2016-11-08T10:40:59-06:00 2015-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2015-01-01 810288768 St John's Lutheran Ministries Inc STJO 4066555600 3940 Rimrock Road Billings MT 59102 Jerry Pearsall VP of Finance 4066555600 2016-11-03 1 Kim Hunwardsen CPA P00484560 6122536500 2016-11-03 2015 2017-02-10 21:41:12Z Jerry Pearsall 3940 Rimrock Road Billings MT 59102 28323808 0 9386 X WWW.SJLM.ORG X 1960 MT Our mission is to provide living opportunities within nurturing environments of Hope, Dignity & Love. 15 15 931 100 92400 -46200 88684 104162 26132782 27726249 362076 493397 0 0 26583542 28323808 81825 139152 0 0 17057401 17883403 0 0 0 10963293 11539177 28102519 29561732 -1518977 -1237924 41586188 39389832 34167838 33625661 7418350 5764171 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 26816616 139152 27726249 Operations - St. John's 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, independent living, and adult daycare services, as well as childcare, rehabilitation/home health, child adoption services and many other support services to enhance the lives of those we serve. 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 2015, St. John's nursing division cared for 620 residents providing 62,068 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 (a total of 36 beds) which specialize in assisted living dementia care. In 2015 the three dementia care cottages provided 11,387 days of care to 42 individuals.Retirement Services - Our retirement facility requires HUD approval of an annual operating budget and rental rate increases. St. John's served 136 people in its retirement facility in 2015 providing 36,243 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 $104,162 were provided by donations received from St. John's Foundation. Additionally in 2015, low-income residents on Medicaid Waiver were subsidized $37,679, and those residents not on Medicaid Waiver were subsidized $18,754. Overall, $160,000 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 59 individuals with 16,843 days of care provided in 2015. The Willows, a St. John's facility located in Red Lodge, MT has two connected assisted living cottages (a total of 24 units) and served 32 individuals with 7,888 days of care provided. Medicaid Patients - St. John's provides services to all of those in need including Medicaid patients. The cost of such care is greater than the related reimbursement. In 2015 St. John's continued as one of the largest providers of Medicaid long-term care services in Yellowstone County, Montana providing 27,905 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 2015 is estimated at $1,400,000. Home & Community Based Services/Rural Outreach - Through our rehabilitation department we served 217 patients for a total of 555 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 its homebound clients; in 2015 we served 163 clients for a total of 2,486 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 child care. St. John's Center for Generations is accredited, which assures high quality early childhood developmental programs for the children we serve. In 2015 the Center for Generations served a total of 143 children (100 children from the community, and 43 employee children). The program helps create a nurturing environment through intergenerational activities for our seniors as well. In 2015 St. John's subsidized $100,000 of direct costs to operate the Center for Generations. Lutheran Social Services of Montana (LSS) - With 5 offices in Montana, LSS has been serving the people of need in Montana and Northern Wyoming as part of St. John's for 7 years. The work of LSS is summarized in its motto, "Joining Hearts in Hope". In 2015, LSS was involved in bringing hope to the lives of over 100 families. LSS assisted 231 birth-parents and related family members and had a role in the placement of 9 children in forever homes. In 2015 St. John's subsidized $90,000 of direct costs to operate LSS. Other Subsidies - St. John's Foundation also provides college scholarship assistance to many of our staff wishing to pursue their education in the healthcare and social work fields. Through the direct scholarship program, college scholarships totaling $16,500 were provided to 12 students in 2015. Our Pastoral Care staff administers an employee crisis fund providing cash to employees for emergency needs - a total of $17,945 for 82 employees in 2015. Other Community Benefits - 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 the employee's normal work hours, free meeting space to other organizations within the community, clinicals for the training of nurses and physician assistants, and internships for other medical disciplines as well as participation in the fund raisers of other community not-for-profits. The St. John's 2015 Summer Concert Series hosted 5 free community concerts with close to 8,500 people in attendance. These concerts provide important community socialization for our residents as well as St. John's giving something 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 to our joint ventures Missions United, Inc. (including construction of the Wyndstone) and Home Based Services Initiative, LLC.SummaryOperating St. John's Lutheran Ministries, Inc. contributes to the organization's exempt purpose as it is 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, rehabilitation, and senior day services 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 we provide, $1,800,000 of direct community benefit (as detailed in this report) was provided by St. John's in the communities we are privileged to serve. 26816616 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 1 931 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 Jim Ochiltree Chair 2.00 2.00 X X 0 0 0 Eric NordVice Chair thru April 2015)/Director (as of May 2015) 2.00 0.00 X X 0 0 0 Clair OpsalVice Chair as of May 2015)/Treasurer (thru April 2015) 2.00 0.00 X X 0 0 0 Jyl Story Secretary 2.00 0.00 X X 0 0 0 Tom OlsonTreasurer as of May 2015)/Director (thru April 2015) 2.00 0.00 X X 0 0 0 Fredricka Gilje Director (thru April 2015) 2.00 0.00 X 0 0 0 Kathy Kelker Director 2.00 0.00 X 0 0 0 Greg Popp Director (thru April 2015) 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 Al Hultgren Director (thru April 2015) 2.00 0.00 X 0 0 0 Craig Martinson Director 2.00 0.00 X 0 0 0 Will Sappington Director 2.00 0.00 X 0 0 0 John Ronneberg Director (as of May 2015) 2.00 0.00 X 0 0 0 Stacey Siebrasse Director (as of May 2015) 2.00 0.00 X 0 0 0 Tim Thompson Director (as of May 2015) 2.00 0.00 X 0 0 0 Kent Burgess President/CEO 35.00 5.00 X 182575 0 26172 Jerry Pearsall CFO 35.00 5.00 X 85768 0 12030 David Trost VP Outreach & Management 35.00 5.00 X 140796 0 26238 Marlene Moran VP of Culture Development 35.00 5.00 X 109379 0 17333 518518 0 81773 3 0 1 0 Interim Healthcare 3312 2nd Avenue North Billings MT 59101 Contracted Nurse/CNA Services 499359 Yellowstone River of Care PO Box 50781 Billings MT 59105 Contracted CNA Services 374269 Dick Anderson Construction PO Box 31511 Billings MT 59107 Construction Services 222107 3 104162 104162 Resident Revenue 623000 19109134 19109134 Ancillary Revenues 623000 5769268 5676868 92400 Management and Consulting 900099 810559 810559 Income from Joint Venture 623000 747569 747569 Child Daycare 624410 608886 608886 680833 680833 27726249 304995 304995 11862 176540 0 0 11862 176540 188402 188402 28323808 27633849 92400 493397 139152 139152 307513 95329 212184 15163253 13838989 1324264 105966 95444 10522 1192413 1072224 120189 1114258 1003612 110646 756 756 47100 47100 17624 17624 952189 952189 49007 49007 193336 116002 77334 113560 107882 5678 1162303 1104188 58115 91614 45807 45807 76616 38308 38308 1653128 1487815 165313 2529810 2276829 252981 153223 145562 7661 Supplies - Pharmacy/Die 3312394 3312394 State Bed Tax 515164 515164 Bad Debts 129187 129187 542166 340539 201627 29561732 26816616 2745116 0 1890694 350687 1571061 1892725 459920 373643 621228 748520 56772833 30905192 27365253 25867641 9007864 8865781 500443 997380 169725 293455 41586188 39389832 2722662 2551073 27013853 26686763 327813 341956 4028510 3970869 75000 75000 34167838 33625661 X 7418350 5764171 7418350 5764171 41586188 39389832 -1237924 -416255 0 X 0 1 X 1 0 X 73971 83244 72513 88684 104162 422574 24217952 24915887 26070863 26132782 27633849 128971333 24291923 24999131 26143376 26221466 27738011 129393907 0 0 0 129393907 283016 322577 263341 354455 304995 1528384 283016 322577 263341 354455 304995 1528384 24574939 25321708 26406717 26575921 28043006 130922291 0.98830 0.98760 0.01170 0.01220 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 4751488 140879 -20872 255314 4616181 4564293 384819 198286 395910 4751488 4017623 374539 453382 281251 4564293 3329633 407448 344587 64045 4017623 3148918 286957 23401 129643 3329633 0.68000 0.32000 0.00000 0 1 1 1856312 1856312 43876549 27204296 16672253 10777760 3700896 7076864 262212 262212 25867641 Estimated Liability to Insurance Trust 75000 75000 X 29069800 745992 745992 28323808 0 28323808 30178559 616827 616827 29561732 0 29561732 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 745,992. Part XII, Line 2d - Other Adjustments: Related organization expenses included in consolidated financial statements 616,827. 1 Medicaid Waiver Assistance 26 121207 Employee Assistance 82 17945 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 1 0 0 0 0 0 1 0 Kent Burgess President/CEO 165441 0 15472 0 1662 0 17047 0 9694 0 209316 0 3431 0 David Trost VP Outreach & Management 126825 0 12302 0 1669 0 13571 0 13236 0 167603 0 3101 0 Part I, Line 4b Deferred Compensation Plan in effect - 2015 contributions made for Kent Burgess ($13,621), David Trost ($10,804), and Marlene Moran ($8,264). The plan covers three executives in which an amount up to 8% of the participants' salary is deferred upon board approval. After a five year period, the participant receives a percentage of account assets as taxable wages in that year. In 2015, 100% were distributed and the plan ended. Part I, Line 7 The payments to the employees are set by the plan itself and are based on a vesting schedule. The board does have the authority to hold up or reduce the funding of the plan if financial conditions dictate. A Montana Facility Finance Authority 810302402 61204KEC1 2006-08-17 30707420 Refund bonds issued 10/1/94, retire debt and fund campus expansion capital 0 0 0 B Montana Facility Finance Authority 810302402 2015-08-04 25000000 Refinance Series 2011 taxable loan into 2015A non-taxable bonds 0 0 0 A 8412420 30707420 2238437 1400000 526203 25190750 1352030 2007 1 0 1 1 B 4200825 290000 3910825 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 1 1 0 0 0 0 B 0 0 0 0 1 0 0 0 0 A 0 B 0 Date Rebate Computation Performed Issuer Name: Montana Facility Finance Authority Date the Rebate Computation was Performed: 07/08/2011 Schedule K, Part II, Line 3: Total proceeds of issue of $4,200,825 is different than Part I, line B issue price of $25,000,000. The $25,000,000 is the issue price on Form 8038. The 2015A bonds for $4,200,825 were issued 8/4/15 to refund Series 2011 bonds. The 2015B bonds will be issued May 2016. The 2015B bonds will refund Series 2006A bonds with a remaining balance. Form 990, Part III, line 3 The Senior Day Services program was closed in December 2015. 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 11 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. St John's Foundation 3940 Rimrock Road Billings MT 59102 810459472 Foundation MT 501(c)(3) Line 11a, 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 -174192 204720 0 1 0.66500 1 1 1 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 St John's Foundation C 104162 Actual Cost Home-Based Services Initiative LLC A 11400 FMV Home-Based Services Initiative LLC R 60000 Actual Cost Home-Based Services Initiative LLC Q 426387 FMV Home-Based Services Initiative LLC B 140000 FMV