2014-05-06T14:40:20-05:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP 3000 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2013-01-01 990290103 KAHALA SENIOR LIVING COMMUNITY INC KAHA 8082187000 4389 MALIA STREET HONOLULU HI 96821 PATRICK DUARTE CEO/PRESIDENT 8082187000 2014-05-02 1 DANIEL M FREIN P00856532 4252506100 2013 2015-11-30 17:44:51Z PATRICK DUARTE 4389 MALIA STREET HONOLULU HI 96821 72527253 0 X WWW.KAHALANUI.COM X 1989 HI TO PROVIDE A CONTINUUM OF HIGH QUALITY RESIDENTIAL AND HEALTH CARE SERVICES TO RESIDENTS. 11 11 393 260 0 0 206589 1192117 28690570 26091793 1563197 2311506 -11331327 20519842 19129029 50115258 161967 239043 0 0 11272027 11897880 0 0 0 19167222 18111020 30601216 30247943 -11472187 19867315 177719103 185805921 223995553 272776881 -46276450 -86970960 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 26706370 239043 26091793 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 63 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. 26706370 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 0 0 0 0 0 0 0 0 0 1 46 0 1 393 1 0 1 CJ 0 0 0 0 0 0 0 1 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 3.00 X X 0 0 0 CHARLES KELLEY MD VICE CHAIR 3.00 X X 0 0 0 ROY KING JR SECRETARY 2.00 X X 0 0 0 WENDELL BROOKS JR TREASURER 3.00 X X 0 0 0 EVELYN CHAR RN MS DIRECTOR 1.00 X 0 0 0 TOBY MARTYN DIRECTOR 2.00 X 0 0 0 LAURA THOMPSON DIRECTOR 1.00 X 0 0 0 SHEILA CHONG DIRECTOR 2.00 X 0 0 0 LISA SAKAMOTO CPA DIRECTOR 2.00 X 0 0 0 STEVE ROBERTSON DIRECTOR 1.00 X 0 0 0 KENNETH MILLER MD DIRECTOR 1.00 X 0 0 0 SHARI KOGAN MD DIRECTOR 1.00 X 0 0 0 PATRICK DUARTE CEO/PRESIDENT 50.00 X 233108 0 6901 WENDY WONG EXECUTIVE DIRECTOR 50.00 X 190566 0 5681 DARYN MURAI SALES COUNSELOR 40.00 X 103847 0 15274 JAY DUQUETTE ADMINISTRATOR 50.00 X 117643 0 11894 DARLENE CANTO DIRECTOR OF MARKETING 50.00 X 138947 0 7413 HUILAN KAMITA DIRECTOR OF BUSINESS OFFICE 50.00 X 106525 0 3160 CHRISTINE CAGUIOA DIRECTOR OF NURSING 40.00 X 102854 0 14341 993490 0 64664 7 0 1 0 AEGIES THERAPIES INC PO BOX 8103 FORT SMITH AZ 72902 THERAPY SERVICES 658577 THE HAWAII NATIONAL LANDSCAPE INC 439 MOKAUEA STREET HONOLULU HI 96819 LANDSCAPING 137256 ZIEGLER LOTSOFF CAPITAL MANAGEMENT LLC 20 N CLARK ST 34TH FLR CHICAGO IL 60602 ASSET MANAGEMENT 127499 ALSCO - AMERICAN LINEN DIVISION PO BOX 3020 HONOLULU HI 96802 LAUNDRY 127145 UNITED LAUNDRY SERVICES INC 2291 ALAHAO PL HONOLULU HI 96819 LAUNDRY 119771 5 1192117 13600 1192117 MONTHLY SERVICES FEES 623000 22181796 22181796 SKILLED NURSING ANCILLARY & THERA 623000 2316154 2316154 ENTRANCE FEES 623000 1593843 1593843 26091793 1365532 1365532 31177 0 31177 31177 31177 23357969 22411995 945974 945974 945974 FUTURE SERVICE OBLIGATION 900099 20066990 20066990 MISCELLANEOUS REVENUE 900099 421675 421675 20488665 50115258 26091793 0 22831348 202293 202293 36750 36750 436256 207188 229068 9057360 7855753 1201607 176389 154601 21788 1507963 1281463 226500 719912 611779 108133 37544 37544 52900 4500 48400 165670 165670 1222859 1201417 21442 203817 203817 1137267 971655 165612 39329 16441 22888 3714056 3714056 4235 4235 8665 8665 3514377 3514377 5333422 4053401 1280021 465873 465873 FOOD COSTS 1811968 1811968 REPAIRS AND MAINTENANCE 265208 265208 RESIDENT AND COMMUNITY 120021 120021 EXCISE TAX EXPENSE 11636 11636 2173 2173 30247943 26706370 3541573 0 1377308 901964 10266098 13650482 358352 647457 26738 66286 46664 65831 338253 330207 156336346 37005215 122348237 119331131 33269742 42145214 2364682 1442877 7323029 7224472 177719103 185805921 1789479 1337980 4867840 5145780 75004882 73213752 1142412 1172338 141190940 191907031 223995553 272776881 X -46424488 -88163077 148038 183872 0 1008245 -46276450 -86970960 177719103 185805921 19867315 651379 -61213204 0 X X 0 1 X 1 0 X 32665 200565 137000 206589 1192117 1768936 26249513 25949807 28245968 28690570 26091793 135227651 26282178 26150372 28382968 28897159 27283910 136996587 0 0 0 136996587 562364 1048652 1107498 1053576 1396709 5168799 562364 1048652 1107498 1053576 1396709 5168799 -82491 398896 421675 738080 26844542 27199024 29407975 30349631 29102294 142903466 0.95870 0.96470 0.03620 0.03300 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 0 1008245 50933 1059178 0.00000 0.95190 0.04810 0 0 148494763 32910942 115583821 2682037 1091357 1590680 4857976 3002916 1855060 301570 301570 119331131 RESIDENT LIABILITIES 190027 ACCRUED INTEREST 433467 ENTRANCE FEE LIABILITY 191283537 191907031 X 26608447 63802 63802 26544645 161532 23409081 23570613 50115258 30086411 0 30086411 161532 161532 30247943 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 2010 TO 2012 ARE OPEN TO EXAMINATION BY FEDERAL, LOCAL, AND STATE AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: NET ASSETS RELEASED FROM RESTRICTION FOR OPERATIONS 63,802. PART XI, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTIONS, GIFTS, AND BEQUESTS INCLUDED AS ADDITIONS TO NET ASSETS 1,192,117. INVESTMENT INCOME 1,204,000. DECREASE IN OBLIGATION TO PROVIDE FUTURE SERVICES 20,066,990. REALIZED GAIN ON SALE OF INVESTMENTS 945,974. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 2023797 0 0 0 0 0 0 2023797 0 2023797 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) 23365 3090 FAIR MARKET VALUE EVENT COST, BOARD MTG HRS TO SUPPORT EDUCATION/AWARENESS CATHOLIC CHARITIES HAWAII 1822 KEEAUMOKU ST HONOLULU HI 96822 990073547 501C(3) 20000 SENIOR HOUSING ASSISTANCE KOKUA KALIHI VALLEY 2239 N SCHOOL ST HONOLULU HI 96819 990149797 501C(3) 30000 482 FAIR MARKET VALUE PROGRAM ASSISTANCE SENIOR HEALTH/PROG. ASSISTANCE PALAMA SETTLEMENT 810 N VINEYARD BLVD HONOLULU HI 96817 990074140 501C(3) 0 7823 FAIR MARKET VALUE PROGRAM ASSIST & GIFT BAGS SENIOR PROGRAM & HOLIDAY GIFT PROJECT DANA 2720 NAKOOKOO ST HONOLULU HI 96826 990143990 501C(3) 20000 SUPPORT SENIOR PROGRAM AMERICAN NATIONAL RED CROSS 4155 DIAMOND HEAD ROAD HONOLULU HI 96816 060914385 501C(3) 12475 746 FAIR MARKET VALUE BED FRAME & NURSE TRAINING TO TRAIN NURSES. KAPIOLANI COMMUNITY COLLEGE 4303 DIAMOND HEAD ROAD HONOLULU HI 96816 996000354 501C(3) 1243 18754 FAIR MARKET VALUE CONTEST & OTA PROGRAM TRAIN OCCUPATIONAL THERAPISTS HAWAII MEALS ON WHEELS PO BOX 61194 HONOLULU HI 96839 990198132 501C(3) 17500 41815 FAIR MARKET VALUE MEALS, PREP & DELIVER HRS HOT MEAL FOR COMM. SENIORS 8 0 SCHOLARSHIP PROGRAM 14 36750 0 PART I, LINE 2: EACH GRANT IS APPROVED AND INCLUDED IN THE BUDGET; ALL EXPENDITURES ARE PRESENTED TO THE BOARD OF DIRECTORS. X 0 1 X X X X X 0 0 0 1 0 0 0 0 0 PATRICK DUARTE CEO/PRESIDENT 201908 0 30000 0 1200 0 6901 0 0 0 240009 0 0 0 WENDY WONG EXECUTIVE DIRECTOR 169366 0 20000 0 1200 0 5681 0 0 0 196247 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. FORM 990, SCHEDULE J, LINE 5A: THE CEO/PRESIDENT AND EXECUTIVE DIRECTOR 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 0.00000 0.00150 0 1 0.00020 0 0 B 0 1 1 1 0 0.00150 0.00000 0.00150 0 0 0 A 0 0 0 0 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 31021 GRAPHIC DESIGN SERVICES PROVIDED TO KAHALA SENIOR LIVING COMMUNITY 0 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 2013, 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.