2014-11-17T12:33:47-06:00 2013-12-31 BDO USA LLP 200 OTTAWA AVE NW STE 300 GRAND RAPIDS MI 49503 990 2013-01-01 383087328 HENRY FORD VILLAGE INC % DAVID HENRY HENR 3135841000 15101 FORD ROAD Suite DEARBORN MI 48126 BRUCE BLALOCK EXECUTIVE DIRECTOR 3135841000 2014-11-15 true Kathleen Guider P00177866 3135841000 2013 2015-11-30 17:44:51Z BRUCE BLALOCK 15101 FORD ROAD DEARBORN MI 48126 39462037 false X N/A X 1992 MI PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY IN DEARBORN, MICH- IGAN WITH RECREATION, SOCIAL, AND RELIGIOUS ACTIVITES FOR RESIDENTS. 8 8 749 300 0 407247 409933 36935849 35254514 407154 396748 115769 0 37866019 36061195 0 0 0 0 17550085 16957755 0 0 0 19795988 19726990 37346073 36684745 519946 -623550 111684345 104594476 131110023 124777813 -19425678 -20183337 PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY LOCATED IN DEARBORN, MICHIGAN WITH RECREATIONAL, SOCIAL, AND RELIGIOUS ACTIVITIES FOR RESIDENTS. false false 32807441 35254514 HENRY FORD VILLAGE, INC. IS A MICHIGAN NON-STOCK CORPORATION ESTABLISHED TO OPERATE A NOT-FOR-PROFIT CONTINUING CARE RETIREMENT COMMUNITY LOCATED IN DEARBORN, MICHIGAN. THE PROPERTY IS PRESENTLY ZONED FOR 856 INDEPENDENT LIVING UNITS (INCLUDING TWO GUEST ROOMS AND TWO MODELS), 96 ASSISTED LIVING UNITS, AND 89 SKILLED NURSING BEDS. AS OF DECEMBER 31, 2013 THERE WERE 798 OCCUPIED UNITS, WHICH CONSISTED OF 639 INDEPENDENT LIVING UNITS, 86 ASSISTED LIVING UNITS, AND 73 SKILLED NURSING BEDS. 32807441 true true false false false false false false true true true false false true true true true false false false false false false false false false false false false true true false false false false false false false false false false false false false false false true false false false true 57 0 true 749 true false false false false true true false false false false false X 8 8 false true false false false false false true true false false false true true true true true true true false MI X DAVID HENRY 3138467270 15101 FORD ROAD DEARBORN MI 48126 JOHN BYRNE SECRETARY/TREASURER 4.0 1.0 X X STEVE CHOWEN MEMBER 4.0 X ROBERT MUELLER MEMBER 4.0 X GARY GLENN CHAIRPERSON 4.0 X 0 DR KAREN ROSS MEMBER 4.0 1.0 X DR WALTER TALAMONTI MEMBER 4.0 X DONALD JESMORE MEMBER 4.0 1.0 X JOAN BUDDEN MEMBER 4.0 X DAVID HENRY DIRECTOR OF FINANCE 40.0 4.0 X 76979 BRUCE BLALOCK EXECUTIVE DIRECTOR 40.0 1.0 X 181625 0 26409 258604 0 26409 1 false true false LIFE CARE SERVICES LLC CAPITAL SQUARE 400 LOCUST SUITE 8 DES MOINES IA 503092334 MANAGEMENT SERVICES 1261208 OMNICARE INC 900 OMNICARE CENTER 201 EAST 4TH S CINCINNATI OH 45202 PHARMACY SERVICES 572591 TOP FABRICATORS 3726 MONROE DEARBORN MI 48124 INSTALLATION 673561 GLYNNDEVINS ADVERTISING MARKETING 11230 COLLEGE BOULEVARD OVERLAND PARK KS 66210 ADVERTISING/MARKET. 331257 HERITAGE HEALTHCARE INC 536 OLD HOWELL ROAD GREENVILLE SC 29615 REHABILITATION 1883581 9 228230 181703 409933 NON-REFUNDABLE DEPOSIT 623000 1345752 1345752 OCCUPANCY REVENUE 623000 23511929 23511929 ANCILLARY FEES 623000 6845815 6845815 RESIDENT FEE AMORTIZATION 623000 3119003 3119003 CLINIC REVENUE 623000 120000 120000 312015 312015 35254514 146442 146442 0 0 0 0 0 3651148 3400842 250306 250306 250306 0 0 0 0 36061195 35254514 396748 0 0 0 0 0 0 0 0 430399 0 430399 0 0 0 0 0 13224238 11736060 1488178 0 0 0 0 0 2245633 1992923 252710 0 1057485 938482 119003 0 573049 0 573049 0 90835 80613 10222 0 67724 60103 7621 0 0 0 0 0 0 0 49560 43983 5577 0 1999413 1774411 225002 0 1037433 920686 116747 0 217620 193130 24490 0 228830 203079 25751 0 0 0 0 0 1672928 1672928 0 0 61822 54865 6957 0 0 0 0 0 0 0 0 0 2936381 2936381 0 0 0 0 0 0 4711544 4711544 0 0 293899 293899 0 0 BLDG, GROUNDS & MAINTENANCE 932914 827929 104985 0 RESIDENT RELATIONS 39164 34757 4407 0 REAL ESTATE TAXES 528902 528902 0 0 SUPPLIES 3578061 3175407 402654 0 706911 627359 79552 36684745 32807441 3877304 0 X 2067468 549668 1709850 1207647 0 0 3509165 3222452 0 0 0 0 658077 658077 129754 129754 712511 675356 159160773 69903586 92226411 89257187 2278020 2371580 0 0 0 0 0 0 8393089 6522755 111684345 104594476 4727356 6399892 0 0 0 0 41202384 40828139 839869 1258188 0 0 0 0 0 0 84340414 76291594 131110023 124777813 X -19553750 -20233896 128072 50559 0 0 -19425678 -20183337 111684345 104594476 X -623550 -57517 -76592 X false true X true false X 58514 19513 372331 407247 409933 1267538 38253483 37071718 36721957 36821693 35254514 184123365 0 0 0 38311997 37091231 37094288 37228940 35664447 185390903 0 0 0 185390903 530106 537747 475864 358339 146442 2048498 0 530106 537747 475864 358339 146442 2048498 0 -130510 -19371 115769 -34112 38842103 37498468 37550781 37703048 35810889 187405289 0.98925 0.98725 0.01093 0.01294 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true X 128072 111760 -76592 112681 50559 233543 116408 -103513 118366 128072 221620 111704 24659 124440 233543 -4090 157031 229794 161115 221620 88701 132475 -73678 151588 -4090 1.00000 false false 4992523 4992523 145198647 62103090 83095557 269497 269497 0 4812705 4449936 362769 3887401 3081063 806338 89257187 INTEREST IN CHARITABLE FOUND. 11783 BOARD-DESIGNATED FUNDS 4085120 LINE 11 INVESTMENTS -2371580 OF AMORTIZATION 781705 RESTRICTED FUNDS 3942495 DEFERRED TRANSITION COSTS 73232 6522755 0 RESIDENT DEPOSITS 74543957 FUNDS HELD FOR RESIDENTS 86333 REFUNDS DUE TO RESIDENTS 938501 CLAIMS RESERVE 12861 ACCOUNTS PAYABLE - RELATED PARTY 709942 76291594 X 34774377 112681 112681 34661696 1399499 1399499 36061195 35397006 35397006 1287739 1287739 36684745 SCHEDULE D, PART XI, LINES 2D AND 4B RECONCILIATION OF REVENUE: OTHER AMOUNTS INCLUDED IN AUDIT INCOME BUT NOT FORM 990 INCOME INCLUDE ASSETS RELEASED FROM RESTRICTIONS OF $112,681 THAT WERE RECORDED AS CONTRIBUTION INCOME IN PRIOR YEAR(S). OTHER AMOUNTS INCLUDED IN FORM 990 INCOME BUT NOT IN AUDIT INCOME INCLUDE $250,306 OF REALIZED CAPITAL GAIN, $1,037,433 OF AMORTIZED RESIDENT DEPOSITS, AND $111,760 OF TEMPORARILY RESTRICTED CONTRIBUTIONS. SCHEDULE D, PART XII, LINE 4B RECONCILIATION OF EXPENSES: OTHER AMOUNTS INCLUDED IN FORM 990 EXPENSES BUT NOT IN AUDIT EXPENSES INCLUDE $250,306 OF REALIZED CAPITAL GAIN THAT REDUCED AUDIT EXPENSES, AND $1,037,433 OF MARKETING EXPENSE. SCHEDULE D, PART X, LINE 2 FIN 48 DISCLOSURE: IN 2008, HENRY FORD VILLAGE, INC. ADOPTED FINANCIAL ACCOUNTING STANDARDS BOARD'S (FASB) STANDARD RELATED TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. THE ADOPTION OF THIS STANDARD DID NOT HAVE A MATERIAL EFFECT ON THE FINANCIALS STATEMENTS AND HFV DID NOT HAVE ANY MATERIALLY UNCERTAIN TAX POSITIONS. THE COMMUNITY IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND THE APPLICABLE MICHIGAN STATE INCOME TAX REGULATIONS. IN ADDITION, THE COMMUNITY QUALIFIES FOR THE CHARITABLE CONTRIBUTION DEDUCTION UNDER SECTION 170(B)(1)(A) AND HAS BEEN CLASSIFIED AS AN ORGANIZATION OTHER THAN A PRIVATE FOUNDATION UNDER SECTION 509(A)(2). SCHEDULE D, PART V, LINE 4 ENDOWMENT FUNDS: HENRY FORD VILLAGE, INC. ADMINISTERS THREE ENDOWMENT FUNDS WITH THE PURPOSE TO CARRY OUT THE CHARITABLE PURPOSE OF HENRY FORD VILLAGE, INC.: 1) THE BENEVOLENT CARE FUND, 2) THE SCHOLARSHIP FUND, AND 3) THE STAFF APPRECIATION FUND. THE TOTAL ASSETS IN ALL THREE FUNDS AT 12/31/2013 WAS $50,559, which is comprised of $37,971 in the staff appreciation fund, $505 IN THE SCHOLARSHIP FUND, $300 IN THE BENEVOLENT CARE FUND, and a $11,783 interest in the net assets of the henry ford village foundation. SCHEDULE D, PART IV, LINE 2B ESCROW ACCOUNTS: Residents are required to remit entrance deposits, which may vary in amount depending upon the unit to be occupied. Prospective residents are required to make certain installment payments prior to the final settlement of the given unit. These amounts are included in escrow cash and advance deposits in the accompanying balance sheets. Deposit timing differences may cause escrow cash not to be equal to advance deposits. As of 12/31/2013, Escrow cash and advance deposits were $839,724 and $1,258,188, respectively. X X false false false false false false false false false BRUCE BLALOCK EXECUTIVE DIRECTOR 150000 0 31625 0 0 0 0 26409 0 208034 0 0 0 SCHEDULE J, LINE 5A MANAGEMENT AGREEMENT: On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services. The LCS contract term is for five years. Management fees paid to LCS were $573,049 and $582,399 during 2013 and 2012, respectively. The executive director, associate executive director, administrator, and IT director are employees of LCS, but their salaries and related employee benefits are reimbursed by HFV. Reimbursement paid to LCS for LCS employees in 2013 totaled $430,399. Other corporate services that HFV may obtain are not required contractually and are on an as-needed basis. A EDC OF CITY OF DEARBORN 521310485 242563AWY 2008-10-01 42535000 REFINANCE A 1998 VAR. RATE BOND true false false A 0 0 41842922 3317550 0 34540625 836858 0 0 3147889 0 3984747 2008 true false true true A false false false false 0.00000 0.00000 0.00000 false false 0.00000 false false A true false false 0 false 0 false false A false FORM 990, SCHEDULE K BONDS PAYABLE: On October 1, 2008, HFV closed on Series 2008 Bonds issued by Economic Development Corporation of the City of Dearborn in the amount of $42,535,000. The 2008 Bonds consist of tax-exempt, fixed interest rate of 7.15% with a final maturity in November 2043. No letter of credit is required for the Series 2008 Bonds. As part of this agreement, HFV is subject to certain financial covenants. Bondholders approved the First Amendment to the Loan Agreement on March 23, 2012, modifying the days cash on hand (liquidity covenant) requirement from 180 days to 110 days for the year ended December 31, 2011, as well as for the years ending December 31, 2012 and 2013. The days cash on hand requirement increases to 125 days for the year ending December 31, 2014, 150 days for the year ending December 31, 2015 and to 180 days for years ending after December 31, 2016. The First Amendment to the Loan Agreement does have a provision that allows the liquidity covenant to be lower than 95 days as of December 31, 2013. However, if the liquidity covenant is less than 95 days, HFV must retain a management consultant to make recommendations with respect to the rates, fees and charges of HFV and HFVs methods of operations and other factors affecting its financial condition in order to increase the days cash on hand to the liquidity requirement for future periods. The consultant must be retained within 30 days of HFV disclosing the deficiency in the liquidity covenant. As of December 31, 2013, the liquidity covenant was less than 95 days. Subsequent to December 31, 2013, HFV obtained a waiver of noncompliance from the bond trustee that waived HFVs noncompliance with the liquidity covenant, noncompliance with the modified debt service coverage ratio covenant, and noncompliance with the obligation to retain a management consultant. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS: DAVID HENRY (DIRECTOR OF FINANCE) AND A MEMBER OF THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS REVIEW THE 2013 form 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING AND COMPLIANCE: COMPLIANCE WITH THE CONFLICT OF INTEREST, WHISTLEBLOWER, AND DOCUMENT RETENTION AND DESTRUCTION POLICIES WAS MONITORED BY THE MANAGEMENT COMPANY, LIFE CARE SERVICES, LLC. BOARD MEMBERS SIGN A CONFLICT OF INTEREST FORM ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15A/B COMPENSATION DETERMINATION PROCESS: MANAGEMENT (HENRY FORD VILLAGE, INC. & LIFE CARE SERVICES, LLC) CONDUCTS MARKET SURVEYS ON AN ANNUAL BASIS TO DETERMINE IF A COMPENSATION ADJUSTMENT IS WARRANTED. BASED ON THIS INFORMATION MANAGEMENT RECOMMENDS ANNUAL SALARIES, TYPICALLY A PERCENTAGE INCREASE FROM THE PRIOR YEAR. THE BOARD APPROVES THE BUDGET ON AN ANNUAL BASIS. FORM 990, PART X, LINE 15 BOND AMORTIZATION: Deferred financing costs related to the 2008 RE-issuance of bonds totaled $1,004,757 and IS beING amortized over the bond term of 35 years. Amortization of deferred financing costs in the year ended December 31, 2013 was $38,989. Deferred financing fees, net of accumulated amortization, were $781,705 as of December 31, 2013. FORM 990, PART X, LINE 25 RESIDENT REFUNDS PAYABLE: RESIDENTS ARE REQUIRED TO REMIT ENTRANCE DEPOSITS, WHICH VARY IN AMOUNT DEPENDING ON THE UNIT TO BE OCCUPIED. RESIDENT DEPOSITS ARE REFUNDABLE WHEN THE UNIT HAS BEEN VACATED AND RELEASED, ALL OUTSTANDING OBLIGATIONS OF THE RESIDENT HAVE BEEN PAID, AND THE UNIT HAS BEEN RE-SETTLED AND PAID FOR BY A NEW RESIDENT. AMORTIZATION OF RESIDENT DEPOSITS IS RECOGNIZED AS OPERATING REVENUE ON A STRAIGHT-LINE BASIS OVER A 40-YEAR PERIOD OR THE REMAINING USEFUL LIFE OF THE BUILDINGS. THE NET RESIDENT DEPOSITS LIABILITY WAS $74,543,957 AS OF DECEMBER 31, 2013. THE CURRENT YEAR INCOME AMORTIZATION WAS $3,119,003. FORM 990, Part VI, Line 3 MANAGEMENT COMPANY AND GOVERNANCE: Life Care Services, LLC IS A FOR-PROFIT Iowa LIMITED LIABILITY COMPANY WHICH OPERATES AND MANAGES a variety of CONTINUING CARE RETIREMENT COMMUNITIES nationwide, INCLUDING HENRY FORD VILLAGE, INC. HENRY FORD VILLAGE, INC. IS GOVERNED BY AN INDEPENDENT BOARD OF DIRECTORS AND IS ADVISED BY A RESIDENTS COUNCIL ELECTED BY THE HENRY FORD VILLAGE COMMUNITY. THREE MEMBERS OF THE HENRY FORD VILLAGE, INC. BOARD ALSO SERVE ON THE HENRY FORD VILLAGE FOUNDATION BOARD OF DIRECTORS. SCHEDULE O, GENERAL INFORMATION MANAGEMENT AGREEMENT: On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services. The LCS contract term is for five years. Management fees paid to LCS were $573,049 and $582,399 during 2013 and 2012, respectively. The executive director, associate executive director, administrator, and IT director are employees of LCS, but their salaries and related employee benefits are reimbursed by HFV. Reimbursement paid to LCS for LCS employees in 2013 totaled $430,399. Other corporate services that HFV may obtain are not required contractually and are on an as-needed basis. FORM 990, PART VIII, LINE 2F LEASE REVENUE: HENRY FORD VILLAGE, INC. LEASES SPACE TO VARIOUS ENTITIES FOR THE PROVISION OF SERVICES SUCH AS PHYSICIAN CARE, DENTAL CARE, AND COSMETOLOGY. THESE SERVICES ARE PROVIDED solely FOR THE BENEFIT AND CONVENIENCE OF THE RESIDENTS OF HENRY FORD VILLAGE. THE REVENUE RELATED TO THESE FACILITIES LEASES FOR 2013 WAS $274,627. FORM 990, PART VI, LINE 19 DOCUMENT DISCLOSURE: THE ORGANIZATION'S FORM 990 IS AVAILABLE UPON REQUEST. DAVID HENRY, HENRY FORD VILLAGE DIRECTOR OF FINANCE, HAS PUBLIC INSPECTION COPIES AVAILABLE AT 15101 FORD ROAD, DEARBORN, MI 48126. FORM 990, PART V, LINE 6A/B CERTAIN CONTRIBUTIONS NOT TAX DEDUCTIBLE: HENRY FORD VILLAGE, INC. HAS AN ANNUAL CAMPAIGN TO RAISE FUNDS FOR THE STAFF APPRECIATION FUND, WHICH PROVIDES END-OF-THE-YEAR BONUS CHECKS TO HENRY FORD VILLAGE, INC. EMPLOYEES. CONTRIBUTORS ARE NOTIFIED THAT DONATIONS TO THIS FUND ARE NOT TAX DEDUCTIBLE. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS OR FUND BALANCES: THIS AMOUNT REFLECTS CHANGES IN INTEREST OF TEMPORARILY RESTRICTED NET ASSETS OF THE HENRY FORD VILLAGE FOUNDATION. FORM 990, PART VIII OCCUPANCY REVENUE: INCLUDED IN RESIDENT OCCUPANCY REVENUE ARE INDEPENDENT, ASSISTED LIVING, AND SKILLED NURSING MONTHLY FEES. REVENUE ATTRIBUTABLE TO THE SKILLED NURSING FACILITY IS RECEIVED UNDER CONTRACTUAL ARRANGEMENTS WITH THIRD-PARTY PAYERS SUCH AS MEDICARE AND MEDICAID. IN 2013 APPROXIMATELY 15% OF THE REVENUE FROM RESIDENTS WAS RECEIVED FROM THE MEDICARE AND MEDICAID PROGRAMS. HFV HAS AGREEMENTS WITH THE MEDICARE AND MEDICAID PROGRAMS TO PROVIDE REIMBURSEMENT TO HFV AT AMOUNTS DIFFERENT FROM ITS ESTABLISHED RATES FOR PRIVATE PAYERS. CONTRACTUAL ADJUSTMENTS UNDER THIRD-PARTY REIMBURSEMENT PROGRAMS REPRESENT THE DIFFERENCE BETWEEN HFV'S ESTABLISHED RATES FOR SERVICES AND AMOUNTS REIMBURSED BY THIRD-PARTY PAYERS. A SUMMARY OF THE BASIS OF REIMBURSEMENT WITH THESE THIRD-PARTY PAYERS FOLLOWS: MEDICARE: SERVICES RENDERED TO MEDICARE PROGRAM BENEFICIARIES ARE REIMBURSED AT PROSPECTIVELY DETERMINED RATES BASED UPON CLINICAL ASSESSMENTS COMPLETED BY HFV THAT ARE SUBJECT TO REVIEW AND FINAL APPROVAL BY MEDICARE. HENRY FORD VILLAGE FOUNDATION 15101 FORD ROAD DEARBORN MI 48126 542159197 SUPPORT MI 501(C)(3) 11 NA false false false true true false false false false false false false false true true true false false false false