2012-11-14T14:15:28-06:00 2011-12-31 BDO USA LLP 200 OTTAWA AVE NW STE 300 GRAND RAPIDS MI 49503 990 2011-01-01 383087328 HENRY FORD VILLAGE INC % DAVID HENRY HENR 3135841000 15101 FORD ROAD DEARBORN MI 48126 STAN CLOUSE 2012-11-15 true Kathleen Guider 6167747000 2011 2016-02-24 21:20:13Z Stan Clouse 15101 FORD ROAD DEARBORN MI 48126 64120260 false X N/A X 1992 MI PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY LOCATED IN DEARBORN, MI WITH RECREATIONAL, SOCIAL, AND RELIGIOUS ACTIVITES FOR RESIDENTS. 10 10 721 454 0 3443190 372331 33648041 36721957 780988 1242683 -130510 -19371 37741709 38317600 0 0 0 0 18204452 18405022 0 0 0 20252461 19013452 38456913 37418474 -715204 899126 125877313 115565326 145701132 135454346 -19823819 -19889020 PROMOTION OF HEALTH FOR THE ELDERLY BY PROVIDING A CONTINUING CARE RESIDENTIAL COMMUNITY LOCATED IN DEARBORN, MI WITH RECREATIONAL, SOCIAL, AND RELIGIOUS ACTIVITIES FOR RESIDENTS. false false 36048672 36721957 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 APPROXIMATELY 856 INDEPENDENT LIVING UNITS (INCLUDING THREE GUEST ROOMS), 96 ASSISTED LIVING UNITS AND 89 SKILLED NURSING BEDS. AS OF DECEMBER 31, 2011 THERE WERE 836 OCCUPIED UNITS, WHICH CONSISTED OF 676 INDEPENDENT LIVING UNITS, 76 ASSISTED LIVING UNITS AND 84 SKILLED NURSING BEDS. 1,178 INDIVIDUALS WERE SERVED IN 2011. 36048672 true true false false false false false false true true true false false false true false 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 false true 46 0 true 721 true false false false false true true false false false false false X 10 10 false true false false false false false true true false false false true true true true true true true true true MI X DAVID HENRY 3138467270 15101 FORD ROAD DEARBORN MI 48126 LARRY VIDOVIC 4.0 X 0 0 0 KAREN ROSS 4.0 X 0 0 0 WALTER TALAMONTI 4.0 X 0 0 0 LYNN FORD ALANDT 4.0 X 0 0 0 GARY GLENN 4.0 X 0 0 0 JOHN BYRNE 4.0 X 0 0 0 GARY KUHLMANN 4.0 X 0 0 0 STAN CLOUSE 40.0 X 146750 0 31821 ROBERT SOWISLO 4.0 X 0 0 0 KEN HOLLOWAY 4.0 X 0 0 0 BOB MUELLER 4.0 X 0 0 0 JENNIE KLEPINGER 40.0 X 85531 0 7166 SUSAN ROSS 40.0 X 74714 0 22779 306995 0 61766 1 false true true LIFE CARE SERVICES LLC CAPITAL SQUARE 400 LOCUST SUITE 8 DES MOINES IA 503092334 MANAGEMENT SERVICES 1470833 GERARD MCMAHON 38623 DEERWOOD CT NORTHVILLE MI 48167 BUILDING IMPROVEMENT 193718 DRIVEN SOLUTIONS 320 W NINE MILE ROAD SUITE B FERNDALE MI 48220 ADVERTISING/MARKET. 307099 TOP FABRICATORS 3726 MONROE DEARBORN MI 48124 INSTALLATION 658607 GLYNNDEVINS ADVERTISING MARKETING 11230 COLLEGE BOULEVARD OVERLAND PARK KS 66210 ADVERTISING/MARKET. 194393 5 200004 172327 372331 NON-REFUNDABLE DEPOSIT 623000 1986492 1986492 OCCUPANCY REVENUE 623000 24819367 24819367 ANCILLARY FEES 623000 6160384 6160384 RESIDENT FEE AMORTIZATION 623000 3338952 3338952 LEASE REVENUE 623000 123008 123008 293754 293754 36721957 475864 475864 0 0 26569479 25802660 766819 766819 0 0 0 REALIZED LOSS ON FORWARD CONTRACT FOR UTILITIES -19371 -19371 38317600 36721957 475864 0 0 0 0 0 0 0 0 548542 0 548542 0 0 0 0 0 13980761 13980761 0 0 0 0 0 0 2716122 2580316 135806 0 1159597 1090021 69576 0 628286 628286 0 0 173536 20113 153423 0 88225 88225 0 0 0 0 0 0 0 0 67542 67542 0 0 410226 292778 117448 0 1099906 1099906 0 0 254504 198488 56016 0 170021 0 170021 0 0 0 0 0 1822819 1822819 0 0 94717 71313 23404 0 0 0 0 0 0 0 0 0 3036590 3036590 0 0 0 0 0 0 5084860 5084860 0 0 427569 427569 0 0 BLDG, GROUNDS & MAINTENANCE 951124 929153 21971 RESIDENT RELATIONS 38380 32185 6195 REAL ESTATE TAXES 505637 505637 SUPPLIES 3843419 3823433 19986 316091 268677 47414 37418474 36048672 1369802 0 665030 939540 2967878 3090662 0 0 2220806 2643634 0 0 0 0 995821 683077 131864 125084 265309 635241 155864846 60442834 98753246 95422012 17439385 9220221 0 0 0 0 0 0 2437974 2805855 125877313 115565326 3337705 3985292 0 0 0 0 41900872 41561628 937997 890023 0 0 2411027 0 0 0 97113531 89017403 145701132 135454346 X -20045439 -20122563 221620 233543 0 0 -19823819 -19889020 125877313 115565326 X 899126 -964327 X false true true X false X 149844 53861 58514 19513 372331 654063 36840352 37070973 38253483 37071718 36721957 185958483 36990196 37124834 38311997 37091231 37094288 186612546 0 0 0 0 0 0 186612546 1020634 546176 530106 537747 475864 3110527 1020634 546176 530106 537747 475864 3110527 0 0 0 -130510 -19371 -149881 38010830 37671010 38842103 37498468 37550781 189573192 0.98438 0.96799 0.01641 0.02070 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true 221620 111704 24659 124440 233543 -4090 157031 229794 161115 221620 88701 132475 -73678 151588 -4090 235262 122547 -145116 123992 88701 4992523 4992523 142321635 53701275 88620360 269497 268098 1399 4508609 3784180 724429 3772582 2689281 1083301 95422012 0 RESIDENT DEPOSITS 87205551 OTHER NON-CURRENT LIABILITIES 0 FUNDS HELD FOR RESIDENTS 86218 REFUNDS DUE TO RESIDENTS 974033 CLAIMS RESERVE 587170 ACCOUNTS PAYABLE - RELATED PARTY 164431 89017403 38317600 37418474 899126 -976250 -976250 -77124 35493995 -976250 -976250 36470245 1847355 1847355 38317600 35571119 35571119 1847355 1847355 37418474 RECONCILIATION OF REVENUE SCHEDULE D, PAGE 4, PART XII, LINE 4B CHANGE IN REALIZED GAIN/LOSS ON INVESTMENTS $766,819, CHANGE IN REALIZED GAIN/LOSS ON FORWARD CONTRACT ($19,371), MARKETING COSTS $1,099,906. RECONCILIATION OF EXPENSES SCHEDULE D, PAGE 4, PART XIII, LINE 4B CHANGE IN REALIZED GAIN/LOSS ON INVESTMENTS OF $766,819, CHANGE IN REALIZED GAIN/LOSS ON FORWARD CONTRACT OF ($19,371), AND MARKETING COSTS OF $1,099,906. FIN 48 DISCLOSURE FORM 990, SCHEDULE D, PAGE 4, PART XIV 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 MATERIAL UNCERTAIN TAX POSITIONS. ENDOWMENT FUNDS 990, SCHEDULE D, PART V, LINE 4 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 12/31/2011 WAS $233,543, which is comprised of $41,655 in the staff appreciation fund and a $191,888 interest in the net assets of the henry ford village foundation. ESCROW ACCOUNTS FORM 990, SCHEDULE D, PAGE 2, PART IV 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 12/31/2011, Escrow cash and advance deposits were $1,054,146 and $890,023, respectively. X X false false false true false false false false false JENNIE KLEPINGER 74375 0 11156 0 0 0 0 0 7166 0 92697 0 0 0 SUSAN ROSS 68911 0 5803 0 0 0 0 0 22779 0 97493 0 0 0 STAN CLOUSE 120375 0 26375 0 0 0 0 0 31821 0 178571 0 0 0 CONTINGENT FEES BASED ON REVENUE FORM 990, SCHEDULE J, PAGE 1, LINE 5A HENRY FORD VILLAGE, INC. (HFV) HAd CONTRACTED WITH Erickson Living Management, LLC (ELM) TO PROVIDE MANAGEMENT SERVICES AND CERTAIN ADMINISTRATIVE SUPPORT UNDER A MANAGEMENT AGREEMENT that expired on November 30, 2010 but was extended through December 31, 2010. On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services. The LCS contract term is for five years. HFV pays a monthly management fee equal to the greater of $50,000 or 2% of operating revenues through May 31, 2011. Management fees due on and after June 1, 2011 will vary based upon quarterly operating results of the prior period. For the period December 1, 2011 through November 30, 2012, management fees paid will not be less than $450,000 and will not exceed $899,000. In subsequent years, the minimum and maximum payment shall be adjusted based on an agreed-upon index. Compensation paid to LCS was $628,286 during 2011. 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. Other corporate services that HFV may obtain are not required contractually and will be on an as needed basis. EDC OF CITY OF DEARBORN 521310485 242563AWY 2008-10-01 42535000 REFINANCE A 1998 VAR. RATE BOND true false false 0 0 41842922 3317550 0 34540625 836858 0 0 3147889 0 3984747 2008 true false true true false false false false false false 0.00000 0.00000 0.00000 true false false false 0 false 0 false false SECTION B. POLICIES FORM 990, PAGE 6, PART VI, SECTION B, QUESTION 11A DAVID HENRY (DIRECTOR OF FINANCE) AND A MEMBER OF THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS REVIEW THE 2011 form 990 PRIOR TO FILING. SECTION B. POLICIES FORM 990, PAGE 6, PART VI, SECTION B, QUESTION 12C 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. SECTION B. POLICIES FORM 990, PAGE 6, PART VI, SECTION B, QUESTION 15B MANAGEMENT (HENRY FORD VILLAGE, INC. & LIFE CARE SERVICES, LLC) CONDUCTS MARKET SURVEYS ON AN ANNUAL BASIS TO DETERMINE IF AN EQUITY ADJUSTMENT IS NEEDED. BASED ON THIS INFORMATION MANAGEMENT RECOMMENDS ANNUAL SALARIES, TYPICALLY A % INCREASE OVER PRIOR YEAR. THE BOARD APPROVES THE BUDGET ON AN ANNUAL BASIS. PART X FORM 990, PAGE 11, PART X, LINE 7 PROMISSORY NOTES RECEIVABLE CONSIST OF SHORT-TERM RECEIVABLES RELATED TO THE PAYMENT OF THE FINAL INSTALLMENT OF A RESIDENT DEPOSIT. OFTEN THERE IS A TIMING DIFFERENCE BETWEEN THE SALE OF THE PROSPECTIVE RESIDENT'S HOME AND THE DUE DATE OF THE FINAL INSTALLMENT ON THE RESIDENT DEPOSIT. IN THESE CASES, A SHORT-TERM PROMISSORY NOTE IS ISSUED TO THE RESIDENT. IF THE RESIDENT PAYS THE NOTE ON OR BEFORE THE AGREED UPON DUE DATE, NO INTEREST IS CHARGED. IF THE RESIDENT DOES NOT PAY THE NOTE BY THE AGREED UPON DUE DATE, INTEREST IS CHARGED FROM THE DAY THE NOTE WAS ISSUED, THROUGH THE DATE OF PAYMENT. SOME PROMISSORY NOTES ARE EXTENDED WITH OR WITHOUT INTEREST WITH MANAGEMENT APPROVAL. PROMISSORY NOTES RECEIVABLE WERE $25,000 AS OF DECEMBER 31, 2011. PART X FORM 990, PAGE 11, PART X, LINE 15 Deferred financing costs related to the 2008 issuance of bonds totaled $1,004,757 and will be amortized over the bond term of 35 years. Amortization of deferred financing costs in the year ended December 31, 2011 was $43,819. Deferred financing fees, net of accumulated amortization, was $861,835 as of December 31, 2011. Other assets included on line 15 include: Interest in net assets of Charitable Foundation $191,888 Other designated Funds -$2,263,142 Restricted Funds $3,865,626 PART X FORM 990, PAGE 11, PART X, LINE 25 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. NET RESIDENT DEPOSITS LIABILITY WAS $87,205,551 AS OF DECEMBER 31, 2011. SCHEDULE O SCHEDULE O, GENERAL INFORMATION 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. effective December 1, 2010. 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 BOARD ALSO SERVE ON THE HENRY FORD VILLAGE FOUNDATION BOARD OF DIRECTORS. SCHEDULE O SCHEDULE O, GENERAL INFORMATION On December 1, 2010, HFV contracted with Life Care Services (LCS) for management services and terminated its relationship with Erickson Living Management, LLC on December 31, 2010. The LCS contract term is for five years. HFV pays a monthly management fee equal to the greater of $50,000 or 2% of operating revenues through May 31, 2011. Management fees due on and after June 1, 2011 will vary based upon quarterly operating results of the prior period. Management fees incurred related to LCS for the year ended December 31, 2011 were $1,470,833. For the period December 1, 2011 through November 30, 2012, management fees paid will not be less than $450,000 and will not exceed $899,000. In subsequent years, the minimum and maximum payment shall be adjusted based on an agreed-upon index. 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. Other corporate services that HFV may obtain are not required contractually and will be on an as needed basis. SCHEDULE O FORM 990, PAGE 9, PART VIII, LINE 2E HENRY FORD VILLAGE, INC. LEASES SPACE TO VARIOUS ENTITIES FOR THE PROVISION OF SERVICES SUCH AS PHYSICIAN CARE, DENTAL CARE, AND COSMETOLOGY SERVICES. THESE SERVICES ARE PROVIDED solely FOR THE CONVENIENCE OF THE RESIDENTS OF HENRY FORD VILLAGE. SECTION C. DISCLOSURE PAGE 6, PART VI, LINE 18 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. SECTION B. POLICIES FORM 990, PAGE 6, PART VI, SECTION B, QUESTION 16a & 16b HFV participates in a high deductible (pooled) professional and general liability insurance plan with Erickson Living Management, LLC (ELM) and other communities managed by ELM. The plan has a $1,000,000 deductible with a $3,000,000 professional and general liability aggregate. To the extent a participant incurs a loss, all participants will share in paying for that loss, subject to the deductible and the aggregate limits. This program covered incurrence periods from 2004 to 2010. In 2011, HFV enrolled in a more traditional insurance plan. HFV participates in a high deductible (non-pooled) workers compensation plan with ELM and other communities managed by ELM. The program has a $250,000 deductible per occurrence and an $8,076,000 aggregate. Participants are responsible for 100% of their specific losses. This program covered incurrence periods from 2004 to 2010. In 2011, HFV enrolled in a more traditional insurance plan. The cost of these plans is included in salaries, wages and benefits, and insurance expense in the statements of operations. PART V FORM 990, PAGE 5, PART V, LINES 6A & 6B 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 THE FUND ARE NON TAX-DEDUCTIBLE. PART XI PART XI, LINE 5, OTHER CHANGES IN NET ASSETS OR FUND BALANCES THIS AMOUNT REFLECTS PRIOR-PERIOD RESTATEMENTS OF ACCUMULATED DEPRECIATIION, DEPRECIATION EXPENSE, AND UNRESTRICTED NET DEFICIT. SCHEDULE O PRIOR PERIOD ADJUSTMENT Certain errors resulting from an understatement of depreciation expense in prior years were discovered during the current year. Accordingly, an adjustment of ($2,852,966) was made to HFV's accumulated depreciation and unrestricted net deficit as of December 31, 2009. In addition, the 2010 financial statements have been restated to reflect an additional $842,309 of depreciation expense. The original unrestricted net deficit of $16,350,164 reported in the 2010 financial statements has been increased by $3,695,275, resulting in the restated balance of ($20,045,439). HENRY FORD VILLAGE FOUNDATION 15101 FORD ROAD DEARBORN MI 48126 542159197 SUPPORT MI 501(C)(3) 11 NA false false true true false false false false false false true false true true false false false false HENRY FORD VILLAGE FOUNDATION C 200004 AUDITED F.S. HENRY FORD VILLAGE FOUNDATION D 658077 AUDITED F.S. HENRY FORD VILLAGE FOUNDATION K HENRY FORD VILLAGE FOUNDATION M HENRY FORD VILLAGE FOUNDATION N