2015-11-11T07:49:03-06:00 2014-12-31 KPMG LLP 1676 International Drive McLean VA 22102 990 2014-01-01 231857015 DIAKON LUTHERAN SOCIAL MINISTRIES % SCOTT HABECKER DIAK 6106821262 798 HAUSMAN ROAD ALLENTOWN PA 18104 SCOTT HABECKER EVP-COO&CFO 7177950342 2015-11-05 true Jocelyne C Miller KPMG LLP P00634378 7032868000 2015-11-05 2014 2016-03-07 17:11:31Z MARK T PILE 798 HAUSMAN ROAD ALLENTOWN PA 18104 365383786 false 9386 X WWW.DIAKON.ORG X 1868 PA THE ORGANIZATION IS A PROVIDER OF senior LIVING SERVICES AND SOCIAL SERVICES, INCLUDING ADOPTION, FOSTER CARE COUNSELING AND YOUTH SERVICES IN PENNSYLVANIA AND MARYLAND. 9 9 2578 1600 7952 -86152 6514090 12948745 189963729 195685737 9931711 8968242 1325882 1397775 207735412 219000499 89316 175958 0 0 68518498 66239961 279940 59500 1480068 141647184 146236248 210534938 212711667 -2799526 6288832 435520798 439927163 365238203 398095811 70282595 41831352 X IN RESPONSE TO GOD'S LOVE IN JESUS CHRIST, DIAKON LUTHERAN SOCIAL MINISTRIES WILL DEMONSTRATE GOD'S COMMAND TO LOVE THE NEIGHBOR THROUGH ACTS OF SERVICE. false true 134876711 25458 134513977 Senior Living Services SEE SCHEDULE O 8521313 150000 7715849 Services for Children, Families, and Communities SEE SCHEDULE O 50094356 50094356 Statewide Adoption Network SEE SCHEDULE O 1722118 500 4807998 195214498 true true false true false false false false false true true false false true true true false true false false false false false true true false false true true true true true false false false false false false false false false true false false false true true true true false false true 375 0 true 2578 true true true false false false false true true false false false false X 9 9 false false false false true true true true true false false true true true true true true true true true true MD PA X SCOTT HABECKER 7177950342 1022 N UNION STREET MIDDLETOWN PA 17057 X MAURICE BOBST BOARD MEMBER 1.0 4.0 X 0 0 0 JEFF BOLAND BOARD MEMBER 1.0 0.0 X 0 0 0 ADDIE BUTLER BOARD MEMBER (until 7/1/14) 0.5 2.5 X 0 0 0 LARRY DELP BOARD MEMBER 1.0 1.0 X 0 0 0 BARBARA FEEGE BOARD MEMBER 1.0 0.0 X 0 0 0 CHAD HEBRINK BOARD MEMBER 1.0 0.0 X 0 0 0 HOLLY HEINTZELMAN ESQ SECRETARY (until 7/1/14) 0.5 0.5 X 0 0 0 JOYCE HERSHBERGER BOARD MEMBER (until 7/1/14) 0.5 0.5 X 0 0 0 PHIL KREY BOARD MEMBER (until 7/1/14) 0.5 2.5 X 0 0 0 DR DON MAIN CHAIR 1.0 0.0 X 0 0 0 ERICH MARCH VICE-CHAIR 1.0 0.0 X 0 0 0 DR BARRY PARKS SECRETARY 1.0 0.0 X 0 0 0 GREG RHODES BOARD MEMBER (until 7/1/14) 0.5 0.5 X 0 0 0 LAURIE SALTZGIVER BOARD MEMBER (until 7/1/14) 0.5 0.5 X 0 0 0 JOSEPH SKILLMAN BOARD MEMBER (until 7/1/14) 0.5 1.5 X 0 0 0 BISHOP SAM ZEISER BOARD MEMBER 1.0 0.0 X 0 0 0 MARK T PILE PRESIDENT/CEO 22.0 15.5 X 427338 0 204141 SCOTT HABECKER EXEC VP, CHIEF OP&FIN OFFICER 29.2 8.3 X 337957 0 82280 RICHARD M BARGER EXEC VP, TREASURER 29.3 8.2 X 303022 0 28131 MARY ELLEN DICKEY SVP, ADVANCEMENT 10.5 27.0 X 346773 0 43989 RICHARD H REED SVP, CHIEF RISK OFFICER 24.0 13.5 X 233565 0 24070 DEANNA L ZIEMBA SVP, SR LVNG OP & BUS DEV 33.3 4.2 X 190005 0 20099 ALICE M CLARK SVP, HUMAN RESOURCES 34.0 3.5 X 159351 0 21565 JOHN J PALKOVITZ VP, FINANCIAL SERVICES 27.5 10.0 X 162340 0 14831 JEANNE M OSKI VP, SENIOR LIVING COMMUNITIES 36.5 1.0 X 155559 0 10578 WILLIAM E SWANGER SVP, CORPORATE COMMUNICATIONS 20.5 17.0 X 145415 0 21392 LAUREN R CONZAMAN VP, CHILD & FAMILIY MINISTRIES 19.5 18.0 X 133866 0 19497 JAN E BIGLOW EXECUTIVE DIRECTOR I 37.0 0.0 X 134597 0 18298 2729788 0 508871 23 false true false MORRISON MANAGEMENT SPECIALIST PO BOX 102289 ATLANTA GA 303682289 CULINARY/HOUSEKPNG 22935280 FAMILY DESIGN RESOURCES INC 471 JPL WICK DRIVE HARRISBURG PA 17111 SWAN PROGRAM SERVICE 14770506 GENESIS ELDERCARE PO BOX 821322 PHILADELPHIA PA 191821322 REHAB SVCS 7349725 BENCHMARK CONTRUCTION CO INC 4121 OREGON PIKE BROWNSTOWN PA 17508 CONSTRUCTION 4583239 WAGMAN CONSTRUCTION INC 3290 NORTH SUSQUEHANNA TRAIL YORK PA 174069754 CONSTRUCTION 3442291 62 64111 147554 550044 1579784 10607252 181822 12948745 SENIOR LIVING SERVICES 623000 134270686 134270686 FAMILY AND COMMUNITY MINISTRIES 621400 7601499 7601499 STATEWIDE ADOPTION AND PERMANENCY NETWORK 900099 50094356 50094356 OTHER PROGRAM SERVICES 900099 3719196 3719196 195685737 4936384 5508 4930876 72632 72632 0 910734 1000243 -89509 0 -89509 7547 -97056 149190854 79304 145261705 49227 3929149 30077 3959226 3959226 21000 147554 72112 -51112 -51112 0 0 TRUST INCOME 900099 1162676 1162676 OTHER REVENUE 900099 351878 252378 99500 VENDING REVENUE 541610 23842 23842 1538396 219000499 197132180 7952 8911622 150793 150793 25165 25165 0 0 2377326 0 1995528 381798 0 52893591 47226796 5239133 427662 -464287 -378418 -59027 -26842 7535447 6831600 631655 72192 3897884 3367139 477173 53572 185351 185351 659376 12825 646551 44856 44856 51000 51000 59500 59500 180941 111827 69114 13873923 12637044 1221997 14882 1031596 969711 59113 2772 11875485 10248969 1407921 218595 3390062 2726993 634371 28698 0 10745154 10280626 464528 2240126 1789723 391281 59122 0 126373 45024 77245 4104 12757873 12154594 603279 0 17333881 16152611 1181270 1951479 1551619 394525 5335 SWAN CONTRACTED SERVICES 41020501 41020501 CULINARY SERVICE 15876937 15873248 3689 HOUSEKEEPING SERVICES 4758119 4710905 47214 BAD DEBT EXPENSE 2760153 2760153 5373062 4714843 530541 127678 212711667 195214498 16017101 1480068 874250 2357284 19813169 31518923 753833 3102672 20520636 13167203 0 0 0 0 0 0 0 0 1714463 1574581 421916117 200725417 227717737 221190700 114777451 117738012 0 0 0 0 4572283 4572283 44776976 44705505 435520798 439927163 24792168 22702108 0 0 47981991 52747449 209936276 232321553 0 0 0 0 23338021 11167869 0 0 59189747 79156832 365238203 398095811 X 22415931 -11746311 9306719 9076339 38559945 44501324 70282595 41831352 435520798 439927163 X 6288832 -4524928 -30215147 X X false true X true true true X 5755486 6873675 5597588 6514090 12948745 37689584 204281540 202383641 189738873 189921646 195634625 981960325 0 0 0 210037026 209257316 195336461 196435736 208583370 1019649909 0 0 0 1019649909 3854653 2788038 4337908 3862220 5011055 19853874 0 3854653 2788038 4337908 3862220 5011055 19853874 0 1205804 1073848 1081634 1382232 1438896 6182414 215097483 213119202 200756003 201680188 215033321 1045686197 0.97510 0.97580 0.01899 0.01780 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true true false true 52524 false false 52524 false SCHEDULE C, PART II-B, 1B AND 1G In 2014, Diakon Lutheran Social Ministries engaged J.M. Uliana & Associates, LLC to conduct lobbying activities related to state legislation affecting long-term care and health and social service programs. Payments to J.M. Uliana & Associates, LLC, and amounts paid to Diakon Lutheran Social Ministries' staff totaled $52,524. SCHEDULE C, PART II-B, 1D AND 1E AMOUNTS PAID FOR MAILINGS AND PUBLICATIONS WERE NOMINAL. SCHEDULE C, PART II-B, 1G Letter, emails, phone calls are made to legislators when DLSM needs to contact legislators to speak on support of any budget items or senate bills to be passed related to long-term care and health and social service programs. Handouts are created by our communications department for lobbying visits that the DLSM staff attend. 18077169 5521787 747844 556690 23790110 14858797 510296 3275209 567133 18077169 12688497 1006120 1694788 530608 14858797 12149734 1024585 -69426 416396 12688497 10392169 191217 1982276 415928 12149734 1.00000 false true true 16441934 16441934 170091241 105166099 64925142 35887 26877 9010 45554907 33518136 12036771 189792148 62014305 127777843 221190700 INTEREST RECEIVABLE 99101 BENEFICIAL INTEREST IN TRUST 27924703 ESTIMATED THIRD PARTY SETTLE 424021 INVESTMENT IN JOINT VENTURES 696647 DEFERRED BOND ISSUANCE COSTS 4103793 OTHER ASSETS 406901 DUE FROM AFFILIATES 397431 LEASE RECEIVABLE 10652908 44705505 0 ESTIMATED THIRD-PARTY PAYOR SE 63914 MINIMUM PENSION LIABILITY 35306719 INTEREST RATE SWAP AGREEMENT 9868330 RESIDENT DEPOSITS 538934 OTHER PAYABLES 225535 REFUNDABLE ENTRANCE FEE LIABILITY 33153400 79156832 X SCHEDULE D, PART V, LINE 4 THE INTENDED USES OF THE ORGANIZATION'S ENDOWMENT FUNDS ARE 1) BENEVOLENT CARE, 2) EXPANSION OF PROGRAMS, AND 3) TO SUPPORT CURRENT PROGRAMS AND ACTIVITIES. TAX FOOTNOTE SCHEDULE D, PART X, LINE 2 DIAKON AND ITS CONTROLLED AFFILIATES, WITH THE EXCEPTION OF ISM, A PENNSYLVANIA FOR-PROFIT CORPORATION, ARE NOT-FOR-PROFIT CORPORATIONS AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND ARE EXEMPT FROM FEDERAL INCOME TAXES. THE CORPORATION USES A THRESHOLD OF MORE LIKELY THAN NOT FOR RECOGNITION AND DERECOGNITION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE CORPORATION DOES NOT BELIEVE THAT THERE ARE ANY UNRECOGNIZED TAX BENEFITS OR LIABILITIES THAT SHOULD BE RECORDED. X X X X X X true COREMESSAGINK 334 Valleybrook Drive Lancaster PA 17601 DIRECT MAILING false 113775 59500 54275 113775 59500 54275 MD PA DINNER 1 158793 137793 21000 9165 16683 DINNER 2 9126 9126 10130 27572 1 635 635 8562 168554 147554 21000 19295 52817 72112 -51112 FORM 990, SCHEDULE G, PART II FUNDRAISING EVENTS SERVE MANY PURPOSES AND ARE NOT EVALUATED SOLELY ON THE BASIS OF DOLLARS RAISED. THOSE PURPOSES ARE TO PROVIDE AN OPPORTUNITY FOR CORPORATE SUPPORT, CREATE AN ENVIRONMENT TO INTRODUCE NEW DONORS TO THE ORGANIZATION, EDUCATE LARGE NUMBERS OF INDIVIDUALS AND CORPORATIONS ON A SPECIFIC PROGRAM OR PROGRAMS, AND RAISE FUNDS WHILE ENGAGING CORPORATE LEADERS IN THE FUNDRAISING PROCESS. GROSS RECEIPTS REPORTED DO NOT REFLECT CERTAIN GIFT-IN-KIND DONATIONS. CENTURY MARKETING AND COMMUNICATION, INC. PRINTS AND MAILS LETTERS, INCLUDING INVITATIONS AND BROCHURES. DLSM PURCHASES MAILING LISTS FROM SPECIALIZED FUNDRAISING SERVICES. true DIAKON CHILD FAMILY AND COMMUNITY MINISTRIES 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 181049108 465390969 501(c)3 150000 Chair Endowment FUND CHILDREN PROGRAMS 1 BENEVOLENT CARE TO INDIVIDUALS AT UNRELATED INST. 3 25165 SCHEDULE I SUPPLEMENTAL INFORMATION DIAKON LUTHERAN SOCIAL MINISTRIES' GRANT REVIEW PROCESS INCLUDES ANNUAL VISITS AND REVIEW OF GRANTEE BUDGETS. DLSM DOES NOT PROVIDE A SIGNIFICANT NUMBER OF GRANTS, AND THEREFORE DOES NOT REQUIRE DETAILED MONITORING OF THE USE OF GRANT FUNDS. X true false X X X X X true true false false false false false true false MARK T PILE PRESIDENT/CEO 373183 0 50150 0 4005 0 181250 0 22891 0 631479 0 0 0 SCOTT HABECKER EXEC VP, CHIEF OP&FIN OFFICER 278207 0 50150 0 9600 0 60786 0 21494 0 420237 0 0 0 RICHARD M BARGER EXEC VP, TREASURER 258179 0 150 0 44693 0 19053 0 9078 0 331153 0 0 0 MARY ELLEN DICKEY SVP, ADVANCEMENT 184599 0 0 0 162174 0 18647 0 25342 0 390762 0 140942 0 RICHARD H REED SVP, CHIEF RISK OFFICER 227489 0 0 0 6076 0 2297 0 21773 0 257635 0 0 0 DEANNA L ZIEMBA SVP, SR LVNG OP & BUS DEV 189737 0 0 0 268 0 0 0 20099 0 210104 0 0 0 ALICE M CLARK SVP, HUMAN RESOURCES 159201 0 150 0 0 0 1717 0 19848 0 180916 0 0 0 JOHN J PALKOVITZ VP, FINANCIAL SERVICES 143723 0 150 0 18467 0 1710 0 13121 0 177171 0 0 0 JEANNE M OSKI VP, SENIOR LIVING COMMUNITIES 155107 0 0 0 452 0 15552 0 9026 0 180137 0 0 0 WILLIAM E SWANGER SVP, CORPORATE COMMUNICATIONS 145365 0 50 0 0 0 1501 0 19891 0 166807 0 0 0 LAUREN R CONZAMAN VP, CHILD & FAMILIY MINISTRIES 131020 0 80 0 2766 0 1358 0 18139 0 153363 0 0 0 JAN E BIGLOW EXECUTIVE DIRECTOR I 134367 0 200 0 30 0 1202 0 17096 0 152895 0 0 0 SCHEDULE J, PART I, QUESTION 1A Tax indemnification and gross up payment was made to one (1) key employee in recognition of her nomination for the Diakon Lutheran Social Ministries Leadership Award. The gross-up payment netted $50 for this award. Jan Bigelow received $79.86 (amount of grossed-up payment) and this is reported in Part VII, Section A, Column (D) and Schedule J, Part II, Column B(ii). SCHEDULE J, PART I, QUESTION 3 SEE SCHEDULE O IN REFERENCE TO PART VI, SECTION B, LINE 15 FOR A DETAILED DESCRIPTION OF THE ORGANIZATION'S EXECUTIVE COMPENSATION POLICY. SCHEDULE J, PART I, QUESTION 4A ONE (1) HIGHLY COMPENSATED EMPLOYEE RECEIVED SEVERANCE PAY IN SEPTEMBER 2014. JOHN PALKOVITZ'S POSITION OF VP, FINANCIAL SERVICES WAS ELIMINATED AT THE CLOSE OF BUSINESS ON SEPTEMBER 17, 2014. THE SEVERANCE PAYMENT OF $18,467 IS INCLUDED IN REPORTABLE COMPENSATION AND IS NOTED IN SCHEDULE J, PART II, COLUMN B(III). SCHEDULE J, PART I, QUESTION 4B Part I, Question 4b: Two employees (one officer and one key) were offered and signed agreements which include a 457(f) supplemental nonqualified benefit. The effective dates are: (1) December 7, 2012, (2) June 1, 2009. This benefit was added to recognize the significant contributions of the identified officer and key employee in the past, and in consideration of expected contribution to the growth of DLSM, its affiliates and subsidiaries in the future, and in exchange for additional income benefits and a new supplemental executive retention plan. The annual accruals and interest earnings for the 457(f) supplemental nonqualified benefit plans are reported in Part VII, Section A, Column F and Schedule J, Part II, Column C. As a condition for participating in the 457(F) supplemental nonqualified benefit plan, the officer, and key employee who have signed the applicable agreements must be employed at the vesting date and have agreed to certain restrictive covenants that prohibit the key employee for a specified period of time, from accepting employment with competitor organizations. One individual reached the vesting date and received a payout of the accrued benefit and interest as of 5/31/2014 which is included in reportable compensation in Part VII, Section A and Schedule J, Part II, column B(iii) and is listed below: MaryEllen Dickey $157,692 The two individuals who participated in the 457 (F) plan in 2014 and the amounts of this plan that are reported in Part VII, Section A, Column F, and Schedule J, Part II, Column C are listed below: Scott D. Habecker $58,236 MaryEllen Dickey $16,750 The retention agreement was not renewed for the one individual who vested and received a payout of the accrued benefit and interest. SUPPLEMENTAL RETIREMENT PLAN (SERP) DLSM'S BOARD OF DIRECTORS HAS ESTABLISHED A SERP, WHICH IS A NONQUALIFIED DEFINED BENEFIT PLAN, UNDER WHICH DLSM MAY PAY SUPPLEMENTAL RETIREMENT BENEFITS TO KEY EXECUTIVES IN ADDITION TO THE ACCRUED BENEFIT AMOUNTS UNDER THE DLSM PENSION PLAN. THE SERP WAS ADDED TO PROVIDE EQUITABLE AND COMPETITVE POST-RETIREMENT INCOME FOR BOARD SELECTED SENIOR EXECUTIVES, WHICH CURRENTLY INCLUDES THE CEO. THE EVP/TREASURER, RICHARD BARGER, RECEIVED A FINAL BENEFIT FROM THE SERP PLAN WHICH VESTED AS OF 7/6/14 AND A FINAL LUMP SUM DISTRIBUTION WAS PAID OF $42,399. THE 2014 ANNUAL COST ACCRUED FOR THIS PLAN IS NOTED IN SCHEDULE J, PART II. THE SERP IS NOT FUNDED AND THE LIABILITY FOR THIS PLAN WAS $178,700 AT DECEMBER 31, 2014. AS A CONDITION FOR PARTICIPATING IN THE SERP, THE EXECUTIVE MUST BE EMPLOYED AT THE VESTING DATE AND HAVE AGREED TO CERTAIN RESTRICTIVE COVENANTS THAT PROHIBIT THE EXECUTIVE, FOR A SPECIFIED PERIOD OF TIME, FROM ACCEPTING EMPLOYMENT WITH COMPETITOR ORGANIZATIONS. COVENANTS THAT PROHIBIT THE EXECUTIVE, FOR A SPECIFIED PERIOD OF TIME, FROM ACCEPTING EMPLOYMENT WITH COMPETITOR ORGANIZATIONS. SCHEDULE J, PART I, QUESTION 7 THE COMPENSATION COMMITTEE OF THE DIAKON BOARD REVIEWS THE PERFORMANCE OF THE CEO ON AN ANNUAL BASIS. DURING THE FIRST QUARTER OF 2014 THE CHAIR OF THE COMPENSATION COMMITTEE PROVIDED A SUMMARY OF THE CEO'S PERFORMANCE FOR 2013 AND INDICATED THE BOARD APPROVED FOR MARK PILE, CEO/PRESIDENT, A PAYMENT OF $50,000 IN RECOGNITION OF HIS PERFORMANCE SINCE ASSUMING THE ROLE OF CEO. THE EMPLOYMENT AGREEMENT FOR THE CHIEF OPERATING AND FINANCIAL OFFICER INCLUDES A PROVISION FOR AN ANNUAL INCENTIVE COMPENSATION IN AN AMOUNT UP TO 25% OF HIS BASE COMPENSATION, BASED UPON ACHIEVEMENT OF MUTUALLY ESTABLISHED ANNUAL GOALS AND OBJECTIVES AND A REVIEW OF THE COFO'S ACCOMPLISHMENTS FOR THE PRIOR CALENDAR YEAR. THE CEO/PRESIDENT CONDUCTS AN ANNUAL REVIEW AT THE BEGINNING OF EACH YEAR FOR THE PRIOR YEAR (ANNUAL BASIS) AND DETERMINES THE AMOUNT UP TO 25% FOR PAYMENT. A CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614CK3 2007-01-30 63635926 CONSTRUCTION & RENO. SEE PART VI false false false B CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614EK1 2009-12-10 122154764 CONSTRUCTION & REFUND. SEE PART VI false false false C PART VI 236003119 230614GTO 2014-04-29 71341000 REFUND OF 2003 SERIES. SEE PART VI false false false A 0 0 70145115 6063759 9187756 0 1051817 0 0 53801643 0 0 2012 false false true true B 23885000 0 123177405 11188419 2193720 0 1988038 0 0 31057949 76789281 0 2013 true false true true C 612000 0 71341920 0 0 0 1035516 172208 0 15169666 45130839 10005899 true false false true A false true true true false 0.00306 0.00014 0.00320 false false false true B false true true true false 0.00106 0.00049 0.00155 false false false true C false true true true false 0.00146 0.00084 0.00230 false false false true A false true false false 0 false 0 true true B false false false true false false 0 false 0 true true C false true false false true true WELLS FARGOPNC 7. false false false 0 true true A true B true C true SCHEDULE K, PART VI Bond A Description of Purpose The 2007A bonds were issued by the Authority to finance a project for the benefit of DLSM comprised of, among other things, (1) the acquisition, construction, renovation, improvement and equipping of existing skilled nursing, assisted living and independent living facilities; and (2) the payment of a portion of the costs and expenses of issuing the bonds. No arbitrage liability existed for the bonds as of February 24, 2015 Installment Computation date. The next date is January 31, 2016. Total Proceeds of Issue: Issue Price $63,635,926 Cumulative Earnings $6,509,190 Total $70,145,115 2007A BONDS GROSS PROCEEDS WERE INVESTED BEYOND THE AVAILABLE TEMPORARY PERIOD OF 3 YEARS BECAUSE OF DELAYS IN CONSTRUCTION. Bond B Description of Purpose - The 2009 bonds were being issued by the Authority to finance a project for the benefit of DLSM comprised of, among other things, (1) the refunding of the Authoritys Revenue Bonds Series D of 2003;(2) the refunding of the Authoritys Variable Rate Revenue Bonds, Series B of 2007;(3) the acquisition, construction, renovation, improvement and equipping of administrative, skilled nursing, assisted living and independent living facilities; (4) the funding of a debt service reserve fund for the bonds; (5) payment of one or more termination payments with respect to certain outstanding interest rate management agreements; (6) the payment of the costs and expenses incident to the issuance of the bonds. No arbitrage liability existed for the bonds as of December 22, 2014 Installment Computation date. The next date is December 1, 2015. Total Proceeds of Issue: Issue Price $122,154,764 Cumulative Earnings $1,022,641 Total $123,177,405 2007A BONDS GROSS PROCEEDS WERE INVESTED BEYOND THE AVAILABLE TEMPORARY PERIOD OF 3 YEARS BECAUSE OF DELAYS IN CONSTRUCTION. Bond C (Series A & B issued through Cumberland County Municipal Authority EIN 23-6003119, Series C issued through County Commissioners of Washington County EIN 52-6001037) NOTE: SERIES A & B ISSUED THROUGH CUMBERLAND COUNTY MUNICIPAL AUTHORITY (EIN 23-6003119) AND SERIES C ISSUED THROUGH COUNTY COMMISSIONERS OF WASHINGTON COUNTY (EIN 52-6001037) WERE PART OF A SINGLE ISSUE OFFER AND AS SUCH REPORTED AS ONE ISSUE ON SCHEDULE K. Description of Purpose(Series A&B) The 2014 bonds were issued by the Authority to finance a project for the benefit of DLSM comprised of, among other things (1) the refunding of the Authoritys Variable Rate Demand Bonds Series A and C of 2003 (2) the refunding of a portion of the Authoritys Revenue Bonds Series of 2009, (3) the acquisition, construction, renovation, improvement and equipping of administrative, skilled nursing, personal care and independent living facilities (4) the payment of the costs and expenses incident to the issuance of the bonds. Issue Price(Series A & B) $52,543,000 Cumulative Earnings $920 Total $52,543,920 Description of Purpose (Series C)- to refund all or a portion of the outstanding Washington County Maryland Variable Rate Demand Bonds, Series E of 2003 (2) to finance or reimburse costs of issuing the bonds. Issue Price $18,798,000 X 1595 FMV X 18276 FMV X 1 6149 FMV X 2 31829 FMV X 19 2994 X 63 2050 FMV X CUSTOM IMPROVEMENTS 19 84133 FMV X GIFT CERTIFICATE 314 25969 FMV X FURNITURE AND EQUIPMENT 13 4584 FMV X JEWELRY 18 2031 FMV X GIFT BASKETS 20 1801 FMV X BATH AND BEAUTY 3 341 FMV X TOYS 5 70 FMV false false false Form 990, Part III, Line 3 For the first half of 2014, DIAKON LUTHERAN SOCIAL MINISTRIES (DLSM) offered within Pennsylvania and Maryland community-based services for older adults, adoption and foster care, counseling and related mental-health supportive services, a range of community and outdoor-based programs for at-risk youths, and a program that links corporate in-kind donations of goods with non-profit organizations that provide those goods, free of charge, to local people in need. THESE services are now provided through Diakon Child, Family & Community Ministries (DCFCM), A RELATED ENTITY, effective July 1, 2014. DLSM still provides senior living services as noted in Part III, question 4. FORM 990, PART III, 4A, 4B, 4C AND 4D LINE 4A: SENIOR LIVING SERVICES Most of DLSM's Senior Living Communities offer a continuum of services for older adults including residential accommodations, personal care services, and skilled nursing and rehabilitative care. In 2014, these senior living communities served 7,401 persons. Senior Living Services in Pennsylvania provided $12,111,042 in uncompensated care during 2014, divided between costs in excess of medical assistance reimbursement and care for people who have exhausted their financial resources. Line 4b: Services for Children, Families, and Communities DLSM OPERATED A VARIETY OF PROGRAMS AND MINISTRIES FOR CHILDREN AND FAMILIES IN PENNSYLVANIA AND MARYLAND, WHICH ARE UNIQUE AND DISTINCT FROM THE OPERATIONS OF DLSM'S RETIREMENT LIVING CAMPUSES. EFFECTIVE JULY 1, 2014 THE CHILD AND FAMILY PROGRAMS WERE TRANSFERRED FROM DLSM TO A NEWLY CREATED SUBSIDIARY ENTITY OF DIAKON, DIAKON CHILD, FAMILY AND COMMUNITY MINISTRIES. Line 4c -Statewide Adoption Network Pennsylvania's Statewide Adoption & Permanency Network (SWAN) is both a broad-based cooperative effort and a centralized information and facilitation service funded and overseen by the Pennsylvania Department of HUMAN SERVICES and managed under contract by Diakon Lutheran Social Ministries. The SWAN program serves children and youths in the custody of county children and youth agencies. SWAN manages referrals from county children and youth agencies, contracts with private agencies that work with counties to provide direct services to children and families, provides consultation and training for county agencies and private providers, develops conferences and regional meetings, and manages support services to enhance the effectiveness of the child-placement network. Line 4D - Other Program Services: Description Grants Expenses Revenue HUD and other programs 500 1,722,118 4,807,998 In 2014, Diakon Lutheran Social Ministries provided the following: HUD Housing Projects 84,083 care days FORM 990, PART VI, SECTION A LINE 6: THE SOLE MEMBER OF DLSM IS DIAKON, A PENNSYLVANIA NON-PROFIT CORPORATION. LINE 7A: A MAJORITY OF THE MEMBERS OF THE GOVERNING BODY (THE DLSM BOARD OF DIRECTORS) ARE ELECTED BY A MAJORITY VOTE OF THE BISHOPS OF THE FOLLOWING SYNODS OF THE EVANGELICAL LUTHERAN CHURCH IN AMERICA: NORTHEASTERN PENNSYLVANIA SYNOD, SOUTHEASTERN PENNSYLVANIA SYNOD, DELAWARE-MARYLAND SYNOD, UPPER SUSQUEHANNA SYNOD, AND LOWER SUSQUEHANNA SYNOD. THE REMAINING MEMBERS OF THE BOARD ARE ELECTED BY THE BOARD FROM A SLATE OF CANDIDATES PRESENTED BY THE BOARD DEVELOPMENT COMMITTEE. LINE 7B: THE SOLE MEMBER OF DLSM IS DIAKON, A PENNSYLVANIA NON-PROFIT CORPORATION. DIAKON HAS APPROVAL RIGHTS, SPECIFIED IN BOTH THE DLSM AND DIAKON BY-LAWS, OVER CERTAIN TYPES OF ACTIONS BY DLSM'S GOVERNING BODY. FORM 990, PART VI, SECTION B LINE 11B: Members of senior management and of the finance department participated in developing the draft 990 in consultation with KPMG, which was engaged to provide assistance. The final draft of Diakon Lutheran Social Ministries' 990 was provided to the members of the board and received and accepted by the Diakon Lutheran Social Ministries' governing body at its regular quarterly meeting on August 19, 2015. LINE 12C: Diakon's Senior Vice President/Chief Risk Officer reviews DLSM's conflict of interest statement and certification forms with the board on a regular basis. All board members and all officers and key employees are required to complete a certification form and disclose possible or actual conflicts of interest. The completed forms are reviewed by the Senior Vice President/Chief Risk Officer and by the organization's outside auditor on a regular basis. FORM 990, PART VI, SECTION B, LINES 15A & 15B: EXECUTIVE COMPENSATION PHILOSOPHY A Compensation Committee of independent directors of the sole member, which includes directors from DLSM (Compensation Committee), utilizes external consultants to assist with the development, administration, and determination of compensation, welfare, benefit, pension and other plans, which take into account appropriate industry benchmarks and the compensation policies followed by organizations similarly situated to DLSM. The board Compensation Committee has adopted a written "charter", which sets forth the purpose, membership and responsibilities of the Committee. In addition, it conducts its activities in compliance with DLSM's "Excess Benefits Transactions" policy, which requires review and approval by independent persons, comparability data and contemporaneous substantiation of the deliberation and decision. DLSM and its parent organization Diakons executive compensation program consists of a base salary which reflects the value of an executives capabilities, experience and success through meeting mission, financial, operational, and quality objectives. Information about executive compensation issues and decisions is reported to the full board of directors at regular meetings. EMPLOYEE BENEFITS DLSM provides all employees, including executives, with a comprehensive benefit plan that includes health insurance, dental insurance, life and disability insurance, a defined benefit pension plan, and a defined contribution retirement plan. THE EMPLOYER MATCHING CONTRIBUTION TO THE DEFINED CONTRIBUTION PLAN WAS SUSPENDED AS OF JULY OF 2010. THE DLSM DEFINED BENEFIT RETIREMENT PLAN PLAN ACCRUALS WERE FROZEN AS OF 12/31/11. FORM 990, PART VI, SECTION C, LINE 19: DLSM makes its governing documents (articles of incorporation and bylaws) and conflict of interest policy available upon request. A statement of financial position is published in the organization's annual report, which is mailed to the approximately 120,000 individuals on the organization's publication mailing list. The audited consolidated financial statements and annual report are also available on the DLSM website at Diakon.org, as well as upon request. FORM 990, PART VII, SECTION A, LINE 1A: COLUMN B REFLECTS THE AVERAGE HOURS PER WEEK PER EMPLOYEE FOR DLSM AND RELATED ORGANIZATIONS. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS Decrease in Fair Value of SWAP Agreements (1,601,358) Equity in Losses of Joint Venture (115,408) Pension-Related Changes Other than Net Periodic Pension Costs (21,880,577) Change in Beneficial Interest in Trust (52,195) Decrease in Fair Value of Funds Held in Trust by Others (137,798) Loss from Early Extinguishment of Debt (233,372) Impairment Expense (3,698,990) Equity Transfer to Diakon Child, Family & Community Ministries (2,495,449) ----------- Subtotal (30,215,147) FORM 990, PART XII, LINES 2 AND 3 Diakon, the sole member of DLSM, has an annual audit of the consolidated financial statements for Diakon and controlled affiliates performed by an independent accounting firm. The audit committee of the Diakon board of directors assumes responsibility for the oversight of the audit and selection of the independent accounting firm. Diakon also has an annual audit under the single audit act and OMB Circular A-133, performed by an independent accounting firm for the consolidated group. DIAKON LUTHERWOOD SENIOR HOUSING 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 260649129 SENIOR HOUSIN PA 1174102 4103442 DLSM DIAKON 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 233014613 SUB OVERSIGHT PA 501(C)3 11 NA false DIAKON LUTHERAN FUND 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 231365978 FUND PROGRAMS PA 501(C)3 11 DIAKON false DLSH AT LUTHER MEADOWS 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 232837747 HUD HOUSING PA 501(C)3 9 DLSM true DLSH AT HEILMAN HOUSE 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 232463233 HUD HOUSING PA 501(C)3 9 DLSM true DIAKON CHILD FAMILY & COMMUNITY MINISTR 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 465390969 SOCIAL SVCS PA 501(C)3 9 DIAKON false INSTITUTE FOR STRATEGIC MANAGEMENT INC 960 CENTURY DRIVE MECHANICSBURG PA 17055 264316868 CONSULTING PA DIAKON C Corp false CHARITABLE REMAINDER TRUSTS (1) NA PERPETUAL TRUSTS HELD BY 3RD PARTY (23) NA false true true false false false false false false true false false true false true true true true false DIAKON LUTHERAN FUND c 550002 BOOK VALUE DIAKON LUTHERAN SR HOUSING AT LUTHER MEADOWS o 104697 BOOK VALUE DIAKON LUTHERAN SR HOUSING AT HEILMAN HOUSE o 97002 BOOK VALUE DIAKON o 6050377 BOOK VALUE DIAKON CHILD FAMILY & COMMUNITY MINISTRIES o 5376948 BOOK VALUE DIAKON LUTHERAN SR HOUSING AT LUTHER MEADOWS q 28967 BOOK VALUE DIAKON LUTHERAN SR HOUSING AT HEILMAN HOUSE q 27748 BOOK VALUE DIAKON CHILD FAMILY & COMMUNITY MINISTRIES q 1125000 BOOK VALUE DIAKON p 579953 BOOK VALUE DIAKON j 1480441 BOOK VALUE DIAKON q 2046214 BOOK VALUE INSTITUTE FOR STRATEGIC MANAGEMENT INC q 27682 BOOK VALUE INSTITUTE FOR STRATEGIC MANAGEMENT INC m 1301 BOOK VALUE DIAKON CHILD FAMILY & COMMUNITY MINISTRIES r 2495449 BOOK VALUE DIAKON CHILD FAMILY & COMMUNITY MINISTRIES B 150000 BOOK VALUE