2012-09-17T14:12:47-05:00 2011-12-31 232932984 PARENTEBEARD LLC 1869 CHARTER LANE STE 301 LANCASTER PA 17601 990 2011-01-01 231365374 LUTHERCARE LUTH 7176261171 600 EAST MAIN STREET LITITZ PA 17543 WILLIAM KIELY 7176261171 2012-09-17 1 MICHAEL S FREY P00327329 7173935696 2011 2016-02-24 21:20:13Z CARL MCALOOSE 600 EAST MAIN STREET LITITZ PA 17543 75030521 0 9386 X WWW.LUTHERCARE.ORG X 1949 PA RENDERS SERVICES TO OLDER ADULTS THROUGH SUPERVISED RESIDENTIAL LIVING AND MEDICAL CARE. 13 12 883 592 0 0 3267456 3565356 37559804 39079970 1191876 1292603 424291 666725 42443427 44604654 0 19199 0 0 21095242 21497472 0 0 206625 20333379 21358366 41428621 42875037 1014806 1729617 103165390 101121755 81539188 82190691 21626202 18931064 X OUR MISSION IS TO ENHANCE THE QUALITY OF LIFE THROUGH THE FOLLOWING SERVICES: CREATIVE SENIOR LIVING OPPORTUNITIES; STRENGTHENED FAMILY LIFE THROUGH QUALITY CHILD CARE AND EARLY LEARNING CENTERS; APPROPRIATE SUPPORTS FOR PEOPLE IN THEIR HOMES; AND MEANINGFUL VOLUNTEER EXPERIENCE. LUTHERCARE PURSUES THESE ENDS 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, STRIVING TO REFLECT GOD'S LOVE FOR ALL PEOPLE. 0 0 19792049 20562969 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 WHO EXTEND COMPASSION AND CARING BEYOND THE LIMITATIONS OF STAFF CAPACITY. IN 2011 LUTHERCARE PROVIDED SKILLED NURSING CARE SERVICES FOR 536 OLDER ADULTS, FOR A TOTAL OF 74,072 CENSUS DAYS. 13549655 14077428 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. 652 OLDER ADULTS WERE PART OF THE RESIDENTIAL LIVING PROGRAM IN 2011, FOR A TOTAL OF 160,158 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 183 INDIVIDUALS FOR 43,744 CENSUS DAYS. 2543172 1727506 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. 572 CHILDREN AND INFANTS THROUGH AGE 12, WERE SERVED BY OUR PROGRAMS IN 2011. SUPPORT WAS PROVIDED THROUGH PUBLIC FUNDING, PRIVATE PAYMENT AND SCHOLARSHIP SUBSIDY. WE ALSO OPERATE A MENTORING PROGRAM FOR HOME DAY CARE PROVIDERS, AND WORKED WITH 6 CENTERS IN 2011. 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. 2610390 2712067 LUTHERCARE MANAGES THE CHILD CARE INFORMATION SERVICES PROGRAM IN LEBANON COUNTY, WHICH ASSISTS FAMILIES IN IDENTIFYING AFFORDABLE CHILD CARE OPTIONS AND OTHER SUPPORT SERVICES. 803 CHILDREN WERE SERVED THROUGH THIS PROGRAM. 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 $3,706,000 IN 2011. IN ADDITION, THE ORGANIZATION PROVIDED SERVICES TO CHILDREN IN THE CHILD CARE FACILITIES AND RECOGNIZED FORGONE CHARGES OF APPROXIMATELY $85,000 IN 2011. THE FORGONE CHARGES APPROXIMATE THE COST OF SERVICES PROVIDED. 2610390 2712067 38495266 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 0 1 199 0 1 883 1 0 0 0 0 0 1 1 0 0 0 0 X 13 12 0 0 1 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 PA X WILLIAM KIELY SR VP FINANCETREASURER 7176261171 600 EAST MAIN STREET LITITZ PA 17543 BARBARA O BRENEMAN 1.00 X 0 0 0 LILLIAN HERBENER 1.00 X 0 0 0 BERNARD J LAPINE 1.00 X X 0 0 0 JOHN H SAEGER 1.00 X X 0 0 0 ANNA LAURA THOMPSON 1.00 X 0 0 0 DAVID K STOUDT 1.00 X 0 0 0 REV DEBORAH L BRUMBAUGH 1.00 X 0 0 0 REV DR ROGER A BUCY 1.00 X 0 0 0 N STEVEN RICKER 1.00 X 0 0 0 ROBERT A BRANDT JR 1.00 X 0 0 0 DR JAMES M COX 1.00 X 0 0 0 REV ANDREW J EVENSON 1.00 X 0 0 0 GREGORY T HOLSINGER 1.00 X 0 0 0 WILLIAM KIELY 40.00 X 140844 0 5847 CARL MCALOOSE 40.00 X 243209 0 35428 BLAKE S DAUB 40.00 X 140479 0 19473 CURTIS B EVANS 40.00 X 140479 0 20354 WILLIAM SNYDER 40.00 X 140479 0 19379 JEFFREY S HIGH 40.00 X 104123 0 9450 MARK H DIFFENDERFER 40.00 X 101660 0 18022 1011273 0 127953 8 0 1 0 BENCHMARK CONSTRUCTION INC 4121 OREGON PIKE BROWNSTOWN PA 175080806 CONSTRUCTION SERVICES 5865369 SODEXO INC & AFFILIATES 4880 PAYSPHERE CIRCLE CHICAGO IL 60674 FOOD SERVICES 2339781 GENESIS REHABILITATION SERVICES PO BOX 7247-6524 PHILADELPHIA PA 19170 THERAPY REHAB SERVICES 1134148 FLAGSHIP REHABILITATION 157 BALTIMORE STREET CUMBERLAND MD 21502 THERAPY REHAB SERVICES 496880 PREMIER SOLUTIONS GROUP LLC 415 N PRINCE STREET SUITE 200 LANCASTER PA 17603 ADVANCED TECHNOLOGY COMMUNICATIONS 340754 15 58889 33889 2837044 635534 229 3565356 RESIDENT SERVICES 623000 36640140 36640140 DAYCARE AND DAY CAMPS 623000 1727506 1727506 NH ASSESSMENT REVENUE 623000 712324 712324 39079970 860000 860000 40819 31345 9474 9474 9474 30776945 9887 30313164 41065 463781 -31178 432603 432603 10925 33889 17812 -6887 -6887 44481 22481 22000 22000 BEAUTY/BARBOR SHOP 623000 217139 217139 OTHER INCOME 623000 196375 196375 TRUST INCOME 623000 88338 88338 140286 140286 642138 44604654 39079970 0 1959328 19199 19199 425329 425329 16808403 14803182 1906512 98709 557244 480668 74161 2415 1876402 1591092 275178 10132 1830094 1652355 165650 12089 56916 5297 51619 93875 19266 74609 2205 2205 20 20 5698165 5420826 250982 26357 215316 699 214617 3538223 3354296 159558 24369 32192 32192 5172815 5133674 39141 73839 62711 10455 673 134649 61217 69129 4303 4414219 4162674 250695 850 303823 276316 27507 BAD DEBTS 524479 504038 20441 NH ASSESSMENT TAX 388622 388622 MEDICAL SUPPLIES 385537 385537 BOOKS, DUES, SUBSCRIPTI 121215 53032 67583 600 202256 120565 76004 5687 42875037 38495266 4173146 206625 8351 11142 1128046 907226 425102 537282 5163195 4745296 1344787 1028042 114878782 56824437 51877420 58054345 41549860 34215242 53715 53715 1121380 1087427 493534 482038 103165390 101121755 3973928 3903520 186 23645950 23102140 48670000 47195000 1568940 1487847 3680370 6501998 81539188 82190691 X 17214238 14388402 386009 594006 4025955 3948656 21626202 18931064 103165390 101121755 X 1729617 -4424755 X X 0 1 1 X 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 1 100 0 0 1 100 0 1 2005 2205 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: 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 $2,005. 0 1 6522175 51264 44875 42588 6575726 5885656 10623 679849 53953 6522175 4663611 117392 1154676 50023 5885656 6151807 42377 -1455537 75036 4663611 0.77100 0.22900 0.00000 0 0 1680113 1680113 97055614 47079834 49975780 14573347 9744603 4828744 1569708 1569708 58054345 UNEARNED INCOME 26965 DEPOSITS HELD 712 INTEREST RATE SWAP AGREEMENT 6469837 GIFT CERTIFICATES PAYABLE 4484 6501998 44604654 42875037 1729617 363875 -4788630 -4424755 -2695138 43048234 363875 -1991913 -1628038 44676272 20 -71638 -71618 44604654 45743372 2868355 2868355 42875017 20 20 42875037 PART IV, LINE 2B: THE ORGANIZATION HANDLES THE FINANCES OF CERTAIN RESIDENTS. IN HANDLING THE FINANCES, THE ORGANIZATION COLLECTS FUNDS FROM RESIDENTS AND DEPOSITS THEM INTO A SEPARATE ACCOUNT BY FACILITY. THE FUNDS FOR HANDLING THE FINANCES ARE CONTAINED IN THE RESIDENT FUND ACCOUNTS, WHICH ARE REPORTED ON LINE 21 OF THE FORM 990 BALANCE SHEET. TYPICALLY, THE ORGANIZATION DEPOSITS CHECKS RELATED TO SOCIAL SECURITY AND PENSION PAYMENTS FOR THE RESIDENTS. AS THE RESIDENTS HAVE EXPENSES THAT ARE DUE, THE ORGANIZATION PAYS FOR THE EXPENSES OUT OF THE ORGANIZATION'S OPERATING CHECKING ACCOUNT. THE ORGANIZATION 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 ANY GIVEN TIME THE ORGANIZATION KNOWS HOW MUCH OF THE RESIDENT FUNDS ARE HELD. IN ADDITION, WHEN POTENTIAL RESIDENTS PUT DOWN A DEPOSIT TO HOLD A SPACE IN THE FACILITY PART OF THIS DEPOSIT IS REFUNDABLE. THESE FUNDS ARE HELD IN ESROW BY LUTHERCARE ON BEHALF OF THE RESIDENTS UNTIL THE DEPOSIT IS REFUNDED, IF NECESSARY, BASED ON THE TERMS OF THEIR CONTRACT. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: 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 EXEMPT PURPOSE OF THE ORGANIZATION AND ITS NEEDS AS IT RELATES TO ITS RESIDENTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: 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 2011 AND 2010. THE ORGANIZATION'S FEDERAL EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS FOR THE YEARS ENDED DECEMBER 31, 2008, 2009 AND 2010 REMAIN SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE. PART XI, LINE 8 - OTHER ADJUSTMENTS: UNREALIZED DEPRECIATION ON INTEREST RATE SWAP AGREEMENT -2,796,717. CHANGE IN VALUE OF DEFERRED GIFTS -140,376. IMPAIRMENT LOSS -1,851,537. TOTAL TO SCHEDULE D, PART XI, LINE 8: -4,788,630. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF DEFERRED GIFTS -140,376. IMPAIRMENT LOSS -1,851,537. PART XII, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSES -31,345. STORE EXPENSE -22,481. FUNDRAISING EVENTS DIRECT EXPENSES -17,812. PART XIII, LINE 2D - OTHER ADJUSTMENTS: FUNDRAISING EVENTS DIRECT EXPENSES 17,812. UNREALIZED DEPRECIATION ON INTEREST RATE SWAP AGREEMENT 2,796,717. STORE EXPENSE 22,481. RENTAL EXPENSES 31,345. ANNUAL GOLF TOURNAMENT 42864 32860 10004 12412 5400 42864 32860 10004 12412 5400 17812 -7808 1 LUTHERAN PLANNED GIVING OF CENTRAL AND NORTHEASTERN PA 355 MT LUTHER LANE MIFFLINBURG PA 17844 203978856 7500 SUPPORTING LOCAL SERVICES TO FOSTER COMMUNITY GOODWILL CITY OF LEBANON 400 SOUTH EIGHTH STREET LEBANON PA 17042 5000 SUPPORTING LOCAL SERVICES TO FOSTER COMMUNITY GOODWILL 2 0 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE PRESIDENT REVIEWS ALL REQUESTS FOR GIFTS AND SELECTS THE ORGANIZATIONS TO WHICH LUTHERCARE WILL CONTRIBUTE. THE ORGANIZATION IS MONITORED BY MANAGEMENT TO ENSURE THAT THE ORGANIZATIONS MEETS THE STANDARDS OF A CHARITABLE ORGANIZATION. X 1 1 X X X X X X 0 1 0 0 0 0 0 0 0 CARL MCALOOSE 243209 0 0 0 0 0 35215 0 213 0 278637 0 0 0 BLAKE S DAUB 140479 0 0 0 0 0 5619 0 13854 0 159952 0 0 0 CURTIS B EVANS 140479 0 0 0 0 0 5619 0 14735 0 160833 0 0 0 WILLIAM SNYDER 140479 0 0 0 0 0 5619 0 13760 0 159858 0 0 0 PART I, LINE 1A WILLIAM SNYDER, THE VP OF MARKETING AND PHILANTHROPY FOR THE ORGANIZATION AND AN ORDAINED MINISTER, RECEIVED A $35,000 HOUSING ALLOWANCE IN 2011. 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, 2011 WAS $25,487, WHICH REPRESENTED DEFERRED PAYMENTS FROM THE 2010 AND 2011 CALENDAR YEARS. LANCASTER COUNTY HOSPITAL AUTHORITY 236648018 514045ZP1 2010-11-30 10900000 TO REFUND CONSTRUCTION LOAN, RENOVATION/CONSTRUCTION AT LUTHER ACRES CAMPUS 0 0 0 10900000 19207 7734436 3049529 71045 2011 1 0 1 1 0 1 1 1 0 0.02790 0.00000 0.02790 1 0 1 1 PNC BANK 10.200000000000 0 0 0 0 0 BENCHMARK CONSTRUCTION ROBERT A BRANDT JR ROBERT A. BRANDT JR. IS CHAIRMAN OF BENCHMARK CONST. AND A BOARD MEMBER. 5865369 CONSTRUCTION SERVICES 0 FORM 990, PART VI, SECTION A, LINE 4 THERE WERE CHANGES MADE TO THE ORGANIZATION'S BY-LAWS REDUCING THE PORTION OF THE MEMBERS OF THE BOARD THAT ARE REQUIRED TO BE VOTING MEMBERS OF THE EVANGELICAL LUTHERAN CHURCH IN AMERICA CONGREGATIONS. IN ADDITION, A SUB-SECTION WAS ADDED TO THE SECTION CONCERNING MEETING NOTICES AND QUORUMS TO ALLOW ONE OR MORE DIRECTORS TO PARTICIPATE IN A MEETING BY MEANS OF CONFERENCE TELEPHONE OR SIMILAR COMMUNICATIONS. 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. ONCE THE BOARD AND MANAGEMENT ARE SATISFIED WITH THE FILING COPY, THE SENIOR VICE PRESIDENT OF FINANCE 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 363,875. UNREALIZED DEPRECIATION ON INTEREST RATE SWAP AGREEMENT -2,796,717. CHANGE IN VALUE OF DEFERRED GIFTS -140,376. IMPAIRMENT LOSS -1,851,537. TOTAL TO FORM 990, PART XI, LINE 5: -4,424,755. AUDIT OVERSIGHT: FORM 990, PART XII, LINE 2C THE FINANCIAL ADVISORY COMMITTEE ASSUMES RESPONSIBILITY FOR SELECTING THE ORGANIZATION'S INDEPENDENT AUDITORS. NO CHANGES HAVE BEEN MADE TO THE PROCEDURES FROM PRIOR YEARS.