2014-11-14T11:09:35-06:00 2013-12-31 410746749 CliftonLarsonAllen 5001 Spring Valley Road Suite 600W Dallas TX 75244 990 2013-01-01 751234917 Sears Methodist Centers Inc SEAR 3256915519 One Village Drive No 400 Abilene TX 79606 Randal Crosswhite Interim CFO 3256915519 2014-11-13 1 Michael Siegel P01587323 9723835700 2013 2015-11-30 17:44:51Z Susan Whittle 1114 Lost Creek Blvd Suite 210 Austin TX 78746 7568680 0 X www.sears-methodist.org X 1965 TX The mission of Sears is to provide leadership in response to the needs of our aging population. We believe we have a responsibility for studying, analyzing, planning, developing, and implementing quality service to the aging where appropriate needs are found for Health Care and residential living services and can be provided in a Christian environment. 9 9 154 8 0 0 24433 16030 10510855 7551974 31997 0 8447 676 10575732 7568680 304694 329032 0 0 5750877 2729437 0 0 0 3984466 3311628 10040037 6370097 535695 1198583 30081914 29582701 12862756 14190515 17219158 15392186 X The mission of Sears is to provide leadership in response to the needs of our aging population. We believe we have a responsibility for studying, analyzing, planning, developing, and implementing quality service to the aging where appropriate needs are found for Health Care and residential living services and can be provided in a Christian environment. 0 0 5265038 329032 7551974 The Organization provides long-term nursing care to elderly who are no longer able to care for themselves or elderly who may have different stages of Dementia. Assistance is also provided to senior citizens who are still somewhat independent with their daily lives - offering services such as meals, housekeeping, and the availability of nursing staff. Other services provided include home health & hospice services to residents in our long term care communities as well as the outside community. Also provide specialty assistance such as 24 hour care, assistance for personal needs, & home health maintenance. Therapy services can also be provided to residents of our communities. 5265038 1 1 0 0 0 0 0 0 0 0 1 0 0 0 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 1 0 0 0 1 37 0 154 1 0 0 0 0 0 0 0 0 0 0 X 9 9 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Randal Crosswhite Interim CFO 3256915519 One Village Drive Suite 400 Abiliene TX 79606 Larry Dodson Chairman 1.00 8.00 X X 0 0 0 Rick Rhodes Vice Chairman 1.00 8.00 X X 0 0 0 Carol Denton Secretary 1.00 8.00 X X 0 0 0 David Lynn Treasurer 1.00 8.00 X X 0 0 0 Quintan Chamness Trustee 1.00 8.00 X 0 0 0 Barbara Cherry Trustee 1.00 8.00 X 0 0 0 Bita Kash Trustee 1.00 8.00 X 0 0 0 Dan Olson Trustee 1.00 8.00 X 0 0 0 Mike Sullivan Trustee 1.00 8.00 X 0 0 0 Keith Perry President, CEO and Ex-Officio Trustee 2.00 38.00 X 0 314193 136832 Terry Myers Senior Vice President & CFO 2.00 38.00 X 0 253127 45939 Gary Anderson Executive Vice President & COO 2.00 38.00 X 0 187944 21578 Michael Sims Senior Vice President - Operations 2.00 38.00 X 0 191709 62402 Kenneth Fincher Senior Vice President and Director of Sears Method 2.00 38.00 X 0 139459 21063 Windell Hawkins Senior Vice President - Risk Management 2.00 38.00 X 0 113519 39992 Kent Herring Regional Vice President & Executive Director 24.00 16.00 X 0 135898 42349 Randal Crosswhite Vice President & Controller 2.00 38.00 X 0 141963 22867 Melanie Juel Vice President - Human Resources 2.00 38.00 X 0 141143 4794 Gordon Shoger Vice President - Financial Operations 2.00 38.00 X 0 123812 13948 Terry Huskey Vice President - Information Technology 2.00 38.00 X 0 103225 29342 Mary Goodin Vice President - Clinical Services 2.00 38.00 X 0 87105 7761 Stephen Illingworth Vice President - Veterans Services 2.00 38.00 X 0 49539 0 0 1982636 448867 0 0 1 0 Ben E Keith PO Box 901001 Fort Worth TX 76101 Food Service 301203 MP2 Energy Texas PO Box 202829 Dallas TX 75320 Utilities 148873 2 15680 350 16030 Resident Services 623000 7551974 7551974 7551974 1000 0 1000 1000 1000 Other Revenue 900099 -324 -324 -324 7568680 7551974 0 676 329032 329032 2310757 1944118 366639 237704 199668 38036 180976 152103 28873 418125 418125 35217 35217 268526 184510 84016 53226 52545 681 35756 35756 431037 417793 13244 12382 12382 1729 1706 23 1050959 1037506 13453 168127 165975 2152 Food 418759 418759 Equipment Rental and Ma 194101 191616 2485 Supplies 161428 161428 Dues and Subscriptions 20438 20438 41818 8279 33539 6370097 5265038 1105059 0 650 650 283692 148186 17661 17210 9897 13490 36798461 8471826 28927751 28326635 735757 715977 106506 360553 30081914 29582701 525305 828062 9644356 10849221 300429 275464 2392666 2237768 12862756 14190515 X 17219158 15392186 17219158 15392186 30081914 29582701 X 1198583 -1389743 -1635812 X X 0 0 0 X 248933 59034 70938 24433 16030 419368 22232210 20390812 17297121 10510855 7551974 77982972 22481143 20449846 17368059 10535288 7568004 78402340 0 0 0 78402340 66347 27346 -260 1000 94433 66347 27346 -260 1000 94433 31534 41754 -10817 8447 -324 70594 22579024 20518946 17356982 10543735 7568680 78567367 0.99790 0.99630 0.00120 0.00180 X Schedule A, Part III, Line 12, Explanation of Other Income: Other Income - 2009 Amount: $ 31,534. 2010 Amount: $ 41,754. 2011 Amount: $ -10,817. 2012 Amount: $ 8,447. 2013 Amount: $ -324. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 949358 949358 31252262 6551528 24700734 2756146 633706 2122440 1516725 975909 540816 323970 310683 13287 28326635 Resident Security Deposits 145312 Sweep Overdraft 1286075 Due to Other Campuses 806381 2237768 X Part X, Line 2: The System adopted the income tax standard for uncertain tax positions. This standard clarifies the accounting for uncertainty in income taxes recognized in an organization's financial statements in accordance with the income tax standard. This standard prescribes recognition and measurement of tax positions taken or expected to be taken on a tax return that are not certain to be realized. The System's income tax returns are subject to review and examination by federal, state, and local authorities. The System is not aware of any activities that would jeopardize its tax-exempt status. The System is not aware of any activities that are subject to tax on unrelated business income or excise or other taxes. The tax returns for the years 2010 to 2013 are open to examination by federal, local, and state authorities. 1 Charitable Discounts to Residents 39 329032 Part I, Line 2: The recipients fill out a detailed application which requires the CEO's approval before the funds are released for assistance. X X X 1 1 0 0 0 0 0 0 0 Keith Perry President, CEO and Ex-Officio Truste 0 277027 0 33338 0 3828 0 136832 0 0 0 451025 0 0 Terry Myers Senior Vice President & CFO 0 238000 0 15000 0 127 0 45939 0 0 0 299066 0 0 Gary Anderson Executive Vice President & COO 0 37944 0 0 0 150000 0 21578 0 0 0 209522 0 0 Michael Sims Senior Vice President - Operations 0 185276 0 0 0 6433 0 62402 0 0 0 254111 0 0 Kenneth Fincher Senior Vice President and Director o 0 135684 0 0 0 3775 0 21063 0 0 0 160522 0 0 Windell Hawkins Senior Vice President - Risk Managem 0 113224 0 0 0 295 0 39992 0 0 0 153511 0 0 Kent Herring Regional Vice President & Executive 0 127222 0 8500 0 176 0 42349 0 0 0 178247 0 0 Randal Crosswhite Vice President & Controller 0 141530 0 0 0 433 0 22867 0 0 0 164830 0 0 Part I, Lines 4a-b Per Form 990, Schedule J, Part 1, Line 4a, the following people received severance payments. Here are their names and the amounts received: Gary Anderson $150,000 Mary Goodin $24,958 Per Form 990, Schedule J, Part 1, Line 4b, the following people participated in, or received payment from, a supplemental nonqualified retirement plan. Here are their names and the amounts received: Keith Perry $136,832 Terry Myers $45,939 Gary Anderson $21,578 Michael Sims $62,402 Kenneth Fincher $21,063 Windell Hawkins $39,992 Kent Herring $42,349 Randal Crosswhite $22,867 Melanie Juel $4,794 Gordon Shoger $13,948 Terry Huskey $29,342 Mary Goodin $7,761 Cheryl Harding $16,336 Pamela McGrew $31,160 Diana Zarate $29,972 Wendy Grimes $14,068 Cy Jenkins $6,942 Form 990, Part VI, Section A, line 1 The Executive Committee often makes decisions for the Board; however, the Board is always notified of any action the Executive Committee takes. The Executive Committee is composed of the Chairman, Vice Chairman, Secretary, Treasurer, and President. The President is a non-voting member with voice. With regard to scope, the Executive Committee "shall possess and may exercise all the powers of the Board of Trustees except as subject to the provisions of Article 7.07. The Executive Committee shall exercise these powers only when it is impractical to convene a called meeting of the Board of Trustees. The Board of Trustees may delegate specific authority or responsibility to the Executive Committee." The Executive Committee may not: Amend the Articles of Incorporation; Adopt a plan of merger or a plan of consolidation with another corporation; Authorize the sale, lease, exchange, or mortgage of all or substantially all of the property and assets of the Corporation; Authorize the voluntary dissolution of the Corporation; Revoke proceedings for the voluntary dissolution of the Corporation; Adopt a plan for the distribution of the assets of the Corporation; Amend, alter or repeal the bylaws; Elect, appoint, or remove a member of a committee or a Trustee or officer of the Corporation; Approve any transaction to which the Corporation is a party and that involves a potential conflict of interest as defined in paragraph 10.05, below; Take any action outside the scope of authority delegated to it by the Board of Trustees; Take final action on a matter that requires the approval of the Board of Trustees. Form 990, Part VI, Section A, line 3 The Organization delegates management duties including supervising personnel, operations, and budgeting to Sears Methodist Retirement System, the parent company, who in turn has a management contract with Life Care Services. Form 990, Part VI, Section B, line 11 A copy of the form 990 was made available to all board members for review and approval before filing the return. Form 990, Part VI, Section B, line 12c Conflict of Interest statements are completed annually by Sears Methodist Retirement System Board of Trustees, Sears Methodist Centers Board of Directors and all senior staff. Any new Board Members or senior staff are required to complete the statement upon hire. Form 990, Part VI, Section B, line 15 The compensation for the CEO is determined by the board in an annual review. Any raise or bonus is discussed and voted on by the board. Every few years an outside compensation specialist is hired to help determine compensation for the CEO. Each senior VP or executive VP review or salary increase is determined by the CEO in an annual review process. Each senior VP has key officers under them that are reviewed in the same manner. Form 990, Part VI, Section C, line 19 Although not required, the organization provides photocopies of its governing documents, conflict of interest policy, and financial statements available to all who request one or more these items. Form 990, Part XI, line 9: Gain on Discontinuted Operations 183,968. Debt Service Payments -1,800,000. Change in SMF Investment -19,780. Form 990, Part XII, Line 2c - Audit Committee / Financial Statement Oversig This process has not changed from the prior year. Form 990, Part XI, Line 8 During the year ended December 31, 2013, the Organization adopted ASU 2012-01. The adoption results in an adjustment increasing net deficit and increasing the liability for refundable fees by $1,131,650 as of January 1, 2012. The entrance fee amortization for the year ended December 31, 2012 was decreased by $258,093 due to the adoption of this standard. The cumulative effect of the change in accounting as of December 31, 2012 is $1,389,743. Sears Methodist Retirement System Inc One Village Dr Suite 400 Abilene TX 79606 752516330 Senior Living TX 501(c)(3) Line 11b, II N/A 0 Sears Panhandle Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 752503233 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Permian Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 752707608 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Methodist Foundation One Village Dr Suite 400 Abilene TX 79606 752692545 Manages charitable funds for all SMRS entities TX 501(c)(3) Line 11c, III-FI Sears Methodist Retirement System 0 Sears Caprock Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 020709581 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Plains Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 752768233 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Brazos Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 010598053 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Sears Tyler Methodist Retirement Corporation One Village Dr Suite 400 Abilene TX 79606 203500571 Senior Living TX 501(c)(3) Line 9 Sears Methodist Retirement System 0 Canyon Senior Living LP 2200 W 7th St Amarillo TX 79106 260888545 Low Income Sr. Housing TX N/A N/A 0 0 Senior Dimensions Inc One Village Drive Suite 400 Abilene TX 79606 752814016 Consulting TX N/A C 0 Texas Senior Management Inc One Village Drive Suite 400 Abilene TX 79606 320333801 Management TX N/A C 0 0 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0