2019-05-10T15:27:18-05:00 2018-06-30 560747981 DIXON HUGHES GOODMAN LLP 1410 SPRING HILL ROAD 5TH FLOOR TYSONS VA 22102 990 2017-07-01 522097927 MERCY RIDGE INC MERC 4105610200 2525 POT SPRING ROAD TIMONIUM MD 21093 ROBERT KIGER DIRECTOR OF FINANCE 4105610200 2019-05-10 1 TAMARA L VINEYARD P01775208 7039700400 2019-05-09 174.110.47.59 2019-05-10 09:30:04 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 FA6615D9C99F458CE6FA9C42C18D29C367B8AA70 2017 2019-02-21 02:37:17Z THOMAS CLEMENTS 2525 POT SPRING ROAD TIMONIUM MD 21093 22275196 0 X WWW.MERCYRIDGE.COM X 1997 MD MERCY RIDGE IS A CONTINUING CARE RETIREMENT FACILITY THAT PROVIDES 408 LIVING APARTMENTS, 35 ASSISTED LIVING UNITS AND 12 DEMENTIA UNITS. 10 10 250 0 0 0 0 0 19806823 20790089 928207 1060868 368228 350486 21103258 22201443 0 0 0 0 7022182 6806419 0 0 0 13082629 14193617 20104811 21000036 998447 1201407 135836692 137237205 152644734 153143403 -16808042 -15906198 X MERCY RIDGE IS A CONTINUING CARE RETIREMENT FACILITY THAT PROVIDES 408 LIVING APARTMENTS, 35 ASSISTED LIVING UNITS AND 12 DEMENTIA UNITS. 0 0 14211735 21140575 MERCY RIDGE IS A CONTINUING CARE RETIREMENT COMMUNITY THAT ENABLES ITS RESIDENTS TO ENJOY A DIGNIFIED AND FULFILLING LIFESTYLE BY PROVIDING HOUSING AND PERSONAL SERVICE. MERCY RIDGE IS DEDICATED TO SUPPORTING THE INDEPENDENCE OF ITS RESIDENTS AND HELPING THEM TO ACHIEVE THEIRCULTURAL, INTELLECTUAL AND SPIRITUAL ASPIRATIONS. WHEN NEEDED, MERCY RIDGE PROVIDES SKILLED, COMPASSIONATE CARE AND ASSISTED LIVING OPTIONS. MERCY RIDGE CREATES A WHOLESOME AND SOCIALLY STIMULATING ENVIRONMENT IN A DIVERSE COMMUNITY AND WELCOMES PERSONS OF ALL FAITHS AND EVERY BACKGROUND. MERCY RIDGE HAS 408 INDEPENDENT LIVING UNITS. MERCY RIDGE'S ASSISTED LIVING FACILITY HAS 47 UNITS OFFERING FOUR LEVELS OF SERVICE. THE TOTAL NUMBER OF RESIDENTS WAS 541 FOR THE YEAR. MERCY RIDGE HAS 97.4% AND 96.5% OCCUPANCY IN INDEPENDENT LIVING AND ASSISTED LIVING RESPECTIVELY. MERCY RIDGE IS 100.0% RESERVED AND HAS 226 POTENTIAL RESIDENTS ON ITS WAITLIST. 14211735 1 0 0 0 0 0 0 0 0 0 1 1 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 250 1 0 0 0 0 0 0 0 0 0 0 X 10 10 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MD X ROBERT KIGER 4105610200 2525 POT SPRING ROAD TIMONIUM MD 21093 SR HELEN AMOS RSM CHAIRPERSON 1.00 X X 0 0 0 REV MSGR RICHARD W WOY VICE CHAIRPERSON 1.00 X X 0 0 0 JOHN E TOPPER TREASURER 1.00 X X 0 0 0 THOMAS R MULLEN SECRETARY 1.00 X X 0 0 0 FAITH GILROY RESIDENT MEMBER 1.00 X 0 0 0 CECILIA CYMEK RESIDENT MEMBER 1.00 X 0 0 0 MICHAEL J BATZA JR DIRECTOR 1.00 X 0 0 0 REV MSGR PAUL G COOK DIRECTOR 1.00 X 0 0 0 LEONARD A STROM DIRECTOR 1.00 X 0 0 0 WILLIAM BAIRD DIRECTOR 1.00 X 0 0 0 THOMAS CLEMENTS EXECUTIVE DIRECTOR 40.00 X 0 0 0 PATTY YINGLING DIRECTOR OF MARKETING 40.00 X 147554 0 0 MICHAEL FAULKNER DIRECTOR OF DINING 40.00 X 112364 0 0 GARY PFIEFER DIRECTOR OF FACILITIES 40.00 X 107005 0 0 CONSTANCE SMITH DIRECTOR OF HEALTH & WELLNESS 40.00 X 105703 0 0 472626 0 0 4 0 0 1 STATUS SOLUTIONS 1180 SEMINOLE TRAIL CHARLOTTESVILLE VA 22901 RESIDENT COMMUNICATION SYSTEM 936759 US FOODS PO BOX 33101 NEWARK NJ 07188 FOOD SERVICE 656276 LCS MANAGEMENT LLC 400 LOCUST STREET DES MOINES IA 50309 MANAGEMENT SERVICE 541878 SYSCO 8000 DORSEY RUN ROAD JESSUP MD 20794 FOOD SERVICE 534706 MERLINO DESIGN PARTNERSHIP 200 RENAISSANCE BLVD GULPH MILLS PA 19406 INTERIOR DESIGN SERVICE 320507 16 RESIDENT SERVICE FEES 20790089 20790089 20790089 1087767 1087767 21669 0 21669 21669 21669 26899 -26899 -26899 -26899 57575 46854 10721 10721 MEALS 80307 80307 GARAGE PARKING 74017 74017 CATERING 55528 55528 108244 108244 318096 22201443 21140575 0 1060868 5336734 3277470 2059264 84588 51937 32651 930417 571276 359141 454680 279174 175506 567101 567101 129135 129135 157181 157181 270596 258444 12152 56705 56705 1731567 1478758 252809 28759 28759 2652 2652 1336431 1141312 195119 3840096 3279442 560654 415430 354777 60653 FOOD & REFRESHMENTS 2081547 1777641 303906 PROPERTY TAXES 1008896 1008896 SERVICE CONTRACTS 546279 466522 79757 SUPPLIES 472414 405169 67245 1548828 869813 679015 21000036 14211735 6788301 0 5148901 4705599 333232 253360 42466 77343 473000 400000 46191 46191 116355 323260 121658964 48968046 73821534 72690918 46639839 49327900 9215174 9412634 135836692 137237205 1589266 1498285 109454617 111587599 39983602 38598893 1617249 1458626 152644734 153143403 X -16808042 -15906198 -16808042 -15906198 135836692 137237205 X 1201407 799682 -1099245 X X 0 1 X 1 0 X 17961498 18685853 19152568 19806823 20790089 96396831 17961498 18685853 19152568 19806823 20790089 96396831 0 0 0 96396831 927741 931540 1011232 1013713 1109436 4993662 927741 931540 1011232 1013713 1109436 4993662 373439 348565 337616 330074 318096 1707790 19262678 19965958 20501416 21150610 22217621 103098283 0.93500 0.93240 0.04840 0.04890 X 3500000 3500000 106187714 40060796 66126918 11971250 8907250 3064000 72690918 CASH AND CASH EQUIVALENTS 2548056 F TREASURY BONDS & GOVERNMENT INSTRUMENTS 17372555 F COMMERCIAL MORTGAGE SECURITIES 918465 F CORPORATE BONDS 6793502 F EQUITIES 12250869 F TAXABLE BONDS 8281562 F ASSET BACKED BONDS 1162891 F 49327900 RESIDENT SECURITY DEPOSIT 107533 DEFERRED FINANCING COSTS 1616891 DEBT SERVICE RESERVE FUND 3488479 OPERATING RESERVE FUND 2998657 PRINCIPAL FUND 280412 DEBT SERVICE CAPITAL INT FUND 920662 9412634 DUE TO MEMBERS 1204746 DEPOSITS ON UNOCCUPIED UNITS 253360 INTEREST RATE SWAP LIABILITY 520 1458626 X 22993113 901997 46854 948851 22044262 157181 157181 22201443 21046890 46854 46854 21000036 0 21000036 PART X, LINE 2: THE CORPORATION HAS RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE GRANTING IT FEDERAL INCOME TAX EXEMPT STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). ACCORDINGLY, THE CORPORATION'S EXCESS OF REVENUE OVER EXPENSES IS EXEMPT FROM FEDERAL AND STATE INCOME TAXES, EXCEPT TO THE EXTENT OF ANY UNRELATED BUSINESS INCOME, BUT MUST FILE ANNUAL INFORMATION RETURNS. MANAGEMENT BELIEVES THAT THE CORPORATION IS BEING OPERATED IN ACCORDANCE WITH ITS TAX-EXEMPT PURPOSE. MANAGEMENT HAS ALSO CONSIDERED THE IMPACT OF UNRELATED BUSINESS ACTIVITIES AND HAS CONCLUDED THAT THE CORPORATION IS NOT SUBJECT TO UNRELATED BUSINESS TAX OR ANY OTHER TAXES THAT COULD BE IMPOSED BY THE IRC OR STATE TAXING AUTHORITIES. AS SUCH, NO PROVISION IS MADE FOR INCOME TAXES AND NO ASSET OR LIABILITIES HAVE BEEN RECOGNIZED FOR DEFERRED TAXES. CURRENT ACCOUNTING STANDARDS PROVIDE ACCOUNTING AND FINANCIAL REPORTING GUIDANCE RELATED TO UNCERTAIN INCOME TAX POSITIONS, AND DEFINE THE THRESHOLD FOR RECOGNIZING TAX RETURN POSITIONS IN THE FINANCIAL STATEMENTS AS "MORE LIKELY THAN NOT" THAT THE POSITION IS SUSTAINABLE, BASED ON ITS TECHNICAL MERITS. MANAGEMENT HAS DETERMINED THAT THERE IS NO MATERIAL EFFECT ON THE FINANCIAL STATEMENTS RELATED TO UNCERTAIN INCOME TAX POSITIONS. PART XI, LINE 2D - OTHER ADJUSTMENTS: GIFT SHOP COST OF GOODS SOLD 46,854. PART XII, LINE 2D - OTHER ADJUSTMENTS: GIFT SHOP COST OF GOODS SOLD 46,854. X 0 0 0 0 0 0 0 0 0 SCHEDULE J, PART I,LINE 3 NAME UNRELATED ORGANIZATION AMOUNT THOMAS CLEMENTS LCS MANAGEMENT LLC 230,166 MERCY RIDGE HAS A MANAGEMENT SERVICE AGREEMENT WITH LCS MANAGEMENT LLC, THE SUCCESSOR TO COOPERATIVE RETIREMENT SERVICES OF AMERICA, INC., UNDER WHICH LCS PROVIDES A VARITY OF MANAGEMENT SERVICES TO MERCY RIDGE. AMONG THE SERVICES PROVIDED UNDER THE MANAGEMENT SERVICES CONTRACT IS THE FULL-TIME SERVICES OF THE EXECUTIVE DIRECTOR OF MERCY RIDGE, WHO IS A FULL-TIME EMPLOYEE OF LCS. THE BOARD OF DIRECTORS OF MERCY RIDGE REVIEWED AND APPROVED THE AGREEMENT WITH LCS, INCLUDING THE AMOUNT OF COMPENSATION PAID TO THE EXECUTIVE DIRECTOR FOR HIS SERVICES TO MERCY RIDGE. MERCY RIDGE RETAINS THE RIGHT TO TERMINATE THE MANAGEMENT SERVICES AGREEMENT, INCLUDING THE SERVICES OF THE EXECUTIVE DIRECTOR, UPON 60 DAYS PRIOR WRITTEN NOTICE. A MARYLAND HEALTH & HIGHER EDUCATIONAL FAC AUTHORITY 520936091 574217E27 2007-03-22 23784016 REFUNDING SERIES 2003A BONDS 0 0 0 A 1540000 23784016 2394211 22533311 459930 790775 2005 0 1 1 1 A 0 0 1 1 0 0 0 1 A 1 0 1 WELLS FARGO 21.000000000000 0 1 0 0 1 A 0 PART II LINE 3 THE AMOUNT OF "TOTAL PROCEEDS" IS LESS THAN THE AMOUNT OF PROCEEDS IN REFUNDING ESCROWS PLUS THE GROSS PROCEEDS IN RESERVE FUNDS BECAUSE AMOUNTS IN DEPOSIT IN FUNDS PLEDGED TO BOND ISSUANCES FROM 2000 AND 2003 WERE TRANSFERRED TO THE REFUNDING ESCROW AND THE DEBT SERVICE RESERVE FUND FOR THIS BOND ISSUANCE. PART II, LINE 9 THE BOND PROCEEDS WERE USED TO MAKE A $790,775 TERMINATION PAYMENT ON A QUALIFIED HEDGE ON A PRIOR BOND ISSUANCE BY THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 3 MERCY RIDGE HAS A MANAGEMENT SERVICE AGREEMENT WITH LCS MANAGMENT LLC, THE SUCCESSOR TO COOPERATIVE RETIREMENT SERVICES OF AMERICA, INC., UNDER WHICH LCS PROVIDES A VARIETY OF MANAGEMENT SERVICES TO MERCY RIDGE. AMONG THE SERVICES PROVIDED UNDER THE MANAGEMENT SERVICES CONTRACT IS THE FULL-TIME SERVICES OF THE EXECUTIVE DIRECTOR OF MERCY RIDGE, WHO IS A FULL-TIME EMPLOYEE OF LCS. THE BOARD OF DIRECTORS OF MERCY RIDGE REVIEWED AND APPROVED THE AGREEMENT WITH LCS, INCLUDING THE AMOUNT OF COMPENSATION PAID TO THE EXECUTIVE DIRECTOR FOR HIS SERVICES TO MERCY RIDGE. MERCY RIDGE RETAINS THE RIGHT TO TERMINATE THE MANAGEMENT SERVICES AGREEMENT, INCLUDING THE SERVICES OF THE EXECUTIVE DIRECTOR, UPON 60 DAYS PRIOR WRITTEN NOTICE. FORM 990, PART VI, SECTION A, LINE 6 THE MEMBERS OF MERCY RIDGE, INC. ARE THE ROMAN CATHOLIC ARCHBISHOP OF BALTIMORE, A CORPORATION SOLE, AND MERCY HEALTH SERVICES, INC. BOTH MEMBERS ARE 501(C)(3) ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 7A EACH OF THE TWO MEMBERS HAS THE RIGHT TO APPOINT AN EQUAL NUMBER OF DIRECTORS TO THE BOARD OF DIRECTORS OF MERCY RIDGE. CURRENTLY, EACH MEMBER APPOINTS FOUR (4) DIRECTORS TO THE BOARD. EACH DIRECTOR APPOINTED BY A MEMBER SERVES AT THE PLEASURE OF THE MEMBER THAT APPOINTED HIM OR HER AND IS SUBJECT TO REMOVAL AT ANY TIME BY THE APPOINTING MEMBER. IN ADDITION, THE BOARD OF DIRECTORS ELECTS TWO RESIDENTS OF MERCY RIDGE TO SERVE AS FULL VOTING MEMBERS OF THE BOARD ("RESIDENT BOARD MEMBERS"), FOLLOWING CONSULTATION WITH THE RESIDENT COUNCIL OF MERCY RIDGE. THE RESIDENT COUNCIL SUBMITS AT LEAST TWO NOMINEES FOR ANY OPENING FOR A RESIDENT BOARD MEMBER. THE RESIDENT BOARD MEMBERS ARE SUBJECT TO APPROVAL BY THE TWO MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING DECISIONS ARE SUBJECT TO APPROVAL BY BOTH MEMBERS: A) APPROVAL OF THE TWO MERCY RIDGE RESIDENTS WHO ARE ELECTED TO SERVE ON THE MERCY RIDGE BOARD. B) DISSOLUTION, LIQUIDATION, WINDING UP OR ABANDONMENT OF MERCY RIDGE. C) AMENDMENT OF THE ARTICLES OF INCORPORATION OR BYLAWS OF MERCY RIDGE. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS REVIEWED FOR ACCURACY BY THE DIRECTOR OF FINANCIAL SERVICE FOR MERCY RIDGE AND BY THE TREASURER OF MERCY RIDGE. THE TREASURER OF MERCY RIDGE REVIEWS THE FORM 990 WITH THE BOARD AT A MEETING SCHEDULED PRIOR TO FILING AND COPIES OF THE FORM 990 ARE PROVIDED TO ALL MEMBERS OF THE BOARD OF DIRECTORS OF MERCY RIDGE FOR THEIR REVIEW PRIOR TO FILING. ANY ADDITIONAL COMMENTS/QUESTIONS FROM BOARD MEMBERS ARE RESPONDED TO PRIOR TO FILING THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C MERCY RIDGE HAS ADOPTED A CONFLICT OF INTEREST POLICY. UNDER THE POLICY, EACH BOARD MEMBER, THE EXECUTIVE DIRECTOR, AND THE DIRECTOR OF FINANCE IS REQUIRED TO COMPLETE AN ANNUAL DISCLOSURE FORM REGARDING ALL BUSINESS RELATIONSHIPS THAT HE OR SHE, OR ANY FAMILY MEMBER, HAS WITH MERCY RIDGE, ANY OF ITS AFFILIATES OR ANY OTHER ORGANIZATIONS THAT DO BUSINESS WITH MERCY RIDGE AND ALL RELATIONSHIPS BETWEEN AND AMOUNG OFFICERS AND BOARD MEMBERS. THE COMPLETED DISCLOSURE FORMS ARE REVIEWED BY THE EXECUTIVE DIRECTOR. IN ADDITION TO THE ANNUAL DISCLOSURE, ANY COVERED PERSON UNDER THE CONFLICT OF INTEREST POLICY HAS AN ONGOING DUTY TO DISCLOSE THE EXISTENCE OF ANY ACTUAL OR POTENTIAL CONFLICT TO THE BOARD. FOLLOWING THE DISCLOSURE, THE COVERED PERSON MAY MAKE A PRESENTATION, BUT MUST THEN LEAVE THE MEETING AND THE OTHER MEMBERS OF THE BOARD SHALL DETERMINE WHETHER A CONFLICT EXISTS. UNDER THE POLICY, A CONFLICT OF INTEREST EXISTS WHEN AN INDIVIDUAL'S OWN PERSONAL INTEREST WOULD, OR MAY, INTERFERE WITH HIS OR HER IMPARTIALITY REGARDING THE MATTER. IF A CONFLICT EXISTS, THE PERSON MUST ABSTAIN FROM VOTING AND MAY NOT BE PRESENT DURING DELIBERATIONS ON THE MATTER. THE BOARD, AFTER CONDUCTING SUCH ADDITIONAL DUE DILIGENCE AS IT DETERMINES IS APPROPRIATE, SHALL MAKE A DECISION ON THE MATTER BASED UPON WHETHER THE PARTICULAR PROPOSAL IS FAIR, REASONABLE AND IN THE BEST INTEREST OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 15 MERCY RIDGE HAS A MANAGEMENT SERVICE AGREEMENT WITH LCS MANAGEMENT LLC, THE SUCCESSOR TO COOPERATIVE RETIREMENT SERVICES OF AMERICA, INC., UNDER WHICH LCS PROVIDES A VARIETY OF MANAGEMENT SERVICES TO MERCY RIDGE. AMONG THE SERVICES PROVIDED UNDER THE MANAGEMENT SERVICES CONTRACT IS THE FULL-TIME SERVICES OF THE EXECUTIVE DIRECTOR OF MERCY RIDGE, WHO IS A FULL-TIME EMPLOYEE OF LCS. THE BOARD OF DIRECTORS OF MERCY RIDGE REVIEWED AND APPROVED THE AGREEMENT WITH LCS, INCLUDING THE AMOUNT OF COMPENSATION PAID TO THE EXECUTIVE DIRECTOR FOR HIS SERVICES TO MERCY RIDGE. MERCY RIDGE RETAINS THE RIGHT TO TERMINATE THE MANAGEMENT SERVICES AGREEMENT, INCLUDING THE SERVICES OF THE EXECUTIVE DIRECTOR, UPON 60 DAYS PRIOR WRITTEN NOTICE. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS OF THE ORGANIZATION, ITS CONFLICTS OF INTEREST POLICY, AND ITS FINANCIAL STATEMENTS ARE AVAILABLE FROM THE ORGANIZATION UPON REQUEST. FORM 990, PART XI, LINE 9: UNREALIZED GAIN ON SWAP 102,315. TRANSFER TO MEMBERS -1,201,560. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. PART VI, SECTION A, LINES 1A AND 1B - VOTING INDEPENDENT MEMBERS THE BOARD OF DIRECTORS OF MERCY RIDGE, INC., IS MADE UP OF TEN MEMBERS. FOUR DIRECTORS ARE APPOINTED BY EACH OF THE TWO MEMBERS OF THE CORPORATION, MERCY HEALTH SERVICES, INC.("MHS") AND THE ARCHBISHOP OF BALTIMORE, A CORPORATION SOLE ("THE ARCHDIOCESE"), BOTH OF WHICH ARE 501(C)(3) CORPORATIONS. THE OTHER TWO BOARD MEMBERS ARE RESIDENTS OF MERCY RIDGE WHO ARE ELECTED BY THE BOARD. MHS, AND ITS DIRECT SUBSIDIARY STELLA MARIS ("SM"), PROVIDE CERTAIN MANAGEMENT SERVICES TO MERCY RIDGE AND ALL OF THE FOUR MERCY RIDGE BOARD MEMBERS OF MHS ARE EITHER DIRECTORS OR OFFICERS OF MHS. IN ADDITION, IN ORDER TO ACCOMODATE THE NEEDS OF RETIRED PRIESTS, THE ARCHDIOCESE HAS A CONTRACT WITH MERCY RIDGE TO PROVIDE SIXTEEN INDEPENDENT LIVING APARTMENTS AND FIVE ASSISTED LIVING UNITS FOR RETIRED PRIESTS. FOUR MERCY RIDGE DIRECTORS APPOINTED BY THE ARCHDIOCESE ARE OFFICERS OF THE ARCHDIOCESE. PART VI, SECTION B, LINE 14 - DOCUMENT RETENTION AND DESTRUCTION POLICY MERCY RIDGE ADHERES TO THE SAME DOCUMENT RETENTION AND DESTRUCTION POLICY AS MERCY HEALTH SERVICES AND OTHER MERCY ENTITIES.