2012-05-10T07:47:49-05:00 2011-06-30 WHITLEY PENN LLP 8343 DOUGLAS AVENUE STE 400 DALLAS TX 75225 990 2010-07-01 741323914 MEDINA CHILDREN'S HOME MEDI 8305892871 21300 STATE HIGHWAY 16 NORTH MEDINA TX 78055 KEVIN MCDONALD 8305892871 2012-04-27 1 2143939300 2010 2016-02-24 21:20:13Z KEVIN MCDONALD 21300 STATE HIGHWAY 16 NORTH MEDINA TX 78055 10745820 0 X WWW.MEDINACHILDRENSHOME.COM X 1958 TX OPERATING AND MAINTAINING A CHRISTIAN HOME FOR THE CARE OF CHILDREN. 14 13 0 0 0 0 9474203 8132686 98098 89118 675023 1098701 141795 -105477 10389119 9215028 31870 29957 0 0 3493498 3264228 0 0 796477 2688811 2675352 6214179 5969537 4174940 3245491 25326811 29790694 1215843 2112851 24110968 27677843 OPERATING AND MAINTAINING A CHRISTIAN HOME FOR THE CARE OF CHILDREN. 0 0 4674542 29957 90042 OPERATING AND MAINTAINING A CHRISTIAN HOME FOR THE CARE OF CHILDREN. 4674542 1 1 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 X 0 0 1 0 0 0 0 0 0 1 1 0 0 0 1 1 0 X 14 13 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X SCOTT STUMBO 8305892871 21300 STATE HIGHWAY 16 NORTH MEDINA TX 78055 X KEVIN MCDONALD 40.00 X X X 0 250000 0 CURTIS BEDRICH X X 0 0 0 GARY BINGHAM X X 0 0 0 KEN BAKER X X 0 0 0 BRUCE BARNARD X 0 0 0 JERRY BROWDER X 0 0 0 MIKE CALVERT X 0 0 0 JERRY S COX X 0 0 0 DON CRISP X 0 0 0 SCOT FOITH X 0 0 0 LORI MASSEY X 0 0 0 RANDY NICHOLSON X 0 0 0 DR TOM WINKLER X 0 0 0 JANA WOELFEL X 0 0 0 JAMES PENLAND 40.00 X 0 100500 0 SCOTT STUMBO 40.00 X 0 108269 0 CANDACE CAIN 40.00 X 0 113000 0 RICHARD BROWN 40.00 X 0 119000 0 0 690769 0 0 0 1 0 CONCRETE CONTRACTORS OF TEXAS 178 NORTH FOLK CIRCLE BANDERA TX 78003 CONSTRUCTION 127281 1 469717 7662969 2000930 8132686 RESIDENT SUPPORT FEES 624100 89118 89118 89118 410868 410868 28660 28660 1999248 66426 1286318 91523 712930 -25097 687833 687833 17890 469717 152951 -135061 -135061 MISCELLANEOUS INCOME 900099 924 924 924 9215028 90042 0 992300 29957 29957 150000 115192 7580 27228 2544675 1954173 128594 461908 100371 66379 6529 27463 266339 243051 -26683 49971 202843 154474 9319 39050 46691 7391 38847 453 123518 123518 95114 95114 22449 18106 4343 20446 8332 201 11913 306192 170702 21985 113505 29618 21814 3148 4656 357491 345096 9939 2456 114713 85096 1345 28272 5346 3645 829 872 242 194 48 437933 437933 195987 191221 4766 AUTO EXPENSE 324780 304702 2760 17318 ALLOWANCES AND ACTIVITI 225378 221572 603 3203 FOOD AND HOUSEHOLD EXPE 145099 143731 821 547 ANNUITY EXPENSE 66845 66845 MEDICAL EXPENSE 47793 47775 7 11 109717 104006 -1940 7651 5969537 4674542 498518 796477 5307145 3943603 1701246 1792661 146935 89131 47050 28065 51909 99572 11527908 5143777 6472098 6384131 9934861 15359954 1665567 2093577 25326811 29790694 268501 385255 947342 1727596 1215843 2112851 X 22204694 24607786 1320774 2484557 585500 585500 24110968 27677843 25326811 29790694 X 3245491 321384 X X 0 1 1 X 0 X 5663087 5154832 3151932 9474203 8132686 31576740 5663087 5154832 3151932 9474203 8132686 31576740 10339733 21237007 506144 487326 254797 309450 439528 1997245 849742 -125222 -107789 89941 -199663 507009 34080994 0.62310 0.63120 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 11896623 1287401 3448741 137271 95114 16400380 10930947 947990 17686 11896623 14629359 330022 -2920717 1107717 10930947 0.89600 0.05000 0.05300 0 0 1261528 1261528 6549580 3021176 3528404 1122331 798900 323431 2594469 1323701 1270768 6384131 CHARITABLE REMAINDER TRUST 1040425 CONTRIBUTED OTHER ASSETS 231300 CONTRIBUTED REAL ESTATE 122193 WORK IN PROGRESS 699659 2093577 CHARITABLE GIFT ANNUITIES 765197 DEFERRED COMPENSATION 321121 LIABILITY UNDER UNITRUST 641278 1727596 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ENDOWMENT FUND IS A RESERVE FUND TO SECURE THE CONTINUAL OPERATIONS OF THE HOME. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE ORGANIZATION FOLLOWS THE GUIDANCE UNDER FASB ASC TOPIC NO. 740, INCOME TAXES, WHICH PRESCRIBES A COMPREHENSIVE MODEL FOR THE FINANCIAL STATEMENT RECOGNITION, MEASUREMENT, PRESENTATION, AND DISCLOSURE OF UNCERTAIN INCOME TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN INCOME TAX RETURNS. MANAGEMENT BELIEVES THAT IT HAS NOT TAKEN A TAX POSITION THAT, IF CHALLENGED, WOULD HAVE A MATERIAL EFFECT ON THE ORGANIZATION'S CONSOLIDATED FINANCIAL STATEMENTS. THE ORGANIZATION FILES FORM 990 IN THE UNITED STATES FEDERAL JURISDICTION WITHIN THE UNITED STATES AND NO TAX RETURNS ARE CURRENTLY UNDER EXAMINATION BY ANY TAX AUTHORITIES. GOLF TOURNAMENT 199623 190183 9440 49017 25835 9628 1355 BENEFIT DINNER 193191 184741 8450 1489 47032 5291 6500 6804 3 94793 94793 487607 469717 17890 50506 72867 14919 6500 8159 152951 -135061 1 SCHOLARSHIPS 10 29957 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE ORGANIZATION PAYS THE FUNDS DIRECTLY TO THE EDUCATIONAL INSTITUTION. X X X X 0 0 0 0 0 0 0 0 0 KEVIN MCDONALD 0 225000 0 25000 0 0 0 0 0 0 0 250000 0 0 SUPPLEMENTAL INFORMATION PART III KEVIN MCDONALD IS EMPLOYED AS PRESIDENT AND CEO FOR ARMS OF HOPE, MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP. THIS BROAD ORGANIZATION ENCOMPASSES TWO DISTINCT CAMPUSES AND OUTREACH OPERATIONS THROUGHOUT THE STATE OF TEXAS INCLUDING DALLAS AND SAN ANTONIO. CONSULTATION WITH A REPUTABLE AND EXPERIENCED CONSULTANT CONSIDERING THE NEED AND TOTALITY OF HIS RESPONSIBILITIES FOR THIS IMPORTANT WORK WAS UTILIZED AND RELIED ON BY THE BOARD OF DIRECTORS TO DETERMINE ALL COMPONENTS OF HIS COMPENSATION. X 1777058 SALES REVENUE X 2 77419 MARKET PRICE X 1 120000 CONTRACTED VALUE X 1 25749 MARKET PRICE X MISCELLANEOUS 1 704 MARKET PRICE 0 0 0 FORM 990, PART V, LINE 1A: ARMS OF HOPE (EIN: 51-0416193), A RELATED ENTITY, PAID THE COMPENSATION FOR INDEPENDENT CONTRACTORS OF MEDINA CHILDREN'S HOME, INC. AND WAS REIMBURSED BY MEDINA CHILDREN'S HOME, INC. FOR THE EXPENSE. AS SUCH, ARMS OF HOPE FILED THE NECESSARY 1099S UNDER ITS NAME AND EIN, BUT THE COMPENSATION IS REPORTED ON THIS FORM 990. FORM 990, PART V, LINE 2A AND 2B: ARMS OF HOPE (EIN: 51-0416193), A RELATED ENTITY, PAID THE SALARIES OF EMPLOYEES OF MEDINA CHILDREN'S HOME, INC. AND WAS REIMBURSED BY MEDINA CHILDREN'S HOME, INC. FOR THE EXPENSES. AS SUCH, ARMS OF HOPE FILED THE NECESSARY W-2S AND W-3 UNDER ITS NAME AND EIN, BUT THE SALARIES ARE REPORTED ON THIS FORM 990. FORM 990, PART VI, SECTION B, LINE 11 A PRELIMINARY DRAFT OF THE FORM 990 AND RELATED SCHEDULES WAS REVIEWED BY THE CEO, CHAIRMAN OF THE BOARD, AND CHAIRMAN OF THE AUDIT COMMITTEE. THE REMAINING CURRENT BOARD MEMBERS RECEIVED A COPY FOR REVIEW PRIOR TO THE FILING OF THE COMPLETED FORM 990 AND RELATED SCHEDULES. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS USED AN INDEPENDENT COMPENSATION CONSULTANT AND COMPARABLE COMPENSATION FROM SIMILAR ORGANIZATIONS TO DETERMINE THE SALARY OF KEVIN MCDONALD, CEO. THE SALARY ARRANGEMENT WAS APPROVED BY THE BOARD OF DIRECTORS AND DOCUMENTED IN THE MINUTES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, FORM 990, AND AUDITED FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION AT ITS OFFICE UPON REQUEST. FORM 990, PART VII KEVIN MCDONALD IS EMPLOYED AS PRESIDENT AND CEO FOR ARMS OF HOPE, MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME, AND BOLES CHILDREN'S HOME REALTY COMPANY. THIS BROAD ORGANIZATION ENCOMPASSES TWO DISTINCT CAMPUSES WITH OUTREACH OPERATIONS THROUGHOUT THE STATE OF TEXAS, INCLUDING DALLAS AND SAN ANTONIO. IN HIS ROLE AS PRESIDENT AND CEO OF THESE ORGANIZATION, KEVIN MCDONALD SPLITS HIS TIME SO THAT HE SPENDS 60% OF HIS TIME WORKING WITH MEDINA CHILDREN'S HOME AND 40% OF HIS TIME WORKING WITH BOLES CHILDREN'S HOME. HOWEVER, ALL OF HIS COMPENSATION IS PAID FROM ARMS OF HOPE. KEVIN MCDONALD, JAMES PENLAND, AND SCOTT STUMBO ARE EMPLOYED DIRECTORS OF MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME, AND BOLES CHILDREN'S HOME REALTY CORP. THESE DIRECTORS PROVIDED SERVICES FOR THE ARMS OF HOPE ORGANIZATION, INCLUSIVE OF MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME, AND BOLES CHILDREN'S HOME REALTY CORP OUTREACH MINISTRIES. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 936,694. PRIOR PERIOD ADJUSTMENTS: -415,647. CHANGE IN VALUE OF SPLIT-INTEREST AGREEMENTS -199,663. TOTAL TO FORM 990, PART XI, LINE 5: 321,384. FORM 990, PART XI, LINE 2C: THE ORGANIZATION DID NOT MAKE ANY CHANGES TO ITS OVERSIGHT PROCESS OR SELECTION PROCESS DURING THE YEAR. ARMS OF HOPE, A TAX-EXEMPT ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, SUPPORTS MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP IN THE FORM OF PROVIDING GOVERNANCE AND LEADERSHIP THROUGH ITS RELATIONSHIP AS THE SOLE MEMBER OF BOTH MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP. AS SOLE MEMBER, ARMS OF HOPE HAS GOVERNANCE POWERS OVER BOTH MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP, SO MEMBERS OF ARMS OF HOPE'S BOARD OF DIRECTORS HAVE GOVERNANCE POWERS OVER BOTH MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP IN THE FORM OF EXERCISING ALL POWERS ARMS OF HOPE HAS OVER MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP AS THEIR SOLE MEMBER. THE MEMBERS OF ARMS OF HOPE'S BOARD OF DIRECTORS ONLY VOTE ON MATTERS RELATING TO MEDINA CHILDREN'S HOME, BOLES CHILDREN'S HOME AND BOLES CHILDREN'S HOME REALTY CORP THAT ARE RESERVED TO ARMS OF HOPE AS THEIR MEMBER IN THEIR BY-LAWS. ARMS OF HOPE 21300 STATE HWY 16 N MEDINA TX 780553808 510416193 OPERATING CHRISTIAN HOMES FOR THE CARE OF CHILDREN TX 501(C)(3) LINE 7 N/A 0 BOLES CHILDREN'S HOME 7065 LOVE QUINLAN TX 754744609 750904045 OPERATING CHRISTIAN HOMES FOR THE CARE OF CHILDREN TX 501(C)(3) LINE 7 ARMS OF HOPE 1 BOLES CHILDREN'S HOME REALTY CORP 7065 LOVE QUINLAN TX 754744609 752839971 SUPPORTING ORGANIZATION TX 501(C)(2) ARMS OF HOPE 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 BOLES CHILDREN'S HOME Q 1787084 CASH ARMS OF HOPE N 2694675 CASH ARMS OF HOPE O 287772 CASH