2014-10-14T16:22:26-05:00 2013-12-31 410746749 CLIFTONLARSONALLEN LLP 3000 NORTHUP WAY SUITE 200 BELLEVUE WA 98004 990 2013-01-01 910583380 WESLEY HOMES WESL 2068701260 815 SOUTH 216TH STREET DES MOINES WA 98198 JERRY SCHOEGGL VP OF FINANCE 2068701260 2014-09-30 1 DANIEL M FREIN P00856532 4252506100 2013 2015-11-30 17:44:51Z KEVIN A ANDERSON 815 SOUTH 216TH STREET DES MOINES WA 98198 39793019 0 X WWW.WESLEYHOMES.ORG X 1944 WA PROVIDES RETIREMENT HOUSING AND CARE SERVICES FOR OLDER ADULTS. 10 10 660 52 0 0 0 0 32855050 33479592 1134066 1344794 629086 364099 34618202 35188485 391082 531483 0 0 16664474 17150492 0 0 0 16847192 17449624 33902748 35131599 715454 56886 104464995 104823134 84922476 83821184 19542519 21001950 X WESLEY HOMES IS A FAITH BASED ORGANIZATION PROVIDING RETIREMENT COMMUNITIES AND A NETWORK OF SERVICES FOR OLDER ADULTS. WITH LOVE AND JOY, WE ARE CALLED TO MEET THE PHYSICAL, SOCIAL AND SPIRITUAL NEEDS OF THOSE WE SERVE. WE AFFIRM THE WORTH OF ALL THOSE WE SERVE AND THOSE WHO PROVIDE SERVICE. 0 0 21692848 511762 25932787 A CONTINUING CARE RETIREMENT COMMUNITY, WESLEY HOMES DES MOINES SERVES AN AVERAGE OF 580 SENIORS AT ANY ONE TIME IN INDEPENDENT COTTAGES/ APARTMENTS, ASSISTED LIVING AND SKILLED NURSING. THIS CAMPUS EMPLOYS APPROXIMATELY 440 PEOPLE WHO PROVIDE CARE GIVING AND HOSPITALITY SERVICES. IT ALSO HOUSES THE OFFICES FOR THE PACIFIC NORTHWEST CONFERENCE OF THE UNITED METHODIST CHURCH.RESIDENTS AT WESLEY HOMES DES MOINES HAVE A CONTRACT THAT PROVIDES FOR THEM EVEN IF THEY RUN OUT OF MONEY. RESIDENT SUBSIDIES AND MEDICAID SHORTFALLS WERE WELL OVER $3,579,000 IN 2013. ADDITIONALLY, THIRTY APARTMENTS ARE SET ASIDE FOR A BISHOP MCCONNELL SCHOLARSHIP PROGRAM FOR SENIORS WITH LIMITED RESOURCES. THIRTY-EIGHT RESIDENTS BENEFITED FROM THE PROGRAM IN 2013. SINCE ITS 2001 INCEPTION, THE ORGANIZATION HAS SUBSIDIZED $2,957,000 IN RESIDENCY AND SERVICE FEES FOR BISHOP MCCONNELL SCHOLARSHIP RESIDENTS.WESLEY HOMES DES MOINES PARTNERS WITH ANOTHER NOT-FOR-PROFIT, ELDER AND ADULT DAY SERVICES, TO PROVIDE ADULT DAY CARE ON CAMPUS. THIS PROGRAM SERVES FIFTEEN TO TWENTY INDIVIDUALS AT LOWER INCOME LEVELS EACH DAY PROVIDING MUCH NEEDED ACTIVITIES, FOOD AND SOCIAL SERVICES. 6967354 19721 7546805 WESLEY HOMES LEA HILL PROVIDES INDEPENDENT HOMES/APARTMENTS, HOUSING WITH SERVICES AND MEMORY CARE FOR AN AVERAGE OF 230 RESIDENTS AND APPROXIMATELY 50 EMPLOYEES. WITH FULLY REFUNDABLE ENTRANCE DEPOSITS AND MODERATE MONTHLY FEES, THIS CAMPUS IS AFFORDABLE TO INDIVIDUALS OF MODEST MEANS WHILE PROVIDING HIGH QUALITY PROGRAMS AND AMENITIES TO PROMOTE ACTIVE AND HEALTHY AGING. STAFF AND RESIDENTS AT WESLEY HOMES LEA HILL ARE COMMITTED TO SUPPORTING OTHER COMMUNITY ORGANIZATIONS SUCH AS CHILDREN'S THERAPY CENTER OF KENT BY PROVIDING THE INDOOR POOL FOR THE CHILDREN'S WATER THERAPY PROGRAM. THEY ALSO SUPPORT ELEMENTARY SCHOOLS, THE AUBURN FOOD BANK, THE AUBURN SENIOR CENTER AND FAMILIES DEALING WITH AGING ISSUES BY PROVIDING VOLUNTEERS, DONATIONS AND SUPPORT GROUPS. 28660202 1 0 0 0 0 0 0 0 1 0 1 0 0 1 1 1 0 1 0 0 1 0 0 0 0 0 0 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 23 0 660 1 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 1 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 WA X JERRY SCHOEGGL 2068701229 815 SOUTH 216TH STREET DES MOINES WA 98198 ED ROGEL BOARD CHAIRMAN 1.00 0.00 X X 0 0 0 CLARK DAFFERN BOARD VICE-CHAIR 1.00 0.00 X X 0 0 0 BRIAN GARRETT BOARD TREASURER 1.00 0.00 X X 0 0 0 ANNE SHANNON BOARD SECRETARY 1.00 0.00 X X 0 0 0 DEBBIE BEVIER BOARD MEMBER 1.00 0.00 X 0 0 0 TOM CREWS BOARD MEMBER 1.00 0.00 X 0 0 0 ARLISTA HOLMAN BOARD MEMBER 1.00 0.00 X 0 0 0 DICK JOBST BOARD MEMBER 1.00 1.00 X 0 0 0 REVEREND DENNIS MAGNUSON BOARD MEMBER 1.00 0.00 X 0 0 0 JOHN MCGILLIARD BOARD MEMBER 1.00 1.00 X 0 0 0 BRENT SMITH BOARD MEMBER 1.00 0.00 X 0 0 0 ROBERT STEVENS BOARD MEMBER 1.00 0.00 X 0 0 0 JACK WIMPRESS BOARD MEMBER 1.00 0.00 X 0 0 0 JENNI YEOH BOARD MEMBER 1.00 0.00 X 0 0 0 KEVIN ANDERSON PRESIDENT/CEO 40.00 10.00 X 240444 0 14399 ELLEN BOYER COO/CFO 40.00 10.00 X 173532 0 13878 CHRISTINE TREMAIN VP OF MARKETING 50.00 0.00 X 139597 0 4174 AIJA STAPARS VP OF HUMAN RESOURCES 50.00 0.00 X 100930 0 4734 JOHN FENEIS CONTROLLER 50.00 0.00 X 121135 0 2969 SHEILA MCDOUNOGH DES MOINES DIR. OF NURSING 50.00 0.00 X 112317 0 7711 887955 0 47865 6 0 1 0 CONSONUS REHAB 14729 NE 87TH STREET REDMOND WA 98052 STAFFING 905754 WESLEY HOMES COMMUNITY HEALTH SERVICES 815 S 216TH STREET DES MOINES WA 98198 STAFFING 773840 MORRISON MANAGEMENT SERVICES PO BOX 102289 ATLANTA GA 30368 CULINARY MANAGEMENT 473477 KOESTER LANDSCAPE MANAGEMENT INC PO BOX 98459 DES MOINES WA 98198 LANDSCAPING 186600 4 HEALTH SERVICES 623000 16929558 16929558 SERVICE CHARGES 623990 14058342 14058342 RESIDENCY FEES 623990 2193017 2193017 OTHER REVENUE 623990 298675 298675 33479592 645024 645024 5304304 4604534 699770 699770 699770 MANAGEMENT FEES 561000 364099 364099 364099 35188485 33479592 0 1708893 286887 286887 244596 244596 691688 691688 13621139 11754872 1866267 362812 279220 83592 1465460 1373707 91753 1009393 834938 174455 37670 37670 61700 61700 67161 67161 2868112 2683412 184700 298807 298807 609707 118332 491375 396978 396978 2070294 1854356 215938 64489 33076 31413 8101 747 7354 2391430 2312305 79125 4683733 4354698 329035 297283 297283 RESIDENT AND HEALTH CAR 2827815 2827815 BAD DEBTS 410241 410241 ALL OTHER EXPENSES 356103 65338 290765 ALLOCATION OF EXPENSES 0 -364097 364097 35131599 28660202 6471397 0 2942236 3002583 2612654 2707063 2644895 2275717 2431055 2336647 92950 459847 453328 126928318 56984069 71937862 69944249 13775122 16027620 7661324 7982977 104464995 104823134 4454115 4336271 10769896 11290007 48157505 47041037 10827 95138 2910625 2546800 18619508 18511931 84922476 83821184 X 19542519 21001950 19542519 21001950 104464995 104823134 56886 1402545 0 X 0 1 X 1 0 X 33223093 30704272 32818437 32855050 33479592 163080444 33223093 30704272 32818437 32855050 33479592 163080444 0 0 0 163080444 437842 507484 523763 644536 645024 2758649 437842 507484 523763 644536 645024 2758649 425282 626986 364099 1416367 33660935 31211756 33767482 34126572 34488715 167255460 0.97500 0.97420 0.01650 0.01940 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: MANAGEMENT FEES - 2011 AMOUNT: $ 331,905. 2012 AMOUNT: $ 421,156. 2013 AMOUNT: $ 364,099. NET ASSETS RLEASED FROM RESTRICTION - 2011 AMOUNT: $ 93,377. 2012 AMOUNT: $ 185,830. MISCELLANEOUS INCOME - 2012 AMOUNT: $ 20,000. 0 1 X 8383473 8383473 102734414 46505767 56228647 1877347 1418549 458798 12322619 9059753 3262866 1610465 1610465 69944249 DEFERRED FINANCE FEES 453499 INTERCOMPANY RECEIVABLE 4309880 ASSETS RESTRICTED FOR USE-BOND FUNDS 3202690 ACCRUED INTEREST 16908 7982977 REFUNDABLE RESIDENCY FEES 18407133 CAPITAL LEASE 104798 18511931 X 36578338 3378195 3378195 33200143 67161 1921181 1988342 35188485 37880635 3711779 3711779 34168856 67161 895582 962743 35131599 PART IV, LINE 2B: THESE ARE RESIDENT TRUST FUNDS AND RENTAL SECURITY DEPOSIT FUNDS HELD FOR RESIDENTS. PART X, LINE 2: THE ORGANIZATION'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES. THE ORGANIZATION IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE ITS TAX-EXEMPT STATUS AND 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 2009 TO 2012 ARE OPEN TO EXAMINATION BY FEDERAL, LOCAL, AND STATE AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: RELATED ORGANIZATION REVENUES REPORTED ON OTHER 990S 3,378,195. PART XI, LINE 4B - OTHER ADJUSTMENTS: MANAGEMENT FEES 364,099. INTEREST AND DIVIDEND INCOME 577,863. RESIDENT SUBSIDIES 244,596. NET REALIZED GAIN ON INVESTMENTS 734,623. PART XII, LINE 2D - OTHER ADJUSTMENTS: RELATED ORGANIZATION EXPENSES REPORTED ON OTHER 990S 3,711,779. PART XII, LINE 4B - OTHER ADJUSTMENTS: MANAGEMENT FEES 364,099. GRANT TO FOUNDATION 286,887. RESIDENT SUBSIDIES 244,596. EAST ASIA & THE PACIFIC 0 0 INVESTMENTS 727044 EUROPE 0 0 INVESTMENTS 1405103 MIDDLE EAST & NORTH AFRICA 0 0 INVESTMENTS 104806 SOUTH AMERICA 0 0 INVESTMENTS 201864 SOUTH ASIA 0 0 INVESTMENTS 251807 0 0 0 0 0 0 2690624 0 2690624 0 0 0 0 0 0 1 WESLEY HOMES FOUNDATION 815 SOUTH 216TH STREET DES MOINES WA 98198 911732317 501(C)(3) 286887 TO SUPPORT GENERAL OPERATIONS. 1 0 RESIDENT SUBSIDIES 56 244596 PART I, LINE 2: THE TRANSFER LISTED IS TO A RELATED ORGANIZATION WHICH IS UNDER COMMON MANAGEMENT. TRANSFERS BETWEEN ORGANIZATIONS ARE TRACKED INTERNALLY THROUGH THE FINANCIAL REPORTING PROCESS. X X X 0 0 0 0 0 0 0 0 0 KEVIN ANDERSON PRESIDENT/CEO 240444 0 0 0 0 0 0 0 14399 0 254843 0 0 0 ELLEN BOYER COO/CFO 173532 0 0 0 0 0 0 0 13878 0 187410 0 0 0 A WASHINGTON STATE HOUSING FINANCE COMMISSION 911874730 93978LEN2 2008-07-01 47285000 MORTGAGE LOAN 0 0 0 A 47285000 3528850 43756150 2007 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0 0 0 A 1 0 0 1 CREDIT AGRICOLE CIB 4.906000000000 1 0 0 A 0 SCHEDULE K, PART III, LINE 9; PART IV, LINE 7; AND PART V WESLEY HOMES IS IN THE PROCESS OF IMPLEMENTING A BOND COMPLIANCE POLICY THAT WILL REQUIRE THE ORGANIZATION TO: A) ENSURE ALL NONQUALIFIED BONDS ARE REMEDIATED IN ACCORDANCE WITH THE REQUIREMENTS UNDER REGULATIONS SECTIONS 1.141-12 AND 1.145-2; B) MONITOR THE REQUIREMENTS OF SECTION 148; AND C) ENSURE THAT VIOLATIONS OF FEDERAL TAX REQUIREMENTS ARE TIMELY IDENTIFIED AND CORRECTED THROUGH THE VOLUNTARY CLOSING AGREEMENT PROGRAM IF SELF-REMEDIATION IS NOT AVAILABLE UNDER APPLICABLE REGULATIONS. FORM 990, PART VI, SECTION A, LINE 1 THE ORGANIZATION'S EXECUTIVE COMMITTEE CONSISTS OF THE CHAIR, PAST CHAIR, CHAIR ELECT, TREASURER AND SECRETARY OF THE BOARD OF TRUSTEES. THE EXECUTIVE COMMITTEE HAS AND EXERCISES THE AUTHORITY OF THE BOARD OF TRUSTEES, EXCEPT THE EXECUTIVE COMMITTEE DOES NOT HAVE THE AUTHORITY OF THE BOARD IN REFERENCE TO: 1. AMENDING, ALTERING, OR REPEALING THE BYLAWS; 2. ELECTING, APOINTING, OR REMOVING ANY MEMBER OF THE EXECUTIVE COMMITTEE OR ANY DIRECTOR OR OFFICER OF THE CORPORATION; 3. AMENDING THE ARTICLES OF INCORPORATION; 4. ADOPTING A PLAN OR MERGER OR ADOPTING A PLAN OF CONSOLIDATION; 5. AUTHORIZING THE SALE, LEASE, OR EXCHANGE OF ALL OR SUBSTANTIALLY ALL OF THE ORGANIZATION'S PROPERTY AND ASSETS; 6. AUTHORIZING THE VOLUNTARY DISSOLUTION OF THE ORGANIZATION OR ADOPTING A PLAN FOR THE DISTRIBUTION OF THE ORGANIZATION'S ASSETS; OR 7. AMENDING, ALTERING, OR REPEALING ANY RESOLUTION OF THE BOARD OF TRUSTEES WHICH BY ITS TERMS PROVIDES THAT IT SHALL NOT BE AMENDED, ALTERED, OR REPEALED BY THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE AMENDED IN MARCH 2012 TO CREATE AN EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION A, LINE 6 THE ORGANIZATION IS ORGANIZED AS A NOT-FOR-PROFIT CORPORATION AND INCLUDES MEMBERS FROM THE PACIFIC NORTHWEST ANNUAL CONFERENCE OF THE UNITED METHODIST CHURCH, WHO HAVE THE RIGHT TO PARTICIPATE IN THE SELECTION OF THE ORGANIZATION'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF TRUSTEES SHALL BE ELECTED AT THE ANNUAL MEETING OF THE MEMBERS, OF WHICH, AT LEAST A MAJORITY OF THE ELECTED TRUSTEES SHALL BE MEMBERS OF THE UNITED METHODIST CHURCH. FORM 990, PART VI, SECTION A, LINE 7B AMENDMENTS TO THE ARTICLES OF INCORPORATION MUST BE APPROVED BY A MAJORITY OF THE MEMBERS PRESENT AT THE ANNUAL CONFERENCE IN ADDITION TO A TWO-THIRDS PASSING VOTE BY THE BOARD OF TRUSTEES. IN ADDITION, ANY MODIFICATIONS TO THE BYLAWS WITH RESPECT TO THE MEMBERSHIP OF WESLEY HOMES OR THE PROCESS OF ELECTING THE BOARD OF TRUSTEES MUST BE APPROVED BY THE MEMBERS AT THEIR ANNUAL CONFERENCE PRIOR TO BEING AMENDED. FORM 990, PART VI, SECTION B, LINE 11 THE BOARD OF DIRECTORS HAS DELEGATED THE RESPONSIBILITY OF REVIEWING FORM 990 TO THE FINANCE COMMITTEE. MANAGEMENT AND THE FINANCE COMMITTEE REVIEW IN DETAIL THE FORM 990. A COPY OF THE 990 IS PRESENTED TO THE BOARD PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C EACH MAY, OR WHEN A NEW MEMBER ARRIVES ON THE BOARD, BOARD MEMBERS ARE GIVEN A DISCLOSURE FORM TO SIGN AND SUBMIT DECLARING ANY POSSIBLE CONFLICT OF INTEREST. SHOULD CONFLICTS EXIST, THE CONFLICTS ARE DISCLOSED TO THE OTHER BOARD MEMBERS. BOARD MEETING MINUTES WOULD REFLECT THE CONFLICT AS IT RELATES TO A RELEVANT DISCUSSION AND THE MEMBER WITH THE CONFLICT WOULD ABSTAIN FROM THE DISCUSSION AND DECISION. EACH MEMBER HAS BEEN GIVEN THE POLICY UPON MEMBERSHIP TO THE BOARD. MONITORING OF CONFLICTS OF INTEREST IS MANAGED BY THE WESLEY HOMES EXECUTIVE ASSISTANT. FORM 990, PART VI, SECTION B, LINE 15A THE SYSTEM USED IS OBJECTIVE AND NON-DISCRIMINATORY IN THEORY, APPLICATION, AND PRACTICE. WESLEY HOMES HAS DETERMINED THAT THIS CAN BEST BE ACCOMPLISHED BY USING A PROFESSIONAL COMPENSATION CONSULTANT AND SYSTEM RECOMMENDED BY EXECUTIVE MANAGEMENT WITH APPROVAL OF CEO COMPENSATION BY THE BOARD OF TRUSTEES. THIS IS ALSO TRUE FOR OTHER OFFICER'S AND KEY EMPLOYEE'S COMPENSATION WITH APPROVAL BY THE CEO. THE MOST RECENT YEAR FOR THIS PROCESS WAS 2012. FORM 990, PART VI, SECTION C, LINE 19 WESLEY HOMES, AS PART OF THE CONSOLIDATED ORGANIZATION OF WESLEY HOMES, DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY OR ITS FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC, EXCEPT UPON REQUEST. WESLEY HOMES DOES MAKE AVAILABLE ITS ANNUAL REPORT AT WWW.WESLEYHOMES.ORG, WHICH CONTAINS SUMMARIZED INFORMATION FROM THE AUDITED FINANCIAL STATEMENTS FOR THE CONSOLIDATED ORGANIZATION OF WESLEY HOMES, WHICH INCLUDES THE ACTIVITIES OF THE WESLEY HOMES FOUNDATION AND WESLEY HOMES COMMUNITY HEALTH SERVICES. FORM 990, PART IX, LINE 2 WESLEY HOMES SUBSIDIZES THE MONTHLY SERVICE FEES OF RESIDENTS, WHO THROUGH NO FAULT OF THEIR OWN, DO NOT HAVE SUFFICIENT INCOME. IN 2013, WESLEY HOMES PROVIDED $577,746 IN SUBSIDIES TO RESIDENTS. OF THIS AMOUNT, $333,150 WAS SUPPORTED BY THE WESLEY HOMES FOUNDATION, THROUGH THEIR FUNDRAISING EFFORTS IN SUPPORT OF OUR RESIDENTS. AS A RESULTS, NET SUBSIDY EXPENSE OF $244,596 IS REPORTED FOR 2013. WESLEY HOMES DES MOINES LLC 815 S 216TH ST DES MOINES WA 98198 203541243 CONTINUING CARE RETIREMENT COMMUNITY WA 26522496 44960714 WESLEY HOMES WESLEY HOMES LEA HILL LLC 32049 109TH PL SE AUBURN WA 98092 202347503 PLANNED RETIREMENT COMMUNITY WA 8286713 57146677 WESLEY HOMES WESLEY HOME COMMUNITY HEALTH SERVICES 815 S 216TH STREET DES MOINES WA 98198 571160339 HOME HEALTH AGENCY WA 501(C)(3) LINE 9 WESLEY HOMES 1 WESLEY HOMES FOUNDATION 815 S 216TH STREET DES MOINES WA 98198 911732317 SUPPORT WESLEY HOMES AND ITS RESIDENTS WA 501(C)(3) LINE 11A, I WESLEY HOMES 1 0 1 0 1 1 0 0 0 0 0 0 0 1 1 1 1 1 0 0 WESLEY HOMES FOUNDATION B 286887 WESLEY HOMES FOUNDATION D 493334 WESLEY HOMES FOUNDATION E 820000 WESLEY COMMUNITY HEALTH SERVICES P 772552 WESLEY COMMUNITY HEALTH SERVICES Q 364099