2017-11-13T07:38:12-06:00 2016-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2016-01-01 810288768 St John's Lutheran Ministries Inc STJO 4066555600 3940 Rimrock Road Billings MT 59102 Jerry Pearsall VP of Finance 4066555600 2017-11-10 1 Kim Hunwardsen CPA P00484560 6122536500 2017-11-10 72.175.213.18 2017-11-10 10:54:15 MS P 6C9B1A35775087DBDB8A6D25ECA509C7F6C27838 B1517DAAED479AA3B0236E79C14EA2E11B9BE589 2016 2017-02-10 21:41:12Z Jerry Pearsall 3940 Rimrock Road Billings MT 59102 28273116 0 9386 X WWW.SJLM.ORG X 1960 MT Our mission is to provide living opportunities within nurturing environments of Hope, Dignity & Love. 15 15 961 100 75430 -12504 104162 115133 27726249 27639742 493397 518241 0 0 28323808 28273116 139152 214222 0 0 17883403 18162773 0 0 0 11539177 10963950 29561732 29340945 -1237924 -1067829 39389832 36636428 33625661 31449506 5764171 5186922 X St. John's Lutheran Ministries is a community of diverse people sharing God's healing presence. Our mission is to provide living opportunities within nurturing environments of hope, dignity & love. 0 1 26789442 214222 27639742 St. John's Operations - St. John's Lutheran Ministries, Inc. is a ministry to the world given by 23 local Lutheran (ELCA) ownership congregations who are committed to caring for people regardless of religious preference, race/national origin, gender/age/marital status, diagnosis/disability, or financial status. Opened in 1963, St. John's started as a 115 bed HUD facility and has grown into one of the largest providers of senior housing and long-term care services in the State of Montana. We offer a full continuum of care providing low-income housing, assisted living, skilled nursing, and independent living, as well as childcare, rehabilitation/home health, child adoption services and many other support services to enhance the lives of those we serve. (Continued on Schedule O)Overall, we served 2,118 seniors in 2016 as well as many others as detailed below.Program Service Accomplishments:Skilled Nursing Services - We operate a 74 bed skilled nursing facility, a 32 bed secure dementia care unit, 32 beds located in two separate transitional care units, as well as 48 skilled nursing beds located in four individual cottages. During 2016, St. John's nursing division cared for 658 residents providing 61,645 patient days of care. St. John's has proven to be an innovative leader in nursing home care through the implementation of programs such as the Eden Alternative, Comfort Care Vigil Ministry, and the Green House cottage model with an open door to other service providers from around the country to tour our facilities and exchange information and service delivery ideas. The success of this new cottage model of care is based on two principles, 1) the creation of a home environment serving a small group of elders and, 2) the role of the Elder Sharath ("servant" in Hebrew) in the cottage and the extensive training/education given them to prepare them for this new role. The organization, operations and delivery of care within this new paradigm are radically different from those of the traditional nursing home. Dementia Care Cottages - Located next to the nursing facility are three individual cottages (36 beds) which specialize in assisted living dementia care. In 2016, the three dementia care cottages provided 11,597 days of care to 45 individuals. Retirement Services - Our retirement facility requires HUD approval of the annual operating budget and rental rate increases. St. John's served 137 people in its retirement facility in 2016 providing 33,711 days of housing and assistance. Our activities program, established to keep our residents active, healthy and engaged, and our pastoral care program, designed to serve the whole person, are expenses that cannot be included in resident rents (per HUD regulations). Subsidies of $115,113 were provided by donations received from St. John's Foundation. Additionally in 2016, low-income residents on Medicaid Waiver were subsidized $49,544, and those residents not on Medicaid Waiver were subsidized $18,754. Overall, $183,000 of direct financial support was provided to our low-income retirement residents.Other Facilities - The Crossings, a St. John's facility located in Laurel, Montana, includes a 12 unit assisted living dementia care cottage, 13 assisted living apartments and 24 independent living apartments. The Crossings served 61 individuals with 16,643 days of care provided in 2016. Low-income residents on Medicaid Waiver were subsidized $151,450. The Willows, a St. John's facility located in Red Lodge, MT has two connected assisted living cottages (24 beds total) and served 32 individuals with 6,339 days of care provided. Medicaid Residents - St. John's provides services to all people in need including Medicaid residents. The cost of such care is much greater than the related reimbursement. In 2016, St. John's continued as one of the largest providers of Medicaid long-term care services in Yellowstone County, Montana providing 28,303 days of resident care. The gap between our cost to provide care to Medicaid recipients and the reimbursement we received in the nursing facility during 2016 is estimated to be $1,450,000. Home & Community Based Services/Rural Outreach - Through our rehabilitation department, we served 215 patients for 557 outside rehabilitation visits. These patients were located at hospitals up to a distance of 60 miles from Billings. In addition, we contracted with our related joint venture, Home Based Services Initiative, LLC to provide rehabilitation services for their homebound clients; in 2016, we served 187 clients for 2,858 visits. Center For Generations - We continue to provide child and infant daycare to our staff members and the community, many of whom cannot afford, nor have access to safe, quality childcare. St. John's Center for Generations is accredited which assures high quality early childhood developmental programs for the children we serve. In 2016, the Center for Generations served 119 children (59 community families and 22 staff families). The program helps create a nurturing environment through intergenerational activities for our seniors as well. During 2016, St. John's subsidized $75,000 of direct costs to operate the Center for Generations. Lutheran Social Services of Montana (LSS) - With 5 offices throughout Montana, LSS has been serving the people of need in Montana and Northern Wyoming as part of St. John's for 8 years. The work of LSS is summarized in its motto, "Joining Hearts in Hope". In 2016, LSS was involved in bringing hope to the lives of 119 families. LSS assisted 231 birth parents and related family members and had a role in the placement of 9 children in forever homes. In addition, LSS worked with 125 adoptable children through the Wendy's Wonderful Kids program as well as 72 people in our professional counseling program. In 2016, St. John's subsidized $60,000 of direct costs to operate LSS. Other Subsidies - Our Pastoral Care staff administers an employee crisis fund providing cash to employees for emergency needs - a total of $13,229 for 65 employees in 2016. Community Engagement - Other benefits St. John's supplies to the community include free programs (health fairs and seminars on aging issues), staff assistance to other 501(c) (3) organizations during normal work hours, free meeting space to other organizations within the community, clinicals for the training of nurses and physician assistants, internships for other medical disciplines, as well as participation in the fund raisers of other community not-for-profits. The St. John's 2016 Summer Concert Series hosted seven free community concerts with close to 10,000 people in attendance. These concerts provide important community socialization for our residents as well as an opportunity to give back to the community. St. John's Lutheran Ministries, Inc. supports and encourages health care services by providing financial and managerial consulting assistance to affiliated not-for-profit organizations. We provide management services to Sapphire Lutheran Homes (Hamilton, Montana) as well as our joint ventures Missions United, Inc. (including Mission Ridge, Vista and the Wyndstone) and Home Based Services Initiative, LLC. SummaryOperating St. John's Lutheran Ministries, Inc. contributes to the organization's exempt purpose in a manner designed to satisfy the primary needs of aged, handicapped, and disadvantaged persons, providing safe housing, health care, and financial security. The need for safe housing is satisfied as St. John's provides residential facilities that are specifically designed to meet the special needs of the elderly. The need for health care is satisfied as St. John's provides long-term health care and rehabilitation in an environment designed to maintain the physical, emotional, and spiritual well-being of the residents. The need for financial security is met as St. John's 1) maintains in the residence, any person who becomes unable to pay the standard charges and 2) provides its services at the lowest possible cost to remain a viable provider of services to the elderly in the community.While not an all-inclusive dollar amount of total community benefits provided and without an attempt to measure the high quality of services provided, almost $1,950,000 of direct community benefit (as detailed in this report) was provided by St. John's to the communities we are privileged to serve. 26789442 1 1 0 0 0 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 21 0 1 961 1 1 1 0 0 0 0 0 0 0 0 0 X 15 15 0 0 0 0 1 1 0 1 0 0 0 1 1 1 1 1 1 1 0 1 1 X X Mark Beadle Controller 4066555601 3940 Rimrock Road Billings MT 59102 Clair OpsalChair beginning 5/1/16)/Vice Chair (ending 4/30/16) 2.00 2.00 X X 0 0 0 Jim OchiltreeChair ending 4/30/16)/Director (beginning 5/1/16) 2.00 2.00 X X 0 0 0 Will SappingtonVice Chair (begin 5/1/16)/Director (end 4/30/16) 2.00 0.00 X X 0 0 0 Jyl Story Secretary 2.00 0.00 X X 0 0 0 Tom Olson Treasurer 2.00 0.00 X X 0 0 0 Connie Herberg Director (beginning 5/1/16) 2.00 0.00 X 0 0 0 Kathy Kelker Director 2.00 0.00 X 0 0 0 Marty Ambuehl Director 2.00 0.00 X 0 0 0 Gary Olsen Director 2.00 0.00 X 0 0 0 Carol Blackwell Director 2.00 0.00 X 0 0 0 Kristy Foss Director 2.00 0.00 X 0 0 0 Craig Martinson Director 2.00 0.00 X 0 0 0 John Ronneberg Director 2.00 0.00 X 0 0 0 Stacey Siebrasse Director 2.00 0.00 X 0 0 0 Tim Thompson Director 2.00 0.00 X 0 0 0 Eric Nord Director (ending 4/30/16) 2.00 0.00 X 0 0 0 David Trost President/CEO (beginning 5/1/16) 35.00 5.00 X 127715 0 35403 Jerry Pearsall CFO 35.00 5.00 X 81321 0 29136 Kent Burgess President/CEO (ending 4/30/16) 35.00 5.00 X 165235 0 16859 374271 0 81398 2 0 1 0 Interim Healthcare 3312 2nd Avenue North Billings MT 59101 Contracted Nurse/CNA Services 648477 Yellowstone River of Care PO Box 50781 Billings MT 59105 Contracted CNA Services 523373 Dick Anderson Construction PO Box 31511 Billings MT 59107 Construction Services 500086 3 115133 115133 Resident Revenue 623000 19561211 19561211 Ancillary Revenues 623000 5720898 5645468 75430 Management and Consulting 900099 661613 661613 Child Daycare 624410 629539 629539 Income from Joint Venture 623000 365401 365401 701080 701080 27639742 185842 185842 11883 320516 0 0 11883 320516 332399 332399 28273116 27564312 75430 518241 214222 214222 457232 103985 353247 15372271 14142244 1230027 105365 94826 10539 1113244 1001897 111347 1114661 1003172 111489 7649 7649 50625 50625 19008 19008 1184176 1184176 32405 32405 190979 114587 76392 158671 150737 7934 1151916 1094320 57596 99652 49826 49826 45312 22656 22656 1086662 977996 108666 2611975 2350777 261198 161199 153139 8060 Supplies - Pharmacy/Die 3184199 3184199 State Bed Tax 511654 511654 Bad Debts 214113 214113 253755 220916 32839 29340945 26789442 2551503 0 350687 1470107 1892725 1555130 373643 366593 748520 74542 57377697 33025858 25867641 24351839 8865781 7158155 997380 1264132 9000 293455 386930 39389832 36636428 2551073 3032300 26686763 24233955 341956 217849 3970869 3890402 75000 75000 33625661 31449506 X 5764171 5186922 5764171 5186922 39389832 36636428 X -1067829 220580 270000 X 0 1 X 1 0 X 83244 72513 88684 104162 115133 463736 24915887 26070863 26132782 27633849 27564312 132317693 24999131 26143376 26221466 27738011 27679445 132781429 0 0 0 132781429 322577 263341 354455 304995 185842 1431210 322577 263341 354455 304995 185842 1431210 -46200 -12504 -58704 25321708 26406717 26575921 27996806 27852783 134153935 0.98980 0.98830 0.01070 0.01170 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 4616181 380749 213861 248201 4962590 4751488 140879 -20872 255314 4616181 4564293 384819 198286 395910 4751488 4017623 374539 453382 281251 4564293 3329633 407448 344587 64045 4017623 0.68430 0.31570 0.00000 0 1 1 1828454 1828454 44092084 28924302 15167782 11325335 4101556 7223779 131824 131824 24351839 Estimated Liability to Insurance Trust 75000 75000 X 29298651 1025535 1025535 28273116 0 28273116 30155317 814372 814372 29340945 0 29340945 Part IV, Line 2b: St. John's Lutheran Ministries, Inc. acts as custodian of funds for some residents. St. John's Lutheran Ministries, Inc. also holds security deposits for assisted living apartments which are refunded when the unit is vacated less any amounts for necessary cleaning and damage. Independent living residents also pay an entrance fee that may be fully or partially refunded depending on the resident agreement. Part V, Line 4: St. John's Foundation has established several Board managed funds whose earnings will provide an income stream to support the mission of St. John's for years to come. The Board of Directors of St. John's Foundation is responsible for approving expenditures from these funds. The Board Managed Funds are as follows: The Nelles Staff Development Fund - Established in 2008 with a major gift from Ralph Nelles. Earnings from this endowment assist with staff education and development. The McCann Nurse Scholarship Fund - Established in 2010 with a gift from Paul McCann. It is to be used for the continuing education of our campus nurses. The Diteman House Maintenance Fund - Established in 2009 with a large gift from the estate of Hall Diteman. Earnings from this endowment will be used for maintenance of the house given to the Foundation by Mr. Diteman. Lillis Chapel Maintenance Fund - Established with a gift from Bert Lillis, this fund is restricted to maintain the Kathy Lillis Chapel. Inga Rygg Special Needs Fund - Established to cover special needs for the children/birth mothers of Lutheran Social Services of Montana (LSS). St. John's Foundation solicits gifts to our endowments, both as cash gifts and planned gifts. Planned gifts have been primarily in the form of Current and Deferred Gift Annuities; many of these planned gifts to St. John's Foundation Endowments are eligible for the Montana Qualified Endowment Tax Credit. The Foundation has established endowment funds whose earnings will provide an income stream to support the mission of St. John's for years to come. The Board of Directors of St. John's Foundation is responsible for approving expenditures from these endowment funds. The Foundation's Endowments are as follows: Norman L & Mary Lou Sulenes Alzheimer's Endowment - Established in 2005, the Alzheimer's Endowment will support those affected by Alzheimer's or dementia and the staff who care for them. Mission Endowment - Proceeds from this endowment fund are to be used to support needs identified within the community. Currently, investment earnings are used to support residents living at St. John's who can no longer afford to live here. Spiritual Endowment Fund - To support Pastoral Care at St. John's and to help ensure that St. John's continues to be a spiritual home for our residents and staff. Faith and Leadership Endowment To support the educational needs of leaders within the organization. Part X, Line 2: St. John's Lutheran Ministries, Inc. is organized as a Montana a nonprofit corporation and has been recognized by the Internal Revenue Service (IRS) as exempt from federal income taxes under Internal Revenue Code Section 501(c)(3). St John's is also affiliated with the Evangelical Lutheran Church of America. St John's is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. St John's has determined they are not subject to unrelated business income tax and have not filed an Exempt Organization Business Income Tax Return (Form 990T) with the IRS. St John's believes they have appropriate support for any tax positions taken affecting their annual filing requirements, and as such, do not have any uncertain tax positions that are material to the financial statements. St John's would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Part XI, Line 2d - Other Adjustments: Related organizations revenue included in consolidated financial statements 1,025,535. Part XII, Line 2d - Other Adjustments: Related organization expenses included in consolidated financial statements 814,372. 1 Medicaid Waiver Assistance 31 200993 Employee Assistance 65 13229 Part I, Line 2: Disbursements for retirement residents on Medicaid Waiver are made to support participation in the Pastoral Care and Activities Program. The pastoral staff is responsible for and monitors the use of funds. Disbursements for employee assistance are made to support employees with financial problems. The pastoral staff is responsible for and monitors the use of funds. X X X 0 0 0 0 0 0 0 0 0 David Trost President/CEO (beginning 5/1/16) 125861 0 0 0 1854 0 26756 0 9216 0 163687 0 0 0 Kent Burgess President/CEO (ending 4/30/16) 163631 0 0 0 1604 0 3479 0 13949 0 182663 0 0 0 A Montana Facility Finance Authority 810302402 2015-08-04 25000000 Refinance Series 2011 taxable loan into 2015A non-taxable bonds 0 0 0 A 766045 25000000 360000 961312 23678688 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 0 1 0 0 0 0 A 0 Schedule K, Part II, Line 3: The 2015A bonds for $4,200,825 were issued 8/4/15 to refund Series 2011 bonds. The 2015B bonds were issued 5/15/16 to refund Series 2006A bonds with a remaining balance. Form 990, Part III, line 3 The dietary function was subbed out to Sodexo, Inc. on April 1, 2017. Management employees are now Sodexo employees who report to the St. John's President/CEO and Administrator. Line personnel continue to be employed by St. John's. Dietary operating expenses and management personnel, plus a management fee upcharge, are invoiced to St. John's monthly. Form 990, Part VI, Section A, line 6 The organization has one class of members, and the members are 23 incorporated Lutheran church congregations organized and existing under the laws of the State of Montana. Form 990, Part VI, Section A, line 7a Board members are nominated by the Nominating Committee (made up of Ownership Congregation delegates/Board members) and voted on by Ownership Congregation delegates at Annual Meeting. Form 990, Part VI, Section A, line 8b There are no committees with the authority to act on behalf of the governing body. Form 990, Part VI, Section B, line 11b Form 990 will be presented to the Finance Committee who will carry a recommendation to the full Board for approval. Form 990 is presented electronically to the full board prior to filing. Form 990, Part VI, Section B, line 12c Compliance with policy is monitored by overall awareness of directors' interests. The Board of Directors and Officers are covered under this policy. All conflicts are reviewed by the board. Voting restrictions are imposed on directors and officers who have a conflict of interest. Form 990, Part VI, Section B, line 15a In 2006, the Board of Directors approved the CEO's salary and that was determined using the MHA annual survey, comparability data, and a review and approval by independent persons. This process was documented. The CEO has not received an increase in base salary, other than standard cost of living increases (2% annually), since that time. The only other increases in compensation were due to amounts which became vested from the deferred compensation plan. CEO and VP-Culture Development set exempt employees' compensation annually. CEO, VP-Culture Development and select department managers adjust hourly wage ranges annually. The board approves exempt compensation and hourly wage ranges annually as part of budget process. Form 990, Part VI, Section C, line 19 The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon written request. Form 990, Part XI, line 9: Transfers between divisions 270,000. St John's Foundation 3940 Rimrock Road Billings MT 59102 810459472 To support St. John's Lutheran Ministries, Inc. MT 501(c)(3) Line 12a, I St John's Lutheran Ministries Inc 1 Home-Based Services Initiative LLC 2429 Mission Way Billings MT 59107 455209647 Home health care MT St John's Lutheran Ministries Inc related -14482 151387 0 1 0.66500 1 0 1 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 1 St John's Foundation C 115133 Actual Cost Home-Based Services Initiative LLC A 11400 FMV Home-Based Services Initiative LLC S 65414 Actual Cost Home-Based Services Initiative LLC Q 771103 FMV Home-Based Services Initiative LLC D 115000 FMV St John's Foundation S 170992 Actual Cost