Civic Intelligence

Lutheran Home

990 • Fiscal year 2016 • EIN 41-0706147

Oct 01, 2015 to Sep 30, 2016 • Filed on Aug 11, 2017

337 S Meridan StreetBelle Plaine, MN 56011

(952) 873-6000

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

96th percentile

1.16x

Higher debt load relative to assets than 96% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Liabilities / Revenue

84th percentile

1.70x

Higher debt load relative to revenue than 84% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Net Margin

30th percentile

-1.4%

Higher net margin than 30% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Top Officer Pay

48th percentile

$238,236

Higher top officer pay than 48% of similar nonprofits.

Top officer pay equals 0.9% of source-year revenue.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2016

Asset Growth

17th percentile

-4.6%

Faster asset growth than 17% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2015 to 2016

Revenue Growth

55th percentile

4.3%

Faster revenue growth than 55% of similar nonprofits.

2016 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2015 to 2016

Assets

Down

$37,996,263

Down $1,815,204 (-4.6%) from 2015

Net Assets

Down

-$6,144,756

Down $291,755 (-5.0%) from 2015

Liabilities

Down

$44,141,019

Down $1,523,449 (-3.3%) from 2015

Revenue

Up

$25,953,499

Up $1,072,605 (+4.3%) from 2015

Expenses

Up

$26,303,999

Up $931,921 (+3.7%) from 2015

Net Income

Up

-$350,500

Up $140,684 (+29%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$60M$40M$20M$0-$20MAssets 2014: $40,409,748Liabilities 2014: $45,737,593Net Assets 2014: -$5,327,8452014Assets 2015: $39,811,467Liabilities 2015: $45,664,468Net Assets 2015: -$5,853,0012015Assets 2016: $37,996,263Liabilities 2016: $44,141,019Net Assets 2016: -$6,144,7562016Assets 2017: $36,596,570Liabilities 2017: $42,080,741Net Assets 2017: -$5,484,1712017Assets 2018: $38,552,861Liabilities 2018: $44,426,253Net Assets 2018: -$5,873,3922018Assets 2019: $32,868,305Liabilities 2019: $39,045,377Net Assets 2019: -$6,177,0722019Assets 2020: $35,249,650Liabilities 2020: $40,389,534Net Assets 2020: -$5,139,8842020Assets 2021: $28,969,103Liabilities 2021: $38,797,685Net Assets 2021: -$9,828,5822021Assets 2022: $39,531,202Liabilities 2022: $50,829,409Net Assets 2022: -$11,298,2072022Assets 2023: $24,908,455Liabilities 2023: $30,045,541Net Assets 2023: -$5,137,0862023Assets 2024: $22,199,758Liabilities 2024: $25,561,760Net Assets 2024: -$3,362,0022024

Highlighted filing

2016

Assets$37,996,263
Liabilities$44,141,019
Net Assets-$6,144,756

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$30M$20M$10M$0-$10MRevenue 2014: $24,367,751Expenses 2014: $24,311,485Net Income 2014: $56,2662014Revenue 2015: $24,880,894Expenses 2015: $25,372,078Net Income 2015: -$491,1842015Revenue 2016: $25,953,499Expenses 2016: $26,303,999Net Income 2016: -$350,5002016Revenue 2017: $26,398,902Expenses 2017: $25,741,014Net Income 2017: $657,8882017Revenue 2018: $25,610,301Expenses 2018: $26,212,075Net Income 2018: -$601,7742018Revenue 2019: $26,269,582Expenses 2019: $26,570,319Net Income 2019: -$300,7372019Revenue 2020: $28,947,481Expenses 2020: $27,908,780Net Income 2020: $1,038,7012020Revenue 2021: $28,215,877Expenses 2021: $27,986,339Net Income 2021: $229,5382021Revenue 2022: $28,317,651Expenses 2022: $27,129,239Net Income 2022: $1,188,4122022Revenue 2023: $27,947,732Expenses 2023: $21,581,581Net Income 2023: $6,366,1512023Revenue 2024: $25,298,406Expenses 2024: $23,540,821Net Income 2024: $1,757,5852024

Highlighted filing

2016

Revenue$25,953,499
Expenses$26,303,999
Net Income-$350,500
Jump To
Filing Snapshot
Filing Period
Oct 1, 2015 to Sep 30, 2016
Signed
Aug 11, 2017
Return Version
2015v3.0
Gross Receipts
$25,956,819
Mission and Program Overview

Mission

To share christ's love as we serve the spiritual, physical, intellectual and emotional needs of people entrusted to our care and others whose lives we touch.

Provide for the spiritual, physical, intellectual and emotional needs of people entrusted to our care and others whose lives we touch.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$27,022,593$26,339,200▼ $683,393
Accounts Receivable$1,844,056$1,749,206▼ $94,850
Investments in Publicly Traded Securities$2,631,317$1,688,191▼ $943,126
Savings and Temporary Cash Investments$893,683$808,689▼ $84,994
Prepaid Expenses and Deferred Charges$169,673$110,468▼ $59,205
Pledges and Grants Receivable$130,207$87,708▼ $42,499
Cash and Non-Interest-Bearing Accounts$29,496$23,775▼ $5,721
Total Assets$39,811,467$37,996,263▼ $1,815,204
Other Assets Total$7,090,442$7,189,026▲ $98,584
Liabilities
Tax Exempt Bond Liabilities$31,444,906$29,920,471▼ $1,524,435
Other Liabilities$9,426,833$9,707,106▲ $280,273
Accounts Payable and Accrued Expenses$2,965,851$2,700,972▼ $264,879
Mortgage Notes Payable Secured by Investment Property$1,523,149$1,531,057▲ $7,908
Escrow Account Liability$260,645$275,605▲ $14,960
Deferred Revenue$43,084$5,808▼ $37,276
Total Liabilities$45,664,468$44,141,019▼ $1,523,449
Net Assets / Fund Balance
Temporarily Rstr Net Assets$1,797,044$1,798,180▲ $1,136
Permanently Rstr Net Assets$600,000$600,000→ $0
Unrestricted Net Assets$-8,250,045$-8,542,936▼ $292,891
Total Net Assets Fund Balance$-5,853,001$-6,144,756▼ $291,755
Total Liabilities and Net Assets / Fund Balance$39,811,467$37,996,263▼ $1,815,204

Asset Categories

AssetBook ValueDepreciationBasis
Buildings$22,682,691$13,563,853$36,246,544
Equipment$2,039,700$4,324,571$6,364,271
Land$1,514,665-$1,514,665
Other Land Buildings$102,144$428,855$530,999
Other Assets Org$6,384,497--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2016$760,144$1,685▲ $37,178$2,258$796,749
2015$778,264$950▼ $15,117$3,893$760,144
2014$751,402$2,080▲ $24,787$5$778,264
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Mr Michael R KlattPresident & CEOPT$197,966$40,270$238,236
Mariann WiebuschVP of OperationsFT$147,184$15,446$162,630
Catherine BerghoffGrant Writer (Thru May)FT$124,719$3,863$128,582
Ron JackelenVP of Systems & PlanningFT$113,168$6,392$119,560
Mr Max ScheuerCFO (Thru July)PT$96,076$8,278$104,354

Board Members and Trustees

Highest Paid Contractors

ContractorServicesLocationCompensation
Wipfli LLPAudit & Tax Professional Services7601 France Avenue South Suite 400, Minneapolis, MN 55435$139,492
Revenue and Support

Revenue Composition

Contributions and Grants
$1,123,896
Program Service Revenue
$24,722,620
Investment Income
$40,422
Other Revenue
$66,561
All Other Contributions
$1,073,918
Change in Net Assets
$-350,500

Audited Revenue Reconciliation

Revenue per Audited Statements
$25,404,698
Revenue Not Reported on Financial Statements
$548,801
Revenue Not Reported on Form 990
$5
Other Revenue Adjustments
$548,801
Total Revenue per Audited Statements
$25,404,703
Total Revenue per Form 990
$25,953,499
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$15,055,115
Other Expenses$11,248,884
Total Fundraising Expense$29,722
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$9,711,109$2,746,730-$12,457,839
Depreciation Depletion$1,565,321--$1,565,321
Fees for Services Other$1,374,540$180,402-$1,554,942
Fees for Services Management-$1,345,704-$1,345,704
Occupancy$1,171,547$128,571-$1,300,118
Payroll Taxes$961,031$307,405-$1,268,436
Interest$1,165,840--$1,165,840
Office Expenses$713,871$360,086$29,722$1,103,679
Other Employee Benefits$639,285$175,750-$815,035
All Other Expenses$307,176$134,387-$441,563
Current Officers, Directors, Trustees, and Key Employees-$395,331-$395,331
Travel$44,116$200,095-$244,211
Advertising-$208,953-$208,953
Information Technology-$175,093-$175,093
Insurance-$162,780-$162,780
Pension Plan Contributions$95,091$23,383-$118,474
Other Expenses$89,516$547,660-$89,516
Conferences and Meetings$37,387$47,763-$85,150
Fees for Services Accounting$56$77,131-$77,187
Fees for Services Legal-$46,394-$46,394
Total Functional Expenses$19,005,890$7,268,387$29,722$26,303,999

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$26,303,999
Expenses per Audited Statements$25,756,339
Total Expenses per Audited Statements$25,756,339
Expenses Not Reported on Financial Statements$547,660
Other Expense Adjustments$547,660
Expenses Not Reported on Form 990$0
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Lobbying activity
No
Subject to proxy tax
No
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Related Party Payables$8,514,065
Annuities Payable$659,999
Capital Lease Obligations$362,042
Line of Credit$171,000

Bond Issues

BondIssuerIssuedIssue PricePurpose
ACity of Elysian Minnesota2015-10-19$7,730,000(Kingsway Ministries, LLC Project), Series 2015A
BCity of Green Isle Minnesota2015-10-19$6,855,000(Kingsway Ministries, LLC Project), Series 2015B
ACity of Belle Plaine Minnesota2014-12-17$6,790,000The Lutheran Home Belle Plaine Project, Series 2014A
CCity of River Falls Wisconsin2014-05-20$4,950,000Housing Facilties Refunding Revenue Note(WelLHaven Senior Housing Project)
BCity of Belle Plaine Minnesota2014-12-17$4,800,000The Lutheran Home Belle Plaine Project, Series 2014A
DCity of River Falls Wisconsin2014-05-20$350,000Housing Facilties Refunding Revenue Note(WelLHaven Senior Housing Project)

Bond Proceeds

BondTotal ProceedsSpentRetiredIssuance Costs
A$7,730,000-$175,278-
B$6,855,000-$155,438-
A$6,790,000-$255,717$135,800
C$4,950,000-$120,968$163,985
B$4,800,000-$180,783$96,000
D$350,000-$86,278$141,347

Bond Financing Compliance

No rebate due
Yes
Rebate not yet due
No
Form 8038-T filed
No
Gross proceeds invested
No
Gross proceeds invested in GIC
No
Exception to rebate
No
Corrective action procedures
Yes
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
No
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
No
Management duties delegated
No

Governance Explanations

Form 990, Part VI, Section A, line 6

The members of this organization are Churches belonging to Wisconsin Evangelical Lutheran Synod (WELS) and churches affiliated or in fellowship with the WELS. Eligibility by affiliation or in fellowship shall be as determined by the WELS, which determination shall be conclusive. The organization shall have members and all members shall be without voting rights of any kind. The bylaws of the organanization may establish more than one class of members, however no class shall be voting.

Form 990, Part VI, Section B, line 11

FORM 990 IS REVIEWED BY THE CEO, CFO AND CORPORATE CONTROLLER PRIOR TO PRESENTING TO THE BOARD OF DIRECTORS after submission to the Internal Revenue Service.

Form 990, Part VI, Section B, line 12C

All board members sign conflict of interest policies annually. In connection with any actual or possible conflicts of interest, an interested person must disclose the existence of his or her financial interest and all material facts to the directors and members of committees with Board delegated powers considering the proposed transaction or arrangement. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, he shall leave the Board or committee meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board or committee members shall decide if a conflict of interest exists. If the interested person is a member of the Board or committee, he shall be counted in determining the presence of a quorum at the meeting that decides if a conflict of interest exists.

Form 990, Part VI, Section B, line 15A

The board of directors of The Lutheran Home Association makes the compensation decision for the president/ceo. The board of directors is provided with historical salary information for the ceo and with market data of compensation for the industry for the same or similar positions. The board of directors does not determine or approve the compensation for the CFO, however, the CEO and other management team will use market data and surveys to determine the appropriate range for compensation.

Form 990, Part VI, Section C, line 19

The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.

Filing and Contact Details

Filer

Filer Name
The Lutheran Home Association
EIN
41-0706147
Phone
9528736000
Address
337 S Meridan Street, Belle Plaine, MN 56011

Signing Officer

Name
Michael R Klatt
Title
President & CEO
Phone
9528736000
Signed
2017-08-11
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Michael R Klatt
Formed
1977
Legal Domicile
Mn
Voting Board Members
15
Independent Board Members
15
Employees
707
Volunteers
1,166

Preparer

Firm
Wipfli LLP
Address
7601 France Avenue South Suite 400, Minneapolis, MN 55435
Preparer
Tim A Ritter CPA
Phone
9525483400
Supplemental Narrative

Financial Statement Notes

Part IV, Line 2B:

The organization is the trustee of resident funds and has fiduciary responsibility for the administration and distribution of these funds for residents of the organization.

Part V, Line 4:

The organization's endowments consist of various funds established to benefit the organization for a variety of purposes. The Organization's endowments include both donor-restricted endowments and funds designated by the Board to function as an endowment. Net assets associated with endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The Organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowments while seeking to preserve the fair value of the endowment assets. Under the Organization's investment policy, as approved by the Board of Directors, the endowment assets are invested in a manner to protect principal, grow the aggregate portfolio value in excess of the rate of inflation, and ensure that any risk assumed is commensurate with the given investment vehicle and the Organization's objectives. To achieve its investment goals, the Organization targets an asset allocation that will achieve a balanced return of current income and long-term growth of principal while exercising risk control. The Organization's asset allocations include a blend of equity and debt securities and cash equivalents.

Part XI, Line 2D - Other Adjustments:

Net Assets released from restrictions 5.

Part XI, Line 4B - Other Adjustments:

Loss on Refinancing of Long Term Debt 547,660. Revenue Recorded to Restricted Net Assets 1,141.

Part XII, Line 4B - Other Adjustments:

Loss on Refinancing of Long Term Debt 547,660.

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IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt50
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IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt70
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt80
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt90
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt100
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt110
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt120
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt130
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt140
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IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt170
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IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt193863
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt206392
IRS990/Form990PartVIISectionAGrp/OtherCompensationAmt2115395
IRS990/Form990PartVIISectionAGrp/PersonNm0Rev Michael Berg
IRS990/Form990PartVIISectionAGrp/PersonNm1Mr Matthew Burow
IRS990/Form990PartVIISectionAGrp/PersonNm2Rev Elroy V Conradt
IRS990/Form990PartVIISectionAGrp/PersonNm3Mr Jeff Davis
IRS990/Form990PartVIISectionAGrp/PersonNm4Rev Henry T Koch
IRS990/Form990PartVIISectionAGrp/PersonNm5Mr Wayne Larson
IRS990/Form990PartVIISectionAGrp/PersonNm6Mr Bill Meier
IRS990/Form990PartVIISectionAGrp/PersonNm7Mr joel meyer
IRS990/Form990PartVIISectionAGrp/PersonNm8Mr David Oldenburg
IRS990/Form990PartVIISectionAGrp/PersonNm9Mr Tim Schuth
IRS990/Form990PartVIISectionAGrp/PersonNm10Mr Mark Schwan
IRS990/Form990PartVIISectionAGrp/PersonNm11Mr Elton Stroh
IRS990/Form990PartVIISectionAGrp/PersonNm12Mr Paul Yancy
IRS990/Form990PartVIISectionAGrp/PersonNm13Mr Arvid W Schwartz
IRS990/Form990PartVIISectionAGrp/PersonNm14Rev MatTHEW C Rauh
IRS990/Form990PartVIISectionAGrp/PersonNm15Mr Lowell Hoffman
IRS990/Form990PartVIISectionAGrp/PersonNm16MR MICHAEL R KLATT
IRS990/Form990PartVIISectionAGrp/PersonNm17Ms Mary Sue Meger
IRS990/Form990PartVIISectionAGrp/PersonNm18Mr Max Scheuer
IRS990/Form990PartVIISectionAGrp/PersonNm19Catherine Berghoff
IRS990/Form990PartVIISectionAGrp/PersonNm20Ron Jackelen
IRS990/Form990PartVIISectionAGrp/PersonNm21Mariann Wiebusch
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IRS990/Form990PartVIISectionAGrp/TitleTxt3Director
IRS990/Form990PartVIISectionAGrp/TitleTxt4Director
IRS990/Form990PartVIISectionAGrp/TitleTxt5Director
IRS990/Form990PartVIISectionAGrp/TitleTxt6Director
IRS990/Form990PartVIISectionAGrp/TitleTxt7Director
IRS990/Form990PartVIISectionAGrp/TitleTxt8Director
IRS990/Form990PartVIISectionAGrp/TitleTxt9Director
IRS990/Form990PartVIISectionAGrp/TitleTxt10Director
IRS990/Form990PartVIISectionAGrp/TitleTxt11Director (Thru January)
IRS990/Form990PartVIISectionAGrp/TitleTxt12DIrector
IRS990/Form990PartVIISectionAGrp/TitleTxt13Chairman
IRS990/Form990PartVIISectionAGrp/TitleTxt14Secretary
IRS990/Form990PartVIISectionAGrp/TitleTxt15Treasurer
IRS990/Form990PartVIISectionAGrp/TitleTxt16President & CEO
IRS990/Form990PartVIISectionAGrp/TitleTxt17CFO (Beg June 2016)
IRS990/Form990PartVIISectionAGrp/TitleTxt18CFO (Thru July)
IRS990/Form990PartVIISectionAGrp/TitleTxt19Grant Writer (Thru May)
IRS990/Form990PartVIISectionAGrp/TitleTxt20VP of Systems & Planning
IRS990/Form990PartVIISectionAGrp/TitleTxt21VP of Operations
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IRS990/ProgramServiceRevenueGrp/Desc0Net resident services
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