2019-05-10T17:30:36-05:00 2018-06-30 350921680 CROWE LLP 225 West Wacker Drive Suite 2600 Chicago IL 606061224 990 2017-07-01 351124441 Franciscan Communities Inc FRAN 3313185200 11500 Theresa Drive Lemont IL 604392727 Richard D Truesdale Director of Finance 2019-05-10 true Nicole Bencik P00756195 3128997000 2017 2019-02-21 02:37:17Z Judy Amiano 11500 Theresa Drive Lemont IL 604392727 130422558 false 0928 X www.franciscancommunities.com X 1940 IN ORGANIZED AND OPERATED EXCLUSIVELY FOR THE CHARITABLE AND RELIGIOUS PURPOSE TO SUPPORT THE MINISTRIES OF THE FRANCISCAN SISTERS OF CHICAGO. 3 2 2383 508 0 0 1167917 443306 114744541 118159724 3344023 5007484 465081 403422 119721562 124013936 0 0 0 0 58370189 61826333 0 0 417539 58632174 59025407 117002363 120851740 2719199 3162196 232088005 233179648 227281673 228456871 4806332 4722777 X THE MISSION OF FRANCISCAN COMMUNITIES INC. ("FRANCISCAN COMMUNITIES") IS TO CELEBRATE LIFE AND SERVE WITH JOY. (CONTINUED ON SCHEDULE O). false false 62251457 61201293 NURSING HOME CARE: FRANCISCAN COMMUNITIES PROVIDES NURSING CARE SERVICES TO MEET THE PHYSICAL, SOCIAL, AND SPIRITUAL NEEDS OF THE RESIDENTS. SOME OF THE AMENITIES PROVIDED INCLUDE PERSONALIZED CARE PLANS, LICENSED NURSING STAFF, THREE MEALS DAILY, SNACKS, HOUSEKEEPING, MAINTENANCE, RELIGIOUS AND LIFE ENRICHMENT ACTIVITIES, AND SECURITY. THE AVERAGE DAILY CENSUS APPROXIMATED 473 IN FISCAL 2018. 20294560 23153660 ASSISTED LIVING: FRANCISCAN COMMUNITIES PROVIDES ASSISTED LIVING SERVICES TO ALLOW RESIDENTS TO RECEIVE THE ASSISTANCE THEY NEED WHILE MAINTAINING AN ACTIVE LIFESTYLE. THESE SERVICES ARE DESIGNED TO MEET THE PHYSICAL, SOCIAL AND SPIRITUAL NEEDS OF THE RESIDENTS. ACCOMMODATIONS INCLUDE EFFICIENCIES, STUDIOS, AND ONE BEDROOM UNITS. SOME OF THE AMENITIES PROVIDED INCLUDE THREE MEALS DAILY, SNACKS, HOUSEKEEPING, MAINTENANCE, SECURITY, AND RELIGIOUS AND LIFE ENRICHMENT ACTIVITIES. IN ADDITION, STAFF IS AVAILABLE TO PROVIDE ASSISTANCE WITH ACTIVITIES OF DAILY LIVING TO MEET EACH RESIDENT'S NEEDS.THE AVERAGE CENSUS IN ASSISTED LIVING APPROXIMATED 330 IN FISCAL 2018. 20231976 21444534 INDEPENDENT LIVING: FRANCISCAN COMMUNITIES PROVIDES INDEPENDENT LIVING SERVICES TO ALLOW RESIDENTS TO ENJOY ACTIVE AND INDEPENDENT LIFESTYLES. THESE SERVICES ARE DESIGNED TO MEET THE PHYSICAL, SOCIAL AND SPIRITUAL NEEDS OF THE RESIDENTS. ACCOMMODATIONS INCLUDE GARDEN HOMES, VILLAS, AND APARTMENTS. SOME OF THE AMENITIES PROVIDED INCLUDE DINING, HOUSEKEEPING, MAINTENANCE, TRANSPORTATION, HEALTH AND FITNESS, RELIGIOUS AND LIFE ENRICHMENT ACTIVITIES, SECURITY, AND AN EMERGENCY RESPONSE SYSTEM.THE AVERAGE CENSUS IN INDEPENDENT LIVING APPROXIMATED 590 IN FISCAL 2018. 11789500 STATE OF INDIANA INTERGOVERNMENTAL TRANSFER PROGRAM, AND RENTAL AND MANAGEMENT SERVICE INCOME RELATED TO EXEMPT ORGANIZATIONS. EFFECTIVE MARCH 1, 2014, A LEASE AGREEMENT WAS ENTERED INTO WITH A COUNTY HOSPITAL, HANCOCK REGIONAL HOSPITAL, TO LEASE THE OPERATIONS OF THE NURSING FACILITY AND CERTAIN HOUSING SERVICES AT ST. ANTHONY TO THE HOSPITAL. 11789500 102777993 true true false false false false false true true true false false false true true false true false false false false false false true false false false false true true false false false false false false false false false false true false false false false true false false false true 220 0 2383 true false false false false false true true true false false false X 3 2 true false false false true true true true true false false true true true true true true true false false IL IN OH X Richard D Truesdale 3313185200 11500 Theresa Drive Lemont IL 604392727 Sister M Francis Clare Radke Chairman 0.2 0.8 X X 0 0 0 Judy L Amiano President & Chief Executive Officer 0.3 39.7 X X 0 565753 68249 James Stark Vice-Chairman 0.2 0.8 X X 0 0 0 Andrew Duren Secretary 0.2 0.8 X 0 0 0 Ronald K Tinsley (thru May '18) Treasurer & Chief Financial Officer 0.3 39.7 X 0 371084 50668 Daniel Noonan (as of May '18) Treasurer & Chief Financial Officer 0.3 39.7 X 0 0 0 Denise Boudreau Assistant Secretary 0.3 39.7 X 0 58666 10886 Tracy A Shearer Assistant Secretary 0.3 39.7 X 0 78315 13834 Linda O'Neill Executive Director - St. Anthony Village 40.0 0 X 381662 0 20512 Danniel J Bannon Executive Director - Franciscan Village & Marian Village 40.0 0 X 195622 0 31338 Calvin Isaacson Executive Director - Victory Lakes 40.0 0 X 179162 0 26687 Patrick Welsh Executive Director - Mt. Alverna Village 40.0 0 X 154393 0 44027 Dawn Cohn Executive Director - Addolorata Villa 40.0 0 X 150871 0 43037 Brian Celerio Executive Director - St. Joseph Village 40.0 0 X 139869 0 12045 Cathy L Wood Director of Nursing 40.0 0 X 134016 0 5231 Alpana Patel Administrator III 40.0 0 X 127639 0 9031 Margaret Rogers Director of Sales & Marketing 40.0 0 X 120009 0 15182 Elizabeth Starman Director of Sales & Marketing 40.0 0 X 113523 0 35365 1696768 1073819 386095 13 false true false Franciscan Sisters of Chicago Service Corporation 11500 Theresa Drive Lemont IL 60439 Management Services 7008926 Symbria Rehab 28100 Torch Parkway Suite 600 Warrenville IL 60555 Therapy 5082869 Synergy Construction Group LLC 2037 W Carroll St Chicago IL 60612 Construction 1081863 Zentel Tech LLC 1921 Cherry Hill Rd Joliet IL 60433 HVAC 254563 Allied Universal Security Services 161 Washington St Ste 600 Eight Tower Bridge Conshohock PA 19428 Security 155088 12 X 119776 323530 37299 443306 NET SERVICE REVENUE 623000 105799487 105799487 CONTRACTED LABOR and Facility Lease 623000 11456791 11456791 OFFICE RENTAL INCOME - EXEMPT ORGANIZATIONS 621300 792273 792273 Residential Rental Income 623990 111173 111173 0 0 0 0 118159724 1292597 1292597 367981 367981 18314 0 18314 0 18314 18314 8614458 1054378 6321930 2292528 1054378 3346906 3346906 125768 119776 86692 39076 39076 MANAGEMENT SERVICES - RELATED EXEMPT ORGANIZATIONS 900099 -570737 -570737 CAFETERIA, DELI AND VENDING 900099 349610 349610 Dining Services 900099 171820 171820 395339 0 0 395339 346032 124013936 117588987 0 5981643 X 0 0 1131036 339311 791725 49208314 43733289 5267600 207425 910191 808921 97433 3837 6899138 6131525 738532 29081 3677654 3226356 436097 15201 7008926 7008926 86675 86675 114198 114198 316514 316514 13115391 12425024 678560 11807 309461 309461 6656017 5900349 717907 37761 4127520 4127520 233698 54179 177287 2232 28327 11836 13903 2588 6881678 6881678 10462686 10462686 2132740 2132740 MEDICAL SUPPLIES 3447537 3447537 PROVIDERS TAX 1482306 1482306 Bad Debt Expense 937333 937333 Minor Equipment Purchase 110793 110335 458 1573607 565068 900932 107607 120851740 102777993 17656208 417539 22667 6935 18059556 15449727 5428140 5494089 0 0 0 604364 657124 3168748 2991676 282153803 156537811 128106547 125615992 75232132 81564716 0 0 1465851 1399389 232088005 233179648 11823128 14852037 58115954 58505539 155218856 153009391 75582 75504 0 2048153 2014400 227281673 228456871 X -2238987 -2287131 6497853 6462442 547466 547466 4806332 4722777 232088005 233179648 X 3162196 -245751 -3000000 X false true X true false X 1236381 976787 832543 1167917 348048 4561676 108257800 109267285 111646078 114744541 118159724 562075428 296057 303304 279275 340622 406992 1626250 0 0 109790238 110547376 112757896 116253080 118914764 568263354 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 568263354 1328425 1236984 1271260 1466518 1678892 6982079 0 1328425 1236984 1271260 1466518 1678892 6982079 0 1196937 1227357 9712 108064 -12658 2529412 112315600 113011717 114038868 117827662 120580998 577774845 0.9835 0.9837 0.0121 0.0114 X Schedule A, Part III, Line 12 Other Income DESCRIPTION - MANAGEMENT SERVICES TO RELATED ORGANIZATIONS, COLUMN A - 458435.0, COLUMN B - 945136.0, COLUMN C - -260616.0, COLUMN D - -202311.0, COLUMN E - -570737.0, COLUMN F - 369907.0; DESCRIPTION - MISCELLANEOUS REVENUE, COLUMN A - 67268.0, COLUMN B - 198573.0, COLUMN C - 243592.0, COLUMN D - 248586.0, COLUMN E - 210198.0, COLUMN F - 968217.0; DESCRIPTION - REBATES & REFUNDS, COLUMN A - 3829.0, COLUMN B - 24087.0, COLUMN C - 15974.0, COLUMN D - 16176.0, COLUMN E - 13941.0, COLUMN F - 74007.0; DESCRIPTION - INSURANCE SETTLEMENT, COLUMN A - 667405.0, COLUMN B - 59561.0, COLUMN C - 10762.0, COLUMN D - 45613.0, COLUMN E - 333940.0, COLUMN F - 1117281.0; false true X 400000 0 25075 0 25075 0 400000 400000 0 42383 0 42383 0 400000 400000 0 0 0 0 0 400000 400000 0 0 0 0 0 400000 400000 0 47372 0 47372 0 400000 0.0 1.0 0.0 true false 16587443 16587443 214827848 121838568 92989280 27727857 20626550 7101307 23010655 14072693 8937962 125615992 Asset Retirement Obligations 1052228 Due to 3rd Party Payors 962172 2014400 X 120653270 -245751 114907 86692 -44152 120697422 316514 3000000 3316514 124013936 120736825 114907 86692 201599 120535226 316514 0 316514 120851740 Schedule D, Part IV, Line 2b Explanation of escrow agreement The organization maintains resident trust funds for certain residents, including a common bank account and petty cash. The resident trust funds are established to segregate resident funds that are used to make certain expenditures under Responsible Payee arrangements and to have funds available to meet the cash needs of the residents. The residents receive quarterly statements of their account activity. Schedule D, Part V, Line 4 Intended uses of endowment funds THE ENDOWMENT IS HELD WITH THE LEGACY FOUNDATION. DISTRIBUTIONS FROM THIS FUND ARE INTENDED TO BE USED FOR OPERATIONS AND GIFT OF CARE. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote The organization is included in the consolidated audited financial statements of Franciscan Sisters of Chicago Service Corporation ("FSCSC"). The members of the Obligated Group qualify as tax-exempt organizations under Section 501(c)(3) of the Internal Revenue Code. The Obligated Group has analyzed the tax positions taken in its filings with the Internal Revenue Service and state jurisdictions where it operates. The Obligated Group believes that its income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Obligated Group's financial condition, results of operations, or cash flows. Accordingly, the Obligated Group has not recorded any reserves or related accruals for interest and penalties for uncertain income tax positions at June 30, 2018. Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 fundraising expenses - 86692 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Net Asset Transfer to Affiliates - 3000000 Schedule D, Part XII, Line 2(d) Other expenses in audited financial statements not in form 990 fundraising expenses - 86692 Gala 139820 78135 61685 370 22143 995 15443 Golf 48403 28244 20159 1757 12440 0 5018 2 57321 13397 43924 2250 11698 2965 11613 245544 119776 125768 4377 46281 3960 32074 86692 39076 X true true true true false false false false false true false Judy L Amiano President & Chief Executive Officer 0 387187 0 175173 0 3394 0 53620 0 14630 0 634003 0 0 Ronald K Tinsley (thru May '18) Treasurer & Chief Financial Officer 0 281650 0 87073 0 2362 0 36762 0 13906 0 421753 0 0 Linda O'Neill Executive Director - St. Anthony Village 119281 0 7322 0 255059 0 11573 0 8939 0 402174 0 98050 0 Danniel J Bannon Executive Director - Franciscan Village & Marian Village 170352 0 23270 0 2001 0 14251 0 17088 0 226961 0 0 0 Calvin Isaacson Executive Director - Victory Lakes 164903 0 11304 0 2955 0 13033 0 13654 0 205850 0 0 0 Patrick Welsh Executive Director - Mt. Alverna Village 140116 0 13334 0 943 0 12568 0 31458 0 198420 0 0 0 Dawn Cohn Executive Director - Addolorata Villa 140959 0 9325 0 587 0 12345 0 30693 0 193909 0 0 0 Brian Celerio Executive Director - St. Joseph Village 130773 0 8577 0 520 0 10719 0 1326 0 151915 0 0 0 Schedule J, Part I, Line 1a Tax indemnification and gross-up payments CERTAIN EMPLOYEES RECEIVE GROSS-UP PAYMENTS, WHICH ARE TREATED AS TAXABLE COMPENSATION. Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation THE FRANCISCAN SISTERS OF CHICAGO SERVICE CORPORATION ("FSCSC"), THE SOLE CORPORATE MEMBER, HAS THE RESPONSIBILITY TO ESTABLISH COMPENSATION RANGES FOR THE ORGANIZATION'S CEO/EXECUTIVE OFFICER. THE PROCESS FOR DETERMINING THE APPROPRIATE COMPENSATION INCLUDES: 1. REVIEW AND APPROVAL BY THE EXECUTIVE COMPENSATION COMMITTEE. 2. OBTAINING AND ANALYZING COMPARABLE COMPENSATION DATA FOR SIMILAR PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS IN SIMILAR ORGANIZATIONS. 3. CONTEMPORANEOUS DOCUMENTATION AND RECORDKEEPING WITH RESPECT TO DELIBERATIONS AND DECISIONS REGARDING THE COMPENSATION ARRANGEMENTS is maintained. Schedule J, Part I, Line 4a Severance or change-of-control payment Linda O'Neill Received severance in the amount of $103,182 during the calendar year 2017. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan THE FOLLOWING SUMMARY LISTS THE EMPLOYEES PARTICIPATING IN A NONQUALIFIED 457(F) RETIREMENT PLAN AND THE AMOUNT OF THE CONTRIBUTION, IF ANY, TO THE PLAN IN March 2018: JUDY AMIANO - $28,712.86 RONALD TINSLEY - $10,357.63 Schedule J, Part I, Line 7 Non-fixed payments DISCRETIONARY BONUSES ARE PAID UPON APPROVAL OF THE BOARD OF DIRECTORS TO SENIOR MANAGEMENT ANNUALLY, BASED ON GOALS DEFINED BY THE BOARD OF DIRECTORS. A Illinois Finance Authority 861091967 45203HPP1 2013-03-13 91249177 2013A/B - Capital Projects and Refunding (SEE PART VI) false false true B Illinois Finance Authority 861091967 45203H8Z8 2017-06-28 74312922 2017A-D - capital projects and refunding (See Part VI) false false true A 7105035 0 91663864 7340462 0 0 1824983 0 0 15961566 66536852 0 2016 true true true true B 701555 0 74484106 7951364 67944 0 1486258 0 4525097 0 55576405 4877038 true true false true A false false true true false 0.0 0.0 0.0 false false true B false false true true false 0.0 0.0 0.0 false false true A false false false false true false false false true B false false false false true false false false true A true B true Schedule K, Part III, Line 3a Management/Service Contracts and Rent Management Contracts and Rent received by Franciscan Communities is generated by related 501(c)(3) corporations and therefore do not generate any private business income. Schedule K, Part I, Column (i) POOLED FINANCING OF IFA SERIES 2013A/B $111,081,610 ILLINOIS FINANCE AUTHORITY REVENUE BONDS, SERIES 2013A/B Franciscan Communities, Inc. FEIN: 35-1124441 Amount Benefiting Organization: $91,249,178 University Place, Inc. FEIN: 35-2058981 Amount Benefiting Organization: $19,832,432 Schedule K, Part II, Line 3 TOTAL PROCEEDS OF ISSUE A. ILLINOIS FINANCE AUTHORITY 3/13/2013 TOTAL PROCEEDS of ISSUE: $91,663,864 TOTAL INVESTMENT EARNINGS: $414,686 B. ILLINOIS FINANCE AUTHORITY 06/28/2017 TOTAL PROCEEDS of ISSUE: $74,484,106 TOTAL INVESTMENT EARNINGS: $171,184 Total proceeds of issue do not include realized and unrealized gains and losses, which are reflected in gross proceeds in reserve funds (line 4). Therefore, the summation of lines 4 through 12 may not equal line 3. Schedule K, Part I, Column (f) Purpose of IFA - 2013A/B THE PURPOSE OF THE 2013A/B BONDS WAS, IN PART, TO REFUND THE FOLLOWING BOND SERIES: 1996B BONDS, ISSUE DATE 8/29/96; 2001A/B BONDS, ISSUE DATE 12/5/01; 2003A/B BONDS, ISSUE DATE 6/13/03; 2003D BONDS, ISSUE DATE 6/27/03; 2003E BONDS, ISSUE DATE 11/26/03; 2004A BOND, ISSUE DATE 3/31/04; 2004E BONDS, ISSUE DATE 9/28/04; 2006 BONDS, ISSUE DATE 7/12/06 AND 2004B BONDS, ISSUE DATE 3/31/04 AS WELL AS TO FUND CAPITAL PROJECTS. Schedule K, Part I, Column (f) Purpose of IFA - 2017A-D The purpose of the Series 2017 Bonds were to (i) finance, refinance, or reimburse the Obligated Group for the payment of certain costs of acquiring constructing, renovating, remodeling, and equipping certain projects for certain of the senior living facilities owned by the Obligated Group in the States of Illinois, Indiana, and Ohio; (ii) refund all of the (a) Illinois Finance Authority Revenue Bonds, Series 2004B (Franciscan Communities, Inc.) Extendable Rate Adjustable SecuritiesSM (EXTRASSM) (the "Series 2004B Bonds"), (b) Illinois Finance Authority Revenue Bonds, Series 2013B (Franciscan Communities, Inc.) (the "Series 2013B Bonds" and together with the Series 2004B Bonds and the Series 2007A Bonds, the "Illinois Bonds"), (c) County of Cuyahoga, Ohio Health Care Facilities Revenue Bonds, Series 2004C (Franciscan Communities, Inc. - Mount Alverna Project) (the "Series 2004C Bonds"), and (d) County of Cuyahoga, Ohio Health Care Facilities Revenue Bonds, Series 2004D (Franciscan Communities, Inc. - Mount Alverna Project) Extendable Rate Adjustable SecuritiesSM (EXTRASSM) (the "Series 2004D Bonds" and together with the Series 2004C Bonds, the "Ohio Bonds," and the Illinois Bonds and the Ohio Bonds are collectively referred to herein as the "Prior Bonds"); and (iii) pay certain expenses incurred in connection with the issuance of the Series 2017 Bank Bonds and the refunding of the Prior Bonds. Schedule K, Part I, Column (i) Pooled Financing of IFA Series 2017A-D $76,076,103 Illinois Finance Authority Revenue Bonds, Series 2017A-D Franciscan Communities, Inc. FEIN: 35-1124441 Amount Benefiting Organization: $74,312,922 University Place, Inc. FEIN: 35-2058981 Amount Benefiting Organization: $1,763,181 X 2 37299 Market value 0 false true false Schedule M, Part I Explanations of reporting method for number of contributions Securities - Publicly traded - NUMBER OF CONTRIBUTIONS Form 990, Part III, Line 1 VALUE STATEMENT THE VALUES OF FRANCISCAN COMMUNITIES, INC. INCLUDE: 1. RESPECT: REFLECT GOD IN ALL WE DO; 2. DEDICATION: PASSIONATELY CARRY FORWARD THIS MINISTRY ENTRUSTED TO US; 3. STEWARDSHIP: RESPONSIBLY USING THE GIFT OF OUR RESOURCES; 4. JOY: GIVE FROM OUR HEARTS. Form 990, Part III, Line 1 GIFT OF CARE GIFT OF CARE: FOR MORE THAN 120 YEARS, FRANCISCAN SISTERS OF CHICAGO, OUR FOUNDRESS, MOTHER MARY THERESA DUDZIK, AND FRANCISCAN COMMUNITIES HAVE FULFILLED THE DESPERATE NEED OF THE ELDERLY AND THE UNDERSERVED. THE GIFT OF CARE PROGRAM IS ONE OF THE WAYS DEVELOPED TO PROVIDE ADDITIONAL OUTREACH SERVICES TO THE UNDERPRIVILEGED POPULATION. LONG-TERM CARE IS VERY EXPENSIVE AND MANY WILL NOT BE ABLE TO PAY FOR ALL OF THE NECESSARY SERVICES OUT OF HIS OR HER OWN INCOME AND RESOURCES. THAT IS WHERE THE GIFT OF CARE CAN HELP. COMMITMENT: THE GIFT OF CARE IS A COMMITMENT BY FRANCISCAN COMMUNITIES TO UNDERWRITE ALL OR A PORTION OF A RESIDENT'S CARE FOR A SPECIFIC PERIOD OF TIME. IT IS BASED UPON DEFINED CRITERIA. AS A NOT-FOR-PROFIT ORGANIZATION, FRANCISCAN COMMUNITIES PROMOTES AND CARES FOR THE INTERESTS OF OLDER ADULTS IN AN ENVIRONMENT OF DIGNIFIED LIVING, CARING AND COMPASSION. IN THE SPIRIT AND TRADITION OF THE CATHOLIC CHURCH, THE FRANCISCAN SISTERS OF CHICAGO AND OUR FOUNDRESS, MOTHER MARY THERESA DUDZIK, HAVE BEEN OF SERVICE TO THE NEEDY AND THE POOR FOR OVER 120 YEARS. THIS PROGRAM IS ONE OF THE WAYS WE ADDRESS THE SPIRITUAL NEEDS OF THE COMMUNITY AND THOSE SERVED THROUGH PASTORAL CARE SERVICES, INCLUDING CHAPEL SERVICES. EACH FRANCISCAN COMMUNITY STRIVES TO PROVIDE THE GIFT OF CARE PROGRAM FOR APPLICANTS AND EXISTING RESIDENTS, WHO DESPERATELY NEED FINANCIAL ASSISTANCE WITH THE EXPENSES ASSOCIATED WITH OUR COMPASSIONATE SERVICES. DEPENDING ON THE INDIVIDUAL CIRCUMSTANCES, A PERSON MAY BE EITHER FULLY OR PARTIALLY SUPPORTED FINANCIALLY. CHARITY CARE PROVIDED BY FRANCISCAN COMMUNITIES IN FISCAL 2018 AMOUNTED TO $1,229,000 WITH UNREIMBURSED CARE OF $5,028,000. Form 990, Part III, Line 4d Description of other program services (Expenses $ including grants of $)(Revenue $ 11,789,500) STATE OF INDIANA INTERGOVERNMENTAL TRANSFER PROGRAM, AND RENTAL AND MANAGEMENT SERVICE INCOME RELATED TO EXEMPT ORGANIZATIONS. EFFECTIVE MARCH 1, 2014, A LEASE AGREEMENT WAS ENTERED INTO WITH A COUNTY HOSPITAL, HANCOCK REGIONAL HOSPITAL, TO LEASE THE OPERATIONS OF THE NURSING FACILITY AND CERTAIN HOUSING SERVICES AT ST. ANTHONY TO THE HOSPITAL. Form 990, Part VI, Line 15b Process to Establish Compensation of Other Employees FRANCISCAN COMMUNITies other officers are paid by the Franciscan Sisters of Chicago Service Corporation ("FSCSC"), a related tax exempt organization. The President and Chief Executive Officer, makes recommendations to the executive compensation committee for the establishment of salary ranges and salaries for the chief financial officer and chief operating officer of the organization. The Chief Talent Officer is responsible for making recommendations and establishing compensation ranges for the positions of Vice President of Ministry Development; Chief Talent Officer; Vice President of Mission Integration and Pastoral Care, and Vice President of Clinical Services with the approval of the President and Chief Executive Officer. FSCSC's Chief Talent Officer has the responsibility to establish compensation recommendations for the organization's other officers and key employees. The process for determining the appropriate compensation of each position includes: 1. Human resource department obtains and analyzes comparable compensation data for similar persons in functionally comparable positions in similar organizations. The process of obtaining comparable compensation data was last performed in Spring 2017; 2. President and Chief Executive Officer reviews and makes final approval of compensation ranges and salaries; 3. Compensation review is shared with the executive compensation committee for all executive positions; 4. Contemporaneous documentation and recordkeeping with respect to deliberations and decisions regarding the compensation arrangements is maintained. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons SR. FRANCIS CLARE RADKE, JUDY AMIANO, James Stark, ANDREW DUREN, RONALD TINSLEY, daniel noonan, TRACY SHEARER AND DENISE BOUDREAU - Business relationship Form 990, Part VI, Line 6 Classes of members or stockholders The sole corporate member of Franciscan Communities, Inc. is the Franciscan Sisters of Chicago Service Corporation ("FSCSC"). The members of FSCSC shall consist of the General Minister and the members of the General Council of the Franciscan Sisters of Chicago (the "Members"). The Members shall act in a stewardship capacity and ensure that all actions of Franciscan Communities, Inc. are consistent with the purposes of FSCSC and the ethical and religious principles of the Franciscan Sisters of Chicago and in furtherance of their apostolates and the Catholic Church. Form 990, Part VI, Line 7a Members or stockholders electing members of governing body The sole corporate Member, the Franciscan Sisters of Chicago Service Corporation, has the reserve power to appoint and remove directors and fill vacancies on the Board of Directors of Franciscan Communities, Inc. Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders The Member, the Franciscan Sisters of Chicago Service Corporation ("FSCSC"), shall have the following reserved powers: (A) TO APPROVE THE CORPORATION'S STRATEGIC PLANS, ANNUAL, OPERATING, CAPITAL AND CASH FLOW BUDGETS AND SIMILAR DOCUMENTS DEVELOPED BY THE BOARD. (B) Governing document amendments and governance - 1. To approve any amendments to the articles of incorporation, bylaws or similar governing documents of Franciscan Communities, Inc. 2. To appoint and remove directors and fill vacancies on the Board of Directors. 3. To appoint or remove the Chairperson, President and CEO of Franciscan Communities, Inc. after consultation with the Board of Directors. (C) Significant actions - 1. To approve any merger, consolidation, dissolution or liquidation of Franciscan Communities, Inc., or any affiliate, other than a merger or consolidation solely between existing affiliates, subject to approval of the Members of FSCSC. 2. To approve the creation of any new affiliate or any affiliation, subject to approval of the Members of FSCSC. 3. To approve the establishment, termination, transfer or other acquisition or disposition of a major ministry, work or similar program by Franciscan Communities, Inc. or any affiliate, subject to approval of the Members of FSCSC. 4. TO APPROVE THE CREATION OF ANY NEW AFFILIATE OR ANY AFFILIATION OF FRANCISCAN COMMUNITIES, Inc. WITH ANOTHER ENTITY, SUBJECT TO APPROVAL OF THE MEMBERS OF FSCSC. 5. To approve the incurrence of indebtedness, the making of loans to other entities or the guaranty of any indebtedness of others, by Franciscan Communities, Inc. or any affiliate,in excess of the specified amounts. 6. To establish dollar limits below which Franciscan Communities, Inc. may authorize financial expenditures. 7. To establish dollar limits below which Franciscan Communities, Inc. may authorize litigation settlements or any release or cancellation by Franciscan Communities of a claim or right of action against another party. 8. To approve compliance plans, accounting, investing and human resource policies, employee pension and other benefit programs and other matters to the extent determined appropriate by FSCSC. 9. To approve ethicists, auditors, legal counsel and other significant consultants of Franciscan Communities, Inc. 10. To establish compensation ranges for employees of Franciscan Communities, Inc., to the extent deemed appropriate. Form 990, Part VI, Line 11b Review of form 990 by governing body Management presented a final draft of the completed form 990, including all applicable schedules, to the Audit and Finance Committee and made the same available to all board members, prior to its filing with the Internal Revenue Service. Form 990, Part VI, Line 12c Conflict of interest policy As provided for in the conflict of interest policy, it is the responsibility of the Board or Committee Chair to ensure that each director, officer, and member of a board committee annually signs an FSCSC approved conflict of interest disclosure statement. Copies of all signed statements are forwarded to the Compliance Officer. Key employees, officers and highest compensated employees are required to complete an annual conflict of interest statement that is reviewed by their direct supervisor. Potential conflicts of interest of board members are brought to the attention of the board chair. After discussion with the interested person, he or she shall leave the board or committee meeting while a determination of a conflict of interest is discussed and voted on. Proposed transactions with interested persons on the Board of Directors or committees require the approval of the board prior to entering into the proposed transaction or arrangement. The interested person shall not be in attendance during the presentation or the vote on the proposed transaction or arrangement. KEY EMPLOYEES, OFFICERS AND HIGHEST COMPENSATED EMPLOYEES ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST STATEMENT THAT IS REVIEWED BY THEIR DIRECT SUPERVISOR. THE SUPERVISOR WILL WORK WITH THE COMPLIANCE OFFICER AND POSSIBLY HUMAN RESOURCES IN TAKING APPROPRIATE STEPS TO ADDRESS THE POTENTIAL CONFLICT. Form 990, Part VI, Line 15a Process to establish compensation of top management official FRANCISCAN Communities, Inc. TOP MANAGEMENT OFFICIAL IS PAID BY THE FRANCISCAN SISTERS OF CHICAGO SERVICE CORPORATION ("FSCSC"), A RELATED TAX-EXEMPT ORGANIZATION. The board of directors of the organization has adopted an executive compensation philosophy to enable FSCSC to recruit, retain, develop and motivate capable and committed executive leaders essential to sustaining its mission and achieving its vision and organizational goals. The executive compensation committee monitors the compensation strategy to reflect changes in market conditions and executive needs. This strategy and the reward elements serve as a "road map" for the on-going administration of the compensation programs. The Board has adopted a philosophy of viewing executive compensation in its totality, considering all reward elements - both extrinsic and intrinsic, provided to executives. Annually, the executive compensation committee makes the recommendation on the compensation for the president and chief executive officer with final approval from the sponsor as recommended by the FSCSC board of directors. The recommendation is based, in part, on the review of the most current market data available and compensation strategy discussion. FSCSC's president and chief executive officer makes recommendations to the executive compensation committee for the establishment of salary ranges and salaries for the chief financial officer and chief operating officer of the organization. The executive compensation committee of the board of directors has adopted a practice of having a third-party review of total remuneration for executive staff and obtains a letter of reasonableness every two to three years. This third party review includes: 1. Obtain and analyze comparable compensation data for similar persons in functionally comparable positions in similar organizations; 2. Contemporaneous documentation and record keeping with respect to deliberations and decisions regarding the compensation arrangements is maintained; 3. The process of obtaining comparable compensation data was last performed in February 2016, and the executive Compensation Committee reviewed the third party data regarding Executive Compensation for the CEO, in light of the current year trends. Form 990, Part VI, Line 19 Required documents available to the public The organization makes its governing documents, conflict of interest policy and financial statements available to the public in accordance with applicable laws and regulations. Form 990, Part VIII, Line 11d Other Miscellaneous Revenue Insurance Settlements - Total Revenue: 333940, Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 333940; Rebates & Refunds - Total Revenue: 13941, Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 13941; TV & Cable Revenue - Total Revenue: 9068, Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 9068; Miscellaneous - Total Revenue: 38390, Related or Exempt Function Revenue: , Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 38390; Form 990, Part IX, Line 11g Other Fees Therapy - Total Expense: 4855499, Program Service Expense: 4855499, Management and General Expenses: , Fundraising Expenses: ; Bldg/Ofc Maintenance Svc Fees - Total Expense: 3017412, Program Service Expense: 2918804, Management and General Expenses: 98608, Fundraising Expenses: ; Dining Service Fees - Total Expense: 2540975, Program Service Expense: 2540975, Management and General Expenses: , Fundraising Expenses: ; Medical Service Fees - Total Expense: 1295324, Program Service Expense: 1295324, Management and General Expenses: , Fundraising Expenses: ; Laundry Service Fees - Total Expense: 167188, Program Service Expense: 167188, Management and General Expenses: , Fundraising Expenses: ; HR/PR Service Fees - Total Expense: 328821, Program Service Expense: , Management and General Expenses: 328821, Fundraising Expenses: ; Other Service Fees - Total Expense: 910172, Program Service Expense: 647234, Management and General Expenses: 251131, Fundraising Expenses: 11807; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Net Asset Transfer - -3000000; FRANCISCAN SISTERS OF CHICAGO (36-2877607) 11500 THERESA DRIVE LEMONT IL 60439 362877607 PARENT IL 501(c)(3) 1 NA false Franciscan Sisters of Chicago Service Corp (36-3579767) 11500 THERESA DRIVE LEMONT IL 60439 363579767 Management IL 501(c)(3) Type II FSC false UNIVERSITY PLACE INC (35-2058981) 11500 THERESA DRIVE LEMONT IL 60439 352058981 HEALTHCARE IN 501(c)(3) 10 FSCSC false Franciscan Communities Inc II (82-0822232) 11500 Theresa Drive Lemont IL 60439 820822232 HEALTHCARE IL 501(c)(3) 10 FSCSC false FRANCISCAN COMMUNITY SERVICES INC (36-4026985) 11500 THERESA DRIVE LEMONT IL 60439 364026985 HEALTHCARE IL 501(c)(3) 10 FSCSC false ST JOSEPH SENIOR HOUSING (37-1485002) 11500 THERESA DRIVE LEMONT IL 60439 371485002 AFFORDABLE HOUSING IL 501(c)(4) FSCSC false FRANCISCAN COMMUNITY BENEFIT SERVICES (36-4454351) 11500 THERESA DRIVE LEMONT IL 60439 364454351 FOUNDATION IL 501(c)(3) 7 FSCSC false ST JUDE HOUSE (35-1905782) 11500 THERESA DRIVE LEMONT IL 60439 351905782 ABUSE SHELTER IN 501(c)(3) 7 FCBS false SAMC INC (35-1172181) 11500 THERESA DRIVE LEMONT IL 60439 351172181 HOSPITAL IN 501(c)(3) 3 FSCSC false CRETE HOUSING MANAGER LLC 11500 THERESA DRIVE LEMONT IL 60439 383698012 MGR OF AFFORDABLE HOUSING IL NA N/A 0 CRETE SENIOR HOUSING LLC 11500 THERESA DRIVE LEMONT IL 60439 320132660 AFFORDABLE SENIOR HOUSING IL NA N/A 0 LOUISVILLE SENIOR HOUSING LLC 11500 THERESA DRIVE LEMONT IL 60439 260768949 AFFORDABLE SENIOR HOUSING IL NA N/A 0 FRANCISCAN ADVISORY SERVICES INC 11500 THERESA DRIVE LEMONT IL 60439 900821523 MANAGEMENT AND DEVELOPMENT ADVISORY SERVICES IL NA C Corporation false false false false false false false false false false true false false false false true false true false true