2013-11-15T13:35:31-06:00 2012-12-31 BDO USA LLP 200 OTTAWA AVE NW STE 300 GRAND RAPIDS MI 49503 990 2012-01-01 381360553 Lutheran Social Services of Michigan % JERALD BENJAMIN LUTH 3138237700 8131 E Jefferson Avenue Suite Detroit MI 48214 MARK STUTRUD 6168237700 2013-11-14 true Kathleen Guider 6167747000 2012 2016-03-07 17:11:31Z MARK STUTRUD 8131 E JEFFERSON AVE DETROIT MI 48214 97210600 true true 9386 X www.lssm.org X 1934 MI THE PRINCIPAL SOCIAL SERVICES PROVIDED INCLUDE SERVICES FOR CHILDREN AND FAMILIES, SENIOR ADULTS, REFUGEES, PERSONS WITH DISABILITIES, AND OTHERS IN NEED WITHOUT REGARD TO THEIR RELIGION, RACE OR ETHNICITY. 15 15 2353 6310 137937 4937 17941143 15885427 65184668 71304652 292394 362906 1682936 2061779 85101141 89614764 9256278 12066063 0 0 46401563 49268473 0 0 1057663 28077716 27770309 83735557 89104845 1365584 509919 98447725 108227206 64081833 70424856 34365892 37802350 X Lutheran Social Services of Michigan (LSSM) mission is serving people as an expression of the love of Christ. Started as the Lutheran Inner Mission League in 1934, LSSM's programs serve children and families, senior adults, refugees, persons with disabilities, and others in need throughout the lower peninsula. LSSM's programs and services strive to improve the quality of life, promote mental and physical health and encourage human growth and development for the more than 20,000 people we serve every year without regard to religion, race or ethnicity. LSSM is dedicated to creating communities of service that meets the needs of people, promoting dignity, advocating equality and justice. true false 42127753 44906742 Lutheran Social Services of Michigan (LSSM) offers a continuum of services for senior adults. LSSM operates two independent living communities, two independent living/assisted living communities, one assisted living/memory care community, and three skilled nursing communities offering inpatient rehabilitation services. In 2012, we served 506 residents in our independent/assisted living programs, allowing these residents to maintain independence within the community. In addition, we served 1,030 residents in our skilled nursing communities. LSSM places a strong emphasis on quality services for our residents and focuses on resident safety and other clinical indicators. 19947409 21754090 LSSM is the largest private foster care agency in Michigan, with eight offices in the lower peninsula. In addition to domestic foster care, LSSM manages an Unaccompanied Refugee Minors foster care program. In 2012, we served 1,512 domestic and unaccompanied minor foster youth providing 288,567 days of foster care. Of the youth in foster care, 62% were able to return to a parent or family member; well above the 43% benchmark set by the State of Michigan. Achieving permanency is critical for the well-being of children who are unable to return to a parent/family member, and 67% of our youth were placed for adoption within 24 months of entering the foster care system, out-performing the State of Michigan benchmark of 36%. Together with Lutheran Child and Family Services of Michigan, we operate Lutheran Adoption Service (LAS). In 2012, LAS facilitated adoptions for 431 youth. As in the previous years, none of the adoptions finalized by LAS were disrupted. LSSM also offers Family Preservation Programs whose objective is to keep at-risk children safely with their families. In 2012, our Families First and Family Reunification programs served 229 families who were at risk of having children removed by Child Protective Services. Of those families, 84% (192) were still intact 12 months after the intervention. LSSM administers the State of Michigan's Education and Training Voucher (ETV) program, which enables youth who have been or currently are in foster care to pursue secondary education or vocational training by providing case management, mentoring and financial assistance. In 2012, 635 youth received support through the ETV program. 5088372 5390457 LSSM provides residential care and support for individuals with developmental disabilities or mental illness, primarily through contracts with Community Mental Health agencies. LSSM owns and/or operates 15 licensed group homes located in 10 counties; we also provide services through staff support in the consumers' home or with their families. In 2012, LSSM served 93 consumers. 15517454 15151886 SEE DESCRIPTION IN SCHEDULE O 15517454 15151886 82680988 true true false true false false false false true true true false true true true true false true false false false false false false false false false false true true true false false false false false false false false false false true false false false true true false false false true 104 0 true 2353 true true true false false false false false false false false true false X 15 15 false false false false false false false true true false false true true true true true true true true true true MI X JERALD BENJAMIN 3138237700 8131 E JEFFERSON AVE DETROIT MI 48214 X EMMETT BRASELTON JR - LSSM 1.0 X X KATHLEEN LIEDER - LSSM 1.0 X X BRUCE PARSONS - LSSM 1.0 X DAVID RIPPLE - LSSM 1.0 X WILLIAM PAPKE - LSSM 1.0 X DAVID GABEL - LSSM 1.0 X MARK STANKO - LSSM 1.0 X BISHOP JOHN SCHLEICHER - LSSM 1.0 X SCOTT SESSLER - LSSM 1.0 X TODD PERKINS - LSSM 1.0 X MICHELLE GAGGINI - LSSM 1.0 X X SUE KAMENS - LSSM 1.0 X MICHAEL KNEALE - LSSM 1.0 X MATTHEW PEDERSON - LSSM 1.0 X PAUL DRENKOW - LSSM FOUNDATION 1.0 X X VERLYN REBELEIN - LSSM FOUNDATION 1.0 X X REV TERRY DALY - LSSM FOUNDATION 1.0 X KARL GEISLER - LSSM FOUNDATION 1.0 X PAT THOMAS - LSSM FOUNDATION 1.0 X DAVID NUSSDORFER - LSSM FOUNDATION 1.0 X X JERALD BENJAMIN - HEARTLINE 1.0 X VICKIE THOMPSON-SANDY - HEARTLINE 1.0 X MARK STUTRUD - HEARTLINE 1.0 X X REV WILLIAM MOLDWIN - LSSM FOUNDAT 1.0 X BISHOP DONALD KREISS-LSSM 1.0 X MARK STUTRUD - LSSM 40.0 X 325590 0 120216 JOHN NELSON - LSSM 1.0 X RICHARD MARTIN - LSSM 40.0 X 152218 0 14464 JERRY BENJAMIN - LSSM 40.0 X 215879 0 34475 VICKIE THOMPSON-SANDY - LSSM 40.0 X 151411 0 4080 WENDY PERRY - LSSM 40.0 X 142876 0 8695 SUSAN HOUSEMAN - LSSM 40.0 X 151878 0 10642 LOUIS PRUES - LSSM 40.0 X 108497 0 18128 MELANIE FLACHS - LSSM 40.0 X 115640 0 14819 KEN ULRICH - LSSM 40.0 X 71030 0 1904 SEAN DE FOUR - LSSM 40.0 X 13900 0 971 CYNTHIA HABERMAN 40.0 X 114736 11304 KRISTIE MCKENZIE 40.0 X 92283 5930 1655938 0 245628 14 false true false CLARK HILL 500 WOODWARD AVE SUITE 3500 DETROIT MI 482263435 LEGAL 368422 BDO USA LLP 200 OTTAWA AVENUE NW SUITE 300 GRAND RAPIDS MI 49503 AUDIT/ACCOUNTING 128700 DYKEMA GOSSETT PLLC 2723 S STATE ST STE 400 ANN ARBOR MI 48104 LEGAL 133314 PLUNKETT COONEY 535 GRISWOLD STE 2400 DETROIT MI 48226 LEGAL 121183 4 125698 8255501 7504228 82244 15885427 RESIDENT SERVICES 623000 44326604 44326604 CHILD CARE SERVICES 624100 16824207 16824207 PROGRAM SERVICE FEES 623990 10153841 10153841 71304652 572739 572739 0 0 97971 13400 84571 0 84571 84571 7372603 7582436 -209833 -209833 -209833 0 0 0 MANAGEMENT SERVICE TO EXEMPT ORGANIZATIONS 541610 656027 518090 137937 MISCELLANEOUS - NET 541860 1307183 1307183 INVESTMENT IN PARTNERSHIP 532000 -51 -51 14049 14049 1977208 89614764 73228494 137937 362906 X 0 12066063 12066063 0 0 1332424 1332424 0 38848152 36682902 1554586 610664 890860 711925 154081 24854 4229794 3641528 491342 96924 3967243 3696345 233774 37124 0 468052 393116 74936 117513 15000 102513 1672 1672 0 27985 27985 5556433 5348330 142628 65475 715753 598223 64141 53389 3205447 3028842 153418 23187 0 0 5809431 5587100 202160 20171 1613137 1484483 99015 29639 0 300959 190214 87376 23369 1926795 1728745 186978 11072 0 3253191 3116346 122868 13977 715316 625296 74817 15203 FOOD 1758572 1758572 BAD DEBT EXPENSE 218068 218068 DUES & MEMBERSHIPS 144225 115682 27301 1242 REPAIRS & MAINTENANCE 1632809 1488531 131813 12465 304951 185677 100366 18908 89104845 82680988 5366194 1057663 X 4522768 3875545 2315423 3558414 85338 591539 10495702 11436358 0 0 0 0 0 0 157924 127060 299475 364011 82401000 33068748 46721120 49332252 17290482 19047764 9094120 0 0 12211238 613550 525224 6851823 7157801 98447725 108227206 9966304 12272964 0 0 759285 1041789 39440000 38645000 0 2518770 0 0 4212525 7396615 0 0 9703719 8549718 64081833 70424856 X 23108366 24784832 3041000 4074207 8216526 8943311 34365892 37802350 98447725 108227206 X 509919 880710 2045829 X false true X true true true X false false false 8920108 8956473 10801464 17941143 15885427 62504615 0 0 8920108 8956473 10801464 17941143 15885427 62504615 0 62504615 307489 241744 338563 431166 515163 1834125 -5245 4937 -308 0 64338432 287962477 0.97150 0.89612 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false true 255 true 1769 true 31236 false false 33260 false ORGANIZATION'S POLITICAL CAMPAIGN ACTIVITIES PART I-A, LINE 1 Lutheran Social Services of Michigan does not engage in any political campaign activities. We work to shape state and federal public policy by educating public officials and advocating on specific issues including, but not limited to, aging services, child welfare, affordable housing, refugee services, persons with disabilities, and other nonprofit sector issues. We focus on policies that equip people for the dual role of caring for self and caring for others. By engaging in advocacy on public policy issues Lutheran Social Services of Michigan helps public officials better understand how policies affect their constituents - people and families in need of health care and social services; employers and employees; and people and organizations providing care and services. An allocation of personnel time and expense is provided for Line 1(g) lobbying costs. false true X 8521762 726785 1151733 178900 10221380 8505913 306047 -108351 181847 8521762 6732024 1227756 716349 170216 8505913 7279657 344490 7624147 6910539 369118 7279657 0.87496 0.12504 false false 2157932 2157932 70056078 33068748 36987330 1617861 1617861 6922084 6922084 1647045 1647045 49332252 LUTHERAN ADOPTION SERVICES 80569 C CHRISTIAN HOME HEALTH CARE 269965 C DANISH VILLAGE 8817758 C ADRIAN VILLAGE 3042946 C 12211238 DEFERRED COMP. INVESTMENTS 577640 FUNDS HELD IN TRUST-RESIDENTS 518048 INSURANCE RESERVE 45302 DEFERRED ANNUITY 522785 SYNDICATION COSTS 1234700 REPAIR ESCROW 59850 MORTGAGE ESCROW 46887 EMPLOYEE BENEFITS 508090 MISCELLANEOUS 4414 OTHER RESERVES 1268641 DEFERRED FINANCING FEES (NET) 165679 TAX CREDIT FEE 55630 FUND HELD IN TRUST-MAPLE CREEK 2150135 7157801 0 DEFERRED COMP LIABILITY 598723 MINORITY INTEREST IN PARTNERSH 2824256 CONSOLIDATED PARTNERSHIP DEBT 5126739 8549718 X 90844911 1244198 1244198 89600713 14051 14051 89614764 90620412 1515567 1515567 89104845 89104845 INTENDED USES OF ORGANIZATION'S ENDOWMENT FUNDS PART V, LINE 4 INVESTMENTS OF THE PERMANENTLY RESTRICTED NET ASSETS CONSIST OF MONEY MARKET FUNDS, CERTIFICATES OF DEPOSIT AND MUTUAL FUNDS WITH A TARGET ALLOCATION OF 65% IN EQUITIES AND 35% IN FIXED INCOME SECURITIES. ON A PERIODIC BASIS, THE FOUNDATION'S INVESTMENT COMMITTEE WILL PROJECT THE AVAILABLE FUNDS TO BE DISBURSED OUT OF THE ENDOWMENT FUND. BASED ON THIS PROJECTION, THE FOUNDATION'S EXECUTIVE COMMITTEE WILL SELECT AND APPROVE A DISBURSEMENT PLAN FOR THE RELATED PERIOD. DISBURSEMENTS ARE MADE TO SUPPORT THE OPERATIONAL AND CAPITAL NEEDS OF LSSM. THE DONORS OF THESE ASSETS PERMIT LSSM TO USE THE INCOME EARNED ON THE RELATED INVESTMENTS FOR GENERAL PURPOSES. THE LSSM FOUNDATION IS A WHOLLY-OWNED NOT FOR PROFIT SUBSIDIARY OF LSSM. DONORS CONTRIBUTE PERMANENTLY RESTRICTED NET ASSETS TO THE FOUNDATION THROUGH FIVE ENDOWMENT FUNDS. ACCUMULATED DEPRECIATION SCHEDULE D, PART VI, LINE 1(B)(C) ACCUMULATED DEPRECIATION IS NOT AVAILABLE BY ASSET CATEGORY. ORGANIZATION'S LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48 PART X, LINE 2 LSSM AND ITS SUBSIDIARIES FALL UNDER THE GROUP EXEMPTIONS GRANTED TO THE EVANGELICAL LUTHERAN CHURCH IN AMERICA BY THE INTERNAL REVENUE SERVICE. LSSM IS SIMILARLY EXEMPT FROM MICHIGAN TAXES. LSSM IS EXEMPT FROM FEDERAL INCOME TAXES DUE TO ITS STATUS AS A NOT-FOR-PROFIT CORPORATION UNDER INTERNAL REVENUE CODE SECTION 501(C)(3). THEREFORE NO PROVISION FOR INCOME TAX HAS BEEN MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. ALL SIGNIFICANT TAX POSITIONS HAVE BEEN EVALUATED BY MANAGEMENT. LSSM DOES NOT BELIEVE THAT ANY MATERIAL UNCERTAIN TAX POSITIONS EXIST AS OF DECEMBER 31, 2012. ESCROW AND CUSTODIAL ARRANGEMENTS SCHEDULE D, PART IV, LINE 2B LSSM HAS PHYSICAL CUSTODY OF ASSETS HELD IN TRUST WHICH ARE NOT AVAILABLE FOR ITS USE. THESE ASSETS MAY BE DISBURSED ONLY ON THE INSTRUCTIONS OF THE ORGANIZATION OR INDIVIDUAL FROM WHOM THEY ARE RECEIVED. FUNDS IN THE AMOUNT OF $518,048 INCLUDE FUNDS HELD IN TRUST FOR RESIDENTS, DEPOSITS AND PERSONAL FUNDS. THESE ASSETS ARE RECORDED AT FAIR VALUE AS OF DECEMBER 31, 2012. LSSM ALSO HOLDS $2,150,135 IN TRUST FOR RESIDENTS' ENTRY FEE DEPOSITS WITH MAPLE CREEK SENIOR LIVING, LLC. (SEE RELATED PARTY NOTE ON SCHEDULE O). RECONCILIATION OF REVENUE SCHEDULE D, PART XII, LINE 2D PARTNERSHIP REVENUE - $1,244,198 INTEREST RATE SWAP - $14,102 ADRIAN VILLAGE - $1 DANISH VILLAGE - $-52 RECONCILIATION OF EXPENSES SCHEDULE D, PART XIII, LINE 2D PARTNERSHIP EXPENSES - $1,515,567 true MISCELLANEOUS 2364 12066063 fmv GRANTS TO INDIVIDUALS DETAIL SCHEDULE I, PART I, QUESTION 2 The total assistance to individuals of $12,066,063 is as broken down as follows: $5,312,377 - Board and Care for Foster Children - Payments made to foster parents based on daily rates specified by the Michigan Department of Human Resources (DHS). $3,007,806 - Special Needs for Foster Children - Includes $2,307,972 of education and training vouchers (ETV) all of which are approved by the State, and actual costs of $562,820 for Refugee Child and Family that are reimbursed by DHS or Lutheran Immigration and Refugee Services. $3,466,736 - Special Needs for Refugees - The Refugee program monitors the data and reconciles and reports the spending for billing by individual case. The information is reconciled each month to the financial reports which are tied to the billings. $187,118 - Clothing for Foster Children; payments made to foster parents based on per child amounts specified by DHS. $23,700 - Christmas Gifts for Foster Children $4,799 - Clothing for Developmentally Disabled $63,496 - Other X X X true true X X X false true false false false false false false false MARK STUTRUD - LSSM 281000 0 44590 0 0 0 106250 0 13966 0 445806 0 0 0 RICHARD MARTIN - LSSM 152218 0 0 0 0 0 3800 0 10664 0 166682 0 0 0 JERRY BENJAMIN - LSSM 200879 0 15000 0 0 0 22388 0 12087 0 250354 0 0 0 VICKIE THOMPSON-SANDY - LSSM 151411 0 0 0 0 0 3782 0 298 0 155491 0 0 0 WENDY PERRY - LSSM 142876 0 0 0 0 0 3337 0 5358 0 151571 0 0 0 SUSAN HOUSEMAN - LSSM 151878 0 0 0 0 0 3791 0 6851 0 162520 0 0 0 SCHEDULE J ADDITIONAL INFORMATION SCHEDULE J, PART I LOUIS PRUES, DIRECTOR OF BUSINESS DEVELOPMENT SHOWN IN PART VII, IS AN ORDAINED MINISTER AND AS SUCH IS RESPONSIBLE FOR HIS OWN SOCIAL SECURITY. HIS COMPENSATION IS GROSSED UP TO REFLECT THE NORMAL ONE-HALF OF SOCIAL SECURITY AN EMPLOYER WOULD PAY. LSSM INSTITUTED A VARIABLE COMPENSATION PLAN IN 2012 IN WHICH KEY EMPLOYEES COULD EARN ADDITIONAL COMPENSATION BASED ON PERFORMANCE AGAINST FIVE PILLARS - FINANCE, PEOPLE, QUALITY, SERVICE AND INNOVATION. TIER I EMPLOYEES (ESSENTIALLY VPS) CAN EARN UP TO 15% OF THEIR BASE PAY BASED ON PERFORMANCE AGAINST OBJECTIVE TARGETS. TIER II EMPLOYEES (ESSENTIALLY DIRECTOR LEVEL) CAN EARN UP TO 10% BASED ON PERFORMANCE AGAINST OBJECTIVE TARGETS. RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B LSSM AND H-LINE EMPLOYEES (NON-CLERGY) PARTICIPATE IN A DEFINED-CONTRIBUTION REGULAR PENSION PLAN (PLAN). THE PLAN IS A QUALIFIED RETIREMENT PLAN UNDER SECTION 403(B) OF THE INTERNAL REVENUE CODE. THE PENSION BENEFITS ARE ADMINISTERED THROUGH THE EVANGELICAL LUTHERAN CHURCH OF AMERICA (ELCA) INSTITUIONAL PENSION PLAN. AN EMPLOYEE MUST BE 18 YEARS OF AGE AND HAVE WORKED FOR LSSM OR H-LINE FOR ONE YEAR TO BE ELIGIBLE TO PARTICIPATE IN THE PLAN. EMPLOYER CONTRIBUTIONS FOR THE YEAR ENDED DECEMBER 31, 2012 WERE $890,680 FOR ALL ELIGIBLE EMPLOYEES. LSSM HAS DEFERRED COMPENSATION PLANS WHICH ALLOW FOR ELECTIVE PARTICIPANT DEFERRALS. THERE IS NO REQUIRED EMPLOYER MATCH. THE PLANS ARE NOT INTENDED TO BE QUALIFIED PLANS UNDER THE PROVISIONS OF THE INTERNAL REVENUE CODE. THE PLANS ARE INTENDED TO BE UNFUNDED AND, THEREFORE, ALL COMPENSATION DEFERRED IS HELD BY LSSM AND COMBINED WITH ITS GENERAL ASSETS. HOWEVER, EMPLOYEE DEFERRALS ARE DEPOSITED INTO INSURANCE CONTRACTS OWNED BY LSSM. WITHIN THESE CONTRACTS, THE EMPLOYEES HAVE THE OPTION OF SELECTING A VARIETY OF INVESTMENTS. THE RETURN ON THESE UNDERLYING INVESTMENTS WILL DETERMINE THE AMOUNT OF EARNING CREDIT. BENEFITS CONSISTING OF THE ELECTIVE PARTICIPANT DEFERRALS AND ACCRUED INTEREST WILL BE PAYABLE UPON DEATH, DISABILITY, OR RETIREMENT. THE LIABILITY UNDER THESE PLANS TOTAL $598,723 AT DECEMBER 31, 2012. EFFECTIVE JANUARY 1, 2010, LSSM ESTABLISHED A 457(F) SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN FOR MARK STUTRUD, PRESIDENT. THE PLAN IS A NON-QUALIFIED, DEFERRED COMPENSATION ARRANGEMENT UNDER WHICH THE ASSETS ARE OWNED BY LSSM. UNDER THE TERMS OF THE PLAN, THE PARTICIPANT EARNS CREDITS BASED ON YEARS OF SERVICE AND FULLY VESTS AT RETIREMENT. LSSM IS RECOGNIZING THE EXPENSE INCURRED AS CREDITED SERVICE IS EARNED. EXPENSE OF $100,000 WAS RECOGNIZED IN 2012. LSSM ESTABLISHED A SECTION 457(b) PLAN IN 2011 AND RECOGNIZED EXPENSE OF $17,500 IN 2012. A ECONOMIC DEVELOPMENT CORP - CITY OF GRAND RAPIDS 521701965 386246HF2 2007-06-25 30350000 RENOVATE GRAND RAPIDS PROPERTY false false false B MICHIGAN STRATEGIC FUND 521417332 59469C6MO 2003-09-10 19195000 RE-FINANCE DEBT, RENOVATE FACILITY false false false A 8010000 0 30350000 0 0 0 605333 100003 0 29644664 0 0 2009 false false true true B 2890000 0 19195000 0 0 16344617 354862 385021 0 2110500 0 0 2006 false false true true A false false false false 0.00000 0.00000 0.00000 false false false true B false false false false 0 false false false true A true true true MORGAN STANLEY 10. false false false 0 false false B false true true true MORGAN STANLEY 23.58 true false false 0 false false A false B false PROCEDURES TO MONITOR 148 REQUIREMENTS 0 LSSM IS REQUIRED TO PERIODICALLY MONITOR THE REQUIREMENTS OF SECTION 148 AND MAINTAIN COMPLIANCE OR CURE VIOLATIONS IN ACCORDANCE WITH THE NON-ARBITRAGE AND TAX COMPLIANCE CERTIFICATE AND RELATED MEMORANDUM. PROJECT FUNDS HAVE BEEN FULLY DEPLOYED FOR THE PERMITTED INTENDED USES, AND NO LONGER REQUIRE PERIODIC REVIEW FOR COMPLIANCE. FORM 8038-T, EXCEPTION TO REBATE 0 FORM 8038-T WAS NOT ISSUED AS SPENDING OF THE BOND PROCEEDS COMPLIED WITH THE TWO-YEAR SPENDING EXCEPTION UNDER THE ARBITRAGE REBATE REQUIREMENTS. X 16208 THRIFT SHOP X 4 3533 SALES PRICE X 5 20232 MARKET QUOTATION X 42271 COST false true true FOOD CONTRIBUTIONS SCHEDULE M, PART I, LINE 19 A LOCAL FOOD BANK CONTRIBUTES FOOD THROUGHOUT THE YEAR AS SUPPLIES ARE AVAILABLE. VEHICLE CONTRIBUTIONS SCHEDULE M, PART I, LINE 32B LUTHERAN SOCIAL SERVICES OF MICHIGAN REFERS DONORS OF VEHICLES TO A THIRD PARTY WHO PREPARES THE VEHICLES FOR SALE. ONCE THE VEHICLE HAS BEEN SOLD, THE PROCEEDS NET OF EXPENSES ARE REMITTED TO LUTHERAN SOCIAL SERVICES OF MICHIGAN. RELATED PARTY DISCLOSURE - SUBSIDIARIES AND AFFILIATES SCHEDULE R THE LSSM FOUNDATION IS A WHOLLY-OWNED, NOT-FOR-PROFIT SUBSIDIARY OF LSSM. DONORS CONTRIBUTE PERMANENTLY RESTRICTED NET ASSETS TO THE FOUNDATION THROUGH THE ENDOWMENT FUNDS. H-LINE, INC., (D/B/A HEARTLINE) IS A WHOLLY OWNED, NOT-FOR-PROFIT SUBSIDIARY OF LSSM THAT PROVIDES TRANSITIONAL SERVICES FOR WOMEN EXITING THE CRIMINAL JUSTICE SYSTEM. MAPLE CREEK SENIOR LIVING, LLC IS A WHOLLY OWNED LLC OF LSSM THAT PROVIDES INDEPENDENT LIVING COMMUNITIES FOR SENIORS AT LSSM'S MAPLE CREEK CONTINUING CARE RETIREMENT COMMUNITY IN GRAND RAPIDS, MICHIGAN. THESE COMMUNITIES CONSIST OF APARTMENTS AND CONDOMINIUM-STYLE UNITS. ENTRY FEES ARE MAINTAINED IN SEPARATE ACCOUNTS AND ARE REPORTED AS FUNDS HELD IN TRUST. FIFTY PERCENT (50%) OF THE ENTRANCE FEE IS FULLY REFUNDABLE TO THE RESIDENT, WHILE MAPLE CREEK SENIOR LIVING, LLC CAN EARN UP TO THE REMAINING 50% DEPENDING ON THE ACTUAL LENGTH OF OCCUPANCY. THE REFUNDABLE PORTION OF THE ENTRANCE FEE IS REMITTED WHEN AN INDIVIDUAL TERMINATES THEIR RESIDENCY IN THE COMMUNITY. ENTRANCE FEES ARE AMORTIZED AND RECOGNIZED AS REVENUE BASED ON AN ESTIMATE OF THE AVERAGE LENGTH OF OCCUPANCY FOR ALL RESIDENTS. AT DECEMBER 31, 2012, ENTRY FEE DEPOSITS TOTALED $2,150,135 AND WERE PARTIALLY OFFSET BY A LIABILITY OF $2,038,156. LAKEVIEW CADILLAC HOLDINGS, LLC (LCH) WAS FORMED BY LSSM TO OWN THE ASSETS OF LAKEVIEW LUTHERAN MANOR. IN AUGUST 2011, LSSM TRANSFERRED AT BOOK VALUE THE PROPERTY TO LCH, WHO SUBSEQUENTLY ENTERED INTO A $7,628,700 HUD-INSURED MORTGAGE AGREEMENT TO RENOVATE THE FACILITY. THE BALANCE OF THE MORTGAGE NOTE AT DECEMBER 31, 2012 WAS $7,308,450. LSSM CONTINUES TO DO BUSINESS AS THE LAKEVIEW AND LEASES THE ASSETS FROM LCH. IN SEPTEMBER 2011, LSSM PURCHASED THE ASSETS AND FRANCHISE RIGHTS OF A HOME CARE ASSISTANCE COMPANY. LSSM REPORTS THIS ACTIVITY AS LUTHERAN IN-HOME CARE IN ITS FINANCIAL STATEMENTS. THE ASSETS ACQUIRED AND LIABILITIES ASSUMED AS A RESULT OF THE ACQUISITION ARE INCLUDED IN LSSM'S CONSOLIDATED BALANCE SHEETS AS OF THE ACQUISITION DATE. THE PURCHASE PRICE WAS ALLOCATED TO THE TANGIBLE AND IDENTIFIABLE INTANGIBLE ASSETS ACQUIRED AND LIABILITIES ASSUMED BASED ON THEIR ESTIMATED FAIR VALUES ON THE ACQUISITION DATE. IN 2012 LSSM TRANSFERRED ITS IN-HOME CARE ACTIVITY TO LUTHERAN IN-HOME CARE, WHICH INCREASED ITS NET ASSETS BY $582,995. DANISH VILLAGE GP, LLC IS THE WHOLLY OWNED GENERAL PARTNER OF DANISH VILLAGE LDHA, WHICH PROVIDES HOUSING FOR SENIORS AND DISABLED INDIVIDUALS IN ROCHESTER HILLS, MICHIGAN. THIS PARTNERSHIP WAS FORMED IN 2006 AND, IN 2007, PURCHASED AN ESTABLISHED HOUSING FACILITY FROM LUTHERAN HOUSING CORPORATION, AN AFFILIATE OF LSSM, FOR $7,140,000. DURING 2007, THE PARTNERSHIP REHABILITATED THIS HOUSING FACILITY. ADRIAN VILLAGE GP, LLC IS THE WHOLLY-OWNED GENERAL PARTNER OF ADRIAN VILLAGE LDHA, WHICH PROVIDES HOUSING FOR SENIORS AND FAMILIES IN ADRIAN, MICHIGAN. THIS PARTNERSHIP WAS FORMED IN 2012 AND PURCHASED AN ESTABLISHED HOUSING FACILITY FROM LUTHERAN HOUSING CORPORATION - ADRIAN, AN AFFILIATE OF LSSM, FOR $2,600,000. DURING 2013, THE PARTNERSHIP WILL REHABILITATE THIS HOUSING FACILITY AT A PROJECTED COST OF $5,236,380. HOPE DEVELOPMENT SOLUTIONS, LLC, A WHOLLY-OWNED LLC OF LSSM, WAS FORMED IN 2006 TO PROVIDE MANAGEMENT SERVICES FOR THE REHABILITATION OF THE PARTNERSHIPS' HOUSING FACILITIES. LSSM IS ONE OF TWO MEMBERS OF LUTHERAN ADOPTION SERVICES (LAS), A NOT-FOR-PROFIT CORPORATION. LSSM USES THE EQUITY METHOD TO RECORD ITS 50% EQUITY INTEREST IN LAS. LSSM'S 2012 EQUITY INTEREST IN LAS WAS $80,568. IN 2012 LSSM ACQUIRED A 50% MEMBERSHIP INTEREST IN CHRISTIAN HOME HEALTH CARE (CHHC), A NOT-FOR-PROFIT CORPORATION PROVIDING MEDICARE-CERTIFIED HOME HEALTH CARE. LSSM USES THE EQUITY METHOD TO RECORD ITS EQUITY INTEREST IN CHHC. FORM 990 REVIEW PROCESS PART VI, SECTION B, LINE 11B PRIOR TO SUBMISSION TO THE IRS, THE FORM IS PROVIDED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW. CONFLICT OF INTEREST POLICY PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE WRITTEN CONFLICT OF INTEREST POLICY BY MONITORING CONTRACTS, INVOICES, AND PERSONNEL, AND BY REQUESTING INFORMATION AT ALL BOARD MEETINGS. PROCESS FOR DETERMINING COMPENSATION PART VI, SECTION B, LINE 15 CEO COMPENSATION: THE EXECUTIVE COMMITTEE DETERMINES CEO COMPENSATION USING COMPARATIVE DATA COMPILED BY INTERNAL AND EXTERNAL HUMAN RESOURCE DIVISION SOURCES, ALONG WITH SPECIFIC GOAL ACHIEVEMENTS. OTHER TOP COMPENSATION: AT DIRECTION OF THE HUMAN RESOURCES DEPARTMENT, COMPARABLE DATA AND BUDGETARY GUIDELINES ARE USED TO DETERMINE COMPENSATION. AVAILABILITY OF DOCUMENTS TO THE PUBLIC PART VI, SECTION C, LINE 19 THE ORGANIZATION'S FORM 990 IS AVAILABLE UPON REQUEST. JERRY BENJAMIN HAS PUBLIC INSPECTION COPIES AVAILABLE AT 8131 EAST JEFFERSON, DETROIT, MI 48214. DISREGARDED ENTITY PRIMARY ACTIVITY SCHEDULE R, PART I HOPE DEVELOPMENT SOLUTIONS LLC PRIMARY ACTIVITY: TO DEVELOP AFFORDABLE HOUSING SOLUTIONS ADDITIONAL SCHEDULE R INFORMATION SCHEDULE R, PART V, LINE 2 LSSM'S BOARD OF DIRECTORS ELECTS THE MAJORITY OF THE BOARDS OF LUTHERAN HOUSING CORPORATION (FORMERLY D/B/A DANISH VILLABE), LUTHERAN HOUSING CORPORATION OF CHEBOYGAN (D/B/A GREBE VILLAGE), LUTHERAN HOUSING CORPORATION OF LANSING (D/B/A ALISON HOUSE), LUTHERAN HOUSING CORPORATION OF ALPENA (D/B/A LUTHER COMMUNITY MANOR), LUTHERAN HOUSING CORPORATION OF ANN ARBOR (D/B/A SEQUOIA PLACE), LUTHERAN HOUSING CORPORATION - CALVARY (D/B/A GATESHEAD CROSSING), LUTHERAN HOUSING CORPORATION OF ADRIAN (D/B/A ADRIAN VILLAGE) AND LUTHERAN HOUSING CORPORATION OF MONROE (D/B/A VILLAGE PINES OF MONROE), EACH OF WHICH IS A SEPARATE TAX-EXEMPT ORGANIZATION WHOSE PURPOSE IS AFFORDABLE HOUSING SOLUTIONS. LSSM HAS RECEIVABLES FROM THESE RELATED FACILITIES AND OTHER MANAGED FACILITIES TOTALING $152,017 AND LSSM PROVIDES MANAGEMENT SERVICES TO THESE FACILITIES FOR WHICH IT RECOGNIZED MANAGEMENT SERVICE REVENUE OF $570,284. JOINT VENTURE PARTICIPATION PART VI, SECTION B, LINE 16 DANISH VILLAGE LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP (THE ASSOCIATION) WAS FORMED AS A LIMITED PARTNERSHIP IN DECEMBER 2006 FOR THE PURPOSE OF CONSTRUCTING, OWNING, OPERATING, AND MANAGING HOUSING FACILITIES IN ROCHESTER HILLS, MICHIGAN FOR SENIORS AND DISABLED INDIVIDUALS. THE PROJECT IS A 150-UNIT APARTMENT COMPLEX. THE ASSOCIATION HAS ONE GENERAL PARTNER - DANISH VILLAGE GP, LLC AND ONE LIMITED PARTNER - GL-DANISH VILLAGE ROCHESTER HILLS LLC. ADRIAN VILLAGE LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP (THE ASSOCIATION) WAS FORMED AS A LIMITED PARTNERSHIP IN 2012 FOR THE PURPOSE OF CONSTRUCTING, OWNING, OPERATING, AND MANAGING HOUSING FACILITIES IN ADRIAN, MICHIGAN FOR SENIORS AND FAMILIES. THE PROJECT IS A 113-UNIT APARTMENT COMPLEX THE ASSOCIATION HAS ONE GENERAL PARTNER - ADRIAN VILLAGE GP, LLC AND TWO LIMITED PARTNERS - GL-ADRIAN VILLAGE APARTMENTS ADRIAN, LLC AND GREAT LAKES CAPITAL FUND MICHIGAN COMMUNITY LIMITED PARTNERSHIP XX-2. POLICIES OF DISREGARDED ENTITIES PART VI, SECTION B, LINE 12-16 ALTHOUGH THE DISREGARDED ENTITIES HAVE NOT ADOPTED ALL OF THESE GOVERNANCE POLICIES, THEY FOLLOW THE SAME POLICIES AS LSSM. DANISH VILLAGE GP, LLC AND ADRIAN VILLAGE GP, LLC SCHEDULE R, PART I DANISH VILLAGE GP, LLC IS THE GENERAL PARTNER OF DANISH VILLAGE LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP (DANISH VILLAGE LDHA). WHILE ALLOCATION OF THE PROFITS AND LOSSES ARE ALLOCATED 99.99% TO THE LIMITED PARTNERS AND 0.01% TO THE GENERAL PARTNER, IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REGARDING CONSOLIDATION OF SUBSIDIARIES, THE GENERAL PARTNER IS DEEMED TO CONTROL THE LIMITED PARTNERSHIP AND, THEREFORE, THE ACCOUNTS OF THE PARTNERSHIP ARE CONSOLIDATED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF LSSM. THE LIMITED PARTNER'S SHARE OF EQUITY, INCOME AND LOSS OF DANISH VILLAGE LDHA ARE REPORTED AS MINORITY INTEREST IN THE CONSOLIDATED FINANCIAL STATEMENTS. TOTAL ASSETS: $10,789,124 TOTAL LIABILITIES: $9,142,303 TOTAL NET ASSETS: $1,646,821 ADRIAN VILLAGE GP, LLC IS THE GENERAL PARTNER OF ADRIAN VILLAGE LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP (ADRIAN VILLAGE LDHA). WHILE ALLOCATION OF THE PROFITS AND LOSSES ARE ALLOCATED 99.99% TO THE LIMITED PARTNERS AND 0.01% TO THE GENERAL PARTNER, IN ACCORDANCE WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REGARDING CONSOLIDATION OF SUBSIDIARIES, THE GENERAL PARTNER IS DEEMED TO CONTROL THE LIMITED PARTNERSHIP AND, THEREFORE, THE ACCOUNTS OF THE PARTNERSHIP ARE CONSOLIDATED IN THE CONSOLIDATED FINANCIAL STATEMENTS OF LSSM. TOTAL ASSETS: $3,602,462 TOTAL LIABILITIES: $2,425,563 TOTAL NET ASSETS: $1,176,899 AFFILIATED ORGANIZATIONS INCLUDED FORM 990, LINE H(B) LSSM FOUNDATION 8131 E. JEFFERSON AVE. DETROIT, MI 48214 38-3201490 LUTHERAN IN-HOME CARE 8131 E. JEFFERSON AVE. DETROIT, MI 48214 38-2726270 H-LINE INC. 8131 E. JEFFERSON AVE. DETROIT, MI 48214 38-2726270 LAKEVIEW CADILLAC HOLDINGS, LLC 8131 E. JEFFERSON AVE. DETROIT, MI 48214 38-2726270 MAPLE CREEK SENIOR LIVING, LLC 8131 E. JEFFERSON AVE. DETROIT, MI 48214 38-2726270 RECONCILIATION OF NET ASSETS 990, PART XI, LINE 5 PARTNERSHIP REVENUE - 1,244,198 PARTNERSHIP EXPENSES - (1,515,567) MINORITY INTEREST IN PARTNERSHIP (INCOME) - 529,031 NET LOSS FROM AFFILIATE'S OPERATIONS - 311,951 TRANSFER OF NET ASSETS - 1,476,167 SIGNIFICANT PROGRAM SERVICES 990, PART III, QUESTION 2 ON APRIL 30, 2012, LSSM EXPANDED ITS IN-HOME SERVICE OFFERING THROUGH THE ACQUISITION OF A 50% MEMBERSHIP INTEREST IN CHRISTIAN HOME HEALTH CARE (CHHC), A NOT-FOR-PROFIT CORPORATION PROVIDING MEDICARE-CERTIFIED HEALTH CARE SUCH AS SKILLED NURSING, PHYSICAL THERAPY, ETC. IN THE CONSUMERS' HOME. OTHER PROGRAM SERVICES FORM 990, PART III, LINE 4D - OTHER PROGRAM SERVICES LSSM is Michigan's largest private refugee resettlement agency, providing sponsorship of refugees, immigration and related legal services, and assistance with resettlement and acculturation. We are Michigan's primary provider for job development and placement, English language training and citizenship services. In 2012, we supported the resettlement of 1,801 refugees. In addition, 1,011 refugees received employment assistance, and 709 youth were enrolled in our school program. After resettlement, the focus is to achieve self-sufficiency. LSSM owns and operates a community center in Saginaw - Neighborhood House. In 2012, Neighborhood House served 33,327 meals to 630 individuals, both at the community center and to home-bound senior community members. In addition, the center provided tutoring and after school recreation to 147 youth. LSSM maintains a 33-person residential center in Detroit that provides transitional services for women exiting the criminal justice system - Heartline. Heartline served 120 women in 2012. Of those women, 82% completed the program successfully. LSSM operates the Wayne County Family Center in Westland, Michigan's largest homeless shelter for families (parents with children and pregnant single women), housing up to 108 persons in 24 rooms, and offering an onsite licensed child care center. In 2012, the Wayne County Family Center provided 143 families with temporary housing, and provided information and referral services to an additional 1,670 families. LSSM manages 16 affordable housing communities; rental assistance is provided by the Department of Housing and Urban Development (HUD) based on income eligibility. Thirteen of these housing communities, located throughout the state, serve senior adults living independently; two serve families, and are located in Monroe and Adrian; and one, located in Lansing, serves physically disabled persons capable of living independently with our without a live-in-aide. In 2012, we served 1,069 residents in 891 households. Our properties continue to perform high on all HUD reviews, achieving an average score of 94%, demonstrating our commitment to high standards of maintenance and service. LSSM continues to develop its Home Care offering; our goal is to provide supports that enable consumers to attain and maintain their independence. We provide support for activities of daily living, home health and some behavioral health serving seniors, persons/children with disabilities and/or mental illness, and persons convalescing from an illness or surgery. In April of 2012, LSSM acquired a 50% membership interest in Christian Home Health Care, allowing us to offer Medicare-certified home health services such as skilled nursing, physical therapy, etc. In 2012, we served 588 consumers providing 299,610 hours of home care. HOPE DEVELOPMENT SOLUTIONS LLC 8131 E JEFFERSON AVE DETROIT MI 48214 205529686 SCHEDULE O MI 215355 NA DANISH VILLAGE GP LLC 8131 E JEFFERSON AVE DETROIT MI 48214 205529744 HOUSING ASSIS MI NA MAPLE CREEK SENIOR LIVING LLC 8131 E JEFFERSON AVE DETROIT MI 48214 HOUSING ASSIS MI -715250 19724505 NA LAKEVIEW CADILLAC HOLDINGS LLC 8131 E JEFFERSON AVE DETROIT MI 48214 HOLDING CO. MI NA ADRIAN VILLAGE GP LLC 8131 E JEFFERSON AVE DETROIT MI 48214 460876659 HOUSING ASSIS MI NA EVANGELICAL LUTHERAN CHURCH IN AMERICA 8765 W HIGGINS ROAD CHICAGO IL 60631 411568278 CHURCH IL 501(C)(3) 1 NA false LSSM FOUNDATION 8131 E JEFFERSON AVE DETROIT MI 48214 383201490 SOCIAL SERV. MI 501(C)(3) 7 LSSM false H-LINE INC 8131 E JEFFERSON AVE DETROIT MI 48214 382726270 SOCIAL SERV. MI 501(C)(3) 7 LSSM false LUTHERAN HOUSING CORPORATION 8131 E JEFFERSON AVE DETROIT MI 48214 382137550 SOCIAL SERV. MI 501(C)(3) 7 LSSM false LUTHERAN HOUSING CORP OF CHEBOYGAN 1035 STANLEY STREET CHEBOYGAN MI 49721 382593772 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN HOUSING CORPORATION OF ALPENA 210 WILSON ST ALPENA MI 49707 382534392 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN HOUSING CORP OF ANN ARBOR 8131 E JEFFERSON AVENUE DETROIT MI 48214 383112348 SOCIAL SERV. MI 501(C)(3) 7 LSSM false LUTHERAN HOUSING CORPORATION OF ADRIAN 8131 E JEFFERSON AVE DETROIT MI 48214 383258344 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN HOUSING CORPORATION OF MONROE 8131 E JEFFERSON AVE DETROIT MI 48214 383258345 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN ADOPTION SERVICE 8131 E JEFFERSON AVE DETROIT MI 48214 383330163 SOCIAL SERV. MI 501(C)(3) 7 LSSM false LUTHERAN NP HOUSING CORP - LANSING 8131 E JEFFERSON AVENUE DETROIT MI 48214 300141220 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN HOUSING CORPORATION - CALVARY 4950 GATESHEAD STREET DETROIT MI 48236 208466348 SOCIAL SERV. MI 501(C)(3) 9 LSSM false LUTHERAN IN-HOME CARE 8131 E JEFFERSON DETROIT MI 48214 453164676 HOME CARE MI 501(C)(3) 9 LSSM false CHRISTIAN HOME HEALTH CARE 42657 GARFIELD RD STE 217 CLARION TWP MI 48038 743252227 SOC. SERVICES MI 501(C)(3) 7 NA false DANISH VILLAGE LDHA LP 8131 E JEFFERSON AVE DETROIT MI 48214 202660328 LOW-INCOME HO MI NA RELATED -52 -533 false 0 true 0.00010 ADRIAN VILLAGE LDHA LP 8131 E JEFFERSON AVE DETROIT MI 48214 454532834 LOW-INCOME HO MI N/A RELATED 1 -2 false 0 true 0.00010 true false false true false false false false false true true true false true true false false true false