 400 Abilene TX 79606 752768233 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Brazos Retirement Corporation One Village Drive Suite 400 Abilene TX 79606 010598053 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Tyler Methodist Retirement Corporation One Village Drive Suite 400 Abilene TX 79606 203500571 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Caprock Retirement Corporation One Village Drive Suite 400 Abilene TX 79606 020709581 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Canyons Senior Living LP 2200 West Seventh Amarillo TX 79106 260888545 Low Income Senior Housing TX N/A N/A 0 0 Senior Dimensions Inc One Village Drive Suite 400 Abilene TX 79606 752814016 Consulting TX N/A C 0 Texas Senior Management Inc One Village Drive Suite 400 Abilene TX 79606 320333801 Management TX N/A C 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0