2014-11-07T07:41:23-06:00 2013-12-31 KPMG LLP 1676 International Drive McLean VA 22102 990 2013-01-01 231857015 DIAKON LUTHERAN SOCIAL MINISTRIES % RICHARD BARGER DIAK 6106821262 798 HAUSMAN ROAD Suite 300 ALLENTOWN PA 18104 RICHARD M BARGER EXECUTIVE VP & TREASURER 7032868000 2014-11-04 true Jocelyne C Miller KPMG LLP P00634378 7032868000 2014-10-22 2013 2015-11-30 17:44:51Z MARK T PILE 798 Hausman Road ALLENTOWN PA 18104 367166665 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. 15 15 2673 2000 69 -92863 5648328 6514090 189775888 189963729 7172434 9931711 1066208 1325882 203662858 207735412 398757 89316 0 0 71905054 68753436 55675 45002 1371996 134116321 141647184 206475807 210534938 -2812949 -2799526 428878742 435520798 368105210 365238203 60773532 70282595 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 false 126884266 4066 124494972 Senior Living Services SEE SCHEDULE O 15464453 14584515 Services for Children, Families, and Communities SEE SCHEDULE O 48866279 48866279 Statewide Adoption Network SEE SCHEDULE O 1746503 85250 3388504 192961501 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 true false false true true true true false false true 379 0 true 2673 true true true false false false false true true false false false false X 15 15 false false false false true true true true true false false true true true true true true true true true true MD PA X X RICHARD BARGER 7177950342 1022 N UNION STREET MIDDLETOWN PA 17057 X MAURICE BOBST BOARD MEMBER 1.0 2.0 X 0 0 0 DR BARRY PARKS BOARD MEMBER 1.0 0.0 X 0 0 0 LARRY DELP CHAIR 1.0 2.0 X 0 0 0 GREG RHODES BOARD MEMBER 1.0 0.0 X 0 0 0 DR ADDIE J BUTLER BOARD MEMBER 1.0 2.0 X 0 0 0 DR PHIL KREY BOARD MEMBER 1.0 2.0 X 0 0 0 ERICH MARCH VICE-CHAIR 1.0 0.0 X 0 0 0 JOSEPH SKILLMAN BOARD MEMBER 1.0 1.0 X 0 0 0 JOYCE HERSHBERGER BOARD MEMBER 1.0 0.0 X 0 0 0 BISHOP SAM ZEISER BOARD MEMBER 1.0 0.0 X 0 0 0 JEFF BOLAND Board Member 1.0 0.0 X 0 0 0 Holly Heintzelman Sectretary 1.0 0.0 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 LAURIE SALTZGIVER BOARD MEMEBER 1.0 0.0 X 0 0 0 MARK T PILE PRESIDENT/CEO 30.75 6.75 X 712414 0 -169531 RICHARD M BARGER EXECUTIVE VP/CFO 32.0 5.5 X 517834 0 62590 SCOTT HABECKER EXECUTIVE VP/COO 35.3 2.2 X 258860 0 60351 Richard H Reed SVP/Chief Risk Officer 36.0 1.5 X 229367 0 19251 Mary Ellen Dickey SVP/Advancement 30.0 7.5 X 185952 0 57884 Alice M Clark SVP/Human Resources 36.5 1.0 X 165101 0 18222 John J Palkovitz JR VP/Financial Services 30.5 7.0 X 166325 0 14430 Jeanne M Oski VP/Sr Living Communities 36.5 1.0 X 279149 0 24389 William Swanger SVP/Corp Communication 34.5 3.0 X 142663 0 21162 Lauren R Conzaman VP/Child&FamilyMinistries 37.5 0.0 X 134441 0 13609 Mitchell R Huston Manager of Mktg & Sales 37.5 0.0 X 129229 0 11323 2921335 0 133680 24 false true false Morrison Management Specialist Po Box 102289 ATLANTA GA 303682289 Culinary/Housekpng 22020750 Family Design Resources Inc 471 JPL Wick Drive HARRISBURG PA 17111 SWAN Program Service 12697129 Benchmark Construction Co Inc 4121 Oregon Pike BROWNSTOWN PA 17508 CONSTRUCTION 14462213 WOHLSEN CONSTRUCTION CO PO Box 4612 LANCASTER PA 17604 CONSTRUCTION 11813999 Wagman Construction Inc 3290 North Susquehanna Trail YORK PA 174069754 Construction 4422265 67 88046 222698 1100004 1717795 3385547 194867 6514090 SENIOR LIVING SERVICES 623000 124280956 124280956 FAMILY AND COMMUNITY MINISTRIES 621400 14360632 14360632 STATEWIDE ADOPTION AND PERMANENCY NETWORK 900099 48866279 48866279 OTHER PROGRAM SERVICES 900099 2455862 2455862 189963729 3641642 2645 3638997 234914 234914 0 865657 965991 -100334 0 -100334 -11691 -88643 0 160439702 4005062 154463730 3925879 5975972 79183 6055155 6055155 33570 222698 75653 -42083 -42083 0 0 TRUST INCOME 900099 1006824 1006824 OTHER REVENUE 900099 436049 349982 86067 VENDING REVENUE 541610 25426 25426 1468299 207735412 191334270 69 9886983 5316 5316 84000 84000 0 0 2080735 1845797 234938 0 55738972 51036661 4158611 543700 -681230 -572073 -98349 -10808 7434342 6755397 615240 63705 4180617 3676895 454324 49398 115808 115808 637797 22278 615519 83428 83428 51000 51000 45002 45002 203023 47868 155155 8460737 7519987 939383 1367 1567235 1500755 63749 2731 12245020 10394738 1653848 196434 3449802 2459053 964050 26699 0 10517845 10015511 502316 18 2553680 2129643 360279 63758 0 151822 86494 61253 4075 11367690 10069993 1297697 0 15271136 13970614 1300522 1930176 1706228 219353 4595 SWAN CONTRACTED SERVICES 43091719 43091719 CULINARY SERVICE 14992487 14992487 HOUSEKEEPING SERVICES 4535657 4492163 43494 BAD DEBT EXPENSE 3849482 3849482 6571640 5427056 1049200 95384 210534938 192961501 16201441 1371996 1054169 874250 29629847 19813169 849842 753833 18115872 20520636 0 0 0 0 0 0 0 0 1459667 1714463 413682025 185964288 209617382 227717737 120167450 114777451 0 0 0 0 4572283 4572283 43412230 44776976 428878742 435520798 31592716 24792168 0 0 62295606 47981991 213221806 209936276 0 0 0 0 17180370 23338021 0 0 43814712 59189747 368105210 365238203 X 18139196 22415931 6685156 9306719 35949180 38559945 60773532 70282595 428878742 435520798 X -2799526 6776816 -14441579 19973352 X X false true X true true true X 6286903 5755486 6873675 5597588 6514090 31027742 194825038 204281540 202383641 189738873 189921646 981150738 0 0 0 201111941 210037026 209257316 195336461 196435736 1012178480 0 0 0 1012178480 4015691 3857070 2790684 4341432 3864865 18869742 69968 -149648 -162683 -90972 -88643 -421978 4085659 3707422 2628001 4250460 3776222 18447764 0 1573579 1205804 1210332 1177663 1468298 6635676 206771179 214950252 213095649 200764584 201680256 1037261920 0.97582 0.97220 0.01778 0.02070 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true true false true 71211 false false 71211 false SCHEDULE C, PART II-B, 1B AND 1G IN 2013, 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 $71,211. 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 IN 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. 14858797 510296 3275209 567133 18077169 12688497 1006120 1694788 530608 14858797 12149734 1024585 -69426 416396 12688497 10392169 191217 1982276 415928 12149734 8760586 1050631 1962231 1381279 10392169 1.00000 false true true 16441933 16441933 170970382 101344437 69625945 35887 22392 13495 44253770 31446965 12806805 181980053 53150494 128829559 227717737 INTEREST RECEIVABLE 96420 BENEFICIAL INTEREST IN TRUST 28114695 ESTIMATED THIRD PARTY SETTLE 2073073 INVESTMENT IN JOINT VENTURES 812055 DEFERRED BOND ISSUANCE COSTS 3383519 OTHER ASSETS 417004 DUE FROM AFFILIATES 791572 LEASE RECEIVABLE 9088638 44776976 0 ESTIMATED THIRD-PARTY PAYOR SE 1322895 MINIMUM PENSION LIABILITY 14423022 INTEREST RATE SWAP AGREEMENT 8266972 RESIDENT DEPOSITS 669180 OTHER PAYABLES 225183 REFUNDABLE ENTRANCE FEE LIABILITY 34282495 59189747 X 220094419 17816772 17816772 202277647 133022 5324743 5457765 207735412 224747646 19116283 19116283 205631363 133022 4770553 4903575 210534938 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. 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. SCHEDULE D, PARTS XI AND XII SCHED D PART XI LINE 2D OTHER REVENUE OF OTHER ENTITIES IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON 692,880 DIAKON LUTHERAN FUND 1,355,275 DIAKON LUTHERAN SENIOR LIVING MARYLAND LLC 13,301,851 DIAKON LUTHERAN SENIOR HOUSING AT LUTHER MEADOWS 521,446 DIAKON LUTHERAN SENIOR HOUSING AT HEILMAN HOUSE 470,386 INSTITUTE FOR STRATEGIC MANAGEMENT, INC. 433,290 SUBTOTAL 16,775,128 ITEMS RECLASSIFIED FROM EXPENSE FOR 990 REPORTING PURPOSES: RENTAL EXPENSES 965,991 FUNDRAISING EXPENSES 75,653 SUBTOTAL 1,041,644 TOTAL 17,816,772 SCHED D PART XI LINE 4B OTHER REVENUE NOT INCLUDED IN EXCESS(DEFICIT) IN CONSOLIDATED FINANCIAL STATEMENTS: TEMPORARILY RESTRICTED CONTRIBUTIONS 1,141,190 PERMANENTLY RESTRICTED CONTRIBUTIONS 510,296 TEMPORARILY RESTRICTED INVESTMENT GAINS 887,235 TEMPORARILY RESTRICTED NET ASSETS RELEASED (1,334,360) SUBTOTAL 1,204,361 REVENUE ELIMINATED IN CONSOLIDATION IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND GRANT INCOME 1,100,004 MANAGEMENT FEE REVENUE 1,898,402 HAGERSTOWN INTEREST REVENUE 1,121,976 SUBTOTAL 4,120,382 TOTAL 5,324,743 SCHED D PART XII LINE 2D OTHER EXPENSES OF OTHER ENTITIES IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON 499,921 DIAKON LUTHERAN FUND 1,171,021 DIAKON LUTHERAN SENIOR LIVING MARYLAND LLC 14,886,540 DIAKON LUTHERAN SENIOR HOUSING AT LUTHER MEADOWS 577,492 DIAKON LUTHERAN SENIOR HOUSING AT HEILMAN HOUSE 524,118 INSTITUTE FOR STRATEGIC MANAGEMENT, INC. 415,547 SUBTOTAL 18,074,639 ITEMS RECLASSIFIED FROM EXPENSE FOR 990 REPORTING PURPOSES: RENTAL EXPENSES 965,991 FUNDRAISING EXPENSES 75,653 SUBTOTAL 1,041,644 TOTAL 19,116,283 SCHED D PART XII LINE 4B OTHER EXPENSES ELIMINATED IN CONSOLIDATION IN CONSOLIDATED FINANCIAL STATEMENTS: DIAKON LUTHERAN FUND GRANT INCOME 1,100,004 MANAGEMENT FEE 1,898,402 HAGERSTOWN INTEREST EXPENSE 1,121,976 HAGERSTOWN DEPRECIATION AND AMORTIZATION 650,121 TOTAL 4,770,553 X X X X X X true Coremessagink Direct Mailing false 113448 45002 68446 113448 45002 68446 MD PA Dinner 1 143926 125626 18300 8968 9073 Dinner 2 97313 83153 14160 10130 9540 29257 1 15029 13919 1110 935 730 7020 256268 222698 33570 20033 10270 45350 75653 -42083 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 Benevolent Care to INDIVIDUALS AT Unrelated Inst. 4 84000 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 X X X X false true false false false false false false false MARK T PILE PRESIDENT/CEO 357274 0 60 0 355080 0 -190000 0 20469 0 542883 0 541200 0 RICHARD M BARGER EXECUTIVE VP/CFO 254680 0 150 0 263004 0 54700 0 7890 0 580424 0 204800 0 SCOTT HABECKER EXECUTIVE VP/COO 250587 0 150 0 8123 0 42722 0 17629 0 319211 0 0 0 John J Palkovitz JR VP/Financial Services 166175 0 150 0 0 0 14430 0 180755 0 0 0 Jeanne M Oski VP/Sr Living Communities 153007 0 0 126142 0 16592 0 7797 0 303538 0 109550 0 William Swanger SVP/Corp Communication 142583 0 80 0 0 0 0 0 21162 0 163825 0 0 0 Richard H Reed SVP/Chief Risk Officer 224403 0 110 0 4854 0 0 0 19251 0 248618 0 0 0 Mary Ellen Dickey SVP/Advancement 182061 0 80 0 3811 0 34843 0 23041 0 243836 0 0 0 Alice M Clark SVP/Human Resources 165101 0 0 0 0 0 0 0 18222 0 183323 0 0 0 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 4B THREE EMPLOYEES (ONE OFFICER, ONE KEY AND ONE HIGHLY COMPENSATED) 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, (3) JULY 1, 2008. THIS BENEFIT WAS ADDED TO RECOGNIZE THE SIGNIFICANT CONTRIBUTIONS OF THE IDENTIFIED OFFICER, KEY AND HIGHLY COMPENSATED EMPLOYEES 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, KEY AND HIGHLY COMPENSATED EMPLOYEES 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 OR HIGHLY COMPENSATED 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 6/30/2013 WHICH IS INCLUDED IN REPORTABLE COMPENSATION IN PART VII, SECTION A AND SCHEDULE J, PART II, COLUMN B(III) AND IS LISTED BELOW: JEANNE M. OSKI $126,142 THE THREE INDIVIDUALS WHO PARTICIPATED IN THE 457 (F) PLAN IN 2013 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 $42,722 MARYELLEN DICKEY $34,843 JEANNE M. OSKI $16,592 THE RETENTION AGREEMENT WAS NOT RENEWED FOR THE ONE INDIVIDUAL WHO VESTED AND RECEIVED A PAYOUT OF THE ACCRUED BENEFIT AND INTEREST. SCHEDULE J, PART II THE AMOUNTS REPORTED IN SCHEDULE J, PART II, COLUMN F AS COMPENSATION REPORTED AS DEFERRED IN PRIOR FORM 990 ALONG WITH THE AMOUNTS REPORTED IN SCHEDULE J, PART II, COLUMN C, RETIREMENT AND OTHER DEFERRED COMPENSATION, REPRESENT SUPPLEMENTAL RETIREMENT PLAN COSTS FOR THE CEO AND CFO. THESE AMOUNTS WERE PAID OUT AT DECEMBER 31, 2013 AND ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(III). THE CURRENT YEAR AMOUNT DEFERRED IN SCHEDULE J, PART II, COLUMN C FOR THE CEO IS NEGATIVE DUE TO CHANGES IN ASSUMPTIONS AND PLAN REVISIONS. A SCHEDULE K PART VI 236003119 999999999 2003-09-30 69020000 SCHEDULE K, PART VI false false false B CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614BU2 2005-07-01 10605000 SCHEDULE K, PART VI false false false C CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614CK3 2007-01-30 63635926 SCHEDULE K, PART VI false false false D CUMBERLAND COUNTY MUNICIPAL AUTHORITY 236003119 230614EK1 2009-12-10 122154764 SCHEDULE K, PART VI false false false A 45845000 0 72261106 0 0 0 1361092 2742245 0 24027650 43034199 1054710 true false false true B 2325000 0 10632065 0 0 0 189735 132663 0 14136819 0 0 2004 false false true true C 0 0 70113339 6071958 9187777 0 1051817 0 0 53801643 0 0 2012 false false true true D 7015000 0 123170079 11141101 2193710 0 1988038 0 0 31057949 76789281 0 2013 true false true true A false true true true false 0.00667 0.00007 0.00674 false true 0.04770 true true B false true true true false 0.00208 0.00000 0.00208 false false false true C false true true true false 0.00175 0.00008 0.00183 false false false true D false true true true false 0.00066 0.00015 0.00081 false false false true A true true true WELLS FARGO 16. false false false 0 true true B false true true true WELLS FARGO 16. false false false 0 true true C false true false false 0 false 0 true true D false true false false 0 false 0 true true A true B true C true D true SCHEDULE K, PART VI BOND A (2003 SERIES A, D AND E) 2003 SERIES A (a) ISSUER NAME- CUMBERLAND COUNTY MUNICIPAL AUTHORITY (b) ISSUER EIN - 23-6003119 (c) CUSIP#-230614BT5 (d) DATE ISSUED-09/30/2003 (e) ISSUE PRICE - $5,555,000 (f) DESCRIPTION OF PURPOSE - THE 2003A BONDS WERE ISSUED BY THE AUTHORITY TO FINANCE A PROJECT FOR THE BENEFIT OF DLSM, COMPRISED OF, AMONG OTHER THINGS, (1) THE CURRENT REFUNDING OF A PORTION OF THE OUTSTANDING BERKS COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY REVENUE BONDS, SERIES A OF 1993; (2) THE CURRENT REFUNDING OF A PORTION OF THE OUTSTANDING BERKS COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY REVENUE BONDS, SERIES A OF 1998; AND (3) PAYING ALL OR A PORTION OF THE COSTS AND EXPENSES OF ISSUANCE OF THE 2003A BONDS. ARBITRAGE FOOTNOTE PURSUANT TO SECTION 5(F) OF THE CERTIFICATE FOR THE 2003A BONDS AND 2003D BONDS, THE AUTHORITY'S 2003A BONDS AND 2003D BONDS, ALONG WITH THE COUNTY COMMISSIONERS OF WASHINGTON COUNTY, MARYLAND'S 2003E BONDS WERE CONSIDERED A SINGLE ISSUE AS DESCRIBED IN SECTION 1.150-1 OF THE INCOME TAX REGULATIONS FOR ARBITRAGE REBATE AND YIELD COMPUTATION PURPOSES. ALONG WITH THE ISSUANCE OF THE 2003A, 2003D, AND 2003E BONDS, THE AUTHORITY ALSO ISSUED THE 2003B AND 2003C BONDS. THE 2003B AND 2003C BONDS WERE TAXABLE ISSUES AND NOT SUBJECT TO REBATE RESTRICTIONS AND WERE EXCLUDED FROM ALL REBATE CALCULATIONS. AFTER EVALUATION FOR THE INITIAL REBATE COMPUTATION PERIOD, NO ARBITRAGE LIABILITY EXISTED FOR THE BONDS AS OF THE SEPTEMBER 30, 2013 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON SEPTEMBER 30, 2014. 2003 SERIES D THE SERIES D OF 2003 - CUSIP 230614BS7 WITH AN ISSUE PRICE OF $43,000,000 ISSUED ON 09/30/2003 WAS REFUNDED IN DECEMBER, 2009. THE OUTSTANDING PRINCIPAL BALANCE WAS $42,110,000. THE 2003D BONDS WERE REFINANCED, AND PART OF THE PROCEEDS FROM THE 2009D SERIES ISSUANCE WERE USED TO PAY OFF THE 2003D BONDS. IN THE INTEREST OF TRANSPARENCY, DLSM IS INCLUDING THE 2003D SERIES BONDS ON SCHEDULE K FOR 2011 AND GOING FORWARD. 2003 SERIES E (a) ISSUER NAME- COUNTY COMMISSIONERS OF WASHINGTON COUNTY (b) ISSUER EIN - 52-6001037 (c) CUSIP#-937752AB9 (d) DATE ISSUED-09/30/2003 (e) ISSUE PRICE - $20,465,000 (f) DESCRIPTION OF PURPOSE - THE 2003E BONDS WERE ISSUED BY THE COUNTY TO FINANCE A PROJECT FOR THE BENEFIT OF DLSM COMPRISED OF (1) THE REFUNDING OF THE OUTSTANDING MARYLAND INDUSTRIAL DEVELOPMENT AUTHORITY ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES C OF 1994; (2) THE CURRENT REFUNDING OF A LOAN FROM THE MARYLAND HEALTH AND HIGHER EDUCATION FACILITIES AUTHORITY; (3) THE ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION AND EQUIPPING OF VARIOUS LONG-TERM CARE, ASSISTED LIVING AND INDEPENDENT LIVING FACILITIES LOCATED IN WASHINGTON COUNTY; AND (4) PAYMENT OF THE COSTS AND EXPENSES OF ISSUANCE OF THE 2003E BONDS. ARBITRAGE FOOTNOTE PURSUANT TO SECTION 5(F) OF THE CERTIFICATE FOR THE 2003A BONDS AND 2003D BONDS, THE AUTHORITY'S 2003A BONDS AND 2003D BONDS, ALONG WITH THE COUNTY COMMISSIONERS OF WASHINGTON COUNTY, MARYLAND'S 2003E BONDS WERE CONSIDERED A SINGLE ISSUE AS DESCRIBED IN SECTION 1.150-1 OF THE INCOME TAX REGULATIONS FOR ARBITRAGE REBATE AND YIELD COMPUTATION PURPOSES. ALONG WITH THE ISSUANCE OF THE 2003A, 2003D, AND 2003E BONDS, THE AUTHORITY ALSO ISSUED THE 2003B AND 2003C BONDS. THE 2003B AND 2003C BONDS WERE TAXABLE ISSUES AND NOT SUBJECT TO REBATE RESTRICTIONS AND WERE EXCLUDED FROM ALL REBATE CALCULATIONS. AFTER EVALUATION FOR THE INITIAL REBATE COMPUTATION PERIOD, NO ARBITRAGE LIABILITY EXISTED FOR THE BONDS AS OF THE SEPTEMBER 30, 2013 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON SEPTEMBER 30, 2014. IRS AUDIT - WASHINGTON COUNTY 2003E SERIES A "NO CHANGE" TO STATUS WAS ISSUED IN 2011 FROM A RECENT IRS AUDIT OF THE WASHINGTON COUNTY 2003E SERIES. TOTAL PROCEEDS FROM ISSUE ISSUE PRICE $ 69,020,000 CUMULATIVE INVESTMENT EARNINGS $ 3,241,106 TOTAL $ 72,261,106 OTHER SPENT PROCEEDS REFUNDING OF 1993 & 1998 SERIES $ 5,385,560 REFUNDING 1993/1994 $ 22,933,346 REFUNDING OF 1994 & MHHEFA DEBT $ 14,715,293 TOTAL $ 43,034,199 BOND B (2003 SERIES C) 2003 SERIES C (a) ISSUER NAME- CUMBERLAND COUNTY MUNICIPAL AUTHORITY (b) ISSUER EIN - 23-6003119 (c) CUSIP#-230614BU2 (d) DATE ISSUED-07/01/2005 (e) ISSUE PRICE - $10,605,000 (f) DESCRIPTION OF PURPOSE - THE 2003C BONDS WERE ISSUED BY THE AUTHORITY TO FINANCE A PROJECT FOR THE BENEFIT OF DLSM, COMPRISED OF, AMONG OTHER THINGS, (1) A PORTION OF THE COSTS OF THE ACQUISITION, CONSTRUCTION, RENOVATION, IMPROVEMENT AND EQUIPPING OF EXISTING SKILLED NURSING, ASSISTED LIVING AND INDEPENDENT LIVING FACILITIES KNOW AS CUMBERLAND CROSSINGS LOCATED IN CUMBERLAND COUNTY; AND (2) PAYMENT OF A PORTION OF THE COSTS AND EXPENSES OF ISSUANCE OF THE 2003C BONDS. TOTAL PROCEEDS FROM ISSUE ISSUANCE PRICE $ 10,605,000 CUMULATIVE INVESTMENT EARNINGS $ 27,065 TOTAL $ 10,632,065 THE 2003C BONDS WERE REMARKETED AS TAX-EXEMPT BEGINNING 07/01/2005. THE 2003C BONDS QUALIFY FOR AN EXCEPTION TO THE REBATE REQUIREMENTS. BOND C (2007 SERIES A) 2007 SERIES A (f) DESCRIPTION OF PURPOSE - THE 2007A 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 2007A BONDS. PURSUANT TO SECTION 5(F) OF THE BOND AGREEMENT, THE 2007A BONDS WERE A SINGLE ISSUE. THE BONDS WERE STILL OUTSTANDING AS OF THE END OF THE TAX PERIOD AND HAVE NOT OTHERWISE BEEN REISSUED FOR TAX PURPOSES. AFTER EVALUATION FOR THE INITIAL REBATE COMPUTATION PERIOD, NO ARBITRAGE LIABILITY EXISTED FOR THE BONDS AS OF THE JANUARY 31, 2013 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON JANUARY 31, 2014. TOTAL PROCEEDS FROM ISSUE ISSUANCE PRICE $ 63,635,926 CUMULATIVE INVESTMENT EARNINGS $ 6,477,413 TOTAL $ 70,113,339 BOND D (2009 SERIES) 2009 SERIES (f) 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 CURRENT REFUNDING OF THE AUTHORITY'S REVENUE BONDS SERIES D OF 2003 (SEE NOTE BELOW FOR ADDITIONAL DETAILS; (2) THE CURRENT REFUNDING OF THE AUTHORITY'S VARIABLE RATE REVENUE BONDS, SERIES B OF 2007 (SEE NOTE BELOW FOR ADDITIONAL DETAILS; (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) THE 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 2009 BONDS. REFUNDING SUMMARY SERIES D OF 2003 - CUSIP 230614BS7 WITH AN ISSUE PRICE OF $43,000,000 ISSUED ON 09/30/2003. THE OUTSTANDING PRINCIPAL BALANCE WAS $42,110,000. SERIES B OF 2007 - CUSIP 230614CL1 WITH AN ISSUE PRICE OF $47,400,000 ISSUED ON 01/30/2007. THE OUTSTANDING PRINCIPAL BALANCE WAS $44,375,000. AS PART OF THE REFUNDING PROCESS, REALIZED GAINS WERE RECOGNIZED ON UNSPENT 2007B FUNDS, RESULTING IN AN ARBITRAGE REBATE PAYMENT OF $13,087. THIS REBATE WAS SUBMITTED IN FEBRUARY 2010, WITHIN THE 180 REQUIRED PERIOD. THE TOTAL REFUNDED PRINCIPAL AND INTEREST OF THE TWO SERIES WAS $86,573,324. THE 2009 SERIES REFUNDED $76,789,281. THE DEBT SERVICE FUNDS ASSOCIATED WITH THOSE TWO SERIES REFUNDED THE DIFFERENCE. AFTER EVALUATION FOR THE INITIAL REBATE COMPUTATION PERIOD, NO ARBITRAGE LIABILITY EXISTED FOR THE BONDS AS OF THE DECEMBER 1, 2013 INSTALLMENT COMPUTATION DATE. THE NEXT COMPUTATION DATE IS SCHEDULED TO OCCUR ON DECEMBER 1, 2014. TOTAL PROCEEDS FROM ISSUE ISSUANCE PRICE $ 122,154,764 CUMULATIVE INVESTMENT EARNINGS $ 1,015,315 TOTAL $ 123,170,079 OTHER SPENT PROCEEDS REFUNDING OF 2007B/2003D $ 76,789,281 TOTAL $ 76,789,281 X 100 FMV X 6526 FMV X 2 4000 FMV X 9 54907 FMV X 13 1216 X 4 605 FMV X Gift Baskets 22 2525 FMV X Gift Certificates 132 19814 FMV X Building Materials 4 1478 FMV X Toys 3 220 FMV X Furniture and Equipment 9 5732 FMV X Custom Improvements 18 96584 FMV X Jewelery 14 1160 FMV false false false FORM 990, PART III, QUESTION 1 DIAKON LUTHERAN SOCIAL MINISTRIES ("DLSM"), A PENNSYLVANIA NON-PROFIT CORPORATION, OFFERS A RANGE OF SENIOR LIVING, HEALTH CARE, AND SOCIAL SERVICES IN PENNSYLVANIA AND MARYLAND, INCLUDING NURSING AND REHABILITATIVE CENTERS, CONTINUING CARE RETIREMENT COMMUNITIES, PERSONAL CARE ACCOMMODATIONS, 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. DLSM IS AFFILIATED WITH THE EVANGELICAL LUTHERAN CHURCH IN AMERICA THROUGH LUTHERAN SERVICES IN AMERICA. DLSM, WHOSE NAME DERIVES FROM A GREEK TERM FOR "ONE ASSIGNED BY THE CHURCH TO MINISTER TO THE NEEDS OF OTHERS," OFFERS PROGRAMS THAT TRANSFORM THE LIVES OF CHILDREN, FAMILIES, AND OLDER ADULTS AT NEARLY 30 SERVICE CENTERS AND SENIOR LIVING COMMUNITIES IN PENNSYLVANIA AND MARYLAND. STATEMENT OF PROGRAM SERVICE ACCOMPLISHMENTS IN 2013, DIAKON LUTHERAN SOCIAL MINISTRIES DIRECTLY SERVED 56,000 INDIVIDUALS IN PENNSYLVANIA AND MARYLAND THROUGH SUCH SERVICES AS RESIDENTIAL ACCOMMODATIONS FOR OLDER PERSONS, NURSING CARE, ADOPTION AND FOSTER CARE, ADULT DAY SERVICES, COUNSELING AND RELATED MENTAL-HEALTH SERVICES, AND A RANGE OF COMMUNITY- AND OUTDOOR-BASED PROGRAMS FOR COURT-ADJUDICATED DELINQUENT AND DEPENDENT YOUTHS. IN ADDITION TO THE NUMBER SERVED DIRECTLY BY DLSM PROGRAMS, PRODUCTS PROVIDED THROUGH DIAKON KATHRYN'S KLOSET TO REGIONAL, NATIONAL, AND INTERNATIONAL NON-PROFIT ORGANIZATIONS TOUCHED THE LIVES OF APPROXIMATELY 400,000 PERSONS; THE NUMBER SERVES AS AN ESTIMATE BECAUSE DIAKON KATHRYN'S KLOSET RELIES ON SELF-REPORTING FROM SHELTERS AND OTHER NONPROFIT PROGRAMS AND CANNOT CONFIRM THE EXTENT TO WHICH INDIVIDUALS REPORTED BY EACH PROGRAM MAY BE DUPLICATED. CHARITY CARE AND SUPPORT OF THOSE IN NEED DLSM PROVIDES CHARITY CARE AND OTHER SUPPORT OF THOSE IN NEED TO MANY OF THE PROGRAMS AND INDIVIDUALS THAT IT SERVES. DLSM MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE AMOUNT OF CHARITY CARE IT PROVIDES. THESE RECORDS INCLUDE SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE POLICY, AND THE ESTIMATED COST OF THOSE SERVICES AND SUPPLIES. SUPPORT OF THOSE IN NEED INCLUDES SERVICES PROVIDED TO PERSONS WITHIN OUR SENIOR LIVING SERVICES (SLS) LINE OF SERVICE WHO CANNOT AFFORD HEALTH CARE BECAUSE OF INADEQUATE RESOURCES AND/OR WHO ARE UNINSURED OR UNDERINSURED. A NUMBER OF PROGRAMS FOR CHILDREN AND FAMILIES DO NOT RECEIVE SUFFICIENT FUNDING FROM THE SPONSORING ORGANIZATIONS OR FROM PROGRAM FEES TO MEET THE NEEDS OF THE PEOPLE THEY SERVE. DLSM HAS ELECTED TO UNDERWRITE THE OPERATING DEFICITS OF CERTAIN PROGRAMS TO SERVE AS MANY OF THE IDENTIFIED NEEDS AS POSSIBLE. THE FOLLOWING IS A SUMMARY OF THE VALUE OF DLSM'S SUPPORT OF THESE PROGRAMS DURING THE YEAR ENDED DECEMBER 31, 2013: SUPPORT PROVIDED TO SENIOR LIVING RESIDENTS: MEDICAL ASSISTANCE COST IN EXCESS OF CONTRACTUAL REIMBURSEMENT $ 9,824,530 CHARITY CARE IN SUPPORT OF THOSE IN NEED $ 1,432,031 FAMILY AND COMMUNITY PROGRAMS SUPPORTED BY DLSM(CHARITY CARE): CHILDREN'S SERVICES $ 1,077,639 BEHAVIORAL HEALTH $ 455,451 FAMILY LIFE AND CONGREGATION $ 55,803 COMMUNITY SERVICES $ 428,918 ------------- $ 2,017,811 ------------- TOTAL $13,274,372 ------------- IN 2013, DIAKON LUTHERAN SOCIAL MINISTRIES PROVIDED THE FOLLOWING: RESIDENTIAL AND ELDERCARE 704,570 CARE DAYS HUD HOUSING PROJECTS 83,867 CARE DAYS CHILDCARE AND YOUTH SERVICES 119,961 CARE DAYS COMMUNITY SERVICES FOR SENIORS 11,626 PERSONS SERVED ADULT DAY SERVICES 13,770 CARE DAYS DIAKON FAMILY LIFE SERVICES 3,757 UNDUPLICATED PERSONS SERVED ADOPTION & FOSTER CARE 2,520 CHILDREN/FAMILY MEMBERS SERVED STATEWIDE ADOPTION & PERMANENCY NETWORK (SWAN CONTRACT TO MANAGE) 26,888 CHILDREN/FAMILY MEMBERS SERVED ADOPTION 68 FINALIZATIONS DIAKON KATHRYN'S KLOSET APPROX. 400,000 PERSONS SERVED THROUGH PARTNERSHIPS WITH NON-PROFITS USING CORPORATELY DONATED GOODS SUPPLIED THROUGH DIAKON KATHRYN'S KLOSET DURING 2013, THE ORGANIZATION CONTINUED ITS EMPHASIS ON TWO PRIMARY FRONTS: RENOVATION AND EXPANSION OF ITS SENIOR LIVING COMMUNITIES TO REMAIN MARKET LEADERS, AND GROWTH OF CORE CHILD, FAMILY, AND COMMUNITY MINISTRIES TO MEET LOCAL NEED. AS NOTED ELSEWHERE, A KEY SENIOR LIVING PROJECT WAS THE OPENING IN 2013 OF A NEW, TWO-STORY, NEIGHBORHOOD-CONCEPT HEALTH CARE CENTER. CHILD- AND FAMILY-FOCUSED PROGRAMS EMPHASIZED THE SUCCESSFUL ADOPTIVE PLACEMENTS OF OLDER CHILDREN, MENTORING SERVICES FOR OLDER YOUTHS ABOUT TO AGE OUT OF THE CHILD WELFARE SYSTEM BUT WHO NEED CONTINUING ASSISTANCE TO REMAIN SUCCESSFUL, AND EXPANSION OF COMMUNITY-BASED PROGRAMS THAT EMPHASIZE YOUTH ACCOUNTABILITY AND SKILLS-DEVELOPMENT. IN ADDITION, THE DAY TREATMENT PROGRAM BASED AT THE DIAKON WILDERNESS CENTER NEAR BOILING SPRINGS, PA., DEVELOPED AN EXTENSIVE ARRAY OF ACCREDITED VOCATIONAL-TRAINING PROGRAMS TO READY YOUTHS FOR SUCCESSFUL INDEPENDENT LIVING; THIS TRAINING FOCUSED ON HORTICULTURE (MADE POSSIBLE THROUGH THE DIAKON WILDERNESS GREENHOUSE), CULINARY SKILLS, AND AUTOMOTIVE MECHANICS. INTERNSHIPS WERE MADE POSSIBLE THROUGH COMMUNITY PARTNERSHIPS. DIAKON FAMILY LIFE SERVICES FOCUSED ON EXPANDING ITS BEHAVIORAL HEALTH COMPONENT TO A NEW REGION, DEVELOPED A TELE-PSYCHIATRY OPTION, AND PLANNED TO BEGIN SERVICES FOR YOUTHS WHO HAVE SEXUALLY ACTED OUT IN A NEW LOCATION. FORM 990, PART III, 4A, 4B, 4C AND 4D LINE 4A: SENIOR LIVING SERVICES ONE OF THE PRIMARY SERVICE DIVISIONS WITHIN DIAKON LUTHERAN SOCIAL MINISTRIES, DIAKON SENIOR LIVING SERVICES IS RESPONSIBLE FOR THE OPERATION AND MAINTENANCE OF 8 COMPREHENSIVE SENIOR LIVING COMMUNITIES IN PENNSYLVANIA. 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 2013, THESE SENIOR LIVING COMMUNITIES SERVED 7,457 PERSONS. IN THE CASE OF NURSING CARE AND PERSONAL CARE ACCOMMODATIONS, THE NUMBER SERVED INCLUDES ONE ADDITIONAL FAMILY MEMBER FOR EACH RESIDENT OR COUPLE. DURING 2013, THE DIAKON SENIOR LIVING SERVICES PROGRAM UNIT FOCUSED ON EXPANSIONS AND RENOVATIONS TO A NUMBER OF ITS CONTINUING CARE RETIREMENT COMMUNITIES TO MEET THE NEEDS OF A NEWER GENERATION OF OLDER ADULTS. PROJECTS INCLUDED CONSTRUCTION OR RENOVATION OF RESIDENTIAL ACCOMMODATIONS, RENOVATION OF HEALTH CARE CENTERS INCLUDING THE DEVELOPMENT OF ONE NEW MEMORY SUPPORT PROGRAM, AND, AT BUFFALO VALLEY LUTHERAN VILLAGE IN LEWISBURG, PA., THE OPENING OF A NEW, NEIGHBORHOOD-CONCEPT HEALTH CARE CENTER INCLUDING A SHORT-TERM REHABILITATION SUITE. SENIOR LIVING SERVICES PROVIDED $11,256,561 IN UNCOMPENSATED CARE DURING 2013, 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 INCLUDES SEVERAL ADDITIONAL SERVICE EMPHASES INCLUDING CHILD & FAMILY SERVICES AND DIAKON KATHRYN'S KLOSET. AMONG REPRESENTED PROGRAMS ARE ADOPTION, FOSTER CARE, SERVICES FOR COURT-ADJUDICATED YOUTHS, AND FAMILY LIFE SERVICES COUNSELING FOR INDIVIDUALS, COUPLES, AND CHILDREN. IN RELATION, DIAKON AS AN ORGANIZATION PROVIDES ADMINISTRATIVE OVERSIGHT FOR PENNSYLVANIA'S STATEWIDE ADOPTION & PERMANENCY NETWORK, DESCRIBED BELOW. A BRIEF LISTING OF NUMEROUS 2013 ACHIEVEMENTS FOR DIAKON SERVICES AIDING CHILDREN, FAMILIES, AND COMMUNITIES INCLUDES CONTINUED SUCCESS IN RECRUITMENT OF FAMILIES FOR OLDER CHILDREN AND YOUTHS; EXPANSION OF DAY-TIME ACCOUNTABILITY-FOCUSED, COMMUNITY-BASED PROGRAMS FOR AT-RISK YOUTHS; SUCCESSFUL GRADUATIONS OF YOUTHS FROM THE DIAKON WILDERNESS CENTER'S FLIGHT AND OTHER PROGRAMS; CONTINUATION OF GIRLS ON THE RUN SERVICES, PARTICULARLY IN LOW-INCOME AREAS; AND CONTINUED OPERATION OF DIAKON KATHRYN'S KLOSET, WHICH STORES CORPORATE IN-KIND PRODUCT DONATIONS AND MAKES THEM AVAILABLE TO NON-PROFIT ORGANIZATIONS REGIONALLY, NATIONALLY, AND INTERNATIONALLY THAT, IN TURN PROVIDE THE GOODS, FREE OF CHARGE, TO PEOPLE IN NEED. SERVICES FOR CHILDREN, YOUTHS, FAMILIES, AND COMMUNITIES PROVIDED $2,017,811 IN UNCOMPENSATED CARE DURING 2013. 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 PUBLIC WELFARE AND MANAGED UNDER CONTRACT BY DIAKON LUTHERAN SOCIAL MINISTRIES. THE SWAN NETWORK INCLUDES COUNTY CHILDREN AND YOUTH AGENCIES, JUVENILE COURT JUDGES, FOSTER AND ADOPTIVE PARENTS, PRIVATE ADOPTION AGENCIES, THE PENNSYLVANIA ADOPTION EXCHANGE AND MANY OTHERS, WORKING TOGETHER ON BEHALF OF WAITING CHILDREN WHO NEED PERMANENT HOMES. THE SWAN PROGRAM SERVES CHILDREN AND YOUTHS IN THE CUSTODY OF COUNTY CHILDREN AND YOUTH AGENCIES. THE DESIGN OF THE NETWORK IS TO SUPPORT THE WORK OF THE COUNTY AGENCIES IN EXPEDITING PERMANENCY FOR THESE WAITING CHILDREN. 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 85,250 1,746,503 3,388,504 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. SENIOR MANAGEMENT AND FINANCE STAFF REVIEWED AND REVISED DRAFTS. 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 20, 2014. LINE 12C: DLSM'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 DLSM SEEKS TO ATTRACT, REWARD AND RETAIN CRITICAL LEADERSHIP TALENT IN ORDER TO FULFILL ITS MISSION AND ORGANIZATIONAL STRATEGIC INITIATIVES. 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 TERMINATION 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 DIAKON'S EXECUTIVE COMPENSATION PROGRAM CONSISTS OF A BASE SALARY WHICH REFLECTS THE VALUE OF AN EXECUTIVE'S CAPABILITIES, EXPERIENCE AND SUCCESS IN 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 ACCRUALS WERE FROZEN AS OF 12/31/11. 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 COMPETITIVE POST-RETIREMENT INCOME FOR BOARD SELECTED SENIOR EXECUTIVES, WHICH CURRENTLY INCLUDES THE CEO AND CFO. THE 2013 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 $0.00 AT DECEMBER 31, 2013. 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. THE AMOUNT DEFERRED UNDER THIS PLAN (NOT SUBSTANTIALLY VESTED) IS RECORDED IN SCHEDULE J (FORM 990), PART II, COLUMN C IN THE FORM 990 FOR THE YEAR ENDING DECEMBER 31, 2013. THREE EMPLOYEES (ONE OFFICER, ONE KEY AND ONE HIGHLY COMPENSATED) 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, (3)JULY 1, 2008. THIS BENEFIT WAS ADDED TO RECOGNIZE THE SIGNIFICANT CONTRIBUTIONS OF THE IDENTIFIED OFFICER/KEY/HIGHLY COMPENSATED EMPLOYEES 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 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/KEY/HIGHLY COMPENSATED EMPLOYEES 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 (HIGHLY COMPENSATED) REACHED THE VESTING DATE AND RECEIVED A PAYOUT OF THE ACCRUED BENEFIT AND INTEREST AS OF JUNE 30, 2013 WHICH IS INCLUDED IN REPORTABLE COMPENSATION IN PART VII, SECTION A AND SCHEDULE J, PART II, COLUMN B(III). 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 INCREASE IN FAIR VALUE OF SWAP AGREEMENTS 3,187,146 EQUITY IN LOSSES OF JOINT VENTURE (80,163) PENSION-RELATED CHANGES OTHER THAN NET PERIODIC PENSION COSTS 14,650,721 CHANGE IN BENEFICIAL INTEREST IN TRUST 115,179 INCREASE IN FAIR VALUE OF FUNDS HELD IN TRUST BY OTHERS 2,100,469 TOTAL OTHER CHANGES IN NET ASSETS 19,973,352 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 1164431 4462384 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 true 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 SUSQUEHANNA HOUSING INC 798 HAUSMAN ROAD STE 300 ALLENTOWN PA 18104 232040250 INACTIVE PA 501(C)3 11 DLSM true Institute for Strategic Management Inc 960 CENTURY DRIVE MECHANICSBURG PA 17055 264316868 CONSULTING PA DIAKON C Corp true CHARITABLE REMAINDER TRUSTS (1) NA PERPETUAL TRUSTS HELD BY 3rd PARTY (24) NA false false true false false false false false false true false false true false true true true false false Diakon Lutheran Fund c 1100004 Book Value DIAKON LUTHERAN SR HOUSING AT LUTHER MEADOWS o 99637 Book Value DIAKON LUTHERAN SR HOUSING AT HEILMAN HOUSE o 101467 Book Value Diakon o 5885777 Book Value DIAKON LUTHERAN SR HOUSING AT LUTHER MEADOWS q 29612 Book Value DIAKON LUTHERAN SR HOUSING AT HEILMAN HOUSE q 27210 Book Value Diakon p 496859 Book Value Diakon j 1278000 Book Value Diakon q 1931073 Book Value Institute for Strategic Management Inc q 34311 Book Value Institute for Strategic Management Inc m 43969 Book Value