2014-06-26T08:24:45-05:00 2013-12-31 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2013-01-01 300001715 AGRACE HOSPICECARE HOLDINGS INC AGRA 6082764660 5395 East Cheryl Parkway Madison WI 53711 LYNNE MYERS PRESIDENT/CEO 2014-06-25 true Nicole Bencik P00756195 3128997000 2013 2015-11-30 17:44:51Z LYNNE MYERS 5395 East Cheryl Parkway Madison WI 53711 3702394 false X WWW.AGRACE.ORG X 2001 WI AGRACE HOSPICECARE HOLDINGS, INC.'S (HOLDINGS) MISSION IS "PARTNERING WITH PATIENTS AND FAMILIES TO IMPROVE QUALITY OF LIFE THROUGHOUT SERIOUS ILLNESS." HOLDINGS IS OPERATED EXCLUSIVELY FOR THE SUPPORT AND BENEFIT OF AGRACE HOSPICECARE, INC., A RELATED TAX-EXEMPT ORGANIZATION. 14 12 0 14 0 0 73446 2029783 1824636 1670188 -22340 -6116 0 0 1875742 3693855 0 0 0 0 0 0 0 0 0 1732684 1802411 1732684 1802411 143058 1891444 44199757 30171725 335911 953587 43863846 29218138 HOLDINGS' MISSION IS "PARTNERING WITH PATIENTS AND FAMILIES TO IMPROVE QUALITY OF LIFE THROUGHOUT SERIOUS ILLNESS." HOLDINGS IS OPERATED EXCLUSIVELY FOR THE SUPPORT AND BENEFIT OF AGRACE HOSPICECARE, A RELATED TAX-EXEMPT ORGANIZATION. IN CARRYING OUT ITS MISSION, AGRACE HOLDINGS INVESTS IN, RECEIVES, HOLDS, USES AND DISPOSES OF ALL PROPERTY, REAL OR PERSONAL, AS MAY BE NECESSARY OR DESIRABLE TO SUPPORT THE OPERATIONS OF AGRACE HOSPICECARE, INC. AND, BECAUSE THE BUILDINGS WERE FUNDED ENTIRELY BY GIFTS FROM THE COMMUNITY, AGRACE HOLDINGS HAS A RESPONSIBILITY TO KEEP THEM IN THEIR ORIGINAL STATE FOR THE USE OF PATIENTS AND FAMILIES IN PERPETUITY. false false 1179489 1670188 PROVISION OF CAPITAL ASSETS: AGRACE HOLDINGS SUPPORTS AGRACE HOSPICECARE BY PROVIDING THE STRATEGIC AND OPERATIONAL CAPITAL ASSETS NECESSARY FOR AGRACE HOSPICECARE TO BEST SERVE PATIENTS AND THEIR FAMILIES NOW AND INTO THE FUTURE. THE LARGEST CAPITAL ASSETS OF AGRACE HOLDINGS ARE THE BUILDINGS. THE ELLEN & PETER JOHNSON HOSPICECARE RESIDENCE AND THE DON & MARILYN ANDERSON HOSPICECARE CENTER WERE GENEROUS GIFTS FUNDED ENTIRELY BY THE COMMUNITY. AGRACE HOLDINGS HAS A RESPONSIBILITY TO KEEP THESE BUILDINGS IN THEIR ORIGINAL STATE FOR THE USE OF PATIENTS AND FAMILIES IN PERPETUITY. MAJOR CAPITAL PROJECTS IN 2013 INCLUDED COMPUTER EQUIPMENT AND BUILDING IMPROVEMENTS RELATED TO IMPROVING SAFETY, REDUCING RISK AND AIDING IN RECOVERY OF CRITICAL SYSTEMS. ADDITIONAL BUILDING EXPENDITURES FOR THE CONSTRUCTION OF THE NEW ROCK COUNTY BUILDING WERE ALSO MADE. 1179489 true true false false false false true false true true false false false true true false true false false false false false false false false false false false true false false false false false false false true false false false false false true false false false false true X 7 0 true 0 false false false false false false false false false false false false false X 14 12 false false false false true true false true true false false true true true true true true false false false WI X Jennifer Maurer 6082764660 5935 EAST CHERYL PARKWAY MADISON WI 53711 BRIAN HAPP VICE CHAIR 1.00 1.00 X X 0 0 0 DAVID CULLEN CHAIR 1.00 1.00 X X 0 0 0 JOAN BURKE CHAIR THRU APRIL 2013 1.00 1.00 X X 0 0 0 JOHN BUTLER TREASURER - PART YEAR 1.00 1.00 X X 0 0 0 LYNNE MYERS PRESIDENT/CEO 5.00 35.00 X X 0 299732 28859 MICHAEL FITZPATRICK SECRETARY/TREASURER 1.00 1.00 X X 0 0 0 SHARON CHAMBERLAIN SECRETARY THRU APRIL 2013 1.00 1.00 X X 0 0 0 ANN SHEEHY DIRECTOR 1.00 1.00 X 0 0 0 CHRISTOPHER QUERAM DIRECTOR 1.00 1.00 X 0 0 0 DAVID KRUGER DIRECTOR 1.00 1.00 X 0 0 0 GORDON DERZON DIRECTOR 1.00 2.00 X 0 0 0 JEFF GROSSMAN DIRECTOR 1.00 1.00 X 0 0 0 JIM BAKKE DIRECTOR - PART YEAR 1.00 1.00 X 0 0 0 KEN THOMPSON DIRECTOR 1.00 2.00 X 0 0 0 LAURA DOUGLASS DIRECTOR 1.00 1.00 X 0 0 0 MARION WOZNIAK DIRECTOR 1.00 1.00 X 0 0 0 MARK WINTER DIRECTOR - PART YEAR 1.00 1.00 X 0 0 0 SUSAN SPRINGMAN DIRECTOR - PART YEAR 1.00 1.00 X 0 0 0 JOYCE ZEASMAN VP FINANCE - PART YEAR 5.00 35.00 X 0 173800 18674 JULIA HOUCK CAO 5.00 35.00 X 0 220722 34753 MARCIA WHITTINGTON VP FOUNDATION & HOLDINGS - PART YEAR 5.00 30.00 X 0 37443 1578 0 731697 83864 0 false true false JP CULLEN AND SONS 330 EAST DELAVAN DRIVE JANESVILLE WI 53546 BUILDING CONSTRUCTION 1069731 1 2029783 0 2029783 RENTAL INCOME FROM AGRACE HOSPICECARE, INC. 900002 1670188 1670188 0 0 0 0 0 0 0 0 1670188 1578 1578 0 0 0 0 0 845 8539 0 -7694 -7694 -7694 0 0 0 0 0 0 0 0 0 0 0 3693855 1670188 0 -6116 0 0 0 0 0 0 0 0 0 0 0 0 7908 7908 0 0 0 105965 0 105965 0 0 0 0 0 0 0 0 0 16843 12763 4080 0 1539699 1166726 372973 0 WRITE OFF OF PRIOR YEAR'S CAPITALIZED CONSTRUCTION COST 131996 131996 0 0 0 0 1802411 1179489 622922 0 0 4115473 5647386 714083 715566 0 0 0 0 139 235 35711868 12402428 22364291 23309440 0 0 0 0 17005771 499098 44199757 30171725 177354 820276 0 0 158557 133311 335911 953587 X 41060427 29215618 2718966 2520 84453 43863846 29218138 44199757 30171725 X 1891444 -16537152 X false true X true false X X X false false false AGRACE HOSPICECARE INC 391319537 9 true 0 1 0 SCHEDULE A, PART I, LINE 11, SUPPORT TO RELATED TAX-EXEMPT ORGANIZATION HOLDINGS PROVIDES THE USE OF THEIR FACILITIES AND FIXED ASSETS TO AGRACE HOSPICECARE, INC., A RELATED TAX-EXEMPT ORGANIZATION, TO SUPPORT ITS MISSION OF ENHANCING THE QUALITY OF LIFE AT THE END OF LIFE. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 483798 X X PROVIDE WELCOMING ENVIRONMENT false 84453 42147 126600 62026 22427 84453 549776 487750 62026 472208 14510 66356 0 3298 0 549776 460319 0 11889 0 0 0 472208 1.00000 false true true 1775145 1775145 24554217 6627721 17926496 0 5917410 4534087 1383323 3465096 1240620 2224476 23309440 0 CAPITAL LEASES 116465 DUE TO AFFILIATE 16846 133311 X Schedule D, Part III, Line 4, Collections of art - description of collections THE ORGANIZATION'S COLLECTIONS CONSIST PRIMARILY OF WORKS OF ART THAT ARE ON DISPLAY IN PUBLIC SPACES AS WELL AS PATIENT ROOMS AT THE FACILITIES OWNED BY AGRACE HOSPICECARE HOLDINGS AND OPERATED BY AGRACE HOSPICECARE. THESE WORKS OF ART ARE USED TO PROVIDE A WELCOMING, THERAPEUTIC, HOME-LIKE ENVIRONMENT TO AGRACE HOSPICECARE PATIENTS AND FAMILIES IN FURTHERANCE OF THE ORGANIZATION'S MISSION OF PARTNERING WITH PATIENTS AND FAMILIES TO IMPROVE QUALITY OF LIFE THROUGHOUT SERIOUS ILLNESS. THE ARTWORK REPRESENTS EACH OF THE MANY CULTURES OF THE PEOPLE LIVING IN SOUTH CENTRAL WISCONSIN. THE FAMILIARITY OF THE PIECES HELPS PATIENTS AND THEIR FAMILIES FEEL MORE COMFORTABLE IN OUR HEALTH CARE FACILITY. Schedule D, Part V, Line 4, Intended uses of endowment funds AGRACE HOSPICECARE FOUNDATION, INC., A RELATED TAX-EXEMPT ENTITY, HOLDS ENDOWMENTS FOR THE PURPOSES OF PROVIDING SUPPORT TO THE ORGANIZATION. Schedule D, Part X, Line 2, FIN 48 (ASC 740) footnote THE ORGANIZATION IS EXEMPT FROM INCOME TAXES ON INCOME FROM RELATED ACTIVITIES UNDER SECTION 501(C)(3) OF THE U.S. INTERNAL REVENUE CODE AND CORRESPONDING STATE TAX LAW. ACCORDINGLY, NO PROVISION HAS BEEN MADE FOR FEDERAL OR STATE INCOME TAXES. ADDITIONALLY, THE ORGANIZATION HAS BEEN DETERMINED NOT TO BE A PRIVATE FOUNDATION UNDER SECTION 509(A) OF THE INTERNAL REVENUE CODE. U.S. GAAP REQUIRES THAT A TAX POSITION IS RECOGNIZED AS A BENEFIT ONLY IF IT IS "MORE LIKELY THAN NOT" THAT THE TAX POSITION WOULD BE SUSTAINED IN A TAX EXAMINATION, WITH A TAX EXAMINATION BEING PRESUMED TO OCCUR. THE AMOUNT RECOGNIZED IS THE LARGEST AMOUNT OF TAX BENEFIT THAT IS GREATER THAN 50 PERCENT LIKELY OF BEING REALIZED ON EXAMINATION. FOR TAX POSITIONS NOT MEETING THE "MORE LIKELY THAN NOT" TEST, NO TAX BENEFIT IS RECORDED. DUE TO ITS TAX-EXEMPT STATUS, THE ORGANIZATION IS NOT SUBJECT TO U.S. FEDERAL INCOME TAX OR STATE INCOME TAX. THE ORGANIZATION'S FORM 990 HAS NOT BEEN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE OR THE STATE OF WISCONSIN FOR THE LAST THREE YEARS. THE ORGANIZATION DOES NOT EXPECT THE TOTAL AMOUNT OF UNRECOGNIZED TAX BENEFITS TO SIGNIFICANTLY CHANGE IN THE NEXT 12 MONTHS. THE ORGANIZATION RECOGNIZES INTEREST AND/OR PENALTIES RELATED TO INCOME TAX MATTERS IN INCOME TAX EXPENSE. THE ORGANIZATION DID NOT HAVE ANY AMOUNTS ACCRUED FOR INTEREST AND PENALTIES AT DECEMBER 31, 2013 OR 2012. false true false false false false false JULIA HOUCK CAO 0 167448 0 49829 0 3445 0 10602 0 24150 0 255475 0 0 LYNNE MYERS PRESIDENT/CEO 0 250766 0 30625 0 18341 0 27000 0 1859 0 328591 0 0 JOYCE ZEASMAN VP FINANCE - PART YEAR 0 141216 0 23926 0 8658 0 0 0 18674 0 192474 0 0 Schedule J, Part I, Line 4b, Supplemental nonqualified retirement plan LYNNE MYERS PARTICIPATED IN A 457(F) DEFERRED COMPENSATION PLAN UNDER AGRACE HOSPICECARE, INC., A RELATED ORGANIZATION. NO DISTRIBUTIONS WERE MADE FROM THE PLAN DURING 2013. JP CULLEN AND SON INC ENTITY OWNED MORE THAN 35% BY CURRENT DIRECTOR DAVID CULLEN. 1069731 BUILDING CONSTRUCTION false FORM 990, PART V, LINE 2A, REPORTING OF EMPLOYEES COMPENSATION THE ORGANIZATION SHARES EMPLOYEES WITH AGRACE HOSPICECARE, INC. (AHI), A RELATED TAX-EXEMPT ORGANIZATION. NONE OF THE EMPLOYEES SPEND THE MAJORITY OF THEIR TIME WORKING FOR THE ORGANIZATION; THEREFORE, NO EMPLOYEES ARE REPORTED ON FORM 990, PART V, LINE 2A. THE ORGANIZATION DOES REIMBURSE ACI FOR THE TIME THE SHARED EMPLOYEES SPEND WORKING AT THE ORGANIZATION. THIS COMPENSATION EXPENSE IS REPORTED ON FORM 990, PART IX, LINE 11G. FORM 990, PART VI, LINE 1B, NON-INDEPENDENT MEMBERS LYNNE MYERS AND DAVID CULLEN ARE THE NON-INDEPENDENT BOARD MEMBERS. MS. MYERS IS NOT INDEPENDENT BY VIRTUE OF HER EMPLOYMENT AND MR. CULLEN IS A MORE THAN 35% OWNER, BY ATTRIBUTION, OF THE CONSTRUCTION COMPANY CURRENTLY BUILDING THE JANESVILLE FACILITY. Form 990, Part VI, Sec A, Line 6, Classes of members or stockholders AGRACE HOSPICECARE, INC., A RELATED 501(C)(3) ORGANIZATION, IS THE SOLE MEMBER OF AGRACE HOLDINGS AND HAS THE AUTHORITY TO APPOINT, REMOVE, AND REPLACE ANY DIRECTOR ON AGRACE HOLDINGS BOARD. AGRACE HOSPICECARE, INC. ALSO HAS THE SOLE AUTHORITY TO AMEND THE HOLDINGS' BYLAWS AND ARTICLES OF INCORPORATION. AGRACE HOSPICECARE, INC. HAS NO OTHER RESPONSIBILITIES OR VOTING RIGHTS WITH RESPECT TO THE OPERATIONS OF AGRACE HOLDINGS. Form 990, Part VI, Sec A, Line 7a, Members or stockholders electing members of governing body SEE RESPONSE TO FORM 990, PART VI, SECTION A, LINE 6. Form 990, Part VI, Sec B, Line 11b, Review of form 990 by governing body THE CONTROLLER AND CFO PERFORMED A DETAILED REVIEW OF FORM 990 AND THE RELATED SCHEDULES PRIOR TO FILING THE RETURN. THIS INCLUDED VERIFICATION OF ALL AMOUNTS FOR ACCURACY AND COMPLETENESS. THE FORM AND SCHEDULES WERE ALSO REVIEWED FOR CONTENT, PRESENTATION AND REASONABLENESS. THE ENTIRE FORM 990 IS MADE AVAILABLE TO THE ENTIRE EXECUTIVE LEADERSHIP TEAM AND AN ENTITY SPECIFIC HIGHLIGHTS SUMMARY IS PROVIDED. THE ENTIRE FORM 990 IS PROVIDED TO THE ENTIRE BOARD OF DIRECTORS PRIOR TO FILING AND IS ACCOMPANIED BY A 990 HIGHLIGHT SUMMARY. THE AUDIT COMMITTEE REVIEWED THE FORM 990 AND RELATED SCHEDULES FOR REASONABLENESS. REPRESENTATIVES FROM THE ACCOUNTING FIRM OF CROWE HORWATH PREPARED A DETAILED SUMMARY OF THE FORM 990 THAT WAS PRESENTED TO THE BOARD OF DIRECTORS BY CROWE HORWATH. Form 990, Part VI, Sec B, Line 12c, Conflict of interest policy DIRECTORS, OFFICERS AND KEY EMPLOYEES (INTERESTED PERSONS) ARE REQUIRED TO ANNUALLY REVIEW THE ORGANIZATION'S CODE OF CONDUCT, INCLUDING THE CONFLICT OF INTEREST POLICY/STATEMENT. INTERESTED PERSONS ARE REQUIRED TO DISCLOSE POTENTIAL OR ACTUAL CONFLICTS WITH THE ORGANIZATION IN WRITING VIA THE ANNUAL QUESTIONNAIRE DISTRIBUTED ELECTRONICALLY TO EACH INTERESTED PERSON. WHEN A DISCLOSURE ARISES, THE PERSON SHALL PROMPTLY MAKE DISCLOSURE OF THE INTEREST TO THE GOVERNING BOARD OR COMMITTEE. AFTER DISCLOSURE AND DISCUSSION THE INTERESTED PERSON SHALL LEAVE THE GOVERNING BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS FURTHER DISCUSSED AND VOTED UPON BY THE REMAINING DISINTERESTED GOVERNING BOARD OR COMMITTEE MEMBERS. ONCE AN ACTUAL CONFLICT OF INTEREST EXISTS WITH RESPECT TO A PARTICULAR CONTRACT, TRANSACTION OR ARRANGEMENT THE DISINTERESTED MEMBERS OF THE BOARD EXERCISE DUE DILIGENCE TO DETERMINE WHETHER SAID CONTRACT, TRANSACTION OR ARRANGEMENT IS REASONABLE. THE CONFLICT OF INTEREST QUESTIONNAIRES ARE REVIEWED BY THE CONTROLLER AND GOVERNANCE COORDINATOR. THE CONTROLLER AND GOVERNANCE COORDINATOR DETERMINE WHETHER A POTENTIAL CONFLICT EXISTS BASED ON THE COMPLETED QUESTIONNAIRES SUBMITTED BY EACH INTERESTED PERSON. FORM 990, PART VI, LINE 15A, PROCESS USED TO ESTABLISH COMPENSATION OF TOP MANAGEMENT OFFICIAL THE ORGANIZATION RELIED ON AGRACE HOSPICECARE, A RELATED TAX-EXEMPT ORGANIZATION, TO DETERMINE THE COMPENSATION OF ITS OTHER OFFICERS AND KEY EMPLOYEES. BELOW IS THE PROCESS USED BY AGRACE HOSPICECARE FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL. EACH YEAR THE ORGANIZATION GATHERS MARKET DATA FOR COMPENSATION OF THE EXECUTIVE LEADERSHIP TEAM. THIS DATA INCLUDES BENCHMARKS OF NATIONAL, REGIONAL, AND LOCAL COMPENSATION THAT ARE PROVIDED FROM INDEPENDENT COMPENSATION SURVEYS. IN FEBRUARY OF EACH YEAR, THE CHIEF ADMINISTRATIVE OFFICER PRESENTS THE MARKET DATA INFORMATION TO THE EXECUTIVE COMMITTEE OF THE BOARD ALONG WITH PERTINENT 990 COMPENSATION REPORTING BY SIMILAR SIZED NON-PROFIT HOSPICES. BASED ON THIS INFORMATION, THE EXECUTIVE COMMITTEE OF THE BOARD APPROVES THE PAY STRUCTURE FOR THE CHIEF EXECUTIVE OFFICER FOR THE YEAR AND CONTEMPORANEOUSLY DOCUMENTS THEIR APPROVAL IN WRITING. THIS PROCESS WAS LAST UNDERTAKEN IN FEBRUARY 2014. FORM 990, PART VI, LINE 15B, PROCESS USED TO ESTABLISH COMP OF OTHER OFFICERS AND KEY EMPLOYEES THE ORGANIZATION RELIED ON AGRACE HOSPICECARE, A RELATED TAX-EXEMPT ORGANIZATION, TO DETERMINE THE COMPENSATION OF ITS OTHER OFFICERS AND KEY EMPLOYEES. BELOW IS THE PROCESS USED BY AGRACE HOSPICECARE FOR DETERMINING COMPENSATION OF THE ORGANIZATION'S OTHER OFFICERS AND KEY EMPLOYEES. EACH YEAR THE ORGANIZATION GATHERS MARKET DATA FOR COMPENSATION OF THE EXECUTIVE LEADERSHIP TEAM. THIS DATA INCLUDES BENCHMARKS OF NATIONAL, REGIONAL, AND LOCAL COMPENSATION THAT ARE PROVIDED FROM INDEPENDENT COMPENSATION SURVEYS. EXECUTIVE LEADERSHIP PAY IS ADJUSTED BASED ON: 1) YEARS OF EXPERIENCE; 22) PERFORMANCE; AND 3) MARKET DATA FOR THE 65TH PERCENTILE OF TOTAL COMPENSATION FOR THE POSITION. THE CHIEF ADMINISTRATIVE OFFICER PRESENTS THE MARKET DATA INFORMATION TO THE EXECUTIVE COMMITTEE OF THE BOARD. BASED ON THIS INFORMATION, THE EXECUTIVE COMMITTEE OF THE BOARD APPROVES THE COMPENSATION PACKAGE FOR THE EXECUTIVE LEADERSHIP TEAM AND DOCUMENTS THEIR APPROVAL IN WRITING. THIS PROCESS WAS LAST UNDERTAKEN IN FEBRUARY 2014. Form 990, Part VI, Sec C, Line 19, Required documents available to the public FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICIES ARE NOT REQUIRED DISCLOSURES PURSUANT TO INTERNAL REVENUE CODE (IRC) SECTION 6104. THESE DOCUMENTS MAY BE MADE AVAILABLE TO THE PUBLIC UPON RECEIPT OF A WRITTEN REQUEST. FORM 990, PART XI, LINE 9, TRANSFER OF INTEREST IN NET ASSETS OF AFFILIATE THE TRANSFER REPRESENTS A CONSOLIDATING ACCOUNTING ADJUSTMENT OF THE INTERESTS IN THE NET ASSETS OF AFFILIATE FROM AGRACE HOLDINGS TO AGRACE HOSPICECARE, INC. FROM A CONSOLIDATED PERSPECTIVE, THERE IS NO CHANGE IN FINANCIAL REPORTING. Form 990 , Part XI, Line 9, Other changes in net assets or fund balances TRANSFER IN INTEREST IN NET ASSETS OF AFFILIATES - -16537152; AGRACE HOSPICECARE INC 5395 E CHERYL PARKWAY MADISON WI 53711 391319537 HEALTHCARE WI 501(C)(3) 9 NA false AGRACE HOSPICECARE FOUNDATION INC 5395 E CHERYL PARKWAY MADISON WI 53711 300001703 FUNDRAISING WI 501(C)(3) 11 - Type I AHCI false false false true false false false false false false true false false true true true true true true false