2016-11-15T15:22:23-06:00 2015-12-31 420714325 RSM US LLP 230 N ELM ST STE 1100 GREENSBORO NC 27401 990 2015-01-01 562103741 THE CYPRESS OF CHARLOTTE CLUB INC CYPR 7047145500 3442 CYPRESS CLUB DR CHARLOTTE NC 28210 SARAH ELLIOTT-BURTON DIRECTOR OF FINANCE 7047145500 2016-11-15 ADRIENNE MCKINNEY P00819656 3362724551 2015 2017-02-10 21:41:12Z THE CYPRESS OF CHARLOTTE JAMES COLEMAN 3442 CYPRESS CLUB DR CHARLOTTE NC 28210 15874386 0 X WWW.THECYPRESS.COM X 1998 NC THE CYPRESS OF CHARLOTTE CLUB, INC. WAS ESTABLISHED AS A NON-PROPIETARY, NON-SHAREHOLDER, NOT-FOR-PROFIT MUTUAL BENEFIT CORPORATION UNDER THE LAWS OF NC, EXCLUSIVELY TO MAINTAIN HOUSING FOR THE ELDERLY, TO DIRECTLY PROVIDE HEALTHCARE FOR THE PHYSICAL AND MENTAL WELL-BEING OF ITS RESIDENTS, TO PROVIDE FINANCIAL SECURITY FOR ITS RESIDENTS WITH POLICIES PERMITTING RESIDENTS TO REMAIN AT THE CYPRESS EVEN THOUGH THEY MAY RUN OUT OF FUNDS, AND TO OPERATE THE FACILITY AT ITS LOWEST FEASIBLE AND ACCEPTABLE COST. 5 3 0 120 0 0 0 0 14082628 15615495 19700 8167 0 0 14102328 15623662 0 0 0 0 8938098 9753850 0 0 0 6248141 6193863 15186239 15947713 -1083911 -324051 4815623 4602069 3710526 3824457 1105097 777612 THE CYPRESS OF CHARLOTTE, CHARLOTTE'S PREMIER CONTINUING CARE RETIREMENT COMMUNITY, IS COMMITTED TO ENHANCING THE LIVES OF OUR MEMBERS BY PROVIDING EXCEPTIONAL SERVICE AND PEACE OF MIND IN AN UPSCALE ENVIRONMENT. 0 0 12820550 0 15615495 THE CYPRESS OF CHARLOTTE CLUB PROVIDES SERVICES TO ELDERLY RESIDENTS LIVING IN 310 PRIVATELY OWNED RESIDENTIAL UNITS. RESIDENTS RECEIVED ASSISTED LIVING, INCLUDING HEALTHCARE, FOR PHYSICAL AND MENTAL WELL BEING. 12820550 0 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 X 5 3 0 1 0 0 1 0 0 1 1 0 0 0 1 1 1 1 1 0 0 0 X SARAH ELLIOTT-BURTON 7047145500 3442 CYPRESS CLUB DR CHARLOTTE NC 28210 X JAMES P COLEMAN PRESIDENT 5.00 X X 0 0 0 STEVEN KERLEY SEC/TREAS/EXEC DIR 40.00 X X 0 0 0 MICHELLE FISH DIRECTOR 0.30 X 0 0 0 MICHAEL J HARRISON DIRECTOR 0.30 X 0 0 0 DR ROBERT HIGGINS DIRECTOR 0.30 X 0 0 0 SONDRA C KEY SALES DIRECTOR 40.00 X 132331 0 9329 132331 0 9329 1 0 0 0 THE CYPRESS OF CHARLOTTE LLC 20 LADY SLIPPER LANE HILTON HEAD ISLAND SC 29926 CONTRACTUAL OVERHEAD-SEE STMT O 1061478 LIFE CARE COMPANIES LLC CAPITAL SQUARE DES MOINES IA 503092334 MANAGEMENT SERVICES 788845 GEORGIA CARPET WAREHOUSE 8514 MONROE ROAD CHARLOTTE NC 28212 RENOVATION SERVICES 428669 LANDMARK LANDSCAPE INC 7319 IVY HILL LANE WAXHAW NC 28173 LANDSCAPING SERVICES 384082 HERITAGE HEALTHCARE 536 OLD HOWELL ROAD GREENVILLE SC 29615 REHABILITATION SERVICES 379360 8 MEMBER DUES 623000 7363315 7363315 HOME HEALTH SERVICE 621610 4010933 4010933 HEALTH SERVICE 623000 3711607 3711607 OTHER MEMBER FEES 623000 529640 529640 15615495 11891 11891 247000 250724 -3724 -3724 -3724 15623662 15615495 0 8167 8056557 7529385 527172 30531 58932 -28401 840634 745689 94945 826128 796696 29432 1564511 1564511 13213 13213 81415 81415 11716 11716 134377 71862 62515 8410 8410 2940 2940 689553 582393 107160 94339 55917 38422 185601 185601 239329 239329 FOOD COST 1576391 1576391 0 MEDICAL EXPENSES 663080 663080 SUPPLIES 358652 347206 11446 ACTIVITIES 140105 140105 430231 67293 362938 15947713 12820550 3127163 0 500 300 331455 78587 1122573 1230655 75130 79144 308731 261634 2613367 2004857 617143 608510 250788 2109303 2343239 4815623 4602069 1726604 1943746 31426 14151 1952496 1866560 3710526 3824457 X 1105097 777612 1105097 777612 4815623 4602069 -324051 -3434 0 X X 0 1 X 1 0 2613367 2004857 608510 608510 INSURANCE RESERVES - MONEY MKT 2343239 F 2343239 DUE TO AFFILIATES 1854844 DUE TO HOMEOWNERS 11716 1866560 X 15620228 -3434 -3434 15623662 0 15623662 15947713 0 15947713 0 15947713 PART X, LINE 2: THE CLUB IS A NONPROFIT ORGANIZATION EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE. MANAGEMENT HAS EVALUATED THAT THE CLUB'S TAX POSITIONS AND CONCLUDED THAT THE CLUB HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. THE CLUB FILES AS A TAX-EXEMPT ORGANIZATION. BECAUSE MANAGEMENT HAS NOT IDENTIFIED UNRELATED BUSINESS INCOME IN PAST YEARS, THE CLUB HAS NOT FILED FORM 990-T, EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURNS. MANAGEMENT IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE THE TAX-EXEMPT STATUS OF THE CLUB. MANAGEMENT IS NOT AWARE OF ANY SIGNIFICANT ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINESS INCOME OR EXCISE OR OTHER TAXES FOR THE CLUB. CYPRESS OF CHARLOTTE LLC JAMES COLEMAN BOARD PRESIDENT BOARD PRES/LLC OWNER - JAMES COLEMAN INDIRECTLY OWNS 25% OF THE LLC 1061478 MGMT FEE/OVERHEAD FEETHE CYPRESS OF CHARLOTTE, LLC PLANNED, DESIGNED, AND BUILT THE CYPRESS OF CHARLOTTE COMMUNITY. THE BUSINESS MODEL ALLOWED THE COMMUNITY TO BE BUILT AND OPERATED WITHOUT DEBT BY ALLOWING FOR AN OVERHEAD PAYMENT EQUAL TO 10% OF THE OPERATING EXPENSES TO BE PAID TO THE LLC. THIS STRUCTURE ALLOWS THE CYPRESS OF CHARLOTTE CLUB MEMBER FEES TO BE LOWER THAN 95% OF COMPARABLE COMMUNITIES, WHILE AT THE SAME TIME PROVIDING A HIGHER LEVEL OF FINANCIAL SECURITY FOR THE MEMBERS OF THE COMMUNITY. THE AMOUNTS PAID TO THE CYPRESS OF CHARLOTTE, LLC ARE SET AS FIXED PERCENTAGES ESTABLISHED WHEN THE COMMUNITY WAS STARTED. THE SAME PAYMENTS WOULD BE MADE TO THE LLC REGARDLESS OF MR. COLEMAN'S PRESENCE ON THE BOARD, NOR ARE THEY TIED TO THE REVENUE OF THE CLUB. 0 FORM 990, PART VI, SECTION A, LINE 3 THE CYPRESS OF CHARLOTTE CLUB ("CLUB")HAS CONTRACTED WITH LIFE CARE SERVICES, LLC TO PROVIDE SERVICES, INCLUDING MANAGEMENT SERVICES AND EMPLOYEES, TO THE CLUB. THE CLUB HAS AN AGREEMENT WITH THE CYPRESS OF CHARLOTTE, LLC ("COMPANY") TO PROVIDE SUPERVISION AND OVERSIGHT OF THOSE CONTRACTED ACTIVITIES AND EMPLOYEES. THE BOARD IS STILL ULTIMATELY RESPONSIBLE FOR THE CLUB AND MAY TERMINATE THE MANAGEMENT AGREEMENT WITH THE COMPANY SHOULD THE COMPANY BE IN DEFAULT. FORM 990, PART VI, SECTION A, LINE 6 ONE CLASS OF MEMBERS FORM 990, PART VI, SECTION B, LINE 11 NO REVIEW WILL BE CONDUCTED FORM 990, PART VI, SECTION B, LINE 12C THE CLUB REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCY WITH THE POLICY THROUGH THEIR CORPORATE COMPLIANCE PROGRAM. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE MADE AVAILABLE THROUGH THE ORGANIZATION'S ANNUAL DISCLOSURE STATEMENT, WHICH IS REQUIRED BY THE NC DEPARTMENT OF INSURANCE, WHICH REGULATES ALL CONTINUING CARE RETIREMENT COMMUNITIES IN THE STATE OF NORTH CAROLINA. ALL CYPRESS MEMBERS, ALL POTENTIAL CYPRESS MEMBERS, AND ANY OTHER INTERESTED PARTIES CAN RECEIVE A COPY OF THE DISCLOSURE STATEMENT UPON REQUEST. FORM 990, PART VII, SECTION A, COLUMN F THE ORGANIZATION, IN A FULL TRANSPARENCY POSTURE TO REPORTING, IS REPORTING ALL BENEFITS IN FULL IN COLUMN F, PART VII AND IS NOT APPLYING THE $10,000 PER ITEM EXCEPTION FOR CERTAIN BENEFITS. FORM 990, PART XII, LINE 2C, AUDIT COMMITTEE:: THE BOARD ITSELF SERVES AS THE COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT AUDITOR. THE BOARD IS MADE UP, IN THE MAJORITY, OF INDEPENDENT DIRECTORS WITH NO OTHER AFFILIATION WITH ANY OF THE CYPRESS ENTITIES. THE AUDIT COMMITTEE'S PROCESS OF EVALUATION HAS NOT CHANGED SINCE PRIOR YEAR. FORM 990, PART I, LINE 6: WE HAVE MEMBERS (RESIDENTS) WHO ARE ELECTED TO SERVE ON ADVISORY COMMITTEES AND OTHER MEMBERS WHO VOLUNTEER THEIR TIME AT OUR NURSING FACILITY READING TO AND VISITING THE SICK. FORM 990, PAGE 6, LINE 3 STEVEN KERLEY'S COMPENSATION IS 122,347.81. FORM 990, PART VI, LINES 15A & B: THE PROCESS OF DETERMINING COMPENSATION FOR THE EXECUTIVE DIRECTOR AND HEALTHCARE ADMINISTRATION IS CONDUCTED BY THE ORGANIZATION'S MANAGEMENT COMPANY, LIFE CARE SERVICES, LLC OF DES MOINES, IOWA, SUBJECT TO THE APPROVAL OF THE BOARD. THE EXECUTIVE DIRECTOR AND HEALTHCARE ADMINISTRATOR ARE LIFE CARE SERVICES, LLC EMPLOYEES (I.E. THEY ARE NOT EMPLOYEES OF THE CYPRESS OF CHARLOTTE). FORM 990, SCHEDULE R, PART III AND PART IV: THE NORTH CAROLINA DEPARTMENT OF INSURANCE ISSUED THE LICENSE TO OPERATE A CONTINUING CARE RETIREMENT COMMUNITY COLLECTIVELY TO THE CYPRESS OF CHARLOTTE CLUB ("CLUB"), THE CYPRESS OF CHARLOTTE OWNERS' ASSOCIATION ("OA"), AND THE CYPRESS OF CHARLOTTE, LLC ("COMPANY"). THE DEPARTMENT OF INSURANCE REQUIRES THESE THREE LEGAL ENTITIES WORK TOGETHER TO FULFILL THE MISSION OF THE CYPRESS OF CHARLOTTE. THIS STRUCTURE ALLOWS THE COMPANY TO CONTRIBUTE REAL AND PERSONAL PROPERTY TO THE PROJECT WITHOUT DEBT TO EITHER THE CLUB OR THE OA, ALLOWING FOR MUCH GREATER FINANCIAL SECURITY AND LOWER MEMBER FEES THAN ANY COMPARABLE COMMUNITIES. IN RETURN, THE COMPANY RECOVERS ITS INVESTMENT THROUGH THE OVERHEAD FEES PAID BY THE COMMUNITY. THE TERMS OF AND DETAILS OF THE OVERHEAD PAYMENT ARE PROVIDED TO AND ACKNOWLEDGED BY MEMBERS WHEN THEY JOIN THE COMMUNITY. THIS MODEL ALIGNS THE INTERESTS OF THE CLUB, OA, COMPANY AND MEMBERS TO ENSURE THE COMMUNITY CONTINUES TO GROW AND THRIVE. THE SUCCESS OF THIS STRUCTURE CAN BE SEEN IN A 95% MEMBER SATISFACTION RATE AND SIGNIFICANT INCREASES IN THE VALUE OF THE RESIDENCES UPON RESALE. THE CYPRESS OF CHARLOTTE LLC 3442 CYPRESS CLUB DR CHARLOTTE NC 28210 MGT SERVICES & CO-LICENSEE OF CYPRESS OF CHARLOTTE. NC 0 0 THE CYPRESS OF CHARLOTTE OWNERS' ASSOCIATION 3442 CYPRESS CLUB DRIVE CHARLOTTE NC 28210 562205827 HOME OWNERS ASSOC AND CO-LICENSEE OF THE CYPRESS OF CHARLOTTE. NC C 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 1 1 0 0 0 THE CYPRESS OF CHARLOTTE LLC P 1061478 THE CYPRESS OF CHARLOTTE OWNERS' ASSOCIATION E 1854844