2014-10-06T08:29:53-05:00 2013-12-31 232932984 PARENTEBEARD LLC 1869 CHARTER LANE STE 301 LANCASTER PA 17601 990 2013-01-01 231365374 LUTHERCARE LUTH 7176261171 600 EAST MAIN STREET LITITZ PA 17543 ELIZABETH BRENNAN CFO/TREASURER 7176261171 2014-10-03 1 MICHAEL S FREY P00327329 7173935696 2013 2015-11-30 17:44:51Z CARL MCALOOSE 600 EAST MAIN STREET LITITZ PA 17543 47424653 0 9386 X WWW.LUTHERCARE.ORG X 1949 PA LUTHERCARE SERVES SENIORS' HOUSING/HEALTH NEEDS AND FAMILIES' CHILD CARE/ EARLY LEARNING NEEDS. 13 11 914 695 0 0 3595293 3104546 38974965 40592542 1403575 2448519 536572 751979 44510405 46897586 20849 18520 0 0 22834646 24280914 0 0 333990 21849121 22099165 44704616 46398599 -194211 498987 100785248 109098892 80572844 86781339 20212404 22317553 X "LUTHERCARE REFLECTS CHRIST'S LOVE THROUGH SERVICE TO OTHERS." OUR MISSION IS TO ENHANCE THE QUALITY OF LIFE THROUGH CREATIVE SENIOR LIVING OPPORTUNITIES, FAMILY LIFE THROUGH QUALITY CHILD CARE AND EARLY LEARNING CENTERS, APPROPRIATE SUPPORTS FOR PEOPLE IN THEIR HOMES AND MEANINGFUL VOLUNTEER EXPERIENCE, WITH AN EMPHASIS ON COMMUNITY, WELLNESS AND THE WHOLE PERSON. WE FOSTER LIFE SETTINGS IN WHICH PEOPLE CONNECT WITH OTHERS AND EXPERIENCE VITALITY AND PURPOSE, OFTEN BEYOND THE REACH OF THEIR CURRENT RESOURCES. 0 0 21066164 18520 21440521 LUTHERCARE PROVIDES LONG TERM CARE AND SHORT-TERM REHABILITATION ALONG WITH OCCUPATIONAL, SPEECH AND PHYSICAL THERAPY IN OUR HEALTH CARE CENTERS LOCATED IN LITITZ AND LEBANON, PENNSYLVANIA. MEMORY SUPPORT SERVICES ARE PROVIDED IN A SPECIALIZED CARE UNIT. AN INNOVATIVE APPROACH AND PHILOSOPHY IS EMBRACED, WITH A FOCUS ON THE OVERALL WELLNESS OF THE INDIVIDUAL - PHYSICAL, PSYCHOLOGICAL AND SPIRITUAL. STRONG SUPPORT IS PROVIDED BY VOLUNTEERS, 695 INDIVIDUALS IN 2013 WHO DONATED 27,246 HOURS, EXTENDING COMPASSION AND CARING BEYOND THE LIMITATIONS OF STAFF CAPACITY. IN 2013 LUTHERCARE PROVIDED SKILLED NURSING CARE SERVICES FOR 559 OLDER ADULTS, FOR A TOTAL OF 73,441 CENSUS DAYS. 14655038 14915466 LUTHERCARE'S RETIREMENT COMMUNITIES OFFER AN INDEPENDENT LIVING EXPERIENCE TO OLDER ADULTS, ENRICHED WITH OPPORTUNITIES TO ENGAGE IN MANY SOCIAL AND LEARNING ACTIVITIES ON AND OFF CAMPUS. AN EXCITING CAMPUS RENOVATION AND EXPANSION PROJECT AT THE LUTHER ACRES CAMPUS IN LITITZ NOW OFFERS EXPANDED OPTIONS INCLUDING A THEATRE, PUB, NEW CHAPEL AND MANY NEW SPACES FOR INFORMAL GATHERING. 651 OLDER ADULTS WERE PART OF THE RESIDENTIAL LIVING PROGRAM IN 2013, FOR A TOTAL OF 158,672 CENSUS DAYS. IN ADDITION, VALUABLE SUPPORT IS PROVIDED THROUGH OCCUPATIONAL, SPEECH AND PHYSICAL THERAPY, AND PERSONAL CARE SERVICES INCLUDING ASSISTANCE FOR DAILY LIVING ACTIVITIES AND OTHER SUPPORT AS NEEDED. A SPECIALIZED MEMORY SUPPORT UNIT IS ALSO OFFERED. PERSONAL CARE WAS PROVIDED TO 186 INDIVIDUALS FOR 44,675 CENSUS DAYS. 5241039 4236555 LUTHERCARE IS DEEPLY COMMITTED TO SUPPORTING CHILDREN AND FAMILIES IN A VARIETY OF WAYS. WE OFFER CHILD CARE AND EARLY LEARNING OPPORTUNITIES THROUGH FIVE CHILD CARE CENTERS IN LANCASTER AND LEBANON COUNTIES. 741 CHILDREN AND INFANTS THROUGH AGE 12, WERE SERVED BY OUR PROGRAMS IN 2013. SUPPORT WAS PROVIDED THROUGH PUBLIC FUNDING, PRIVATE PAYMENT AND SCHOLARSHIP SUBSIDY. WE ALSO OPERATE A MENTORING PROGRAM FOR HOME CHILD CARE PROVIDERS, AND WORKED WITH 5 CENTERS IN 2013. IN ADDITION, LUTHERCARE MANAGES THE CHILD CARE INFORMATION SERVICES PROGRAM IN LEBANON COUNTY, WHICH ASSISTS FAMILIES IN IDENTIFYING AFFORDABLE CHILD CARE OPTIONS AND OTHER SUPPORT SERVICES. AS PART OF THE ORGANIZATION'S CHARITABLE MISSION, BENEVOLENCE IS EXTENDED AS NEEDED AND WHEN APPROPRIATE TO RESIDENTS AT ALL LEVELS OF CARE AND TO CHILDREN ENROLLED IN THE CHILD CARE FACILITIES. THE ESTIMATED COSTS OF PROVIDING BENEVOLENT CARE IS BASED UPON THE DIRECT AND INDIRECT COSTS IDENTIFIED WITH THE SPECIFIC BENEVOLENT CARE PROVIDED. THE COST OF BENEVOLENT CARE PROVIDED TO RESIDENTS AMOUNTED TO APPROXIMATELY $4,539,000 IN BOTH 2013 AND 2012 INCLUDING COSTS RELATED TO THE MEDICAID PROGRAM OF APPROXIMATELY $3,790,000 AND $3,911,000 IN 2013 AND 2012, RESPECTIVELY. IN ADDITION, THE ORGANIZATION PROVIDED SERVICES TO CHILDREN IN THE CHILD CARE FACILITIES AND RECOGNIZED FORGONE CHARGES OF APPROXIMATELY $207,000 IN 2013 AND $143,000 IN 2012. THE FORGONE CHARGES APPROXIMATE THE COST OF SERVICES PROVIDED. 40962241 1 1 0 1 0 0 0 0 1 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 192 0 1 914 1 0 0 0 0 0 1 1 0 0 0 0 X 13 11 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X ELIZABETH BRENNAN CFOTREASURER 7176261171 600 EAST MAIN STREET LITITZ PA 17543 LILLIAN HERBENER DIRECTOR (RES. APRIL 2013) 1.00 X 0 0 0 DAVID K STOUDT DIRECTOR 1.00 X 0 0 0 WILLIAM C SMITH DIRECTOR 1.00 X 0 0 0 BERNARD J LAPINE SECRETARY 1.00 X X 0 0 0 N STEVEN RICKER DIRECTOR 1.00 X 0 0 0 ROBERT A BRANDT JR CHAIRMAN 1.00 X X 0 0 0 REV ANDREW J EVENSON DIRECTOR 1.00 X 0 0 0 GREGORY T HOLSINGER DIRECTOR 1.00 X 0 0 0 GARY L ROMIG JR DIRECTOR 1.00 X 0 0 0 ROSANNA M FELIX DIRECTOR 1.00 X 0 0 0 REV HENRY HERBENER DIRECTOR 1.00 X 0 0 0 REV JANICE MARIE E LOWDEN DIRECTOR 1.00 X 0 0 0 JIM SMARILLI DIRECTOR 1.00 X 0 0 0 DAVID R BRADBURY DIRECTOR 1.00 X 0 0 0 WILLIAM KIELY SR VP FINANCE/TREASURER (THRU 10/13) 40.00 X 150865 0 6248 CARL MCALOOSE PRESIDENT 40.00 X 254177 0 63355 ELIZABETH BRENNAN CFO/TREASURER 40.00 X 49069 0 4473 BLAKE S DAUB VP OF OPERATIONS 40.00 X 146223 0 28727 CURTIS B EVANS VP OF SENIOR LIVING & COMM 40.00 X 147409 0 27542 WILLIAM SNYDER VP OF MARKETING 40.00 X 111518 0 64715 JEFFREY S HIGH CONTROLLER 40.00 X 107629 0 12025 SALLY GROOME VP OF PHILANTHROPY 40.00 X 142471 0 20236 1109361 0 227321 10 0 1 0 BENCHMARK CONSTRUCTION INC 4121 OREGON PIKE PO BOX 806 BROWNSTOWN PA 17508 CONSTRUCTION SERVICES 3678445 SODEXO INC & AFFILIATES PO BOX 360170 PITTSBURGH PA 172516170 DINING MGMT 2548540 FLAGSHIP REHABILITATION 157 BALTIMORE STREET CUMBERLAND MD 21502 THERAPY REHAB SERVICES 922718 PENWAY CONSTRUCTION 45 DOE RUN ROAD MANHEIM PA 17545 CONSTRUCTION SERVICES 891770 HEALTHPRO THERAPY SERVICES LLC 10600 YORK ROAD COCKEYSVILLE MD 21030 THERAPY REHAB SERVICES 813448 16 55453 53906 2545986 449201 21853 3104546 RESIDENT SERVICES 623000 37847737 37847737 DAYCARE AND DAY CAMPS 623000 1886320 1886320 NH ASSESSMENT REVENUE 623000 858485 858485 40592542 1135678 1135678 33155 55084 -21929 -21929 -21929 1725076 29063 0 441298 1725076 -412235 1312841 1312841 9740 53906 20031 -10291 -10291 42634 10654 31980 31980 BEAUTY/BARBOR SHOP 623000 235164 235164 REIMBURSMENT FOR LEASED EMPLOYEE 623000 125659 125659 TRUST INCOME 623000 111206 111206 280190 280190 752219 46897586 40592542 0 3200498 X 18520 18520 529207 529207 18155510 15678388 2244822 232300 494372 409774 77816 6782 3254537 2779693 439819 35025 1847288 1638532 192727 16029 68616 37613 31003 90128 18285 71843 1874 1874 5667418 5305059 351826 10533 355046 1485 353561 3716438 3543673 164578 8187 21489 21489 5314203 5274384 39819 50392 37671 10581 2140 110558 39527 68675 2356 5067136 4764076 301717 1343 143604 113258 30346 NH ASSESSMENT TAX 507302 507302 MEDICAL SUPPLIES 364424 364424 BAD DEBTS 200445 200445 BOOKS, DUES, SUBSCRIPTI 144447 61059 76674 6714 275645 169073 93991 12581 46398599 40962241 5102368 333990 8271 8094 1168774 1481572 925803 822815 5450241 5832186 1066391 1089862 126171192 65872401 56611008 60298791 34033651 38012758 53715 53715 1041474 1013121 425920 485978 100785248 109098892 3923365 5152211 86 73 22624853 16973759 45420000 47734067 1670848 12403509 6933692 4517720 80572844 86781339 X 15180954 17210911 980238 925032 4051212 4181610 20212404 22317553 100785248 109098892 X 498987 2186615 -3127653 2547200 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 1 100 0 0 1 100 0 1 1674 1874 0 PART II-B, LINE 1: LUTHERCARE OCCASIONALLY SENDS OUT MAILINGS TO LEGISLATORS AND OUR CONSTITUENTS REGARDING ISSUES THAT AFFECT OUR COMMUNITY AND ITS RESIDENTS. LUTHERCARE WILL ALSO REACH OUT TO STATE LEGISLATORS ON ISSUES SURROUNDING SENIOR HEALTH CARE AND CHILD CARE. LUTHERCARE PAYS DUES TO THE ORGANIZATIONS LEADINGAGE AND LEADINGAGE PA. A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS IS ALLOCABLE TO LOBBYING EXPENSES. THE TOTAL AMOUNT OF DUES PAID BY LUTHERCARE THAT IS ALLOCABLE TO LOBBYING IS $1,674. 0 1 X 7229475 24942 1248159 27306 8475270 6575726 18140 678920 43311 7229475 6522175 51264 44875 42588 6575726 5885656 10623 679849 53953 6522175 4663611 117392 1154676 50023 5885656 0.81480 0.18520 0.00000 0 0 1680113 1680113 102886182 54259598 48626584 15873074 11612803 4260271 5731823 5731823 60298791 UNEARNED INCOME 55053 DEPOSITS HELD 712 INTEREST RATE SWAP AGREEMENT 4459151 GIFT CERTIFICATES PAYABLE 2804 4517720 X 49255444 2186615 85474 2272089 46983355 -85769 -85769 46897586 44022642 -2375957 -2375957 46398599 0 46398599 PART IV, LINE 2B: LUTHERCARE OCCASIONALLY MANAGES THE FINANCES OF RESIDENTS WHO HAVE NO OTHER OPTIONS FROM WHOM TO OBTAIN ASSISTANCE. IN THIS ROLE, LUTHERCARE COLLECTS FUNDS FROM RESIDENTS AND DEPOSITS THEM INTO A SEPARATE ACCOUNT BY FACILITY. THE FUNDS FOR MANAGING THE FINANCES ARE CONTAINED IN THE RESIDENT FUND ACCOUNTS, WHICH ARE REPORTED ON LINE 21 OF THE FORM 990 BALANCE SHEET. TYPICALLY, LUTHERCARE DEPOSITS CHECKS RELATED TO SOCIAL SECURITY AND PENSION PAYMENTS FOR THE RESIDENTS. AS THE RESIDENTS HAVE EXPENSES THAT ARE DUE, LUTHERCARE PAYS FOR THE EXPENSES OUT OF LUTHERCARE'S OPERATING CHECKING ACCOUNT. LUTHERCARE THEN TRANSFERS THE TOTAL AMOUNT OF EXPENSES FROM THE RESIDENT BANK ACCOUNT BY FACILITY TO THE OPERATING ACCOUNT TO REIMBURSE THOSE FUNDS. INTEREST IS EARNED AND CREDITED TO EACH ACCOUNT. AT ALL TIMES LUTHERCARE KNOWS THE BALANCE OF THE RESIDENT FUNDS ACCOUNT. IN ADDITION, WHEN PROSPECTIVE RESIDENTS PLACE A DEPOSIT TO HOLD AN APARTMENT OR COTTAGE PART OF THIS DEPOSIT IS REFUNDABLE. THESE FUNDS ARE HELD IN ESCROW BY LUTHERCARE ON BEHALF OF THE RESIDENTS UNTIL THE DEPOSIT IS REFUNDED, IF NECESSARY, BASED ON THE TERMS OF THEIR CONTRACT. PART V, LINE 4: THE ENDOWMENTS, AS FUNDED BY THE ORGANIZATION AND ITS DONORS, HAVE BEEN ESTABLISHED FOR A VARIETY OF REASONS RELATED TO THE CHARITABLE PURPOSE OF LUTHERCARE AND ITS RESIDENTS' NEEDS. PART X, LINE 2: THE ORGANIZATION ACCOUNTS FOR UNCERTAINTY IN INCOME TAXES BY USING A RECOGNITION THRESHOLD OF MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPROPRIATE TAXING AUTHORITY. MEASUREMENT OF THE TAX UNCERTAINTY OCCURS IF THE RECOGNITION THRESHOLD HAS BEEN MET. MANAGEMENT HAS DETERMINED THAT THERE WERE NO TAX UNCERTAINTIES THAT MET THIS RECOGNITION THRESHOLD IN 2013 AND 2012. THE ORGANIZATION'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS FOR THE YEARS ENDED DECEMBER 31, 2010, 2011 AND 2012 REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF DEFERRED GIFTS 85,474. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -55,084. STORE EXPENSE -10,654. FUNDRAISING EVENTS DIRECT EXPENSES -20,031. PART XII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENTS DIRECT EXPENSES 20,031. UNREALIZED DEPRECIATION ON INTEREST RATE SWAP AGREEMENT -2,461,726. STORE EXPENSE 10,654. RENTAL EXPENSES 55,084. ANNUAL GOLF TOURNAMENT 63646 53906 9740 11938 8093 63646 53906 9740 11938 8093 20031 -10291 1 LUTHERAN PLANNED GIVING OF CENTRAL AND NORTHEASTERN PA 355 MT LUTHER LANE MIFFLINBURG PA 17844 203978856 501(C)(3) 7500 SUPPORTING LOCAL SERVICES TO FOSTER COMMUNITY GOODWILL 1 0 PART I, LINE 2: THE PRESIDENT REVIEWS ALL REQUESTS FOR GIFTS AND SELECTS THE ORGANIZATIONS TO WHICH LUTHERCARE WILL CONTRIBUTE. DONEE ORGANIZATIONS ARE MONITORED BY MANAGEMENT TO ENSURE THAT THEY MEET THE STANDARDS OF A CHARITABLE ORGANIZATION. THE ORGANIZATION DOES NOT, HOWEVER, REQUIRE ADDITIONAL DOCUMENTATION ONCE THE EXEMPT STATUS OF DONEES HAS BEEN ESTABLISHED GIVEN THE LOW RISK ASSOCIATED WITH THE AMOUNTS GIVEN. X 1 0 X X X X X 0 1 0 0 0 0 0 0 0 WILLIAM KIELY SR VP FINANCE/TREASURER (THRU 10/13) 150865 0 0 0 0 0 6035 0 213 0 157113 0 0 0 CARL MCALOOSE PRESIDENT 254177 0 0 0 0 0 39659 0 23696 0 317532 0 0 0 BLAKE S DAUB VP OF OPERATIONS 146223 0 0 0 0 0 6019 0 22708 0 174950 0 0 0 CURTIS B EVANS VP OF SENIOR LIVING & COMM 147409 0 0 0 0 0 6019 0 21523 0 174951 0 0 0 WILLIAM SNYDER VP OF MARKETING 111518 0 0 0 0 0 6019 0 58696 0 176233 0 0 0 SALLY GROOME VP OF PHILANTHROPY 142471 0 0 0 0 0 5783 0 14453 0 162707 0 0 0 PART I, LINE 1A WILLIAM SNYDER, THE VP OF MARKETING FOR THE ORGANIZATION AND AN ORDAINED MINISTER, RECEIVED A $35,000 HOUSING ALLOWANCE IN 2013. THIS AMOUNT WAS NOT INCLUDED IN HIS TAXABLE INCOME UNDER RULES ASSOCIATED WITH MINISTERS' PARSONAGE ALLOWANCES. PART I, LINE 4B CARL MCALOOSE PARTICIPATES IN A NONQUALIFIED RETIREMENT PLAN IN WHICH HE MAY RECEIVE UP TO 10% OF HIS COMPENSATION IN A DEFERRED PLAN. THE AMOUNT DEFERRED FOR THE YEAR ENDED DECEMBER 31, 2013 WAS $27,779. A LANCASTER COUNTY HOSPITAL AUTHORITY 236648018 514045ZP1 2010-11-30 10900000 TO REFUND CONSTRUCTION LOAN, RENOVATION/CONSTRUCTION AT LUTHER ACRES CAMPUS 0 0 0 B PARADISE TOWNSHIP SEWER AUTHORITY 232485384 2013-03-29 5000000 TO FUND CONSTRUCTION ACTIVITIES AND PROJECTS. 0 0 0 A 450000 10900000 19207 7805481 3049529 2011 1 0 1 1 B 815933 5000000 97302 4902698 2013 0 0 1 1 A 0 1 1 1 0 0.02790 0.00000 0.02790 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 1 0 1 1 PNC BANK 10.200000000000 0 0 0 0 1 B 0 0 1 0 1 0 0 0 1 A 1 B 1 BENCHMARK CONSTRUCTION ROBERT A. BRANDT JR. IS CHAIRMAN OF BENCHMARK CONST. AND A BOARD MEMBER. 3678445 BENCHMARK CONSTRUCTION PROVIDES CONSTRUCTION PROJECT FOR LUTHERCARE. IN 2013, TOTAL BILLINGS WERE $3,678,445. THE TRANSACTION WAS AT ARM'S LENGTH AND REPRESENTED FAIR MARKET VALUE FOR THE WORK. 0 MURRAY SECURUS DAVID BRADBURY IS ON THE BOARD AND ALSO A DIRECTOR AND VP AT MURRAY SECURUS 668610 MURRARY SECURUS PROVIDED INSURANCE COVERAGE TO LUTHERCARE DURING THE CALENDAR YEAR 2013. IN 2013, TOTAL BILLINGS WERE $668,610. THE TRANSACTION WAS AT ARM'S LENGTH AND REPRESENTED FAIR MARKET VALUE FOR THE WORK. 0 FORM 990, PART VI, SECTION A, LINE 1 THE BOARD OF DIRECTORS DELEGATES DECISION-MAKING POWER TO THE EXECUTIVE COMMITTEE AS NEEDED. THE EXECUTIVE COMMITTEE WILL MAKE DECISIONS WHEN IT ISN'T POSSIBLE TO CONVENE THE ENTIRE BOARD ON A VOTING MATTER IN A TIMELY FASHION. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S BY-LAWS STIPULATE THAT THE TOTAL BOARD OF DIRECTORS WILL BE ELECTED BY THE LOWER SUSQUEHANNA SYNOD OF THE EVANGELICAL LUTHERAN CHURCH IN AMERICA (ELCA) AND AT LEAST 51% OF THE MEMBERS SHALL BE VOTING MEMBERS OF AN ELCA CONGREGATION. FORM 990, PART VI, SECTION A, LINE 7B THE EVANGELICAL LUTHERAN CHURCH IN AMERICA (ELCA) MUST GIVE WRITTEN APPROVAL TO ANY AMENDMENT OF AN ARTICLE OR PARAGRAPH OF GOVERNING DOCUMENTS WITH REGARD TO: A. AFFILIATION B. THE PURPOSE STATEMENT C. THE MISSION STATEMENT D. DISSOLUTION OF THE CORPORATION E. RESPONSIBILITY FOR MANAGEMENT AND FISCAL AFFAIRS F. CORPORATE LIABILITY DISCLAIMER G. BOARD MEMBERSHIP ANY PROPOSED AMENDMENT MUST BE SUBMITTED TO THE DIVISION FOR CHURCH IN SOCIETY OF THE ELCA FOR REVIEW PRIOR TO ACTION BY THE SYNOD. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S PRESIDENT AND ALL VICE PRESIDENTS WILL REVIEW A DRAFT OF THE FEDERAL FORM 990. ONCE MANAGEMENT HAS REVIEWED THE FORM 990, THE BOARD OF DIRECTORS WILL BE PROVIDED WITH AN ELECTRONIC COPY OF THE FORM 990 FOR THEIR REVIEW. AFTER THE BOARD AND MANAGEMENT ARE SATISFIED WITH THE FILING COPY, THE CHIEF FINANCIAL OFFICER WILL SIGN THE FORM 990 AND RELEASE THE ELECTRONIC VERSION TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ALL NEWLY ELECTED BOARD MEMBERS COMPLETE A CONFLICT OF INTEREST FORM. ALL EXISTING BOARD MEMBERS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST FORM ANNUALLY. IF A BOARD MEMBER HAS A CONFLICT OF INTEREST, THE RELATED PARTY TRANSACTION IS MONITORED AND EVALUATED BY THE REMAINING BOARD AND MANAGEMENT TO ENSURE THAT THE TRANSACTION IS AT ARM'S LENGTH. HAVING A RELATED PARTY TRANSACTION WITH A BOARD MEMBER DOES NOT PRECLUDE THAT PERSON FROM BEING ON THE BOARD. IF A CONFLICT DOES EXIST, THE INTERESTED INDIVIDUAL MAY MAKE A PRESENTATION AT A BOARD OR COMMITTEE MEETING. HOWEVER, AFTER THE PRESENTATION HAS BEEN MADE, THE INTERESTED PERSON MUST LEAVE THE MEETING DURING THE DISCUSSION OF, AND VOTE ON, THE TRANSACTION OR ARRANGEMENT THAT RESULTS IN THE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 LUTHERCARE CONTRACTS WITH AN INDEPENDENT PARTY TO PERFORM A SALARY MARKET REVIEW FOR THE CEO AND VP'S. THE SALARY MARKET REVIEW INCLUDES A REVIEW OF THE COMPENSATION AGREEMENTS IN PLACE BETWEEN COMPARABLE NON-PROFIT ORGANIZATIONS AND THEIR EXECUTIVES TO ENSURE THAT COMPENSATION IS WITHIN FAIR VALUE RANGE. THE REPORT IS SUBMITTED TO THE BOARD AND COMPENSATION COMMITTEE WHICH APPROVES ANY INCREASE FOR THE CEO. THE CEO USES THE REPORT TO DETERMINE INCREASES FOR THE VP'S. THE PROCESS IS PERFORMED IN CONJUNCTION WITH ANNUAL EMPLOYEE SALARY INCREASES. THIS PROCESS HAS BEEN DISCUSSED AT THE EXECUTIVE COMMITTEE LEVEL AND THEN DISCUSSED IN AN EXECUTIVE SESSION WITH THE BOARD. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION PROVIDES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 2,336,387. MANAGEMENT AND GENERAL EXPENSES 79,085. FUNDRAISING EXPENSES 6,908. TOTAL EXPENSES 2,422,380. CONSULTING FEES: PROGRAM SERVICE EXPENSES 99,347. MANAGEMENT AND GENERAL EXPENSES 101,594. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 200,941. CARDIOLOGY FEES: PROGRAM SERVICE EXPENSES 276. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 276. CONTRACTED SERVICES - HOUSEKEEPING: PROGRAM SERVICE EXPENSES 1,643. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,643. CONTRACTED SERVICES - BARBER: PROGRAM SERVICE EXPENSES 34,395. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 34,395. CONTRACTED SERVICES - FOOD SERVICES: PROGRAM SERVICE EXPENSES 783,644. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 783,644. CONTRACTED SERVICES - THERAPY: PROGRAM SERVICE EXPENSES 1,785,034. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,785,034. CONTRACTED SERVICES - LAWNCARE: PROGRAM SERVICE EXPENSES 59,394. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 59,394. LABORATORY FEES: PROGRAM SERVICE EXPENSES 78,387. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 78,387. MAINTENANCE CONTRACTS: PROGRAM SERVICE EXPENSES 59,913. MANAGEMENT AND GENERAL EXPENSES 107,475. FUNDRAISING EXPENSES 3,625. TOTAL EXPENSES 171,013. OTHER PHYSICIAN SERVICES: PROGRAM SERVICE EXPENSES 19,959. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 19,959. PHARMACY FEES: PROGRAM SERVICE EXPENSES 310. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 310. X-RAY FEES: PROGRAM SERVICE EXPENSES 43,420. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 43,420. CONTRACTED SERVICES - PHSYCHIATRIC: PROGRAM SERVICE EXPENSES 2,950. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,950. CONTRACTED SERVICES - PAYROLL: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 63,672. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 63,672. FORM 990, PART XI, LINE 9: UNREALIZED DEPRECIATION ON INTEREST RATE SWAP AGREEMENT 2,461,726. CHANGE IN VALUE OF DEFERRED GIFTS 85,474.