Lutheran Senior Services

“The governing board members are elected by associated churches.”

“The governing body is provided a copy of the form 990 for review prior to filing. Approval of the form 990 is delegated to the audit committee of the governing body prior to filing.”

“All directors and employees will disclose a conflict of interest on the "conflict of interest form" in the following situations and in other circumstances which he/she thinks might cause a conflict between his/her personal interests and his/her fiduciary duty: financial interests, inside information, conflicting interest other than financial, gifts and favors. The following lss employees are required to sign a "conflict of interest form" annually: president, chief operating officer, chief financial officer/treasurer, vice president of construction and it, vice president of human resources, all directors, administrators and assistant administrators. The corporate compliance officer follows up with any conflicts of interests and documents the resolutions of the conflicts. These forms are kept by the corporate compliance office.”

“The board of directors established a separate compensation committee charged with performing an annual performance review of the ceo and reviewing the ceo's compensation package. The compensation committee engaged a third-party global human capital consulting firm to: (1) develop an annual ceo performance review process, including a new evaluation form, and (2) develop a compensation package based on its knowledge of similarly sized non-profit organizations in order to ensure that the compensation paid to the ceo is reasonable. All members of the board complete an annual evaluation, which the compensation committee summarizes and reviews. The compensation committee then makes a recommendation to the full board of directors for any compensation adjustments.”

“Although not a requirement, the organization provides photocopies of its governing documents, conflict of interest policy, financial statements, and other documents to all who request one or more of the items.”

“Lutheran senior services is a large complex organization that is comprised of 19 separate legal entities, each of which files its own tax return. Due to the requirements for completing these 990's (which are filed by 16 of the 19 lss entities), some of the information contained within the form, such as revenue and expenses, is related only to that particular entity. However, some of the information, such as executive compensation, relates to the entire organization. To help make this information more meaningful, the following paragraph provides a summary of the overall operations of lss. Lutheran senior services is a not for profit organization owned by 104 lutheran churches and was initially founded in 1858. Lutheran senior services operates nine senior living communities serving over 3,000 older adults, nine affordable housing communities serving over 570 older adults and a variety of in home services programs serving over 5,000 older adults. In 2015, lss had total operating income of approximately $187,000,000, provided approximately $7,200,000 in benevolent care, had over 75,000 volunteer hours, and employed 18 chaplains.”

“In august 2015, the organization entered into an agreement with mercy hospital to purchase the assets (including the license for 120 snf beds) and assume the operation of an existing 120-bed care center located on the mercy hospital campus in west st. Louis county. The organization now operates the mercy facility under the name "reach west county".”

“Net periodic pension cost -231,503. Change in value of interest rate swap -641,323. Other changes in plan assets and benefit obligations -2,433,511. Equity transfer -380,434. Gain/loss on refinancing 368,465.”

“The organization has an audit committee that is responsible for the oversight of the audit. This process is consistent with prior years.”

“On july 10, 2015, lutheran senior services entered into an agreement for the sale of hidden lake's assets and transfer of its operations for $12,758,872. This sale closed on july 31, 2015. The sale price exceeded the carrying value of the assets sold by $3,006,790, which is included in the income from discontinued operations. This sale accounted for less than 25% of the organizations net assets and as a result, schedule n has not been completed.”

“The management fee expense represents only intercompany charges that are offset by management fee revenues included in program service revenues on page 9.”

“Class iii assets are refundable entrance fees that may or may not have to be remitted to current residents. Due to the offsetting liability, it is determined the class iii asset does not have a fmv.”