2600 Croasdaile Farm Parkway
Durham, North Carolina 27705
(919) 384-2000
www.croasdailevillage.org
DISCLOSURE STATEMENT
Croasdaile Village must deliver a Disclosure Statement to a prospective resident prior to or
at the time a prospective resident executes a Residency Agreement to provide continuing
care, or prior to or at the time a prospective resident transfers any money or other property
to Croasdaile Village, whichever occurs first.
Croasdaile Village, like all other continuing care retirement communities in the State of
North Carolina, is subject to the Continuing Care Retirement Communities Act. This
Disclosure Statement has not been reviewed or approved by any government agency or
representative to ensure accuracy or completeness of the information set out.
FEBRUARY 27, 2024
Unless earlier revised, Croasdaile Village intends for this
Disclosure Statement to remain effective until July 28, 2025
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TABLE OF CONTENTS
Page
INTRODUCTION ....................................................................................................................................................... 1
THE UNITED METHODIST RETIREMENT HOMES, INCORPORATED ...................................................... 2
BOARD OF TRUSTEES ............................................................................................................................................ 3
CORPORATE EXECUTIVE DIRECTOR............................................................................................................... 4
EXECUTIVE DIRECTOR ......................................................................................................................................... 4
RESIDENT COUNCIL ............................................................................................................................................... 4
LIFE CARE SERVICES LLC ................................................................................................................................... 4
CROASDAILE VILLAGE ......................................................................................................................................... 7
SMOKE-FREE CAMPUS .......................................................................................................................................... 7
THE PROPOSAL ........................................................................................................................................................ 8
THE SERVICES........................................................................................................................................................13
FINANCIAL INFORMATION ................................................................................................................................ 17
RESERVES AND INVESTMENTS......................................................................................................................... 17
OTHER MATERIAL INFORMATION ................................................................................................................. 18
AGREEMENTS WITH RESIDENTS ..................................................................................................................... 18
Attachments:
Attachment 1 – Audited Financial Statements of The United Methodist Retirement
Homes, Incorporated (includes the consolidated operations of Croasdaile Village,
Cypress Glen and Wesley Pines)
Attachment 2 – Forecasted Financial Statements of The United Methodist Retirement
Homes, Incorporated (includes the consolidated operations of Croasdaile Village,
Cypress Glen and Wesley Pines)
Attachment 3 – Interim Unaudited Financial Statements of The United Methodist
Retirement Homes, Incorporated (includes the consolidated operations of Croasdaile
Village, Cypress Glen and Wesley Pines)
Attachment 4 - Explanations of Material Differences
Attachment 5 – Traditional Residency Agreement
Attachment 6 – Communities Managed by Life Care Services LLC
Attachment 7 – List of Extra Charges
1
INTRODUCTION
Croasdaile Village brings to residents of the central North Carolina area, who are age 62
and over, a way of retirement living known as "continuing care." This concept offers retirees a
life style designed to meet their unique needs while allowing them the freedom to pursue their
personal interests. Continuing care communities, such as Croasdaile Village, encompass these
important components: a private residence, a wide array of personal services, assisted living
services, and the security of long-term care in the on-site health center.
Croasdaile Village is owned and operated by The United Methodist Retirement Homes,
Incorporated ("UMRH"), a North Carolina not-for-profit corporation, which is committed to
providing a quality adult community that is fiscally sound and genuinely responsive to resident
needs. UMRH also owns Wesley Pines, a continuing care retirement community located in
Lumberton, North Carolina and Cypress Glen Retirement Community, a continuing care
retirement community located in Greenville, North Carolina. The financial information attached
to this Disclosure Statement includes financial information for UMRH and the consolidated
operations of Croasdaile Village, Cypress Glen and Wesley Pines. (See further explanation under
the "Financial Information" section of this Disclosure Statement.)
One of the purposes of this Disclosure Statement is to explain to prospective residents,
their families, and their advisors who and what is involved in the operation of Croasdaile Village.
This Disclosure Statement was prepared on the basis of information available at the time of its
publication and assumptions, which were believed to be realistic as of that date. Such information
and assumptions are, of course, subject to change and, in particular, are significantly affected by
changes in inflation and interest rates.
Since non-technical language has been used in this Disclosure Statement, the text of this
booklet and the language of the Residency Agreement signed by a resident may not be the same.
Although this Disclosure Statement details the provisions of the Residency Agreement, the
Residency Agreement serves as the sole binding contract between the resident and UMRH.
We are pledged to the letter and spirit of U.S. policy for the achievement of
equal housing opportunity throughout the Nation. We encourage and support
an affirmative advertising and marketing program in which there are no
barriers to obtaining housing because of race, color, religion, sex, handicap, or
national origin.
2
THE UNITED METHODIST RETIREMENT HOMES, INCORPORATED
The United Methodist Retirement Homes, Incorporated ("UMRH") is a not-for-profit
corporation originally chartered by the State of North Carolina on January 24, 1946. A Restated
Charter was filed with the Department of the Secretary of State for the State of North Carolina on
October 26, 1992. The principal business address of UMRH is 2600 Croasdaile Farm Parkway, Suite
A-500; Durham, North Carolina 27705.
UMRH is operated as a community service organization and is tax exempt under the
provisions of Section 501(c)(3) of Internal Revenue Code.
UMRH is the sole shareholder of UMRH Affordable Housing, Inc. UMRH-Affordable
Housing, Inc. is located at 2600 Croasdaile Farm Parkway, Suite A-500, Durham, NC 27705. It
was organized in 2002 in the State of North Carolina in conjunction with the Wesley Ridge project
(see more information below). UMRH Affordable Housing, Inc. is not responsible for the
contractual or financial obligations of UMRH.
UMRH is the sole member of UMRH Affordable Housing Development, LLC, located at
2600 Croasdaile Farm Parkway, Suite A-500, Durham, NC 27705. UMRH Affordable Housing
Development, LLC was organized in North Carolina in 2002 to further the charitable purposes of
UMRH by developing Wesley Ridge, a 24-unit affordable rental housing complex located adjacent
to Wesley Pines. UMRH Affordable Housing Development, LLC is not responsible for the
contractual or financial obligations of UMRH.
UMRH is also affiliated with The United Methodist Retirement Homes Foundation, Inc. (the
"Foundation"). The Foundation is a not-for-profit corporation, which was organized for the benefit
of the retirement communities operated by UMRH. Its purpose is to raise endowment funds, to
support benevolent care for those residents who are unable to pay for care, and to support special
programs. The Foundation is located at 2600 Croasdaile Farm Parkway, Suite A-500, Durham,
NC 27705. The Board of Trustees of UMRH are the same Board of Trustees for the Foundation.
UMRH and the Foundation are jointly obligated under the terms of the various bond agreements
entered into for the financing of Croasdaile Village, Cypress Glen and Wesley Pines.
UMRH is related by faith to the North Carolina Annual Conference, Southeastern
Jurisdiction, of The United Methodist Church. UMRH is governed by a corporate Board of Trustees.
The North Carolina Annual Conference of The United Methodist Church elects forty percent (40%)
of the Board of Trustees of UMRH. The North Carolina Annual Conference of The United Methodist
Church is not responsible for the financial and contractual obligations of UMRH.
UMRH and Croasdaile Village are also affiliated by membership with LeadingAge North
Carolina; the United Methodist Association of Health and Welfare Ministries; and LeadingAge
(National).
Other than disclosed above, UMRH is not affiliated with any other religious, charitable or
nonprofit organization.
3
BOARD OF TRUSTEES
The names and addresses of the members of the Board of Trustees of UMRH are listed below:
Mr. Lee Harris
Chair and Trustee
205 Shady Circle Dr.
Rocky Mount, NC 27893
Ms. Nancy Van Antwerp
Secretary and Trustee
649 Lipford Dr.
Cary, NC 27519
Mr. Mack Parker
Treasurer and Trustee
2204 Laurel Valley Way
Raliegh, NC 27604
Ms. Susan Ezekiel
Mr. Jonathan P. Erickson (ex-officio Trustee)
Corporate Executive Director
2600 Croasdaile Farm Parkway, Suite A-500
Durham, NC 27705
Vice Chair and Trustee
6303 Three Loy Rd.
McLeansville, NC 27301
Trustees:
Mr. Carl Hardy, 4104 Cypress Dr., Apt. B, Wilson, NC 27896
Mr. Charles Mercer, 4140 Parklane Avenue, Suite 200, Raleigh, NC 27612
Rev. Paul Lee, 105 Chancellors Ridge Ct., Cary, NC 27513
Rev. Gray Southern, P.O. Box 1970, Garner, NC 27529
Dr. Kenneth Steinweg, 108 Jamestown Rd., Greenville, NC 27858
Ms. Sheryl Taylor, 410 W 18
th
Street, Lumberton, NC 28358
Mr. James Martin 1902 N Walnut Street, Lumberton, NC 28358
Ex-Officio Members of the Board of Trustees:
Mr. Robert Brawley, 2 Aldersgate Court, Durham, NC 27705
Mr. Robert Clinkscales, 300 Francis Asbury Lane, Greenville, NC 27858
Ms. Phyllis Pate, 1000 Wesley Pines Road #306, Lumberton, NC 28358
Rev. Nina Paul Vinson, P.O. Box 238, Maury, NC 28554
There is not any professional service firm, association, trust, partnership or corporation, in
which the Executive Director, management staff or any member of the Board of Trustees has a 10
percent or greater interest in and which it is presently intended shall currently or in the future
provide goods, leases or services to the Community or to residents of the Community, of an
aggregate value of $500 or more within any year. Further, there is not any professional service
firm, association, trust, partnership, or corporation that currently provides any goods, leases or
services of an aggregate value of $500 or more within any year to the Community or to the
residents of the Community that has a 10% or greater interest in any officer, trustee or management
staff (including the Executive Director).
No Trustee or management staff of UMRH (i) has been convicted of a felony or pleaded
nolo contendere to a felony charge, or been held liable or enjoined in a civil action by final
judgment, if the felony or civil action involved fraud, embezzlement, fraudulent conversion, or
misappropriation of property; or (ii) is subject to a currently effective injunctive or restrictive court
4
order, or within the past five years, had any State or Federal license or permit suspended or revoked
as a result of an action brought by a governmental agency or department, if the order or action
arose out of or related to business activity of health care, including actions affecting a license to
operate a foster care facility, nursing home, retirement home, home for aged, or facility subject to
this Article or a similar law in another state. UMRH is not aware of any actions (as defined) against
any person (as defined) requiring disclosure.
CORPORATE EXECUTIVE DIRECTOR
Jonathan P. Erickson has been the corporate executive director over all of the UMRH
retirement communities since July 2007. Mr. Erickson holds a bachelor of arts in psychology from
North Park College in Chicago, Illinois, a master of science in community health from Northern
Illinois University in DeKalb, Illinois, and a certification in long-term care management from the
University of Connecticut. He is currently licensed as a nursing home administrator in the State of
Connecticut. Mr. Erickson has been an employee of Life Care Services LLC for over 25 years and
has over 35 years of experience in the senior housing industry.
EXECUTIVE DIRECTOR
Heather March, Executive Director, has been with The United Methodist Retirement
Homes, Inc. for over 23 years and served as the Assisted Living Administrator and Nursing Home
Administrator at Croasdaile Village for nine years prior to becoming the Associate Executive
Director in 2008. Ms. March holds a Bachelor of Science degree in Business Management from
West Virginia University Institute of Technology. In addition to her degree, Heather graduated
from the North Carolina LeadingAge Leadership Academy in 2018.
RESIDENT COUNCIL
Administration assisted residents in establishing the Resident Council and its bylaws. The
residents annually elect a council of representatives, which, in turn, forms committees in various
areas of concern to advise administration. Monthly meetings are held to facilitate communication
among residents, administration, and the Board of Trustees.
LIFE CARE SERVICES LLC
The Provider has retained Life Care Services LLC (“Life Care Services”) to manage the
Community. As the nation’s third largest operator of senior living communities, Life Care
Services serves more than 40,000 seniors in 140+ communities (see Exhibit A). With over 50
years of service, Life Care Services has developed expertise in nearly every facet of senior living
management. For more information, visit Life Care Services’ website:
https://www.lcsnet.com/management-services/management-services-overview.
Principal officers of Life Care Services include Joel Nelson, Chris Bird, Diane
Bridgewater, Jason Victor, and Jill Sorenson.
5
Joel Nelson: As chief executive officer of LCS, Joel Nelson is responsible for executing
mpany’s
stability and value among financial partners, property owners, and other stakeholders in the senior
living field. Joel joined LCS in 1986 and has held several executive roles during his long tenured
career with LCS. Today, he is responsible for the oversight of serving nearly 40,000+ seniors and
27,000 employees.
Joel serves as Chairman of the Board of Directors of LCS Holding Company, LLC, is a
member of the compensation committee and is a trustee of the Company’s 401(k) benefits
e
industry, Joel is the current chairman of the Argentum Board of Directors, and a member of the
National Investment Center operator advisory board and an executive member of the American
Senior Housing Association. Joel is active in the Des Moines community and serves as a trustee
for ChildServe. As a past board member, he remains active with the Alzheimer's Association and
the Central Iowa United Way Board of Directors.
Chris Bird: Capitalizing on his reputation as a change agent, Chris Bird brings his expertise
to the communities LCS serves. By leading operations, building community occupancy, fostering
capital partner relationships, and developing new business, Chris implements strategies to deliver
on the expectations of owners and shareholders. As president, chief operating officer, Chris
oversees Life Care Services, CPS, asset management, procurement, and onboarding operations.
His ability to analyze issues, devise continuous process improvements, and incorporate business
process initiatives drives performance improvement for the overall operation.
At LCS, Chris mentors future leaders by providing guidance, expertise and resources to
develop professional skills in the senior living industry. In addition, he is a member of the Board
of Directors of LCS Holding Company, LLC. Chris is a member of the Argentum Advisory
Council and the Argentum Chief Operating Officer Roundtable. He holds a bachelor's degree in
history from the University of Memphis, Tennessee.
Diane Bridgewater: As a high energy, results-driven executive, Diane Bridgewater directs
all financial aspects and operating infrastructure at LCS to ensure corporate, field and community
team members have the resources necessary to provide exceptional customer satisfaction to
residents. Serving as executive vice president/chief financial and administrative officer at LCS,
Diane is responsible for directing all financial and business operations in addition to overseeing
the company’s insurance business line, information technology, compliance, regulatory and legal
matters. In her executive leadership role, Diane helps to drive strategy development and execution
resulting in strong financial performance and growth.
At LCS, Diane serves on the Board of Directors of LCS Holding Company, LLC and its related
audit committee, compensation committee, retirement fiduciary committee, investment
committee, and enterprise risk management committee. Outside the organization, she is a member
of Argentum. In addition, Diane sits on the Casey’s General Stores board and audit committee.
She is also a member of the board and chair of the audit committee at Guide One Insurance. Diane
holds bachelor’s degrees in accounting and French from the University of Northern Iowa.
Jason Victor: Jason Victor is senior vice president, controller and treasurer for LCS. In
this role, he provides oversight and direction for the organization’s financial matters, ensuring its
consistent and efficient fiscal performance. Jason has responsibility for the organization’s
6
corporate accounting, corporate payroll, community payroll, treasury and tax departments. He
oversees all aspects of general accounting, cash management, billing and receivables, accounts
payable, payroll, consolidations, and financial reporting. In addition, Jason provides oversight and
guidance related to audits, internal controls, technical accounting, tax and financial management
systems.
At LCS, Jason serves on the insurance captive, Hexagon, board of directors. Jason holds a
bachelor’s degree in accounting from the University of Northern Iowa. He is a certified public
accountant with an active license in the state of Iowa.
Jill Sorenson: Leaning on her expertise to foster and maintain meaningful relationships,
Jill Sorenson leads the regional team serving a portfolio of 13 Life Plan communities. Following
her passion for serving seniors, Jill's responsibilities have grown during her career at LCS. From
roles in accounting, information technology, and corporate resource development to receiving her
nursing home administrator license, Jill is committed to serving others. Prior to her current
position, Jill provided leadership to 22 Life Plan communities where she was successful in
delivering on occupancy goals and achieving 4- and 5-star ratings from the Centers for Medicare
and Medicaid Services.
To ensure Life Care Services is serving the customer first and foremost, Jill initiated client
satisfaction surveys with client boards and owners to build stronger and more strategic
relationships. Outside LCS, Jill has served on the San Diego Region for Aging Services of
California and the Aging Services of California Board. She is a frequent presenter at national and
state industry conferences on topics affecting the senior living industry. Jill holds a bachelor's in
business administration from Simpson College and an MBA from the University of Phoenix.
Management of Croasdaile Village is performed by Life Care Services under contract with
UMRH. Life Care Services' responsibilities include: recruiting and employing the corporate
executive director; supervising the licensing, equipping, and staffing of Croasdaile Village;
preparing annual budgets; establishing and operating a system of financial controls for Croasdaile
Village, including comparative analyses with other facilities; and overseeing the food service and
quality accommodations provided by Croasdaile Village.
No managing member of Life Care Services (i) has been convicted of a felony or pleaded
nolo contendere to a felony charge, or been held liable or enjoined in a civil action by final
judgment, if the felony or civil action involved fraud, embezzlement, fraudulent conversion, or
misappropriation of property; or (ii) is subject to a currently effective injunctive or restrictive court
order, or within the past five years, had any State or Federal license or permit suspended or revoked
as a result of an action brought by a governmental agency or department, if the order or action
arose out of or related to business activity of health care, including actions affecting a license to
operate a foster care facility, nursing home, retirement home, home for aged, or facility subject to
this Article or a similar law in another state.
Life Care Services is not financially responsible for the contractual obligations or other
obligations of UMRH. The Board of Trustees of UMRH retains the ultimate responsibility for
hiring managers and monitoring the operating costs, wages, salaries, expenses, fees, and overall
fiscal viability of Croasdaile Village.
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CROASDAILE VILLAGE
Croasdaile Village is located on Croasdaile Farm Parkway in Durham, North Carolina on
110 acres of land. It is a continuing care retirement community designed to accommodate persons
62 years of age or older in a dignified manner. Currently, Croasdaile Village has 298 apartments,
130 cottages, 24 Park Homes, 46 licensed assisted living units, and 104 licensed skilled nursing beds
in The Pavilion. As of September 30, 2023, there were 68 residents residing at Croasdaile Village.
Presently, the types of residences available include: studio/alcove apartments, one and
two-bedroom apartments, Park Home Apartments, duplex cottages, and free-standing homes. All
of the residences are equipped with safety features such as grab rails in the shower/bathtub and a
personal emergency transmitter system.
Assisted living services are offered in the licensed assisted living portion of Croasdaile
Village for an assisted living fee. Services include assistance with the activities of daily living,
such as ambulation, bathing, dressing, eating, personal hygiene, toileting, and the supervision or
administration of medications.
The Croasdaile Village health center, known as The Pavilion, offers intermediate care and
skilled nursing care and is licensed by the North Carolina Division of Health Services Regulation.
The Pavilion is also Medicare and Medicaid certified.
Each continuing care resident at Croasdaile Village is entitled to receive a total of six (6)
days of assisted living or nursing care at The Pavilion at no additional charge, except for the
charges for physician services and ancillary health services and supplies. Such six (6) days renews
on an annual basis and does not accumulate. After the six (6) days of care each year, the services
in assisted living and in The Pavilion are available for the assisted living fee or the per diem charge.
In addition to the primary intent of Croasdaile Village, which is to assure the residents of
continuing care throughout their retirement years, Croasdaile Village is designed to create an
environment that will enrich the lives of the people who live and work there. The design of the
main commons building provides areas for dining and meetings without detracting from the
homelike environment of Croasdaile Village. Some of the amenities that residents can enjoy
include: multiple dining venues, a private dining room, a multi-purpose room, an exercise room,
a health clinic, a physical and occupational therapy area, card rooms, a library, a mail area, an arts
and crafts studio, a gift shop, a living room, and a swimming pool.
SMOKE-FREE CAMPUS
Croasdaile Village is a "smoke-free" campus. Smoking (including E-Cigarettes) is not
allowed by residents, guests, and business invitees on the Croasdaile Village campus (inside or
outside), except in a designated outside area. No smoking areas include, but are not limited to, the
residences, Assisted Living, The Pavilion, hallways, dining rooms, public restrooms, lounge areas,
reception areas, waiting rooms, courtyards, entrances, walking paths, driveways, and any other
common areas. Smoking is only permitted at the designated area. Violation of the Smoke-Free
Campus Policy can result in cancellation of the Residency Agreement for just cause.
8
F
The UMRH Board and management team continually update the strategic master plan with
a focus on monitoring opportunities to improve Croasdaile Village. Included in the master plan
are common area improvements including renovation to kitchen, staff amenities space, and
wellness space and the addition of new independent living units to meet the demands of a growing
wait list. The master plan includes a net addition of 31 units in Coke Court and a net addition of
19 new units on the North Parcel. No definitive decisions as to timing, scope or financing have
been made or licenses applied for regarding future improvement projects at Croasdaile
Village. The addition of more independent living units would be contingent upon favorable
financial performance taking into account the new units and the receipt of an acceptable level of
pre-sales.
THE PROPOSAL
1. Criteria for Resident Acceptance and Continued Acceptance. Residency Agreements
are subject to acceptance by UMRH. At the time of the execution of a Residency Agreement, the
resident must be 62 years of age or older, capable of living in a residence (with or without
reasonable accommodation or reasonable modification), and have sufficient financial resources to
pay the Entrance Fee, Monthly Fee, and any extra charges incurred as defined in the Residency
Agreement.
UMRH uses the FINAID system to financially evaluate a prospective resident's net worth
and monthly income. FINAID projects income for prospective residents based on their financial
assets and income sources, and compares this revenue to projected expenses such as monthly fees,
personal expenses, and income taxes. Generally, a prospective resident should have a minimum
net worth equal to three (3) times the amount of the Entrance Fee (prior to payment of the Entrance
Fee). Generally, a prospective resident should have a minimum monthly income range of two times
the Monthly Fee (including second person fees when applicable) in effect at the time of residency.
Although the asset and income tests listed above are appropriate tests for financial wherewithal,
the FINAID software program will be used for all applicants to measure financial qualification.
An inquiry will be made of all prospective residents regarding the prospective resident's
ability to live in a residence, with or without reasonable accommodation or reasonable
modification. To determine whether a prospective resident meets the health guidelines, the
following information will be gathered: (1) insurance and health information will be obtained on
a Confidential Data Application and Resident Health Information Form – to be completed by the
prospective resident; (2) a Memory Health Assessment will be administered by the Community;
and (3) a Health Information Form will be completed by the prospective resident's physician.
After executing a Residency Agreement but prior to occupancy, UMRH can cancel the
Residency Agreement if the resident does not pay his or her Entrance Fee; for non-acceptance
based on the residency criteria listed above; or if the resident is unable to occupy the residence
because of illness, injury or incapacity.
If the resident encounters financial difficulties after residency at Croasdaile Village and is
unable to pay the total Monthly Fee or the fees for care in Assisted Living or The Pavilion, these
charges may be deferred as long as the resident has met all "spend-down" provisions of eligibility
for the Medicaid program (if applicable) and any public assistance funds. Financial assistance is
not available to a resident if he/she impaired his/her ability to meet financial obligations by
9
transferring assets other than to meet ordinary and customary living expenses or by not maintaining
Medicare Part A, Medicare Part B, supplemental insurance, or other health insurance after
assuming occupancy. A resident will be permitted to remain at Croasdaile Village for reduced fees
based on his/her ability to pay for as long as the resident establishes facts to justify the deferment.
Financial assistance is only available if it does not impair UMRH's ability to operate Croasdaile
Village on a sound financial basis for the benefit of all residents.
UMRH has the right to cancel the resident's residency (i) if the resident does not comply with the
terms of the Residency Agreement or the published operating procedures, covenants, rules,
regulations or policies; or (ii) if the resident misrepresented himself/herself during the residency
process; or (iii) for nonpayment of fees or charges; or (iv) if it is determined the resident's health
status or behavior constitutes a substantial threat to the health or safety of the resident or others,
including refusal to consent to relocation, or behavior that would result in physical damage to the
property of others or Croasdaile Village; or (v) if the resident's physical or mental condition cannot
be cared for in Assisted Living or The Pavilion within the limits of their licenses.
2. Residency Agreement. At the time the resident makes application for residency at
Croasdaile Village, the resident will sign a Residency Agreement to reserve the residence selected
and will pay an Entrance Fee deposit to UMRH. The balance of the Entrance Fee is due upon the
earlier of the date the resident occupies Croasdaile Village or within 90 days after the resident
executes the Residency Agreement. The resident will also pay a non-refundable Application Fee.
The Application Fee will be used by UMRH to process resident's application for residency.
Croasdaile Village offers various types of Residency Agreements for the residential living
portion of Croasdaile Village: a 90 Percent Return of Capital Plan; a 50 Percent Return of Capital
Plan; and a Standard Plan. The difference between these types of Plans is the amount of the
Entrance Fee paid and the amount of the refund a resident (or resident's estate) is entitled to after
a resident assumes occupancy at Croasdaile Village as described in Paragraph 3.5 below.
3. Reimbursement of the Entrance Fee.
3.1 Nonacceptance. If the resident is not accepted for residency at Croasdaile
Village, the full amount of the Entrance Fee paid by the resident will be promptly refunded,
without interest. If the resident's spouse or second person does not meet the requirements for
residency, said person may be admitted directly into Assisted Living or The Pavilion as long
as accommodations are available and such person qualifies for the care available in those
facilities. He/she will pay the full assisted living fee, and Pavilion per diem charge for such
care.
3.2 Right of Rescission. In accordance with North Carolina laws and regulations
governing continuing care retirement communities, a resident has the right to rescind the
Residency Agreement within thirty (30) days following the later of (i) his/her execution of the
Residency Agreement; or (ii) the receipt of a Disclosure Statement. The resident is not
required to move into Croasdaile Village before the expiration of the 30-day rescission period.
If the resident rescinds the Residency Agreement, the full amount of the Entrance Fee paid by
the resident will be refunded, without interest, within sixty (60) days of receipt of the written
notice of rescission.
3.3 Cancellation Prior to Occupancy Due to Death, Illness, Injury, Incapacity or a
Substantial Change in Physical, Mental or Financial Condition. If the resident dies before
10
occupying the residence at Croasdaile Village or if, on account of illness, injury or incapacity,
a resident is unable to occupy the residence at Croasdaile Village, then the Residency
Agreement will automatically cancel. The resident may also cancel the Residency Agreement
prior to occupancy due to a substantial change in resident's physical, mental or financial
condition. In all of these events of cancellation prior to occupancy, the resident or resident's
estate will receive a refund of the Entrance Fee paid, without interest, less any costs
specifically incurred by Croasdaile Village at the resident's request. Said refund will be made
within sixty (60) days of receipt of the notice of cancellation.
3.4 Cancellation Prior to Occupancy for Other Reasons. If the resident cancels
the Residency Agreement prior to occupancy, but after the right of rescission period, for
reasons other than those state in Paragraph 3.3 above, the resident will receive a refund of the
Entrance Fee paid, without interest, less a non-refundable portion of the Entrance Fee equal
to $2,000 and less any costs specifically incurred by Croasdaile Village at resident's request.
Said refund will be made within sixty (60) days of receipt of the notice of cancellation.
3.5 Cancellation After Occupancy. In the event the Residency Agreement is
canceled after occupancy or in the event of resident's death after occupancy, refund of the
Entrance Fee will be as follows:
3.5.1 90 Percent Return of Capital Residency Agreement: Under the 90 Percent
Return of Capital Residency Agreement, resident or resident's estate will receive a
refund of the amount of the Entrance Fee previously paid by resident, without interest,
less two percent (2%) for each month of residency or portion thereof for up to five (5)
months. Subject to Croasdaile Village's right of offset, the refund of the Entrance Fee
will not be less than ninety percent (90%). Said refund will be paid at such time as
the residence is reserved by a new resident and said new resident has paid the full
amount of the Entrance Fee or within two years from the date of cancellation,
whichever occurs first.
3.5.2 50 Percent Return of Capital Residency Agreement: Under the 50 Percent
Return of Capital Residency Agreement, resident or resident's estate will receive a
refund of the amount of the Entrance Fee previously paid by resident, without interest,
less two percent (2%) for each month of residency or portion thereof for up to twenty-
five (25) months. Subject to Croasdaile Village's right of offset, the refund of the
Entrance Fee will not be less than fifty percent (50%). Said refund will be paid at
such time as the residence is reserved by a new resident and said new resident has paid
the full amount of the Entrance Fee or within two years from the date of cancellation,
whichever occurs first.
3.5.3 Standard Residency Agreement: Under the Standard Residency Agreement,
resident or resident's estate will receive a refund of the amount of the Entrance Fee
previously paid by resident, without interest, less two percent (2%) for each month of
residency or portion thereof for up to fifty (50) months. After fifty (50) months of
occupancy, no refund of the Entrance Fee will be made. Said refund, if any, will be
paid at such time as the residence is reserved by a new resident and said new resident
has paid the full amount of the Entrance Fee or within two years from the date of
cancellation, whichever occurs first.
11
3.5.4 Residential Living with Personal Services Residency Agreement: Under the
Residential Living with Personal Services Residency Agreement, resident or
resident's estate will receive a refund of the amount of the Entrance Fee previously
paid by resident, without interest, less two percent (2%) for each month of residency
or portion thereof for up to fifty (50) months. After fifty (50) months of occupancy,
no refund of the Entrance Fee will be made. Said refund, if any, will be paid at such
time as the residence is reserved by a new resident and said new resident has paid the
full amount of the Entrance Fee or within two years from the date of cancellation,
whichever occurs first.
3.6 Cancellation Upon Death. In the event of death of the resident at any time after
occupancy, the Residency Agreement shall cancel and the refund of the Entrance Fee paid by
the resident will be as outlined in Paragraph 3.5 above.
3.7 Cancellation by UMRH. Upon thirty (30) days written notice to the resident
and/or his or her legal representative, UMRH may cancel the Residency Agreement at any
time on the following grounds, which shall be determined by UMRH in its sole discretion:
Resident does not comply with the terms of the Residency Agreement or Croasdaile
Village's procedures, covenants, rules or policies; or
Resident misrepresents himself or fails to disclose information during the residency
process; or
Resident fails to make payment to UMRH of any fees or charges due UMRH within
sixty (60) days of the date when due; or
Resident's health status or behavior constitutes a substantial threat to the health or
safety of resident, other residents, or others, including Resident's refusal to consent to
relocation, or would result in physical damage to the property of Croasdaile Village
or others; or
Resident's physical or mental condition cannot be cared for in the Croasdaile Village
Health Center within the limits of Croasdaile Village's license.
Cancellation by UMRH occurs only as a last resort, after it becomes clear to UMRH
that cancellation is necessary, and after the resident and/or the resident's legal representative/
responsible party has an opportunity to be heard. Any refund of the Entrance Fee would be
computed on the same basis as stated in Paragraph 3.5 above.
4. Payment of a Monthly Fee. The resident is required to pay a Monthly Fee to
Croasdaile Village upon receipt of a statement and by no later than the fifteenth (15
th
) day of each
month. If there are two residents, a second person Monthly Fee will also be paid. The Monthly
Fees are paid to provide the services and amenities described in the Residency Agreement and to
meet the expenses associated with the operation of Croasdaile Village. UMRH may increase the
Monthly Fee upon thirty (30) days written notice to the residents if UMRH deems it necessary in
order to meet the financial needs of Croasdaile Village and to provide the services to the residents.
5. Health Care Services. Each resident is eligible to receive a total of six (6) days
each year of either assisted living care or nursing care in The Pavilion while a resident of his/her
residence. If there are two residents under a Residency agreement, each resident will receive six
(6) days, but the days cannot be combined and used by only one resident. Such six (6) days renews
on an annual basis and does not accumulate. While utilizing the six (6) days, the resident will be
12
required to continue to pay the Monthly Fee for his/her residence, as well as any charges for
physician services and ancillary health services and supplies. Once a resident is permanently
relocated to Assisted Living or to The Pavilion, he/she no longer qualifies for the six (6) free days
of assisted living or nursing care and will be required to pay the assisted living fee or the per diem
charge for such care. [NOTE: The six (6) days of care is a combined total for assisted living care
and nursing care at Croasdaile Village.]
6. Relocation/Moves. UMRH reserves the right to relocate a resident to a different
residence or a higher level of care after consultation with the resident, resident’s family and attending
physician if it is determined that such a move should be made for the benefit of the resident or for the
proper operation of Croasdaile Village or to meet the requirements of law.
7. Provisions for New Second Resident. No person other than the resident may
occupy the residence without UMRH's prior written approval. If a second person, who is not a
party to the Residency Agreement, wishes to become a resident of Croasdaile Village, that person's
acceptance will be in accordance with the current residency policy. An Entrance Fee as determined
by Croasdaile Village will be paid upon residency. In addition, each month the then-current
Monthly Fee for second persons will be paid. If the second person does not meet the requirements
for residency, he or she will not be permitted to occupy the residence for more than thirty (30)
days, except with UMRH's written approval.
8. Provisions for Resident Marrying Resident. Should the resident marry a person who
is also a resident of Croasdaile Village and should they decide to occupy one residence, they must
declare which residence will be occupied and which residence will be released. The refund due
for the released residence will be as described in Paragraph 3.5 above. Each month, the then-
current Monthly Fee for second persons shall be paid.
9. Insurance. The Residency Agreement requires that the resident maintain Medicare
Part A, Medicare Part B and one supplemental health insurance policy or equivalent insurance
coverage acceptable to UMRH. It is also recommended that residents carry personal property
insurance and liability insurance.
10. Financial Assistance. Financial assistance may be available to existing continuing
care residents who live at Croasdaile Village under a continuing care residency agreement. The
resident cannot impair his/her ability to meet his/her financial obligations by transfer of assets
other than to meet ordinary and customary living expenses or by not maintaining Medicare Part
A, Medicare Part B, supplemental insurance or other health insurance as outlined in the Residency
Agreement. A resident must have met all "spend-down" provisions established in UMRH's
Benevolence Policy. The Pavilion at Croasdaile Village is Medicaid certified. The resident must
agree to apply for public assistance funds (if available) and/or Medicaid, depending on the level
of care required by the resident. Financial assistance funds are available as long as providing
financial assistance does not impair UMRH's ability to operate Croasdaile Village on a sound
financial basis for the benefit of all residents.
UMRH does not offer financial assistance to those residents who are admitted directly to
Assisted Living or The Pavilion (skilled nursing) as private pay residents. Private pay residents
are individuals who did not execute a continuing care residency agreement for residential living.
11. Tax Deductions. In accordance with the Internal Revenue Code of 1954, Section
213 and Revenue Rulings (67-185, 68-625, 76-481, 75-302, 75-303, and 93-72) and a Private
13
Letter Ruling (8213102), residents of Croasdaile Village may be entitled to an itemized deduction
for medical expenses for that portion of the Monthly Fees and Entrance Fees, which represents
medical care in the year paid. The tax regulations do not specifically provide a formal method for
computing what this portion is; however, IRS Letter Ruling 8213102 indicates a method of
calculating a medical expense percentage by using the ratio of medical expenses to all expenses of
the Community. Currently, this methodology is in use, but may be subject to change. Each year,
the Community distributes a letter to residents describing the recommended medical expense
percentages for tax purposes.
All deductions are, of course, subject to limitations imposed by the Internal Revenue Code.
Residents are encouraged to consult with a qualified tax advisor before taking any tax deductions.
THE SERVICES
1. The following services are provided for the Monthly Fee to the residents of the
residential living apartments, cottages and homes of Croasdaile Village:
Flexible Meal Plan
Studio apartment residents receive three meals per day;
Limited tray service to be provided when approved by authorized staff;
Consultation and preparation of routine special diets;
Utilities, which include heating, air conditioning, electricity, water, sewer and
trash removal;
Basic cable television package;
Building janitor and maintenance;
Grounds keeping;
Weekly housekeeping services;
Availability of laundry facilities so that resident can wash and dry personal
laundry;
Planned activities (social, cultural, recreational, educational, and spiritual) for
those who wish to participate;
Services of a chaplain;
Parking for residents and guests;
Carpeting (except in kitchen and bath), unless some other floor surface has
been installed;
Kitchen facilities, except studio apartments only containing a sink, a
refrigerator, and a microwave;
Local transportation as scheduled by us and as posted;
Limited additional storage space;
Personal emergency transmitter system;
Smoke detectors;
Security – 24 hours a day; and
Six (6) days of assisted living or nursing care in the Village Health Center.
2. The following services are available for an extra charge to the residents of the residential
living apartments, cottages and homes of Croasdaile Village:
The dining room is available for three (3) meals per day with the second and
third meals at additional charge;
Extended tray service as approved by authorized staff;
14
Preparation of special diets (beyond those which are routine and based upon
our ability to prepare/offer such diet), as prescribed by resident's attending
physician;
Additional housekeeping services;
Guest accommodations, if available;
Guest meals;
Private catered functions;
Personal transportation and transportation for special events and group trips;
Expanded cable television package;
Services of the Clinic – a copy of the charges for Clinic services can be
obtained from the Clinic;
Home care services through the Croasdaile Village Home Care Program;
Assisted living services or nursing care services through the Village Health
Center; and
Certain ancillary services and supplies (such as therapies, pharmacy,
laboratory, therapeutic activities, rehabilitative treatments, medical
equipment, medical supplies, medical treatment, physician services, and other
miscellaneous medical services and supplies).
3. Assisted living services are available in the Assisted Living building and skilled
nursing services are available in The Pavilion, which is staffed by licensed nursing personnel 24
hours a day. If the resident occupies Assisted Living or The Pavilion, the resident will be required
to enter into a separate admission agreement for the applicable level of care. These separate
admission agreements will outline in detail the services available in those levels of care. The
resident’s continuing care Residency Agreement will continue to stay in effect unless it is canceled
by the Resident or by UMRH as outlined in the Residency Agreement. Services provided in
Assisted Living and The Pavilion are governed by the North Carolina Division of Health Service
Regulation.
4. The Clinic is available for certain examinations, consultations, tests and
appointments. Such services will be at an extra charge to the resident.
FEES
1. The fee requirements for residential living in an apartment, cottage or home at
Croasdaile Village are as follows:
A. Application Fee. Non-refundable application fee of $200 for an individual or
$300 for a couple is required to be paid at the time of application.
B. Entrance Fee. Payment of an Entrance Fee assures a resident a place in the
Community for life as long as the resident complies with the Residency Agreement. At the
time the resident makes application for residency at the Community, the resident will sign a
Residency Agreement to reserve the residence selected and will pay an Entrance Fee deposit
to the Community. The balance of the Entrance Fee will be paid upon the earlier of (i)
occupancy or (ii) 90 days after the Residency Agreement is executed. For residents who enter
Residency Agreements for a unit to be constructed, the balance of the Entrance Fee will be
paid upon the earlier of (i) occupancy or (ii) 30 days from the date the resident is notified that
the residence is ready for occupancy. The amount of the Entrance Fee is determined by single
or double occupancy and the size and type of the residence reserved. A schedule of Entrance
15
Fees can be found later in this Disclosure Statement. Additional information regarding
payment terms and Entrance Fee refunds can be found in Sections 2 and 3 of The Proposal
section of this Disclosure Statement.
C. Monthly Fee. A Monthly Fee for services is required to be paid each month
per person. Monthly Fees are determined by single or double occupancy and the size and type
of residence reserved. A schedule of current Monthly Fees can be found later in this
Disclosure Statement.
Monthly Fees – Average Dollar Amount of Increase
2020 2021 2022 2023 2024
$108.26 $133.41 $138.17 $295.71 $2
D. Extra Charges. A list of items available for an extra charge, including the fees
for such items, is included in this Disclosure Statement as Attachment 7. The list can also be
obtained from the Village's Business Office and the Village's Marketing Office.
2. Assisted Living Fees. The Entrance Fee requirements for direct admission to Assisted
Living at Croasdaile Village have been established at $26,221. There is a non-refundable application
fee of $200 per individual. The per diem charge for assisted living care is $372 for a one- or two-
bedroom apartment and $334 for a studio apartment in medical assisted living and the per diem charge
for residents living in the memory support apartments is $372.
Assisted Living Fees – Average Dollar Amount of Increase
2020 2021 2022 2023 2024
$9.00 $10.75 $11.75 $19.50 $17.
3. Health Care Fees. The per diem charges for nursing care in The Pavilion at Croasdaile Village
are:
Skilled Nursing Care
Semi-Private Room $417
Private Room $467
Health Care Fees – Average Dollar Amount of Increase
2020 2021 2022 2023 2024
$12.00 $13.50 $15.00 $23.50 $25.
4. Adjustment of Fees. UMRH may adjust the Monthly Fee as determined by the Board
of Trustees in order to maintain the desired quality of service and to operate Croasdaile Village on a
fiscally sound basis. UMRH shall provide the resident with thirty (30) days' written notice in advance
of any change in the Monthly Fees.
The Standard Entrance Fee amortizes by two percent (2%) each month for fifty (50) months.
For a fifty percent (50%) refundable fee, multiply the Standard Entrance Fee times 1.4. The
16
Fifty Percent (50%) Refundable Plan amortizes by two percent (2%) each month for the first
twenty-five (25) months and does not reduce thereafter.
For a ninety percent (90%) refundable fee, multiply the Standard Entrance Fee times 1.8.
The Ninety Percent (90%) Refundable Plan amortizes by two percent (2%) each month for the first
five (5) months and does not reduce thereafter.
17
FINANCIAL INFORMATION
1. Financial Statements. UMRH operates on a fiscal year ending September 30. The
financial position of UMRH is represented by the independent auditors' report prepared by Dixon
Hughes Goodman LLP. The audited financial statements for UMRH present the consolidated
operations for Croasdaile Village, Cypress Glen and Wesley Pines. The independent auditors' report
for the fiscal year ending September 30, 2023 for UMRH is reproduced in its entirety and is attached
to this Disclosure Statement as Attachment 1.
2. Forecasted Financial Statements. Forecasted financial statements for the next five
years are included as part of this Disclosure Statement as Attachment 2. These forecasted financial
statements present the consolidated operations for Croasdaile Village, Cypress Glen and Wesley Pines
and the individual operations for Croasdaile Village.
3. Interim Unaudited Financial Statements. Interim unaudited financial statements are
included as part of this Disclosure Statement as Attachment 3. These statements present the
consolidated operations of Croasdaile Village, Cypress Glen and Wesley Pines and the individual
operations for Croasdaile Village.
4. Explanations of Material Differences. Explanations of the material differences for the
Balance Sheet, Statement of Operations, and Statement of Cash Flows for the fiscal year 2023 and
the actual results for the fiscal year 2023 are included as part of this Disclosure Statement as
Attachment 4.
5. Reserves. In accordance with Section 58-64-33 of the North Carolina General
Statutes, UMRH is required to maintain an operating reserve for Croasdaile Village equal to 25
percent of the total operating costs projected for the 12-month period following the period covered by
the most recent annual statement filed with the Department of Insurance. Based on the operating
reserve calculation submitted to the Department of Insurance, UMRH meets the operating reserve
requirement for Croasdaile Village.
6. Financing. See Notes 7 and 8 of the UMRH audited financial statements for
information on long-term debt and financing.
RESERVES AND INVESTMENTS
1. Reserve Requirement. In accordance with Section 58-64-33, North Carolina General
Statutes, UMRH is required to maintain $12,098,205 in an operating reserve for Croasdaile Village.
UMRH meets the operating reserve requirement for Croasdaile Village, and management believes
that UMRH will continue to possess sufficient reserves to satisfy the operating reserve requirement
based on the financial forecasts.
2. Financial Assistance Funds. UMRH attempts to provide benevolent care funds to
those individuals who have exhausted their resources. The funds are in the amounts necessary to
make up the difference between the financial resources of the individual and the Monthly Fees for
the occupancy of a unit. Some of the benevolence is covered through apportionments from the
North Carolina Annual Conference of The United Methodist Church, Southeastern Jurisdiction;
benevolent care endowments; The United Methodist Retirement Homes Foundation; special
offerings conducted by local churches; and individual gifts. Persons receiving benevolent care
18
funds must be residents who have entered the Community under a continuing care residency
agreement for residential living and must have met all "spend-down" provisions established in the
UMRH Benevolence Policy. UMRH does not offer benevolent care funds to those residents who
are admitted directly to Assisted Living or The Pavilion (skilled nursing) as private pay residents.
Private pay residents are individuals who did not execute continuing care residency agreement for
residential living. The resident must agree to apply for public assistance funds and/or Medicaid,
depending on the level of care required by the resident. Benevolent care funds are available as
long as providing such funds does not impair UMRH's ability to operate the Community on a
sound financial basis for the benefit of all residents.
The Marketing, Occupancy, and Benevolence Committee of the Board of Trustees reviews
each benevolence application, provides a recommendation to the Board of Trustees, monitors the
availability of benevolent funds, and projects potential future demands on benevolent funds.
3. Investments. Investment decisions are made by the Finance Committee of the Board
of Trustees of UMRH. Committee members include: Lee Harris, Charles Mercer, John Link, Paul
Lee, Gray Southern, and Susan Ezekiel. Funds are invested in accordance with UMRH's Investment
Policy in the following investment portfolios:
(a) United Methodist Retirement Homes Trust Fund #1. Investment Goal –
Maintain principal values with adequate liquidity for debt/cash ratio.
(b) United Methodist Retirement Home Reserve Fund. Investment Goal – This
Fund includes assets that may be managed for long-term capital growth with a moderate
level of income.
A copy of the Investment Policy is available to residents upon request.
OTHER MATERIAL INFORMATION
As of the date of this Disclosure Statement, there is no material litigation pending against
Croasdaile Village.
AGREEMENTS WITH RESIDENTS
A copy of the current Standard Residency Agreement is attached to this Disclosure Statement
as Attachment 5.
This agreement is in compliance with the pertinent specifications of Section 58-64-25 of the
North Carolina General Statutes. UMRH reserves the right to offer to new prospective residents
alternative forms of Residency Agreements from time to time.
ATTACHMENT 1
Audited Financial Statements
of
The United Methodist
Retirement Homes, Incorporated
(Includes Consolidated Operations of
Croasdaile Village, Cypress Glen
and Wesley Pines)
The United Methodist
Retirement Homes,
Incorporated, Its Affiliate,
and Subsidiary
Independent Auditors Report, Consolidated Financial
Statements and Consolidating Supplementary
Information
September 30, 2023 and 2022
Table of Contents
Independent Auditors Report ............................................................................................................ 1
Consolidated Financial Statements:
Consolidated Balance Sheets ....................................................................................................... 3
Consolidated Statements of Operations and Changes in Net Assets ........................................... 5
Consolidated Statements of Cash Flows ....................................................................................... 7
Notes to Consolidated Financial Statements................................................................................. 9
Consolidating Supplementary Information:
Consolidating Balance Sheet Information ..................................................................................... 27
Consolidating Statement of Operations and Changes in Net Assets Information ......................... 28
FORVIS is a trademark of FORVIS, LLP, registered with the U.S. Patent and Trademark Office. 1
Independent Auditors Report
Board of Trustees of
The United Methodist Retirement Homes, Incorporated,
its Affiliate, and Subsidiary
Durham, North Carolina
Opinion
We have audited the accompanying consolidated financial statements of The United Methodist
Retirement Homes, Incorporated, its Affiliate, and Subsidiary (the Company), which comprise the
consolidated balance sheets as of September 30, 2023 and 2022, and the related consolidated
statements of operations and changes in net assets, and cash flows for the years then ended, and the
related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material
respects, the financial position of the Company as of September 30, 2023 and 2022, and the results of
their operations, changes in net assets, and their cash flows for the years then ended in accordance
with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States
of America (GAAS). Our responsibilities under those standards are further described in the Auditors
Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are
required to be independent of the Company and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audits. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with accounting principles generally accepted in the United States of
America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of the consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is required to evaluate whether there
are conditions or events, considered in the aggregate, that raise substantial doubt about the Companys
ability to continue as a going concern within one year after the date that these consolidated financial
statements are issued.
Auditors Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors
report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute
assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will
always detect a material misstatement when it exists. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the consolidated financial statements.
FORVIS is a trademark of FORVIS, LLP, registered with the U.S. Patent and Trademark Office. 2
In performing an audit in accordance with GAAS, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and
disclo
sures in the consolidated financial statement
s.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Companys internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
consolidated financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise su
bstantial doubt about the Companys ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-related
matters that we identified during the audit.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements
that collectively comprise the Companys basic consolidated financial statements. The consolidating
balance sheet information and the consolidating statement of operation and changes in net assets
information listed in the table of contents is presented for purposes of additional analysis rather than to
present the financial position and results of operations of the individual organizations and is not a
required part of the consolidated financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the consolidated financial statements. The consolidating balance sheet information
and the consolidating statement of operation and changes in net assets information has been subjected
to the auditing procedures applied in the audit of the consolidated financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the consolidated financial statements or to the
consolidated financial statements themselves, and other additional procedures in accordance with
GAAS. In our opinion, the information is fairly stated in all material respects in relation to the
consolidated financial statements as a whole.
Raleigh, North Carolina
January 2 , 2024
September 30, 2023 and 2022
2023 2022
Current assets:
Cash 5,177,988$ 5,954,084$
Contributions receivable, current portion 25,846 2,412
Investments 88,037,087 81,293,248
Assets limited as to use, current portion 6,636,490 17,271,385
Accounts receivable, net of allowance for uncollectible
accounts of approximately $184,000 and $265,000
in 2023 and 2022, respectively 3,890,546 3,127,429
Other receivables 2,516,922 1,291,459
Inventories 231,303 177,215
Prepaid expenses and other current assets 1,293,484 1,212,086
Total current assets 107,809,666 110,329,318
Non-current assets:
Assets limited as to use, net of current portion 27,097,658 24,307,039
Investments - restricted 8,771,194 7,793,000
Asset held for resale - 197,103
Property and equipment, net 222,348,613 214,309,967
Investment in Wesley Ridge - 75,494
Trusts receivable 125,130 119,600
Deferred marketing costs, net 87,012 101,570
Interest rate swap agreements 11,565,561 10,442,208
Total non-current assets 269,995,168 257,345,981
Total assets 377,804,834$ 367,675,299$
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Consolidated Balance Sheets
ASSETS
See accompanying notes to the consolidated financial statements. 3
September 30, 2023 and 2022 (Continued)
2023 2022
Current liabilities:
Annuity payable, current portion 63,319$ 81,502$
Bonds payable, current portion 5,410,000 5,785,000
Accounts payable 4,473,013 4,120,054
2,257,501 2,152,753
1,764,449 1,719,639
Provider relief advanced funding - 120,181
Total current liabilities 13,968,282 13,979,129
Long-term liabilities:
Annuity payable, net of current portion 395,706 439,945
Bonds payable, net of current portion 154,830,169 160,327,909
Liability for refundable advance fees 14,651,478 14,737,849
Deferred revenue from non-refundable advance fees 80,652,605 76,325,122
Deferred revenue - other 6,500 -
Due to related parties - 71,377
Funds held for others 86,572 147,814
Total long-term liabilities 250,623,030 252,050,016
Total liabilities 264,591,312 266,029,145
Net assets:
99,508,415 89,297,478
13,705,107 12,348,676
Total net assets 113,213,522 101,646,154
Total liabilities and net assets 377,804,834$ 367,675,299$
With donor restrictions
Accrued salaries and related expenses
Accrued interest payable
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Consolidated Balance Sheets
Without donor restrictions
LIABILITIES AND NET ASSETS
See accompanying notes to the consolidated financial statements. 4
2023 2022
Revenues, gains and other support without donor restrictions:
74,866,988$ 70,475,317$
Amortization of advance fees 11,303,173 9,599,475
Net assets released from restrictions 507,997 703,837
Other 226,830 92,726
Interest and dividend income 4,262,978 3,679,989
Total revenues, gains and other support 91,167,966 84,551,344
Expenses:
Nursing services 22,725,837 20,461,059
Dietary and food services 13,989,657 12,184,286
Administration 12,882,601 12,973,682
Plant operations, maintenance and security 7,985,358 7,582,907
Laundry and housekeeping 4,372,621 4,228,726
Resident services - activities 2,779,061 2,620,070
Home care 2,802,557 3,054,319
Interest 3,448,221 4,134,114
Depreciation and amortization 14,346,183 14,284,564
Loss on disposal of property and equipment 6,904 -
Bad debt expense 927,265 374,718
Total expenses 86,266,265 81,898,445
Operating income 4,901,701 2,652,899
Non-operating gains (losses):
Net investment gains, realized 2,092,460 933,264
Net investment gains (losses), unrealized 1,925,979 (21,617,264)
Provider relief funding - 484,919
Loss on disposal of property and equipment - (115,890)
Contributions 74,141 71,614
Construction related marketing costs (64,458) (8,971)
Loss on early extinguishment of debt - (2,076,605)
Change in fair value of interest rate swap agreement 1,123,353 10,632,953
Other (84,936) 7,999
Net non-operating gains (losses) 5,066,539 (11,687,981)
Excess (deficit) of revenues, gains and other support over expenses 9,968,240 (9,035,082)
Net assets released from restrictions for
purchase of property and equipment 242,697 265,224
Change in net assets without donor restrictions 10,210,937$ (8,769,858)$
Net resident and patient service revenue
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Consolidated Statements of Operations and Changes in Net Assets
Years Ended September 30, 2023 and 2022
See accompanying notes to the consolidated financial statements. 5
Years Ended September 30, 2023 and 2022 (Continued)
2023 2022
Change in net assets with donor restrictions:
Contributions 721,569$ 2,914,469$
Interest and dividend income 328,028 484,549
Net investment gains, realized 193,142 134,008
Net investment gains (losses), unrealized 693,319 (2,521,556)
Change in split interest agreements 106,993 (487,187)
Maturity of split interest agreement 40,640 247,684
Change in value of pledges 26,154 (24,898)
Bad debt expense (recovery of bad debt) (2,720) 2,589
Net assets released from restrictions (750,694) (969,061)
Change in net assets with donor restrictions 1,356,431 (219,403)
Change in net assets 11,567,368 (8,989,261)
Net assets, beginning of year 101,646,154 110,635,415
Net assets, end of year 113,213,522$ 101,646,154$
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Consolidated Statements of Operations and Changes in Net Assets
See accompanying notes to the consolidated financial statements. 6
2023 2022
Cash flows from operating activities:
11,567,368$ (8,989,261)$
cash provided by operating activities:
Depreciation and amortization 14,331,625 14,270,007
Amortization of deferred financing costs 65,365 70,512
Amortization of bond premium (153,105) (187,410)
Amortization of deferred marketing costs 14,558 14,557
Amortization of deferred revenue from advance fees (11,303,173) (9,599,475)
Non-refundable entrance fees received 16,623,104 14,560,528
Bad debt expense 927,265 374,718
Loss on disposal of property and equipment 6,904 115,890
Unrealized (gains) losses on investments and (2,619,298) 24,138,820
assets limited as to use
Realized gains on investments and assets limited as to use (2,285,602) (1,067,272)
Loss on early extinguishment of debt - 2,076,605
Change in fair value of interest rate swap agreement (1,123,353) (10,632,953)
Net change in:
Accounts receivable - residents and patients (1,690,382) 150,801
Accounts receivable - other (1,477,097) (525,674)
Trusts receivable (5,530) 36,712
Contributions receivable (23,434) 22,309
Due from/to related parties (71,377) 71,377
Inventories (54,088) (45,536)
Prepaid expenses and other current assets (81,398) (23,681)
Accounts payable 152,684 10,410
Accrued salaries and related expenses 104,748 (221,474)
Provider relief advanced funding (120,181) (485,419)
Deferred revenue - other 6,500 -
Liability to other foundations - (8,732)
Accrued interest payable 44,810 (993,742)
Funds held for others (61,242) (39,081)
Net cash provided by operating activities 22,775,671 23,093,536
Change in net assets
Adjustments to reconcile change in net assets to net
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Consolidated Statements of Cash Flows
Years Ended September 30, 2023 and 2022
The accompanying notes are an integral part of these consolidated financial statements. 7
Years Ended September 30, 2023 and 2022 (Continued)
2023 2022
Cash flows from investing activities:
Purchase of property and equipment (22,176,900)$ (24,737,794)$
Net change in investments and assets limited as to use (4,811,812) (11,259,465)
Change in assets held for resale 197,103 18,724
Net cash used by investing activities (26,791,609) (35,978,535)
Cash flows from financing activities:
Refunds of deposits and refundable fees (2,216,678) (1,437,176)
Refundable entrance fees received 1,389,493 1,333,726
Payments on bonds and note payable (5,785,000) (115,125,979)
Deferred costs, net - (1,718,255)
Proceeds from issuance of bonds - 136,445,228
Net change in annuity obligations (62,422) (210,002)
Net cash provided (used) by financing activities (6,674,607) 19,287,542
Change in cash (10,690,545) 6,402,543
Cash, cash equivalents, and restricted cash, beginning of year 29,928,446 23,525,903
Cash, cash equivalent, and restricted cash, end of yea
r
19,237,901$ 29,928,446$
Supplemental cash flow information:
Cash paid during the year for interes
t
3,610,731$ 5,577,701$
Additions of property and equipment included
in accounts payabl
e
1,536,424$ 1,336,149$
Consolidated Statements of Cash Flows
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
The accompanying notes are an integral part of these consolidated financial statements. 8
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
9
Notes to Consolidated Financial Statements
1. Summary of Significant Accounting Policies
Organization
The United Methodist Retirement Homes, Incorporated (UMRH) is a not-for-profit corporation, which principally
provides housing, health care, and other related services to residents through the ownership and operation of
Wesley Pines Retirement Community in Lumberton, North Carolina, Cypress Glen Retirement Community
(Cypress Glen) in Greenville, North Carolina, and Croasdaile Village Retirement Community (Croasdaile
Village) in Durham, North Carolina. UMRH was incorporated in North Carolina in 1946. UMRHs corporate office
is located in Durham, North Carolina.
The United Methodist Retirement Homes Foundation, Inc. (the Foundation), an affiliate of UMRH, is a not-for-
profit corporation which was organized in order to raise endowment funds for the residential facilities operated by
UMRH, to support benevolent care for residents who are unable to pay for continuing care at the residential
facilities operated by UMRH, and to support special programs at the residential facilities operated by UMRH. The
Foundation was incorporated under the laws of the State of North Carolina in 1994.
UMRH Affordable Housing Development, LLC (UMRH-AHD), a subsidiary of UMRH, is a limited liability
company, which was organized in North Carolina in 2002 to further the charitable purposes of UMRH by
developing affordable rental housing for senior citizens. UMRH is the sole member of UMRH-AHD.
Wesley Ridge of Lumberton, LLC (Wesley Ridge) is a non-profit organization that offers affordable housing to
senior adults ages 62 and older, and to disabled adults 18 years of age and older. Wesley Ridge was acquired by
UMRH on January 31, 2022. As of September 30 2023 and 2022, Wesley Ridge had total assets of approximately
$1,332,000 and $1,363,000, respectively, and total unrestricted revenues, gains and other support of
approximately $156,000 and $140,000, respectively, for the years then ended. Due to the limited financial
activity, Wesley Ridge was not included in the consolidated financial statements as of September 30, 2023 and
2022.
The consolidated financial statements include the financial statements of UMRH, the Foundation, and UMRH-
AHD. All significant intercompany accounts and transactions have been eliminated. UMRH, the Foundation, and
UMRH-AHD are collectively referred to as the Company.
Basis of Accounting and Presentation
The accompanying consolidated financial statements have been prepared on the accrual basis of accounting and
in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Cash and Cash Equivalents
Cash and cash equivalents include short-term, highly liquid investments both readily convertible to known
amounts of cash and so near maturity at acquisition (three-months or less when purchased) that there is an
insignificant risk of change in value because of changes in interest rates. Cash equivalents are stated at cost,
which approximates fair value. Throughout the year the Company has bank balances which exceed federal
depository limits.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
10
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the
consolidated balance sheets that sum to the total amounts shown in the consolidated statements of cash flows:
2023 2022
Cash $ 5,177,988 $ 5,954,084
Investments restricted 137,236 350,308
Assets limited as to use:
Construction funds 3,121,841 13,470,453
Entrance fee escrow 959,123 -
Debt service held by trustee 4,559,191 4,687,166
Held for others 86,572 147,814
Restricted cash for line of credit 234,120 234,120
Net assets with donor restrictions 4,961,830 5,084,501
Total cash, cash equivalents, and restricted cash shown in
the consolidated statements of cash flows $ 19,237,901 $ 29,928,446
Investments
Investments in equity securities with readily determinable fair values and all investments in debt securities are
measured at fair value in the consolidated balance sheets. Interest and dividend income are included in operating
income unless the income or loss is restricted by donor or law. Gains and losses, both realized and unrealized, on
investments in debt and equity securities are included in non-operating gains (losses).
Assets Limited as to Use
Assets limited as to use consist of funds held for debt service in accordance with the Companys bond issues,
funds reserved by insurance regulation, construction funds, and funds held for residents. Net assets with donor
restrictions are restricted by donors or grantors for a specific purpose.
Insurance regulation assets whose use is limited represents funds reserved to comply with North Carolina
Department of Insurance regulations. The amount of this reserve is calculated annually in accordance with the
requirements of N.C. General Statute 58, Article 64. These investments consist of cash, cash equivalents, and
other short-term investments.
Fair Value of Financial Instruments
The carrying amount of cash and cash equivalents approximates its fair value. The fair value of the Companys
investments is presented in Note 3 and Note 5 and is based on quoted market prices. The carrying values of
accounts receivable, other receivables, accounts payable, and accrued expenses approximate fair value due to
the short-term nature of these instruments. The fair value of the Companys interest rate swaps is presented in
Note 8. The Companys long-term debt approximates the fair values of those obligations.
Accounts Receivable, Net
Accounts receivable are reported at estimated net realizable amounts from residents and responsible third-party
payers. Amounts owed to the Company are reported net of explicit and implicit price concessions. Specific
resident balances are written off at the time they are determined to be uncollectible. The process for estimating
the ultimate collection of accounts receivable involves significant assumptions and judgments. In this regard, the
Company has implemented a standardized approach to estimate and review the collectability of its receivables
based on resident receivable aging trends. Historical collection and payer reimbursement experience are an
integral part of the estimation process related to determining the ultimate collectability of accounts. In addition,
the Company assesses the current state of its billing functions in order to identify any known collection or
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
11
reimbursement issues to determine the impact, if any, on its reserve estimates, which involve judgment.
Revisions in reserve estimates are recorded as adjustments to the explicit and implicit price concessions.
Management believes that its collection and reserve processes, along with the monitoring of its billing processes,
help to reduce the risk associated with material revisions to reserve estimates resulting from adverse changes in
collection, reimbursement experience and billing functions.
Trusts Receivable
Trusts receivable represent the present value of irrevocable charitable remainder unitrusts (CRUTs) and
charitable gift annuities (CGAs). The assets related to these CRUTs and CGAs will become the property of the
designated beneficiaries upon the donors death. An amount equal to the receivable was recorded as net assets
with donor restrictions. Adjustments to the asset to reflect changes in present value are recognized as activity
through net assets with donor restrictions.
Asset Held for Resale
Asset held for resale consisted of one gifted property in 2022 which was stated at net book value, that
approximated fair value. During 2023, the property was sold.
Property and Equipment, Net
Property and equipment are recorded at cost. Donated property is recorded at its estimated fair value at the date
of receipt, which is then treated as cost. Interest is capitalized on facilities during the construction period.
Depreciation is provided using the straight-line method over the estimated useful lives of the assets shown below:
Land improvements 15 to 30 years
Buildings and improvements 5 to 40 years
Equipment and fixtures 2 to 25 years
Annuity Payable
The Foundation acts as trustee for irrevocable charitable remainder unitrusts (CRUTs), charitable gift annuities
(CGAs), and charitable remainder annuity trusts (CRATs). The assets in these trusts will remain in trust,
paying distributions to the donors during their lifetimes, and the remainder assets will become the property of the
designated beneficiaries upon the donors deaths. Such amounts received are recorded as investments
restricted on the consolidated balance sheets. These trusts require specified distributions to be made to the
trusts designated beneficiaries over the trusts terms. The present value of the expected distributions is recorded
as annuity obligations. Adjustments to the annuity obligations to reflect amortization of discounts, revaluations of
the present value of the estimated future payments and changes in actuarial assumptions are recorded as a
change in the value of split-interest agreements.
Funds Held for Others
This liability represents agency funds held for UMRH residents. The related asset is included in assets limited as
to use.
Interest Rate Swaps
The interest rate swap agreements are carried at fair value, estimated using a discounted cash flow method at a
rate commensurate with the risk involved. A change in the fair value of the interest rate swap agreements is
reported in non-operating gains (losses) in the consolidated statements of operations and changes in net assets.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
12
Liability for Refundable Advance Fees
Entrance fee plans available to residents include a standard rate plan, a 50% refundable plan, 80% refundable
plan, and a 90% refundable plan. The non-refundable portions of these fees are recorded as deferred revenue.
The refundable portion is treated as a long-term liability. Refunds of refundable entrance fees are paid upon
termination of the agreement (provided the residents independent living unit is reoccupied) or within twenty-four
months, whichever occurs first. The total amount of contractual refund obligations under existing contracts (that is,
if all residents with a refundable balance were to have withdrawn) totaled approximately $39,341,000 and
$37,345,000 at September 30, 2023 and 2022, respectively.
Deferred Revenue from Non-refundable Advance Fees
Deferred revenue from non-refundable advance fees represent payments made by a resident in exchange for the
use and privileges of the community for life or until termination of the residency agreement. These advance fees
may be partially refundable upon termination of the agreement and decline at a rate of 2% per month of
occupancy and are paid after termination of the residency agreement (provided the residents independent living
unit is reoccupied) or within twenty-four months, whichever occurs first.
Advance fees are recorded as deferred revenue and recognized as revenue earned on a straight-line basis over
the estimated remaining life of each resident, beginning with the date of occupancy. Any unrecognized deferred
revenue, less any related refund, at the date of death or termination of the contract is recorded as income in the
period the death or termination of the contract occurs.
Net Assets
Net assets of the Company and changes therein are classified and reported as follows:
Net Assets without Donor Restrictions - Net assets that are not subject to donor-imposed stipulations.
Net Assets with Donor Restrictions - Include those net assets subject to donor-imposed stipulations that
may or will be met either by action of the Company and/or the passage of time or those net assets subject to
donor-imposed stipulations that they be maintained permanently by the Company. Generally, the donors of
these assets permit the Company to use all or part of the income earned on related investments for general or
specific purposes.
Net Assets Released from Restrictions - The Company reports gifts of cash and other assets as restricted
support if they are received with donor stipulations that limit the use of donated assets. When a
donor-imposed restriction expires, that is, when a stipulated time restriction ends or purpose restriction is
accomplished, net assets with donor restrictions are reclassified to net assets without donor restrictions and
reported in the consolidated statements of operations and changes in net assets as net assets released from
restrictions.
Net Resident and Patient Service Revenues
Net resident and patient service revenues are reported at estimated net realizable amounts from patients,
third-party payors, and others for services rendered, and includes estimated retroactive revenue adjustments due
to future audits, reviews, and investigations. Retroactive adjustments are considered in the recognition of revenue
on an estimated basis in the period the related services are rendered, and such amounts are adjusted in future
periods as adjustments become known or as years are no longer subject to such audits, reviews, and
investigations. Historically, such adjustments for the Company have been immaterial in relation to the
consolidated financial statements as a whole.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
13
Revenues under third-party payor agreements are subject to examination and retroactive adjustment. Provisions
for estimated third-party payor settlements are provided in the period the related services are rendered.
Differences between the amounts accrued and subsequent settlements are recorded in operations in the year of
settlement.
Excess (Deficit) of Revenues, Gains and Other Support Over Expenses
The consolidated statements of operations and changes in net assets includes excess (deficit) of revenues, gains
and other support over expenses. Changes in net assets without donor restrictions, which are excluded from
excess (deficit) of revenues, gains and other support over expenses, consistent with industry practice, would
include net assets released from restriction for purchase of property and equipment and contributions of long-lived
assets (including assets acquired using contributions which by donor restrictions were to be used for the purposes
of acquiring such assets).
Benevolent Assistance and Community Benefits
The Company currently maintains a benevolent assistance program and policy for residents holding continuing-
care residency agreements in the event the resident(s) should become unable to pay for services. The Company
reserves the right to change the program and policy from time to time. The benevolent assistance policy will not
apply to residents who have impaired their ability to meet financial obligations by transferring assets other than to
meet ordinary and customary living expenses, or by not maintaining Medicare Part A, Medicare Part B,
supplemental insurance, or other health insurance after assuming occupancy. Upon review of each residents
individual financial situation, the Company may permit the resident to remain at the facility for a lesser fee based
on the residents ability to pay, but only after meeting all of the spend-down provisions of eligibility for the
Medicaid program and any public assistance funds. The Company may decline new benevolent assistance
applications if it is determined that deferment of such charges may impair the Companys ability to operate on a
sound financial basis. Since the Company does not expect to collect the normal charges for services provided for
those residents who meet the benevolent assistance provisions, charges for such assistance are not included in
net patient service revenue.
The Company also contributes certain dollars, volunteer hours, healthcare, and housing services to benefit the
surrounding community. Total community benefits and charity care were approximately $6,237,000 and
$5,213,000 for the year ended September 30, 2023 and 2022, respectively, which was made up of $5,424,000
and $4,825,000 in unreimbursed healthcare, housing and services and $812,000 and $388,000 in community
benefits for the year ended September 30, 2023 and 2022, respectively.
Continuing-Care Contracts
The Company enters into continuing-care contracts with various residents. A continuing-care contract is an
agreement between a resident and the Company specifying the services and facilities to be provided to a resident
over his or her remaining life. Under the contracts, the Company has the ability to increase fees as deemed
necessary. At the end of each fiscal year, the Company calculates the present value of the net cost of future services
to be provided to current residents and compares the amount with the deferred revenue from advance fees at that
date. If the present value of the net cost of future services and use of facilities exceeds the deferred revenue from
advance fees, a liability (obligation for future costs) is recorded. No liability has been recorded as of September 30,
2023 or 2022, because the present value of the estimated net costs of future services and use of facilities is less than
deferred revenues from advances fees. The present value of the net cost of future services and use of facilities was
discounted at 4.43% and 3.81% in 2023 and 2022, respectively.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
14
Concentration of Credit Risk
Concentrations of credit risk with respect to patient accounts receivable are limited due to the formalized
agreements with third-party payors. The Company has significant accounts receivable (approximately 46% and
32% in 2023 and 2022, respectively) whose collectability or realizability is dependent upon the performance of
certain governmental programs, primarily Medicare and North Carolina Medicaid. Management does not believe
there are significant credit risks associated with these governmental programs.
Use of Estimates
The preparation of consolidated financial s
tatements in conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.
Income Taxes
The Company is exempt from federal inc
ome taxes under Section 501(c)(3) of the Internal Revenue Code;
accordingly, the accompanying consolidated financial statements do not reflect a provision or liability for federal and
state income taxes. The Company has determined that it does not have any material unrecognized tax benefits or
obligations as of September 30, 2023.
Subsequent Events
The Company evaluated the effect subsequent events would have on the consolidated financial
statements through January 2 , 2024, which is the date the consolidated financial statements were issued.
2. Revenue Recognition
The Company generates revenues, primarily by providing housing and health services to its residents. The
following streams of revenue are recognized as follows:
Monthly fees:
The life care contracts that residents select require an advanced fee and monthly fees based upon the type of
space they are applying for. Resident fee revenue for recurring and routine monthly services is generally billed
monthly in advance. Payment terms are usually due within 30 days. The services provided encompass social,
recreational, dining along with assisted living, nursing care, and memory care and these performance obligations
are earned each month. Under ASC Topic 606, management has determined that the performance obligation for
the standing obligation to provide the appropriate level of care is the predominant component and does not
contain a lease component under ASC Topic 842. Resident fee revenue for non-routine or additional services are
billed monthly in arrears and recognized when the service is provided.
Advanced fees:
The non-refundable advanced fees are recognized as deferred revenue upon receipt of the payment and included
in liabilities in the consolidated balance sheets until the performance obligations are satisfied. The refundable
portion of an entrance fee is not considered part of the transaction price and as such is recorded as a liability in
the consolidated balance sheets. Additionally, management has determined the contracts do not contain a
significant financing component as the advanced payment assures residents the access to health care in the
future. These deferred amounts are then amortized on a straight-line basis into revenue on a monthly basis over
the life of the resident as the performance obligation is the material right associated with access to future services
as described in FASB ASC 606-10-55 paragraph 18, 42 and 51.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
15
Health care services:
In the facility, the Company provides assisted and nursing care to residents who are covered by government and
commercial payers. The Company is paid fixed daily rates from government payers. The fixed daily rates and
other fees are billed in arrears monthly. The monthly fees represent the most likely amount to be received from
the 3
rd
party payors. Most rates are predetermined from Medicare and Medicaid. Under ASC Topic 606,
management has elected to utilize the portfolio approach in aggregating the revenues under these revenue
streams.
The Company disaggregates its revenue from contracts with customers by payor source, as the Company
believes it best depicts how the nature, timing and uncertainty of its revenues and cash flows are affected by
economic factors. See details on a reportable segment basis in the table below:
September 30, 2023
Independent Assisted Living & Skilled
Living Memory Care Nursing Total
Private pay $ 36,339,502 $ 13,392,873 $ 12,110,953 $ 61,843,328
Government reimbursement - 37,496 10,103,945 10,141,441
Other third-party payor programs - - 2,882,219 2,882,219
Total $ 36,339,502 $ 13,430,369 $ 25,097,117 $ 74,866,988
September 30, 2022
Independent Assisted Living & Skilled
Living Memory Care Nursing Total
Private pay $ 34,632,885 $ 12,271,191 $ 10,710,006 $ 57,614,082
Government reimbursement - 51,350 10,840,304 10,891,654
Other third-party payor programs - - 1,969,581 1,969,581
Total $ 34,632,885 $ 12,322,541 $ 23,519,891 $ 70,475,317
3. Investments
Aggregate fair values of investments at September 30 are summarized below:
2023 2022
Money market funds $ 8,405,056 $ 9,049,845
Equity 40,210,187 34,674,643
Fixed income 48,193,038 45,361,760
Total investments 96,808,281 89,086,248
Short-term investments 88,037,087 81,293,248
Investments - restricted $ 8,771,194 $ 7,793,000
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
16
A summary of net investment income for the years ended September 30 follows:
2023 2022
Net realized gains $ 2,285,602 $ 1,067,272
Net unrealized gains (losses) 2,619,298 (24,138,820)
Net investment income (loss) $ 4,904,900 $ (23,071,548)
4. Assets Limited as to Use
The composition of assets limited as to use at September 30 is set forth in the following table:
2023 2022
Cash funds and cash equivalents $ 13,922,679 $ 23,624,054
Equity 7,897,682 6,700,925
Fixed income 11,913,787 11,253,445
Total assets limited as to use $ 33,734,148 $ 41,578,424
2023 2022
Board Designated and Other Restricted Assets Limited to Use:
Construction funds $ 3,121,841 $ 13,470,453
Entrance fee escrow 959,123 -
Debt service held by trustees 6,807,270 6,923,497
Insurance regulation 17,027,253 15,627,968
Held for others 86,572 147,813
Restricted cash for line of credit 234,120 234,120
Net assets with donor restrictions 5,497,969 5,174,573
Total assets limited as to use 33,734,148 41,578,424
Less current portion required to meet current obligations (6,636,490) (17,271,385)
Assets limited as to use, net of current portion $ 27,097,658 $ 24,307,039
5. Fair Value of Assets and Liabilities
Fair value as defined under U.S. GAAP is an exit price, representing the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
These tiers include:
Level 1: Observable inputs such as quoted prices in active markets.
Level 2: Inputs other than quoted prices in active markets that are either directly or indirectly
observable.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
17
Level 3: Unobservable inputs about which little or no market data exists, therefore requiring an entity
to develop its own assumptions.
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair
value measurement. The Companys assessment of the significance of a particular input to the fair value
measurement requires judgment and may affect the valuation of fair value assets and liabilities and their
placement within the fair value hierarchy levels.
When quoted prices are available in active markets for identical instruments, investment securities are classified
within Level 1 of the fair value hierarchy. Level 1 investments include mutual funds, exchange-traded funds,
government and agency bond funds, and money market funds which are valued based on prices readily available
in active markets in which those securities are traded. Level 2 investments include interest rate swap agreements
which are valued on a recurring basis based on inputs that are readily available in public markets or can be
derived from information available in publicly quoted markets.
The Company does not have any financial assets or liabilities measured at fair value on a recurring basis
categorized as Level 3, and there were no transfers in or out of Level 3 during 2023. There were no changes
during 2023 to the Companys valuation techniques used to measure asset and liability fair values on a recurring
basis.
The following tables set forth by level the fair value hierarchy the Companys financial assets accounted for at fair
value on a recurring basis as of September 30, 2023 and 2022.
September 30, 2023
Level 1 Level 2 Level 3 Total
Assets:
Mutual funds $ 75,135,820 $ - $ - $ 75,135,820
Exchange-traded funds 30,795,321 - - 30,795,321
Government and agency bond funds 2,248,079 - - 2,248,079
Money market funds 17,804,083
-
- 17,804,083
Interest rate swap agreements
-
11,565,561
Total assets at fair value $ 125,983,303 $ 11,565,561 $
- 11,565,561
- $ 137,548, 4
The Company has $4,559,126 of cash balances included in investments and assets limited as to use as of
September 30, 2023, which are not included in the fair value hierarchy.
September 30, 2022
Level 1 Level 2 Level 3 Total
Assets:
Mutual funds $ 75,594,834 $ - $ - $ 75,594,834
Exchange-traded funds 20,159,791
- - 20,159,791
Government and agency bond funds 2,236,331 - - 2,236,331
Money market funds 29,047,594 - - 29,047,594
Interest rate swap agreements - 10,442,208 - 10,442,208
Total assets at fair value $ 127,038,550 $ 10,442,208 $
-
$ 137,480,758
The Company has $3,626,122 of cash balances included in investments and assets limited as to use as of
September 30, 2022, which are not included in the fair value hierarchy.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
18
6. Property and Equipment
Property and equipment consists of the following at September 30:
2023 2022
Land $ 6,717,324 $ 6,717,324
Land improvements 25,301,200 24,973,508
Buildings and improvements 292,101,500 285,788,481
Equipment and fixtures 24,807,955 23,545,890
Construction in progress 37,638,972 24,800,359
Total property and equipment 386,566,951 365,825,562
Less accumulated depreciation (164,218,338) (151,515,595)
Property and equipment, net $ 222,348,613 $ 214,309,967
Construction in progress includes various projects, the largest of which is a campus expansion project. The
Company had depreciation expense of approximately $14,330,000 and $14,270,000 for the years ended
September 30, 2023 and 2022, respectively. The Company capitalized approximately $1,000,000 and $685,000
of interest for the years ended September 30, 2023 and 2022, respectively. At September 30, 2023, the Company
had approximately $652,000 in future construction commitments.
7. Bonds Payable
Bonds payable consists of the following at September 30:
2023 2022
First Mortgage Revenue Bonds, Series 2014A:
Variable rate of 2.785% due October 1, 2024
See related swap disclosure in Note 8 $ 350,000 $ 815,000
First Mortgage Revenue Bonds, Series 2014B:
Variable rate of 2.745% due October 1, 2024
See related swap disclosure in Note 8 2,320,000 4,350,000
First Mortgage Revenue Bonds, Series 2016A:
Term bonds:
Due October 1, 2030 yielding 2.880% 8,250,000 8,250,000
Due October 1, 2031 yielding 2.950% 3,000,000 3,000,000
Due October 1, 2035 yielding 3.180% 13,390,000 13,390,000
First Mortgage Revenue and Revenue Refunding Bonds,
Series 2021A:
Serial bonds due through October 1, 2036
yielding between 0.840% and 2.390% 15,955,000 16,030,000
Term Bonds:
Due October 1, 2041 yielding 2.500% 5,045,000 5,045,000
Due October 1, 2046 yielding 2.660% 6,000,000 6,000,000
Due October 1, 2051 yielding 2.760% 22,395,000 22,395,000
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
19
First Mortgage Revenue Refunding Bonds, Series 2021B:
Due October 1, 2033 yielding 2.359% 5,330,000 8,545,000
Due October 1, 2047 yielding 2.411% 72,710,000 72,710,000
Total bonds payable 154,745,000 160,530,000
Less current portion of bonds payable (5,410,000) (5,785,000)
Less deferred financing costs, net (2,005,668) (2,071,033)
Add unamortized premium 7,500,837 7,653,942
Bonds payable, net of current portion $ 154,830,169 $ 160,327,909
In September 2014, the Company issued $12,025,000 of tax-exempt, variable First Mortgage Revenue Refunding
Bonds (2014A Bonds) through the North Carolina Medical Care Commission. Of this total amount, $1,310,000
funded the partial refunding of the Series 2005B Bonds and $10,715,000 refunded the entirety of the Series
2004A and a portion of the Series 2005A Bonds, which was funded on October 1, 2014. The interest rate on the
2014A Bonds is variable based on prevailing market rates and is reset monthly based on 79% SOFR plus 1.00%.
The Company entered into an interest rate swap agreement on the Series 2014A Bonds, which is described in
Note 8.
In December 2014, the North Carolina Medical Care Commission authorized the issuance of tax-exempt,
adjustable rate Retirement Facilities First Mortgage Revenue Refunding Bonds, Series 2014B (2014B Bonds) in
the aggregate principal amount of up to $16,630,000. Of this total amount, $6,390,000 and $10,040,000 funded
the partial refunding of the Series 2005C Bonds due October 1, 2019 and October 1, 2024, respectively. The
interest rate on the 2014B Bonds is variable based on prevailing market rates and is reset monthly based on 79%
SOFR plus 1.60%. The Company entered into an interest rate swap agreement on the Series 2014B Bonds,
which is described in Note 8.
In May 2016, the North Carolina Medical Care Commission authorized the issuance of tax-exempt, fixed rate
Retirement Facilities First Mortgage Revenue Refunding Bonds, Series 2016A (2016A Bonds) in the aggregate
principal amount of up to $34,485,000. The bond funds were used to refund the entirety of the 2005A Bonds due
October 1, 2025 and October 1, 2035, and the remaining outstanding amount of $22,715,000 of the 2005C Bonds
due October 1, 2032.
In December 2021, the Company issued $49,470,000 of Public Finance Authority Retirement Facilities First
Mortgage Revenue and Revenue Refunding 2021A Bonds (2021A Bonds). The proceeds of the 2021A Bonds
refunded a portion of the outstanding 2016A Bonds, refunded the 2017B Bonds, and built a 54-unit independent
living apartment building at Croasdaile Village. In addition, the Company issued $81,375,000 Direct Bank Bonds
issued through the North Carolina Medical Care Commission (2021B Bonds) and bought by Truist Bank with a
15-year commitment. The proceeds of the 2021B Bonds refunded the outstanding 2013A and 2017A Bonds. The
2021B Bonds are initially taxable at an all-in swap rate of 1.748% until July 2023, at which time the interest rate
converted to an all-in tax-exempt swap rate of 2.47%. The Company entered into two interest rate swap
agreements on the Series 2021B Bonds, which are described in Note 8.
Principal repayments on bonds payable, excluding discounts and premiums, for the next five years and thereafter,
are summarized as follows:
2024 $ 5,410,000
2025 5,565,000
2026 5,720,000
2027 5,920,000
2028 6,120,000
Thereafter 126,010,000
$ 154,745,000
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
20
All series of bonds are subject to annual mandatory sinking fund requirements prior to their due dates. There are
certain covenants associated with the bonds that are outlined in the Master Trust indentures. The most restrictive
of these covenants requires maintenance of a long-term debt service coverage ratio, as defined, of not less than
1.20.
The Company incurred deferred financing costs in the amount of approximately $2,490,000 in association with the
issuance of the above Series Bonds at September 30, 2022. Amortization expense of approximately $65,000 and
$71,000 was recognized during 2023 and 2022, respectively, to the interest expense line item on the consolidated
statements of operations and changes in net assets. Accumulated amortization was $484,000 and $419,000 for
the years ended September 30, 2023 and 2022, respectively. During fiscal year 2022, approximately $1,979,000
of deferred financing costs, net were written off associated with the 2021A Bond and 2021B Bond refunding.
8. Interest Rate Swap
Variable rate long-term debt exposes the Company to variability in interest payments due to changes in interest
rates. Management believes it is prudent to limit the variability of a portion of its interest payments. To meet this
objective, management entered into interest rate swap agreements to manage fluctuations in cash flows resulting
from interest rate risk.
In August 2014, the Company entered into a forward interest rate swap agreement with a financial institution in
conjunction with the 2014A Bonds that took effect October 1, 2014. The Company pays a fixed rate of 2.97%
while the financial institution pays based on 78% of 1-Month LIBOR plus 1.3925%. The difference between the
fixed and floating rates is accrued and recorded in interest expense in the accompanying consolidated statements
of operations and changes in net assets. The fair value of this derivative instrument is recorded on the
consolidated balance sheets as a long-term asset in fiscal years 2023 and 2022.
In December 2014, the Company entered into a forward interest rate swap agreement with a financial institution in
conjunction with the 2014B Bonds that took effect October 1, 2015. The Company pays a fixed rate of 3.195%
while the financial institution pays based on 78% of 1-Month LIBOR plus 1.3925%. The difference between the
fixed and floating rates is accrued and recorded in interest expense in the accompanying consolidated statements
of operations and changes in net assets. The fair value of this derivative instrument is recorded on the
consolidated balance sheets as a long-term asset in fiscal years 2023 and 2022.
In December 2021, the Company entered into a interest rate swap agreement with a financial institution in
conjunction with the 2021B Bonds that took effect December 1, 2021. The Company pays a fixed rate of 1.748%
while the financial institution pays based on 100% of 1-Day SOFR plus 1.350%. The difference between the fixed
and floating rates was accrued and recorded in interest expense in the accompanying consolidated statements of
operations and changes in net assets. The swap was terminated during fiscal year 2023.
In December 2021, the Company entered into a forward interest rate swap agreement with a financial institution in
conjunction with the 2021B Bonds that took effect July 12, 2023. The Company pays a fixed rate of 2.470% while
the financial institution pays based on 79% of 1-Day SOFR plus 1.067%. The difference between the fixed and
floating rates is accrued and recorded in interest expense in the accompanying consolidated statements of
operations and changes in net assets. The fair value of this derivative instrument is recorded on the consolidated
balance sheets as a long-term asset in fiscal years 2023 and 2022.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
21
The following schedule outlines the terms and fair values of the interest rate swap agreement.
2014A Bond 2014B Bond 2021B Bond 2021B Bond
Bank Swap Bank Swap Bank Swap Bank Swap
Notional amount $ 350,000 $ 2,320,000 $ 81,345,000 $ 78,040,000
Trade date 8/25/2014 12/22/2014 11/4/2021 11/4/2021
Effective date 10/1/2014 10/1/2015 12/1/2021 7/12/2023
Termination date 10/1/2024 10/1/2024 7/12/2023 12/1/2036
Fixed rate 2.970% 3.195% 1.748% 2.470%
Fair value at September 30, 2021 $ (32,588) $ (158,157) $ - $ -
Unrealized gains 44,911 224,220 2,375,157 7,988,665
Fair value at September 30, 2022 12,323 66,063 2,375,157 7,988,665
Unrealized gains (losses) (6,946) (33,340) (2,375,157) 3,538,796
Fair value at September 30, 2023 $ 5,377 $ 32,723 $ - $ 11,527,461
By using an interest rate swap to hedge exposure to change in interest rates, the Company exposes itself to credit
risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative
contract. Market risk is the adverse effect on the value of the financial instrument that results from a change in
interest rates. The market risk associated with an interest rate swap is managed by establishing and monitoring
parameters that limit the types and degrees of market risk that may be undertaken.
9. Benevolent Assistance and Other Contractual Adjustments
UMRH maintains records to identify and monitor the level of benevolent assistance it provides. These records
include the amount of charges forgone for services and supplies furnished under its benevolent assistance policy.
Amounts of benevolent assistance provided based on the cost to provide was approximately $481,000 and $889,000
for the years ended September 30, 2023 and 2022, respectively.
Additionally, residents in the health center and assisted living levels of care may be eligible to participate in the
North Carolina Medicaid or federal Medicare programs. Contractual adjustments represent the difference between
UMRHs standard rates and the rates paid by net third party payors. For the years ended September 30, 2023
and 2022, the net reduction to patient service revenue by net third party payor contractual adjustments (primarily
Medicaid and Medicare) of approximately $3,526,000 and $2,936,000, respectively.
10. Retirement Plans
Effective July 1, 2002, UMRH formed a 403(b) defined-contribution retirement plan covering substantially all its
employees. UMRH matches 50% of eligible employee contributions up to eight percent on employees annual
compensation. Matching contributions begin on the first payroll of the first calendar quarter after the employees
hire date. The employees are immediately vested in their contributions. UMRH matching contributions are vested
after the twelfth consecutive month period beginning with the first day of the plan year and ending with the last
day of the plan year in which the employee is credited with at least 1,000 hours of service. At the end of the plan
year, UMRHs matching contributions are vested on a sliding scale from zero to 100% based on years of vesting
service where employees are 100% vested after 5 years. Retirement plan expense amounted to approximately
$501,000 and $480,000 for the years ended September 30, 2023 and 2022, respectively.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
22
11. Net Assets with Donor Restrictions
Net assets at September 30 were available for the following purposes:
2023 2022
Benevolent care $ 3,069,258 $ 2,296,721
Split interest agreements 272,985 308,020
Use and maintenance of the Cypress Glen facility 1,644,042 1,362,031
Facility operations and maintenance 146,544 119,219
Capital campaign 13,127 13,127
Other 3,292,761 3,124,716
$ 8,438,717 $ 7,223,834
Net assets restricted to investment in perpetuity, the income from which is expendable to support at September
30:
2023 2022
Benevolent endowment fund $ 3,275,123 $ 3,259,575
Split interest agreements 526,807 425,857
Use and maintenance of the Cypress Glen facility 649,525 649,525
Facility operations and maintenance 100,691 100,691
Other 714,244 689,194
$ 5,266,390 $ 5,124,842
Total net assets with donor restrictions $ 13,705,107 $ 12,348,676
12. Commitments and Contingencies
The Company is involved in litigation in the ordinary course of business related to professional liability claims.
Management believes these claims, if asserted, would be settled within the limits of coverage, which is on a
claims-made basis, with insurance limits of $1,000,000 per claim and $3,000,000 in the aggregate.
Should the policies not be renewed or replaced with equivalent insurance, claims based on occurrences during
their terms but reported subsequently would be uninsured. Management anticipates that such coverage will be
renewed or replaced with equivalent insurance as these policies expire.
13. Contingent Liabilities
The Company is self-insured for its employee health insurance and records an estimate for claims incurred but
unpaid at year end. The estimated liability for these claims approximated $195,000 and $299,000 as of
September 30, 2023 and 2022, respectively. The liability is included in current liabilities on the consolidated
balance sheets. The total self-insurance expenses were approximately $2,620,000 and $3,110,000, for 2023 and
2022, respectively. The self-insured plan has a stop loss coverage of $125,000 per individual per plan year
ended September 30, 2023 and 2022, and has an $1,000,000 annual aggregate.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
23
14. Management Fees
The Company pays management fees to Life Care Services LLC (LCS) pursuant to a Client Services
Agreement dated January 1, 2023. Under this Agreement, LCS is to: (i) provide a qualified Corporate Executive
Director, who is an employee of LCS; (ii) perform general, financial, personnel, facility and other management
services necessary for operation of UMRHs corporate office and the operation and marketing of the communities.
The term of the Client Services Agreement is five years terminable by UMRH, with six months notice, at the
conclusion of the third anniversary without cause or penalty. The Company recognized management fee
expenses of approximately $2,628,000 and $2,468,000 for the years ended September 30, 2023 and 2022,
respectively which are included in administrative expenses on the consolidated statement of operations and
changes in net assets.
15. Endowment Funds
The Companys endowments consist of individual funds established for a variety of purposes including support for
residents in financial need, plant operations and maintenance and other general obligations. The endowments
consist of donor-restricted endowment funds. As required by generally accepted accounting principles, net assets
associated with endowment funds are classified and reported based on the existence or absence of donor-
imposed restrictions.
Interpretation of Relevant Law
The Board of Trustees of the Company has interpreted the State Prudent Management of Institutional Funds Act
(SPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-
restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the
Company classifies as net assets with donor restrictions (a) the original value of gifts donated to the permanent
endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the
permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time
the accumulation is added to the fund. In accordance with SPMIFA, the Company considers the following factors
in making a determination to appropriate or accumulate donor-restricted endowment funds:
The duration and preservation of the fund
The purposes of the Company and the donor-restricted endowment fund
General economic conditions
The possible effect of inflation and deflation
The expected total return from income and the appreciation of investments
Other resources of the Company
The investment policies of the Company
Endowment Net Asset Composition by Type of Fund as of September 30, 2023
Without Donor With Donor
Restrictions Restrictions Total
Donor-restricted endowment $ - $ 12,905,315 $ 12,905,315
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
24
Changes in Endowment Net Assets for the Year Ended September 30, 2023
Without Donor With Donor
Restrictions Restrictions Total
Endowment net assets, beginning
of year $ - $ 11,614,799 $ 11,614,799
Investment gains - 1,214,489 1,214,489
Contributions to principal and transfers, net - 762,166 762,166
Change in value of pledges - 26,154 26,154
Bad debt expense, net - (2,720) (2,720)
Releases from restriction - (750,694) (750,694)
Maturity of split interest agreement - 41,121 41,121
Endowment net assets, end of year $ - $ 12,905,315 $ 12,905,315
Endowment Net Asset Composition by Type of Fund as of September 30, 2022
Without Donor With Donor
Restrictions Restrictions Total
Donor-restricted endowment $ - $ 11,614,799 $ 11,614,799
Changes in Endowment Net Assets for the Year Ended September 30, 2022
Without Donor With Donor
Restrictions Restrictions Total
Endowment net assets, beginning
of year $ - $ 11,347,013 $ 11,347,013
Investment losses - (1,902,999) (1,902,999)
Contributions to principal and transfers, net - 2,914,471 2,914,471
Change in value of pledges - (24,898) (24,898)
Bad debt expense, net - 2,589 2,589
Releases from restriction - (969,061) (969,061)
Maturity of split interest agreement - 247,684 247,684
Endowment net assets, end of year $ - $ 11,614,799 $ 11,614,799
Return Objectives and Risk Parameters
The Company has adopted investment and spending policies for endowment assets that attempt to emphasize
long-term growth of principal while avoiding excessive risk. Short-term volatility will be tolerated in as much as it is
consistent with the volatility of a comparable market index. Endowment assets include those assets of donor-
restricted funds that the Company must hold in perpetuity.
Strategies Employed for Achieving Objectives
To satisfy its long-term rate-of-return objectives, the Company relies on a combination strategy of capital
preservation and modest capital growth. The Company targets a diversified asset allocation that places a greater
emphasis on fixed income investments to achieve its long-term return objectives within prudent risk constraints.
Spending Policy and How the Investment Objectives Relate to Spending Policy
The Company has a policy of utilizing the interest and dividends earned on these endowments for their restricted
purposes. The Company believes the investment policy established will facilitate the growth of these endowed
funds and allow for earnings on these endowed funds to be used consistent with the intent of the donors.
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
25
16. Liquidity and Availability
As part of its liquidity management, the Company has a policy to structure its financial assets to be available as its
general expenses, liabilities, and other obligations come due. In addition, the Company invests cash in excess of
daily operating funds in short-term investments such as mutual funds, exchange-traded funds, and, money market
funds.
The following schedule reflects the Companys financial assets to meet cash needs for general expenses within
one year. The financial assets were derived from the total assets on the consolidated balance sheets by excluding
the assets that are unavailable for general expenses in the next 12 months. The Company seeks to maintain
sufficient liquid assets to cover 120 days operating and capital expenses.
Financial assets available for general expenditure within one year of the balance sheet date, consist of the
following at September 30:
2023 2022
Cash and cash equivalents $ 5,177,988 $ 5,954,086
Contributions receivable, current portion 25,846 2,412
Accounts receivable 3,890,546 3,127,429
Other receivables 2,516,922 1,291,459
Investments 88,037,087 81,293,248
$ 99,648,389 $ 91,668,634
17. Schedule of Expenses by Natural Classification and Function
The following is a schedule of expenses by both natural classification and function for the year ended
September 30, 2023:
September 30, 2023
Management
Program and
Services General Fundraising Total
Salaries and benefits $ 30,177,146 $ 5,732,014 $ 202,813 $ 36,111,973
Fees for services 9,640,348 2,016,317 - 11,656,665
Supplies 6,622,010 841,499 1,834 7,465,343
Medical and personal care 3,433,557 - - 3,433,557
Occupancy 2,526,511 18,591 - 2,545,102
Insurance 817,651 132,190 - 949,841
Interest 3,448,201 20 - 3,448,221
Depreciation and amortization 14,164,507 181,676 - 14,346,183
Other 4,185,346 2,093,158 30,876 6,309,380
Total expense $ 75,015,277 $ 11,015,465 $ 235,523 $ 86,266,265
The United Methodist Retirement Homes, Incorporated, Its Affiliate, and Subsidiary
Notes to Consolidated Financial Statements
26
The following is a schedule of expenses by both natural classification and function for the year ended
September 30, 2022:
September 30, 2022
Management
Program and
Services General Fundraising Total
Salaries and benefits $ 28,555,766 $ 5,964,399 $ 183,956 $ 34,704,121
Fees for services 7,127,822 1,940,537 - 9,068,359
Supplies 6,062,698 816,704 1,557 6,880,959
Medical and personal care 3,450,588 - - 3,450,588
Occupancy 2,511,069 18,691 - 2,529,760
Insurance 780,735 115,335 - 896,070
Interest 4,133,448 666 - 4,134,114
Depreciation and amortization 14,055,550 229,014 - 14,284,564
Other 3,636,841 2,283,759 29,310 5,949,910
Total expense $ 70,314,517 $ 11,369,105 $ 214,823 $ 81,898,445
18. COVID-19 Pandemic
In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security (CARES) Act was
signed into law on March 27, 2020. One provision of the CARES Act was the establishment of the Provider Relief
Funds, administered by HHS. The Provider Relief Funds are being distributed to healthcare providers throughout
the country to support the battle against the COVID-19 outbreak. The Company received approximately $310,000
and $2,083,000 in general Provider Relief Funds (PRF) in fiscal year 2021 and 2020, respectively. These funds
are intended to reimburse qualifying expenses and lost revenues attributable to COVID-19 and are subject to the
terms, conditions, and regulatory requirements set forth by HHS. If the total distributions received by the
Company exceed the cumulative amount of qualifying expenses and lost revenues attributable to COVID-19
through December 31, 2021, any excess funding may be subject recoupment. The Provider Relief Funds are
accounted for as voluntary nonexchange transactions and related revenues are recognized as eligibility criteria
are met. The company recognized approximately $485,000 in non-operating gains for the year ended September
30, 2022.
Consolidating Supplementary Information
Consolidating Balance Sheet Informatio
n
September 30, 2023
Corporate
Wesley
Pines
Cypress
Glen
Croasdaile
Village
Eliminating
Entries
Total
UMRH
UMRH
Foundation
Eliminating
Entries
Obligated
Group
UMRH
AHD
Consolidated
ASSETS
Current assets:
Cash 5,015,326$ 400$ 2,260$ 300$ -$ 5,018,286$ 73,545$ -$ 5,091,831$ 86,157$ 5,177,988$
Contributions receivable, current portion - 35,404 2,651,322 65,923 - 2,752,649 25,843 (2,752,646) 25,846 - 25,846
Investments 104,964,340 - - - (16,927,253) 88,037,087 - - 88,037,087 - 88,037,087
Assets limited as to use - debt service, current portion - - - 6,403,116 - 6,403,116 - - 6,403,116 - 6,403,116
Assets limited as to use, current portion 60 11,875 209,207 11,932 - 233,074 - - 233,074 300 233,374
Accounts receivable, net of allowance for
uncollectible accounts
- 776,301 286,246 2,760,804 - 3,823,351 - - 3,823,351 - 3,823,351
Other receivables 14,650 54,408 319,829 2,195,230 - 2,584,117 - - 2,584,117 - 2,584,117
Due from related parties 1,197,048 - 34,064,766 89,742,900 (124,751,569) 253,145 - (253,145) - - -
Inventories 450 91,437 41,390 98,026 - 231,303 - - 231,303 - 231,303
Prepaid expenses and other current assets 80,054 141,870 379,565 691,995 - 1,293,484 - - 1,293,484 - 1,293,484
Total current assets 111,271,928 1,111,695 37,954,585 101,970,226 (141,678,822) 110,629,612 99,388 (3,005,791) 107,723,209 86,457 107,809,666
Non-current assets:
Assets limited as to use - statutory operating reserve - 2,565,551 4,144,521 10,217,181 - 16,927,253 100,000 - 17,027,253 - 17,027,253
Assets limited as to use - debt service, net of
current portion - - 1,245,989 2,280,008 - 3,525,997 - - 3,525,997 - 3,525,997
Assets limited as to use, net of current portion 674,524 - 2,603,165 234,120 - 3,511,809 3,032,599 - 6,544,408 - 6,544,408
Investments - restricted - - - - - - 8,771,194 - 8,771,194 - 8,771,194
Property and equipment, net 77,524 11,694,931 41,757,700 168,818,458 - 222,348,613 - - 222,348,613 - 222,348,613
Trusts receivable
- - - - - - 125,130 - 125,130 - 125,130
Contributions receivable, net of current portion - 702,575 3,095,315 3,452,602 - 7,250,492 - (7,250,492) - - -
Deferred marketing costs, net - - 6,087 80,925 - 87,012 - - 87,012 - 87,012
Interest rate swap agreement - 1,157,357 1,986,336 8,421,868 - 11,565,561 - - 11,565,561 - 11,565,561
Total non-current assets 752,048 16,120,414 54,839,113 193,505,162 - 265,216,737 12,028,923 (7,250,492) 269,995,168 - 269,995,168
Total assets 112,023,976$ 17,232,109$ 92,793,698$ 295,475,388$ (141,678,822)$ 375,846,349$ 12,128,311$ (10,256,283)$ 377,718,377$ 86,457$ 377,804,834$
LIABILITIES AND NET ASSETS
Current liabilities:
A
nnuity payable, current portion
-$ -$ -$ -$ -$ -$ 63,319$ -$ 63,319$ -$ 63,319$
Bonds payable, current portion
- 297,000 713,000 4,400,000 - 5,410,000 - - 5,410,000 - 5,410,000
A
ccounts payable
739,924 374,300 713,872 2,642,071 - 4,470,167 2,846 - 4,473,013 - 4,473,013
A
ccrued salaries and related expenses
361,851 420,154 628,868 846,628 - 2,257,501 - - 2,257,501 - 2,257,501
A
ccrued interest payable
- 15,513 27,070 1,721,866 - 1,764,449 - - 1,764,449 - 1,764,449
Insurance regulation - statutory operating reserve
- 2,565,551 4,144,521 10,217,181 (16,927,253) - - - - - -
D
ue
t
o re
l
a
t
e
d
par
ti
es
123,807,666 943,903 - - (124,751,569) - 2,752,646 (2,752,646) - - -
Total current liabilities 124,909,441 4,616,421 6,227,331 19,827,746 (141,678,822) 13,902,117 2,818,811 (2,752,646) 13,968,282 - 13,968,282
Long-term liabilities:
A
nnuity payable, less current portion
- - - - - - 395,706 - 395,706 - 395,706
Bonds payable, less current portion
- 7,462,722 12,792,516 134,574,931 - 154,830,169 - - 154,830,169 - 154,830,169
Qualified intermediate-term debt
- - - - - - - - - - -
Liability for refundable advance fees
- 161,262 5,563,775 8,926,441 - 14,651,478 - - 14,651,478 - 14,651,478
Deferred revenue from non-refundable advance fees
- 1,540,003 18,845,248 60,267,354 - 80,652,605 - - 80,652,605 - 80,652,605
Deferred revenue - other
6,500 - - - - 6,500 253,145 (253,145) 6,500 - 6,500
Contributions payable, less current portion
- - - - - - 7,250,492 (7,250,492) - - -
Funds held for others - 10,560 71,010 5,002 - 86,572 - - 86,572 - 86,572
Total long-term liabilities 6,500 9,174,547 37,272,549 203,773,728 - 250,227,324 7,899,343 (7,503,637) 250,623,030 - 250,623,030
Total liabilities 124,915,941 13,790,968 43,499,880 223,601,474 (141,678,822) 264,129,441 10,718,154 (10,256,283) 264,591,312 - 264,591,312
Net assets:
Without donor restrictions
(13,566,550) 2,701,849 41,764,955 68,348,465 - 99,248,719 173,539 - 99,422,258 86,157 99,508,415
With donor restrictions
674,585 739,292 7,528,863 3,525,449 - 12,468,189 1,236,618 - 13,704,807 300 13,705,107
Total net assets (12,891,965) 3,441,141 49,293,818 71,873,914 - 111,716,908 1,410,157 - 113,127,065 86,457 113,213,522
Total liabilities and net assets 112,023,976$ 17,232,109$ 92,793,698$ 295,475,388$ (141,678,822)$ 375,846,349$ 12,128,311$ (10,256,283)$ 377,718,377$ 86,457$ 377,804,834$
The United Methodist Retirement Homes, Inc., Its Affiliate and Subsidiar
y
See Independent Auditor's Report. 27
The United Methodist Retirement Homes, Inc., Its Affiliate and Subsidiary
Consolidating Statement of Operations and Changes in Net Assets Information
Year Ended September 30, 2023
Corporate
Wesley
Pines
Cypress
Glen
Croasdaile
Village
Total
UMRH
UMRH
Foundation
Eliminating
Entries
Obligated
Group
UMRH
AHD Consolidated
Unrestricted revenues, gains and other support:
Net resident and patient service revenue -$ 10,232,353$ 19,436,177$ 45,198,458$ 74,866,988$ -$ -$ 74,866,988$ -$ 74,866,988$
Amortization of advance fees - 266,308 2,943,043 8,093,822 11,303,173 - - 11,303,173 - 11,303,173
Net assets released from restriction 833 16,429 178,586 303,519 499,367 62,744 (54,114) 507,997 - 507,997
Other 35,485 17,676 29,107 144,562 226,830 - - 226,830 - 226,830
Interest and dividend income 4,135,559 - 18,460 108,660 4,262,679 290 - 4,262,969 9 4,262,978
Total unrestricted revenues, gains and other support 4,171,877 10,532,766 22,605,373 53,849,021 91,159,037 63,034 (54,114) 91,167,957 9 91,167,966
Expenses:
Nursing services - 4,948,850 4,964,231 12,812,756 22,725,837 - - 22,725,837 - 22,725,837
Dietary and food services - 1,701,277 3,411,528 8,876,852 13,989,657 - - 13,989,657 - 13,989,657
Administration 5,811,922 786,831 2,187,788 4,083,563 12,870,104 66,407 (54,114) 12,882,397 204 12,882,601
Plant operations, maintenance and security - 817,818 2,755,338 4,412,202 7,985,358 - - 7,985,358 - 7,985,358
Laundry and housekeeping - 508,566 1,039,343 2,824,712 4,372,621 - - 4,372,621 - 4,372,621
Resident services - activities - 150,756 689,400 1,938,905 2,779,061 - - 2,779,061 - 2,779,061
Home care - - - 2,802,557 2,802,557 - - 2,802,557 - 2,802,557
Interest - 158,055 305,244 2,984,922 3,448,221 - - 3,448,221 - 3,448,221
Depreciation and amortization 48,331 627,813 3,427,394 10,242,645 14,346,183 - - 14,346,183 - 14,346,183
Loss on disposal of property and equipment - 9,037 25,345 (27,478) 6,904 - - 6,904 - 6,904
Bad debt expense - 99,468 28,646 799,151 927,265 - - 927,265 - 927,265
Total expenses 5,860,253 9,808,471 18,834,257 51,750,787 86,253,768 66,407 (54,114) 86,266,061 204 86,266,265
Operating income (loss) (1,688,376) 724,295 3,771,116 2,098,234 4,905,269 (3,373) - 4,901,896 (195) 4,901,701
Non-operating gains (losses):
Net investment gains, realized 2,092,460 - -
-
2,092,460 - - 2,092,460 - 2,092,460
Net investment gains, unrealized 1,898,006 - 16,288 11,685 1,925,979 - - 1,925,979 - 1,925,979
Contributions 13,271 918 42,601 13,270 70,060 4,081 - 74,141 - 74,141
Loss on extinguishment of debt - - - - - - - - - -
Construction related marketing costs - - (63,855) (603) (64,458) - - (64,458) - (64,458)
Change in fair value of interest rate swap agreement - 116,830 195,479 811,044 1,123,353 - - 1,123,353 - 1,123,353
Other (112,188) - 45,203 (17,951) (84,936) - - (84,936) - (84,936)
Net non-operating gains (losses) 3,891,549 117,748 235,716 817,445 5,062,458 4,081 - 5,066,539 - 5,066,539
Excess of revenues, gains and other support over expenses
2,203,173 842,043 4,006,832 2,915,679 9,967,727 708 - 9,968,435 (195) 9,968,240
Net assets released from restrictions for purchase of
property and equipment - -
209,898 32,799
242,697 - - 242,697 - 242,697
Change in net assets without donor restrictions 2,203,173 842,043 4,216,730 2,948,478 10,210,424 708 - 10,211,132 (195) 10,210,937
Change in net assets with donor restrictions:
Contributions
865 28,000 286,567 345,616 661,048 60,521 - 721,569 - 721,569
Interest and dividend income
- 20,265 170,651 98,853 289,769 38,259 - 328,028 - 328,028
Investment income
- 54,336 462,208 266,624 783,168 103,293 - 886,461 - 886,461
Change in split interest agreement
- 7,992 29,503 68,030 105,525 1,468 - 106,993 - 106,993
Maturity of split interest agreement
- - 40,631 9 40,640 40,640 40,640
Change in value of pledges
- - - 26,154 26,154 - - 26,154 - 26,154
Recovery of bad debt expense
- - - (2,720) (2,720) - - (2,720) - (2,720)
Net assets released from donor restriction
(833) (3,000) (375,438) (308,679) (687,950) (62,744) - (750,694) - (750,694)
Change in net assets with donor restrictions 32 107,593 614,122 493,887 1,215,634 140,797 - 1,356,431 - 1,356,431
Change in net assets 2,203,205 949,636 4,830,852 3,442,365 11,426,058 141,505 - 11,567,563 (195) 11,567,368
Net assets, beginning of year
(15,095,170) 2,491,505 44,462,966 68,431,549 100,290,850 1,268,652 - 101,559,502 86,652 101,646,154
Net assets, end of year (12,891,965)$ 3,441,141$ 49,293,818$ 71,873,914$ 111,716,908$ 1,410,157$ -$ 113,127,065$ 86,457$ 113,213,522$
See Independent Auditor's Report. 28
ATTACHMENT 2
Forecasted Financial Statements
of
The United Methodist
Retirement Homes, Incorporated
Includes
Consolidated Operations of Croasdaile
Village, Cypress Glen and Wesley Pines
Individual Operations of Croasdaile
Village
The United Methodist Retirement Homes
Obligated Group
Compilation of a Financial Forecast
Five Years Ending September 30, 2028
(with Independent Accountants Compilation
Report thereon)
The United Methodist Retirement Homes Obligated Group
Compilation of a Financial Forecast
Five Years Ending September 30, 2028
TABLE OF CONTENTS
Independent Accountants Compilation Report .............................................................................. 1
Forecasted Consolidated Financial Statements:
Forecasted Consolidated Statements of Operations and Changes in Net Assets ................. 2
Forecasted Consolidated Statements of Cash Flows ............................................................ 3
Forecasted Consolidated Balance Sheets ............................................................................. 4
Summary of Significant Forecast Assumptions and Rationale ....................................................... 5
1
INDEPENDENT ACCOUNTANTS COMPILATION REPORT
Boards of Trustees
The United Methodist Retirement Homes Obligated Group
Durham, North Carolina
Management of The United Methodist Retirement Homes, Incorporated (UMRH) and its
affiliate, The United Methodist Retirement Homes Foundation, Inc. (the Foundation and,
collectively with UMRH, the Obligated Group), and Life Care Services LLC, dba Life Care
Services (LCS, collectively defined as Management) are responsible for the accompanying
financial forecast of the Obligated Group, which comprises the forecasted consolidated balance
sheets as of and for each of the five years ending September 30, 2028, the related forecasted
consolidated statements of operations, changes in net assets, and cash flows for each of the years
then ending, and the related summaries of significant assumptions and rationale in accordance with
guidelines for the presentation of a financial forecast established by the American Institute of
Certified Public Accountants (AICPA).
The accompanying forecast and this report were prepared for inclusion with the disclosure
statement filing requirements of North Carolina General Statutes, Chapter 58, Article 64.
Accordingly, this report should not be used for any other purpose.
We have performed a compilation engagement in accordance with Statements on Standards for
Accounting and Review Services promulgated by the Accounting and Review Services Committee
of the AICPA. We did not examine or review the financial forecast nor were we required to
perform any procedures to verify the accuracy or completeness of the information provided by
Management. Accordingly, we do not express an opinion, a conclusion, or provide any form of
assurance on this financial forecast. The forecasted results may not be achieved as there will
usually be differences between the prospective and actual results because events and circumstances
frequently do not occur as expected, and those differences may be material.
We have no responsibility to update this report for events and circumstances occurring after the
date of this report.
Atlanta, Georgia
February 27, 2024
United Methodist Retirement Homes Obligated Group
See accompanying Summary of Significant Forecast Assumptions and Rationale and
Independent Accountants Compilation Report
2
Forecasted Consolidated Statements of Operations and Changes in Net Assets
For the Years Ending September 30,
(In Thousands)
2024 2025 2026 2027 2028
Revenues:
Amortization of advance fees 12,908$ 13,138$ 14,157$ 14,658$ 14,902$
Independent living revenues 38,853 40,799 44,673 47,568 48,951
Assisted living revenues 11,487 12,062 12,544 12,920 13,308
Memory support revenues 3,124 3,280 3,412 3,514 3,619
Skilled nursing revenues 26,288 27,401 28,341 29,085 29,848
Other operating revenues 130 136 145 151 156
Home care revenues 2,333 2,403 2,476 2,550 2,626
Investment income 3,349 2,842 3,213 3,328 3,432
Total revenues
98,472 102,061 108,961 113,774 116,842
Expenses:
Marketing costs - Cypress Glen Project 68 9 148 8 -
Health care services 18,906 19,854 20,648 21,267 21,905
Dietary 15,159 15,917 16,901 17,542 18,060
General and administrative 13,963 14,544 15,237 15,741 16,213
Plant 8,794 9,232 9,856 10,307 10,616
Housekeeping and laundry 5,110 5,364 5,779 5,992 6,172
Assisted living services 3,449 3,624 3,769 3,882 3,998
Resident services 3,287 3,450 3,600 3,713 3,824
Home care 2,334 2,404 2,476 2,551 2,627
Memory care services 1,647 1,729 1,798 1,852 1,908
Bad debt expense 471 485 499 514 530
Interest expense 4,946 4,784 7,296 7,031 6,820
Depreciation 14,777 15,661 18,777 19,953 20,957
Amortization of deferred marketing costs 15 15 15 15 15
Total expenses
92,926 97,072 106,799 110,368 113,645
Operating income
5,546 4,989 2,162 3,406 3,197
Change in net assets without donor restrictions
5,546 4,989 2,162 3,406 3,197
Net assets at beginning of year
113,213 118,759 123,748 125,910 129,316
Net assets at end of year
118,759$ 123,748$ 125,910$ 129,316$ 132,513$
United Methodist Retirement Homes Obligated Group
See accompanying Summary of Significant Forecast Assumptions and Rationale and
Independent Accountants Compilation Report
3
Forecasted Consolidated Statements of Cash Flows
For the Years Ending September 30,
(In Thousands)
2024 2025 2026 2027 2028
Cash flows from operating activities:
Change in net assets without donor restrictions 5,546$ 4,989$ 2,162$ 3,406$ 3,197$
Adjustments to reconcile change in net assets
to net cash provided by operating activities:
Depreciation 14,777 15,661 18,777 19,953 20,957
Amortization of deferred marketing costs 15 15 15 15 15
Amortization of deferred financing costs 175 210 210 111 110
Amortization of original issue premium (399) (415) (415) (415) (416)
Amortization of advanced fees (12,908) (13,138) (14,157) (14,658) (14,902)
Net change in current assets and liabilities, net 1,099 (10) (75) (70) (4)
Net change in accrued interest 1,564 (235) (263) - -
Entrance fees received from resident turnover (non-refundable) 13,330 13,596 14,317 15,250 15,890
Net cash provided by operating activities
23,199 20,673 20,571 23,592 24,847
Cash flows from investing activities:
Purchase of property and equipment - routine (8,623) (9,047) (9,478) (9,830) (10,128)
Purchase of property and equipment - Cypress Glen Project (27,344) (45,959) (6,702) - -
Interest cost capitalized during construction period (1,565) (3,260) (267) - -
Interest earnings on trustee held funds 1,627 1,644 138 - -
(Increase) decrease in assets limited as to use, current 2,287 4 (213) - 12
(Increase) decrease in investments (3,938) (2,006) (1,025) (3,416) (4,300)
Net cash used in investing activities
(37,556) (58,624) (17,547) (13,246) (14,416)
Cash flows from financing activities:
Initial entrance fees received - Croasdaile Village Project 19,301 - - - -
Initial entrance fees received - Cypress Glen Project - - 14,617 - -
Resident deposits received (converted) - Croasdaile Village Project (2,600) - - - -
Resident deposits received (converted) - Cypress Glen Project 1,316 - (1,316) - -
Entrance fees received from resident turnover (refundable) 156 160 162 166 169
Entrance fee refunds (3,383) (3,123) (3,399) (3,609) (3,557)
Change in liability for annuities (59) (51) (43) (36) (31)
Issuance of debt - Series 2024 Bonds 67,180 - - - -
Original issue premium 1,006 - - - -
Deferred financing costs (1,441) - - - -
Principal payments - Existing Bonds (5,410) (5,565) (5,720) (5,920) (6,120)
Principal payments - Series 2024B Bonds - - (13,275) - -
Net cash provided by (used in) financing activities
76,066 (8,579) (8,974) (9,399) (9,539)
Change in cash, cash equivalents, and restricted cash
61,709 (46,530) (5,950) 947 892
Beginning balance of cash, cash equivalents, and restricted cash
40,813 102,522 55,992 50,042 50,989
Ending balance of cash, cash equivalents, and restricted cash
102,522$ 55,992$ 50,042$ 50,989$ 51,881$
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents 8,021$ 8,404$ 8,840$ 9,147$ 9,421$
Investment - restricted 8,771 8,771 8,771 8,771 8,771
Funded interest account - Series 2024 Bonds 3,027 1,228 - - -
Debt service reserve fund - Existing Bonds 3,385 3,385 3,385 3,385 3,385
Construction account - Series 2024 Bonds 52,826 6,858 8 - -
Operating reserve for Department of Insurance 20,040 20,894 22,586 23,234 23,852
Net assets with donor restrictions 5,498 5,498 5,498 5,498 5,498
Entrance fee escrow 954 954 954 954 954
Total cash, cash equivalents, and restricted cash
102,522$ 55,992$ 50,042$ 50,989$ 51,881$
United Methodist Retirement Homes Obligated Group
See accompanying Summary of Significant Forecast Assumptions and Rationale and
Independent Accountants Compilation Report
4
Forecasted Consolidated Balance Sheets
As of September 30,
(In Thousands)
2024 2025 2026 2027 2028
Assets
Current assets:
Cash and cash equivalents 8,021$ 8,404$ 8,840$ 9,147$ 9,421$
Assets limited as to use, current - Existing Bonds 4,349 4,345 4,330 4,330 4,318
Assets limited as to use, current - Series 2024 Bonds - - 228 228 228
Accounts receivable, net 3,223 3,375 3,591 3,755 3,862
Other receivables 2,435 2,551 2,684 2,777 2,860
Contributions receivable 26 26 26 26 26
Prepaid expenses and other 1,416 1,483 1,578 1,650 1,697
Inventories 253 265 282 295 303
Total current assets 19,723 20,449 21,559 22,208 22,715
Investments 91,975 93,981 95,006 98,421 102,721
Investment - restricted 8,771 8,771 8,771 8,771 8,771
Operating reserve for Department of Insurance 20,040 20,894 22,586 23,234 23,852
Assets limited as to use:
Funded interest account - Series 2024 Bonds 3,027 1,228 - - -
Debt service reserve fund - Existing Bonds 3,385 3,385 3,385 3,385 3,385
Construction account - Series 2024 Bonds 52,826 6,858 8 - -
Prepaid line of credit fees 234 234 234 234 234
Net assets with donor restrictions 5,498 5,498 5,498 5,498 5,498
Entrance fee escrow 954 954 954 954 954
Total assets limited as to use
65,924 18,157 10,079 10,071 10,071
Property and equipment 422,472 479,094 495,403 505,234 515,362
Less accumulated depreciation (178,995) (194,656) (213,433) (233,386) (254,343)
Net property and equipment 243,477 284,438 281,970 271,848 261,019
Other assets:
Trusts receivable 125 125 125 125 125
Deferred marketing costs, net 72 58 43 29 14
Interest rate swap agreements 11,566 11,566 11,566 11,566 11,566
Total assets 461,673$ 458,439$ 451,705$ 446,273$ 440,854$
United Methodist Retirement Homes Obligated Group
See accompanying Summary of Significant Forecast Assumptions and Rationale and
Independent Accountants Compilation Report
5
Forecasted Consolidated Balance Sheets (Continued)
As of September 30,
(In Thousands)
2024 2025 2026 2027 2028
Liabilities and Net Assets
Current liabilities:
Accounts payable 4,808$ 5,037$ 5,298$ 5,483$ 5,646$
Accrued salaries and benefits 2,426 2,542 2,674 2,767 2,850
Interest payable - Existing Bonds 1,764 1,764 1,764 1,764 1,764
Interest payable - Series 2024 Bonds 1,565 1,329 1,067 1,067 1,067
Current maturities - Existing Bonds 5,565 5,720 5,920 6,120 6,350
Current maturities - Series 2024 Bonds - 13,275 - - -
Current maturities - Annuity payable 54 46 39 33 28
Total current liabilities 16,182 29,713 16,762 17,234 17,705
Long-term debt:
Long-term debt, less current portion 210,950 191,955 186,035 179,915 173,565
Original issue premium 8,108 7,694 7,279 6,863 6,447
Bond issuance costs, net (3,272) (3,062) (2,852) (2,742) (2,632)
Total long-term debt, net 215,786 196,587 190,462 184,036 177,380
Liability for annuities 336 286 243 206 175
Deposits and other liabilities 7 7 7 7 7
Funds held for others 87 87 87 87 87
Entrance Fees:
Refundable advanced fees 12,812 10,975 8,864 6,547 4,285
Deferred revenue from non-refundable advanced fees 96,388 95,720 109,370 108,840 108,702
Advance deposits - Cypress Glen Project 1,316 1,316 - - -
Total liabilities 342,914 334,691 325,795 316,957 308,341
Net assets
With donor restrictions 13,705 13,705 13,705 13,705 13,705
Without donor restrictions 105,054 110,043 112,205 115,611 118,808
Net assets 118,759 123,748 125,910 129,316 132,513
Total liabilities and net assets 461,673$ 458,439$ 451,705$ 446,273$ 440,854$
United Methodist Retirement Homes Obligated Group
Summary of Significant Forecast Assumptions and Rationale
See Independent Accountants Compilation Report
6
General
The accompanying financial forecast presents, to the best of the knowledge and belief of United
Methodist Retirement Homes, Incorporated (UMRH) and The United Methodist Homes
Foundation, Inc. (the Foundation, and collectively with UMRH, defined as the Obligated
Group), the expected financial position, results of operations, and cash flows of the Obligated
Group as of and for each of the five years ending September 30, 2028. Accordingly, the financial
forecast reflects the judgment of management of the Obligated Group and Life Care Services LLC,
dba Life Care Services (LCS) (collectively defined as Management) as of February 27, 2024,
the date of this forecast, based on present circumstances and the expected course of action during
the forecast period. There will usually be differences between the forecasted and actual results
because events and circumstances frequently do not occur as expected, and those differences may
be material.
Managements purpose in releasing this financial forecast is for inclusion in the Companys annual
disclosure statement in accordance with Chapter 58, Article 64, of the North Carolina General
Statutes. Accordingly, this report should not be used for any other purpose. The assumptions
disclosed herein are those that Management believes are significant to the prospective financial
statements.
Basis of Presentation The prospective financial statements included in the forecast have been
prepared in accordance with the accounting principles generally accepted in the United States of
America. Significant accounting policies are described in the appropriate assumptions and notes
to the prospective financial statements. The assumptions described are not all-inclusive.
Background
UMRH is a nonprofit corporation founded in 1946, which principally provides housing, health
care, and other related services to residents through the ownership and operation of Croasdaile
Village Retirement Community (Croasdaile Village) in Durham, North Carolina; Cypress Glen
Retirement Community (Cypress Glen) in Greenville, North Carolina; and Wesley Pines
Retirement Community (Wesley Pines) in Lumberton, North Carolina. Croasdaile Village,
Cypress Glen, and Wesley Pines are collectively referred to as the Communities. UMRHs
corporate office is located in Durham, North Carolina.
UMRH is governed by a board of trustees (the Board), currently consisting of 11 trustees.
UMRHs bylaws provide for (1) not fewer than 10 nor more than 16 elected trustees (the Elected
Trustees), with 60 percent elected by the Board and 40 percent elected by the North Carolina
Annual Conference Board of Institutions to staggered four-year terms, and (2) certain ex-officio
trustees (the Ex-Officio Trustees). Elected Trustees may be elected to two consecutive terms
and may be re-elected as trustees again after being off the Board for one year. The current Ex-
Officio Trustees consist of the presidents of resident associations, chairs of the local committees
at the Communities and the corporate executive director at UMRH. All Ex-Officio Trustees, except
for the corporate executive director of UMRH, have voting rights.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
7
The Foundation is a nonprofit corporation which was organized in order to raise endowment funds
for the Communities, to support benevolent care for those residents who are unable to pay for
continuing care at the residential facilities operated by UMRH, and to support special programs at
the residential facilities operated by UMRH. Members of the Board serve as members of the
Foundation and elect the members of the Foundations board of directors.
UMRH and the Foundation are exempt from federal income taxation under Section 501(a) of the
Internal Revenue Code of 1986, as amended (the Code), as organizations described in Section
501(c)(3) of the Code.
UMRH has affiliates related to 24 affordable rental housing units for senior adults and disabled
adults 18 and older contiguous to the Wesley Pines campus in Lumberton, NC known as Wesley
Ridge. Wesley Ridge of Lumberton, LLC, a North Carolina for-profit limited liability company,
is the owner of Wesley Ridge, and the members of such entity are UMRH and UMRH Affordable
Housing, Inc. UMRH Affordable Housing, Inc. is a North Carolina for-profit corporation in which
UMRH is the sole shareholder. UMRH Affordable Housing Development, LLC is a for-profit
North Carolina limited liability company created for the development of affordable rental
housing. UMRH is the sole member of this entity.
UMRH Affordable Housing, Inc., Wesley Ridge of Lumberton, LLC and UMRH Affordable
Housing Development, LLC are not Members of the Obligated Group, and have no obligations
with respect to the Series 2024 Bonds (defined hereinafter).
The Communities
The following map depicts the locations of the Communities.
Legend
Croasdaile Village Wesley Pines Cypress Glen
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
8
The following table shows the unit mix for the Communities:
Table 1
The Communities Unit Mix
(1)
Community
Independent
Living Units
Assisted
Living Units
Memory
Care Units Nursing Beds
Total
Croasdaile Village 452
46
16 102 616
Wesley Pines 26 36
62 124
Cypress Glen
(2)
212 30
12 30 284
Total 690 112
28 194 1,024
Source: Management
(1) Represents unit mix as of October 1, 2023 (fiscal year 2024).
(2) Cypress Glen operates 30 assisted living beds in 26 private and two semi-private rooms.
Croasdaile Village
Croasdaile Village is situated on an approximately 110-acre site within Croasdaile Farm, a
planned, private residential neighborhood at 2600 Croasdaile Farm Parkway in Durham, Durham
County, North Carolina. Croasdaile Village opened in 1999 and as of January 1, 2024, consists of
the following:
The Homestead, which includes 244 independent living apartments (the Homestead
ILUs);
The Heritage, which includes 54 independent living apartments (the Heritage ILUs);
Park Homes, which includes 24 independent living apartments (the Croasdaile Park
Homes);
108 independent living duplexes (the Croasdaile Duplexes);
22 free-standing independent living homes (the Croasdaile Homes); and,
The Pavilion, which includes 46 assisted living units (the Croasdaile ALUs), 16 memory
care units (the Croasdaile MCUs) and 102 skilled and intermediate care nursing beds
(the Croasdaile Nursing Beds).
The Homestead ILUs, the Heritage ILUs, the Croasdaile Park Homes, the Croasdaile Duplexes,
and the Croasdaile Homes are collectively referred to as the Croasdaile ILUs.
The Croasdaile ALUs, the Croasdaile MCUs, and the Croasdaile Nursing Beds are collectively
referred to as the Croasdaile Healthcare Center.
Common areas and amenities include a dining room, private dining room, cafe, beauty salon, gift
shop, computer center, libraries, game room, arts & crafts room, auditorium/chapel, branch bank,
fitness center, pool (including indoor aquatics), wood shop, clinic, gazebo with picnic area,
gardens, walking trails and guest rooms.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
9
During 2017, Management began the process for an expansion and repositioning project (the
Croasdaile Village Project) which included the construction of the 54 Heritage ILUs. The
Heritage ILUs became available for occupancy in October 2023.
The following table summarizes the type, number, approximate square footages, entrance fees
(Entrance Fees) and monthly fees (Monthly Fees) for the Croasdaile ILUs effective as of
October 1, 2023.
Table 2
Croasdaile Independent Living Configuration
Independent Living
Unit Type Unit Count Square Footage
Standard
Entrance Fee
Plan
(1)(2)(3)
Monthly Fee
(1)(3)
Apartments
The Homestead:
Studio
17
400 +/-
$66,083
$2,412
Alcove
9
490 +/- $81,432 $2,963
1 Bedroom Standard
27
770-840 +/- $142,399 $3,608
1 Bedroom Traditional
6
850 +/- $151,585 $3,688
1 Bedroom Deluxe
27
920 +/- $177,768 $3,762
1 Bedroom Den
9
950 +/- $195,168 $3,904
1 Bedroom Grande
9
965 +/- $190,067 $3,961
2 Bedroom Traditional
6
1,060 +/- $216,971 $4,114
2 Bedroom Standard
45
1,110-1,190 +/- $205,989 $4,173
2 Bedroom Conventional
15
1,175 +/- $225,398 $4,484
2 Bedroom Deluxe
40
1,285 +/- $233,926 $4,547
2 Bedroom w. Den
12
1,350 +/- $274,647 $4,922
2 Bedroom Grande
9
1,350 +/- $260,086 $4,918
2 Bedroom Grande II
6
1,450 +/- $279,835 $5,296
2 Bedroom Executive
5
1,600 +/- $308,482 $5,342
2 Terrace Grande
2
1,800 +/- $327,017 $5,454
Total Homestead Apartments 244 1,049 +/- $195,487 $4,073
Apartments The Heritage:
(4)
Albermarle 1 Bedroom
18
1,044 +/-
$272,135
$4,096
Beaufort 1 Bedroom Den
1
1,134 +/-
$300,501
$4,322
Chatham 2 Bedroom
1
1,300 +/-
$344,490
$4,662
Durham 2 Bedroom Den
9
1,374 +/- $364,099 $4,928
Edgecombe 2 Bedroom Den
4
1,376 +/- $364,629 $4,935
Forsyth 2 Bedroom Den
6
1,439 +/- $376,655 $5,080
Graham 2 Bedroom Den
8
1,508 +/- $394,714 $5,155
Halifax 2 Bedroom Den
5
1,794 +/- $465,693 $5,429
Iredell 2 Bedroom Den
2
2,071 +/- $537,599 $5,571
Total Heritage Apartments 54 1,350 +/- $353,706 $4,756
Park Homes:
Aspen
4
1,404 +/- $299,190 $4,544
Birch
4
1,455 +/- $310,057 $4,607
Maple
8
1,675 +/- $352,861 $4,741
Oak
8
1,877 +/- $388,558 $4,856
Total Park Homes 24 1,661 +/- $348,681 $4,724
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
10
Table 2 (continued)
Croasdaile Independent Living Configuration
Independent Living
Unit Type
Unit Count Square Footage
Standard
Entrance Fee
Plan
(1)(2)(3)
Monthly Fee
(1)(3)
Duplexes:
Appletree/Duplex
9
1,310 +/- $247,549 $4,712
Beechwood/Duplex
20
1,510 +/- $277,926 $4,801
Cottonwood/Duplex
9
1,640 +/- $305,116 $4,919
Dogwood/Duplex
5
1,840 +/- $327,029 $5,062
Elmwood/Duplex
1
1,940 +/- $367,699 $5,369
Fernwood/Duplex
12
1,500 +/- $291,698 $5,148
Greenwood/Duplex
10
1,700 +/- $330,588 $5,170
Heartwood/Duplex
8
1,900 +/- $394,885 $5,479
Fernwood II/Duplex
12
1,469 +/- $313,042 $4,878
Greenwood II/Duplex
9
1,659 +/- $353,529 $5,059
Heartwood II/Duplex
13
1,938 +/- $422,423 $5,230
Total Duplex Cottages 108 1,628 +/- $323,430 $5,025
Free-Standing Homes:
Beechwood/Home
7
1,510 +/- $296,660 $5,106
Cottonwood/Home
3
1,640 +/- $334,054 $5,218
Dogwood/Home
8
1,810 +/- $359,678 $5,366
Elmwood/Home
4
1,940 +/- $394,885 $5,515
Total Homes 22 1,715 +/- $342,534 $5,290
Total/Wtd Averages
452 1,288 +/- $260,251 $4,476
Source: Management
(1) Fees are effective October 1, 2023.
(2) In addition to the standard option plan shown (the Standard Entrance Fee Plan), Management also offers a
50 percent refundable plan (the 50% Refund Plan) and a 90 percent refundable plan (the 90% Refund Plan).
Entrance Fees under the 50% Refund Plan and 90% Refund Plan are higher than the Standard Entrance Fee
Plan by a factor of 1.40 and 1.92, respectively. Monthly Fees are the same for all entrance fee plans.
(3) The second person Standard Entrance Fee for the Croasdaile ILUs is $9,387, and the second person Monthly
Fee is $1,525 for all plans.
(4) The Heritage ILUs became available for occupancy in October 2023
.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
11
The following table summarizes the unit types, approximate square footage and the daily fees
(Daily Fees) for the Croasdaile Healthcare Center.
Source: Management
(1) Fees are effective October 1, 2023.
Wesley Pines
Wesley Pines is situated on an approximately 59-acre site at 1000 Wesley Pines Road Lumberton,
Robeson County, North Carolina. Wesley Pines opened in 1977 and in 2010, Wesley Pines
replaced its former assisted living, skilled nursing and commons building with a new facility on
the same site. Wesley Pines consists of the following:
16 independent living villas (the Wesley Pines Villas) and 10 independent living
duplexes (the Wesley Pines Duplexes and collectively the Wesley Pines ILUs);
36 assisted living units (the Wesley Pines ALUs); and
62 nursing beds (the Wesley Pines Nursing Beds).
The Wesley Pines ALUs and the Wesley Pines Nursing Beds are collectively referred to as the
Wesley Pines Healthcare Center.
Common areas and amenities include dining rooms, beauty shop, library, card room,
auditorium/chapel, exercise room, gazebo and walking trails.
Table 3
Croasdaile Healthcare Center Configuration
Number of
Units
Square
Footage Entrance Fee
(1)
Daily Fees
(1)
A
ssisted Livin
g
Units:
Studio (Suite on Main) 10 312 $26,221 $334
Studio (Orchard) 10 477 $26,221 $334
1 Bedroom (Orchard) 24 570 $26,221 $372
2 Bedroom (Orchard) 2 946 $26,221 $372
Total Assisted Living Units 46 510 $26,221 $355
M
emory Care Units:
Private 16 156 187 $26,221 $372
Total Memory Care Units 16 172 $26,221 $372
N
ursing Beds: Intermediate/Skilled
Private 72 172 N/A $467
Semi-Private 30 212 N/A $417
Total Nursing Beds 102 184 N/A
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
12
The following table summarizes the type, number, approximate square footages, Entrance Fees,
and Monthly Fees for Wesley Pines effective as of October 1, 2023.
Table 4
Wesley Pines Unit Configuration
Independent Living
Unit Type Unit Count Square Footage
Standard
Entrance Fee
Plan
(1)(2)
Monthly Fee
(1)(3)(4)
Independent Living
The Cottages:
Cottage w/carport 10 1,108 $80,128
$3,172
The Villas:
Duplex Villa 2 1,258
$90,718 $3,219
Free Standing Villa 2 1,300
$106,023 $3,219
Deluxe Villa 12 1,500
$185,752 $3,297
Total Independent Living 26 1,315 $131,648 $3,237
Assisted Living
(5)
Studio Parkton 5
306 $4,410 $5,022
Studio Fairmont 23
360 $5,513 $5,739
Studio Marietta 2
436 $7,718 $6,806
Suite Rowland 2
420 $13,230 $6,806
Suite Pembroke 4
456 $16,538 $7,145
Total Assisted Living 36 371 $7,136 $5,914
Nursing Beds Daily Fee
Private 22 230 N/A $323
Semi-private 40 378 N/A $306
Total Nursing 62 325 N/A
Source: Management
(1) Fees are effective October 1, 2023.
(2) In addition to the Standard Entrance Fee Plan, Management also offers the 50% Refund Plan and the 90%
Refund Plan. Entrance Fees under the 50% Refund Plan and 90% Refund Plan are higher than the Standard
Entrance Fee Plan by a factor of 1.40 and 1.92, respectively. Monthly Fees are the same for all refund plans.
(3) The second person Monthly Fee in the Wesley Pines ILUs is $910.
(4) Three meal plans are available in the Wesley Pines ILUs. The Monthly Fee for Plan C, which includes no
meals (i.e., pay per meal) is shown in the table above. Plan B includes one meal per day, and has Monthly Fees
ranging from $3,402 - $3,526, with a second person Monthly Fee of $1,140. Plan A includes three meals per
day, and has Monthly Fees ranging from $3,780 - $3,905, with a second person Monthly Fee of $1,518.
(5) The second person Monthly Fee in the Wesley Pines ALUs (excluding the Parkton, Fairmont and Marietta
units) is $1,654.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
13
Cypress Glen
Cypress Glen is situated on an approximately 91 acre site at 100 Hickory Street in Greenville, Pitt
County, North Carolina. Cypress Glen opened in 1987 and currently consists of the following:
149 independent living apartments in five wings (the Cypress Glen IL Apartments)
including the following:
65 independent apartments in the A & B wings (the A & B Wing Apartments);
30 independent living apartment in the D wing (the D Wing Apartments); and,
54 independent living apartments in the East & West wings (the East & West Wing
Apartments).
63 independent living cottages (the Cypress Glen Cottages);
30 assisted living units (the Cypress Glen ALUs);
12 memory care units (the Cypress Glen MCUs); and
30 skilled nursing beds (the Cypress Glen Nursing Beds).
The Cypress Glen IL Apartments and Cypress Glen Cottages are collectively defined as the
Existing Cypress Glen ILUs. The Cypress Glen ALUs, the Cypress Glen MCUs and the Cypress
Glen Nursing Beds are collectively referred to as the Cypress Glen Healthcare Center.
Common areas and amenities include, but are not limited to, a dining room, private dining room,
café, wellness center including beauty salon, massage room, pool and fitness rooms, gift shop,
library, arts & crafts room, auditorium/chapel, lounge areas, gardens, and walking trails.
The following table summarizes the type, number, approximate square footages, Entrance Fees
and Monthly Fees for the Existing Cypress Glen ILUs, effective as of October 1, 2023.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
14
Table 5
Existing Cypress Glen ILU Configuration
Independent Living
Unit Type Unit Count Square Footage
Standard
Entrance Fee
Plan
(1)(2)(3)
Monthly Fee
(1)(2)(3)
Apartments:
Wings A & B
Studio 5 230 $22,550 $2,309
Single 8 280 $27,450 $2,425
Deluxe Single 2 399 $39,110 $3,029
Deluxe Studio 9 460 $45,094 $3,204
Combination 10 468 $46,502 $3,267
Combination with patio 1 468
$49,002 $3,267
Deluxe Suite 17 560 $54,896 $3,443
Deluxe Suite with patio 2 560
$57,396 $3,443
1 Bedroom Main 1 616 $56,858 $3,501
1 Bedroom Suite 1 695 $68,131 $3,522
2 Bedroom Suite 2 840 $82,344 $3,688
2 Bedroom Suite with patio 1 840
$84,844 $3,668
2 Bedroom Deluxe Suite 1 840
$87,627 $3,775
1 Bedroom Grand 1 859 $85,306 $3,720
1 Bedroom Den Main 1 935 $87,627 $3,775
1 Bedroom Flex 2 936 $93,829 $3,775
2 Bedroom Main Grand 1 1,120 $103,502 $3,859
Wing D
1 Bedroom 9 745
$109,357
$3,523
1 Bedroom Deluxe 2 826
$115,278
$3,560
1 Bedroom Deluxe with patio 1 826
$117,778 $3,560
2 Bedroom 6 1,076 $143,199 $4,001
2 Bedroom with patio 1 1,076
$145,699 $4,001
2 Bedroom Deluxe 2 1,322 $165,858 $4,591
2 Bedroom Deluxe with patio 1 1,322
$168,358 $4,591
3 Bedroom 2 1,399 $170,966 $4,884
3 Bedroom with patio 1 1,399
$173,466 $4,884
3 Bedroom Special 2 1,455 $189,804 $5,179
3 Bedroom Deluxe 2 1,507
$189,804 $5,179
3 Bedroom Deluxe with patio 1 1,507
$192,304 $5,179
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
15
Table 5 (continued)
Existing Cypress Glen ILU Configuration
Independent Living
Unit Type Unit Count Square Footage
Standard
Entrance Fee
Plan
(1)(2)(3)
Monthly
Fee
(1)(2)(3)
Wings East & West
1 Bedroom Alcove 2 744 $115,768 $3,535
1 Bedroom Alcove with patio 1 744
$118,268 $3,535
1 Bedroom 2 805 $122,428 $3,559
1 Bedroom with patio 1 805
$124,928 $3,559
1 Bedroom Den 8 961 $135,270 $3,779
1 Bedroom Den with patio 4 961
$137,770 $3,779
2 Bedroom 10 1,090 $156,329 $4,019
2 Bedroom with patio 5 1,090
$158,829 $4,019
2 Bedroom Bay 8 1,301 $182,566 $4,883
2 Bedroom Ba
y with patio 4 1,301
$185,066 $4,883
2 Bedroom Greatroom 6 1,513 $205,739 $5,249
2 Bedroom Greatroom with patio 3 1,513
$208,239 $5,011
Subtotal/Wtd Avg Apts
149 857 $109,928 $3,790
Cottages & Villas:
The Dogwoo
d
8 1,074 $146,967 $3,955
The Cypress 6 1,310 $185,574 $4,884
The Birch
(4)
10 1,437 $189,323 $5,104
The Hawthorn Villa 4 1,530 $247,230 $5,182
The Alde
r
10 1,680 $212,273 $5,325
The Magnolia Villa 5 1,708 $275,992 $5,405
The Hawthorn 4 1,782 $288,221 $5,540
The Oak Villa 2 1,865 $301,362 $5,592
The Elm 4 2,042 $250,680 $5,771
The Willow 1 2,061 $273,769 $5,888
The Evergreen 6 2,250 $277,154 $6,310
The Oa
k
3 2,348 $326,463 $6,388
Subtotal/Wtd Avg - Cottages 63 1,649 $227,753 $5,275
Total 212 1,092 $144,942 $4,231
Source: Management
(1) Entrance Fees and Monthly Fees are effective October 1, 2023.
(2) In addition to the Standard Entrance Fee Plan, Management also offers the 50% Refund Plan, an 80 percent
refundable plan (the 80% Refund Plan), and the 90% Refund Plan. Entrance Fees under the 50% Refund
Plan, 80% Refund Plan and 90% Refund Plan are higher than the Standard Entrance Fee Plan by a factor of
1.40, 1.70 and 1.92, respectively. Monthly Fees are the same for all refund plans.
(3) The second person Entrance Fee for the Cypress Glen ILUs is $9,995 and the second person Monthly Fee is
$1,347 for all refund plans.
(4) One Birch cottage has been temporarily removed from inventory for use as Project marketing office space.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
16
The following table summarizes the unit types, approximate square footage and Daily Fees for the
Cypress Glen Healthcare Center
Source: Management
(1) Fees are effective October 1, 2023.
(2) Direct admissions to the Cypress Glen ALUs and Cypress Glen MCUs are required to pay a $15,000 Entrance
Fee upon admission to Cypress Glen. The Entrance Fee amortizes at two percent per month for 50 months with
a maximum possible refund of $14,000 due to a $2,000 non-refundable component. There are no direct
admissions into the Cypress Glen Nursing Beds.
(3) Cypress Glen operates 30 assisted living beds in 26 private and two semi-private rooms.
The Project
Management is currently planning an expansion project (the Project) at the Cypress Glen campus
to include the following:
Independent Living Unit Expansion: Management is to construct 57 new independent living
apartment units (the New Cypress Glen ILUs) and associated underbuilding parking.
Common Area Expansion and Renovation
:
Management is to complete renovations and
expansions to the Cypress Glen common areas as well as site improvements, to include remodeled
and improved office suites, staff member break room, and marketing center; upgrades to the central
kitchen; new resident dining facility with outdoor dining, auditorium, woodworking shop, mail
room, library and recreational space; and site improvements to include the construction of flood
control levee, new entry with guardhouse, courtyard, maintenance shed and additional parking.
The Existing Cypress Glen ILUs and the New Cypress Glen ILUs are collectively referred to as
the Cypress Glen ILUs.
Table 6
Cypress Glen Healthcare Center Configuration
Number
of Units
Square
Footage
Entrance
Fee
(1)(2)
Daily
Fees
(1)
A
ssisted Living Units:
Private 26 273 $15,000 $313
Semi-Private 4 252 $15,000 $289
Total Assisted Living Units
(3)
30 270 $15,000 $310
M
emory Care Units:
Private 12 260 +/- $15,000 $330
Total Memory Care Units 12 260 $15,000 $330
N
ursing Beds:
Private 26 273 N/A $372
Semi-Private 4 252 N/A $349
Total Nursing Beds 30 270 N/A $369
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
17
The following table summarizes the type, number, approximate square footages, Entrance Fees,
and Monthly Fees for the New Cypress Glen ILUs, effective upon the anticipated opening,
December 1, 2025.
Table 7
New Cypress Glen Independent Living Configuration
Independent Living
Unit Type Unit Count Square Footage
Standard Entrance
Fee Plan
(1)(2)(3)
Monthly Fee
(1)(2)(3)
Holl
y (1-BR Den) 6 1,099 $223,000 $4,052
Pine (2-BR Deluxe)
6 1,155 $235,000 $4,258
Maple (2-BR Inside Corner)
12 1,283 $260,000 $4,731
Spruce (2-BR Den)
18 1,347 $274,000 $4,965
Cedar (2-BR Outside Corner)
12 1,401 $285,000 $5,164
Sycamore (2-BR Penthouse)
3 1,884 $393,000 $6,590
Total/Wtd Averages
57 1,327 $270,158 $4,873
Source: Management
(1) Fees are effective upon the anticipated opening, December 1, 2025.
(2) In addition to the Standard Entrance Fee Plan, Cypress Glen also offers the 50% Refund Plan, the 80% Refund
Plan, and the 90% Refund Plan. Entrance Fees under the 50% Refund Plan, 80% Refund Plan and 90% Refund
Plan are higher than the Standard Entrance Fee Plan by a factor of 1.40, 1.70 and 1.92, respectively. Monthly Fees
are the same for all refund plans.
(3)
The second person Entrance Fee for the New Cypress Glen ILUs is $9,751 and the second person Monthly Fee is
$1,347.
As of January 15, 2024, 50 New Cypress Glen ILUs were reserved by 50 Depositors, representing
approximately 88 percent of the 57 available New Cypress Glen ILUs.
Project Timeline
The following table illustrates the anticipated timeline for Project completion and fill-up of the
New Cypress Glen ILUs.
Table 8
Anticipated Project Construction and Fill-Up Timeline
Date Item
February 2024 Begin Project construction and renovation
December 2025 New Cypress Glen ILUs available for occupancy
March 2026 Project construction complete
September 2026 Achieve stabilized occupancy of 93%
Source: Management and LCS Development (hereinafter defined).
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
18
Management of the Communities
UMRH and LCS entered into a client services agreement (the Management Agreement)
effective January 1, 2023 whereby LCS agrees to act as agent of UMRH, to serve as the manager
of the Communities, including the real estate, and in connection therewith, to recommend and
regularly evaluate policies and goals of UMRH, implement the policies, budgets, directives and
goals for the Communities established by UMRH, to manage the day-to-day operations of the
Communities in accordance with UMRHs policies, directives and goals, to provide UMRH with
relevant information as to past operations, and to make recommendations as to the future
operations of the Communities. LCS is to maintain a system of financial controls for the
Communities using the software provided at other similar communities managed by LCS or its
subsidiaries, and provide UMRH with monthly financial statements and annual budgets for
operating revenue and expense, capital expenditures and cash flow forecasts for the Communities,
and recommend a schedule of resident entrance fees, monthly service fees and other charges. All
staff at the Communities are direct employees, with the exception of the corporate executive
director and the executive director at Wesley Pines, who are LCS employees.
UMRH is obligated to pay LCS a monthly management fee (the Monthly Management Fee)
equal to $190,000 per month (the Base Fee), plus the positive difference, if any, between 3.5
percent of monthly operating revenues and the Base Fee (the Incentive Fee). The Base Fee
increases annually, beginning January 1, 2024, at the same percentage increase as the percentage
increase in the index figure for all items as shown in the United States Consumer Price Index
for All Urban Consumers (CPI-U). As described in the Management Agreement, monthly
operating revenue equals total operating revenues of the Communities actually received during
each calendar month, including monthly service fees, earnings on reserves, additional service
payments and healthcare center payments, but does not include any revenue received by UMRH
related to the corporate office. In addition to the Monthly Management Fees described above, LCS
will be reimbursed for the salary and benefits of the corporate executive director and for certain
other expenses.
The Management Agreement commenced on January 1, 2023, and is to continue for 60 months,
unless sooner terminated based on terms of the Management Agreement.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
19
Development of the Project
UMRH and LCS Development LLC (LCS Development) entered into a Development
Agreement effective August 26, 2021, (the Development Agreement) to provide certain
development and consulting services in connection with planning, financing, constructing,
marketing and opening of the units associated with the Project.
The Development Fee
As compensation for services rendered, UMRH is to pay a Development Fee equal to 5.0 percent
of actual project costs which has been and is to be paid as follows: (a) $100,000 upon completion
of tasks associated with the Projects development plan (the Development Plan); (b) fees to be
earned and paid upon achieving certain milestone activities, (i) 10.0 percent of the Development
Fee upon completion of design documents for phase B1, (ii) 10.0 percent of the Development Fee
upon completion of design documents for phase B2, (iii) 10.0 percent of the Development Fee
upon completion of design documents for phase C, (iv) 30.0 percent of the Development Fee upon
the earlier of the issuance of a notice to proceed with certain constriction activities, or closing of
permanent financing, (v) 25.0 percent of the Development fee paid during construction, and (vi)
15.0 percent of the Development Fee upon 90% occupancy of the New Cypress Glen ILUs. Total
Development Fees are anticipated to equal approximately $4,626,000.
UMRH is also expected to reimburse LCS Development for all reasonable out-of-pocket expenses
for personnel employed by LCS Development to such extent such expenses are included in the
Project-related budget. Out-of-pocket expenses could include, but are not limited to, the cost of
reasonable transportation and living expenses, travel, telephone, express delivery, copying, etc.
but not including any overhead or administrative expense.
The Marketing and Sales Fee
In addition to the Development Fee, LCS Development is to be paid a marketing and sales
commission fee (the Marketing Fee), totaling 2.0 percent of the entrance fees to be paid for
initial occupancy of the New Cypress Glen ILUs. Fifty percent of the Marketing Fee is to be earned
at the time a New Cypress Glen ILU is reserved with a 10 percent deposit (the Reservation
Marketing Fee) and 50 percent is to be earned and paid upon occupancy of each New Cypress
Glen ILU. Payment of the Reservation Marketing Fee is to be deferred until permanent financing,
with the exception of the following payments: (i) $10,000 due upon commencement of priority
deposits; (ii) $10,000 upon achievement of 25 percent reservations of the New Cypress Glen ILUs
and (iii) $10,000 upon achievement of 50 percent reservations of the New Cypress Glen ILUs.
Total Marketing Fees are anticipated to equal approximately $312,000.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
20
Summary of Financing
Total financial requirements of the Project is assumed to approximate $91,595,000. The Obligated
Group proposes to fund these financial requirements primarily through the proposed issuance of
$67,180,000 of North Carolina Medical Care Commission Retirement Facilities First Mortgage
Revenue Bonds (The United Methodist Retirement Homes Project) Series 2024 (the Series 2024
Bonds), consisting of $53,905,000 long-term, tax-exempt bonds Series 2024A (the Series 2024A
Bonds) and $13,275,000 short-term, Tax-Exempt Mandatory Paydown Securities (TEMPS
SM
)
(the Series 2024B Bonds). The Obligated Group is to be solely responsible for the payment of
debt service on the Series 2024 Bonds.
Management has assumed the following sources and uses of funds in preparing its financial
forecast based on information provided by B.C. Ziegler and Company (the Underwriter).
Table 9
Sources and Uses of Funds
(In Thousands)
Sources of Funds:
Series 2024A Bonds
(1)
$53,905
Series 2024B Bonds
(1)
13,275
Ori
g
inal issue
p
remium Series 2024A Bonds
(1)
1,006
Total Series 2024 Bonds
p
roceeds 68
,
186
Contribution
(2)
20,000
Interest earnin
g
s on
t
rustee held funds
(3)
3,409
Total Sources of Funds $91,595
Uses of Funds:
Pro
ject Costs:
Direct construction costs
(4)
$65,081
Desi
g
n and en
g
ineerin
g
(5)
4,476
Indirect construction costs
(6)
4,760
Develo
pment Fees
(7)
4,626
Marketin
g costs
(8)
312
Contin
gency
(9)
3,771
Miscellaneous costs
(10)
680
Total Project Costs $83,706
Funded Interest Account Series 2024 Bonds
(11)
6,448
Cost of Issuance and Other Costs
(12)
1,441
Total Uses of Funds $91
,
595
Source: Management, LCS Development, and the Underwriter
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
21
(1)
According to the Underwriter, the following series of bonds are assumed to be issued:
$53,905,000 of tax-exempt fixed rate Series 2024A Bonds, to be issued at a premium of
approximately $1,006,000, and
$13,275,000 of fixed rate TEMPS
SM
Series 2024B Bonds.
(2)
A contribution from the Obligated Group of approximately $20,000,000 is assumed to be provided for
Project construction, marketing expenses, other Project related costs, and a portion of issuance costs.
(3)
Interest earnings on trustee held funds are assumed to approximate $3,409,000.
(4)
Direct construction costs and other costs related to the construction of the Project are assumed to
approximate $65,081,000, including a guaranteed maximum price (the GMP) of $65,080,677 provided
by the UMRHs contractor, Frank L. Blum Construction Company (the General Contractor) which
includes a contractors contingency of approximately $1,334,000.
(5)
Design and engineering costs are assumed to approximate $4,476,000 and include costs associated with
architect, civic engineering, interior design fees, and furniture.
(6)
Indirect construction costs associated with equipment and administrative expenses approximate
$4,760,000.
(7)
Development Fees approximate $4,626,000 in association with development services provided by LCS
Development, as described in the Development Agreement.
(8)
Marketing costs approximate $312,000 in association with marketing and sales services provided by
LCS Development, as described in the Development Agreement.
(9)
Management has estimated a Project contingency of $3,771,000.
(10)
Miscellaneous costs approximate $680,000 and include costs associated with consultant and legal fees,
filing and impact fees, general costs, and travel expenses.
(11)
The Underwriter has estimated $6,448,000 of the Series 2024 Bonds, including interest earnings of
approximately $3,409,000, to be used to fund interest on the Series 2024 Bonds for a period of
approximately 25 months.
(12)
Costs of issuance related to the Series 2024 Bonds are assumed to approximate $1,441,000 and include,
accounting fees, legal counsel fees, feasibility consulting fees, bond issuance fees, the cost for the
printing of the preliminary official statement and official statement, and other miscellaneous financing
costs.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
22
Description of the Residency Agreements
To be accepted for admission for an Existing Cypress Glen ILU, a New Cypress Glen ILU, a
Croasdaile ILU, a Cypress Glen ILU or a Wesley Pines ILU (collectively defined as the
Independent Living Units), a prospective resident (the Resident) must be at least 62 years of
age at the time residency is established and exhibit an ability to live independently and meet their
financial obligations as residents of the selected Existing Independent Living Unit.
To reserve an Independent Living Unit, a prospective resident is required to execute a residency
agreement (the Residency Agreement), provide self-disclosure of his or her health and finances
and place a deposit equal to 10 percent of the Entrance Fee (the Entrance Fee Deposit) on the
selected Independent Living Unit (the Depositor). The remaining 90 percent of the Entrance
Fee is due on or before the occupancy date (the Occupancy Date) of the Independent Living
Unit.
The Residency Agreement is a contract which upon payment by the Resident of an Entrance Fee
and ongoing payments of Monthly Fee to UMRH, entitles the Resident to occupy the selected
Independent Living Unit and UMRH is to provide the following services:
Weekly housekeeping;
Limited meal delivery when approved by authorized staff;
All utilities, except telephone;
Standard cable television;
Consultation and preparation of routine special diets;
Building janitor and maintenance;
Grounds keeping;
Planned social, cultural, recreational, educational and spiritual activities;
Chaplain services;
Parking;
Schedule local transportation;
Limited additional storage space with the exception of the Cypress Glen Cottages;
Personal emergency transmitter system;
24-hour security; and,
Priority access to a nursing bed or assisted living unit, as necessary, including six days of
care in the health center per person per year.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
23
In addition, the frequency of meals and flat linen services included in the Monthly Fee varies for
each Community as noted in the following table.
Source: Management
(1) The flexible meal program at Croasdaile Village is equal to 14 units per day or approximately one meal per day.
(2) The a la carte plan is the most popular meal plan at Wesley Pines.
The Resident may purchase additional services for a fee, including, but not limited to, resident and
guest meals, preparation of special diets (beyond those which are routine), additional housekeeping
services, personal transportation services, wireless Internet, services of the clinic, home care
services, and certain ancillary services and supplies.
The Monthly Fee may be revised based on the experience of UMRH and estimates of its future
costs, at its sole discretion. UMRH expects to make such adjustments not more than once a year
and is required to provide 30 days prior written notice of any such adjustments.
Number of Meals Flat Linen Service
Cypress Glen
A & B Wing Apartments 2/day
Included
(laundry facilities available)
D Wing Apartments 25/month
Not included
(washers and dryers provided in unit)
East & West Wing Apartments 25/month
Not included
(washers and dryers provided in unit)
Cypress Glen Cottages 25/month
Not included
(washers and dryers provided in unit)
Croasdaile Village
Homestead ILUs
Flexible Meal Program
(1)
(studio residents receive 3/day)
Not included
(laundry facilities available)
Heritage ILUs Flexible Meal Program
(1)
Not included
(laundry facilities available)
Croasdaile Duplexes Flexible Meal Program
(1)
Not included
(laundry facilities available)
Croasdaile Homes Flexible Meal Program
(1)
Not included
(laundry facilities available)
Wesley Pines
Wesley Pines Villas
Three meal plans including 1/day,
3/day or a la carte; Monthly Fee based
on meal plan chosen
(2)
Not included
(washers and dryers provided in unit)
Wesley Pines Duplexes
Three meal plans including 1/day,
3/day or a la carte; Monthly Fee based
on meal plan chosen
(2)
Not included
(washers and dryers provided in unit)
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
24
Healthcare Benefit
Residents receive six days of care annually in the applicable Communitys health center while they
are a resident in an Existing Independent Living Unit or New Cypress Glen ILU (the Healthcare
Benefit). In the case of double occupancy, each Resident receives six days of care; however, the
days cannot be combined for use by one of the Residents. The Healthcare Benefit renews on an
annual basis and does not accumulate. Residents are required to pay the charges for physician
services and any additional medical and miscellaneous supplies and services associated with
medical treatment.
In the event the Resident requires temporary care beyond the six annual days, the Resident would
pay the per diem charge for care in the health center as well as the Monthly Fee of the Residents
Existing Independent Living Unit or New Cypress Glen ILU.
In the event the Resident requires permanent care in the health center, the Resident would be
required to release his or her Existing Independent Living Unit or New Cypress Glen ILU and pay
the per diem charge for care in the health center.
Entrance Fees
UMRH offers three Entrance Fee plans for the Existing Independent Living Units including the
Standard Entrance Fee Plan, the 50% Refund Plan and the 90% Refund Plan. In addition, the 80%
Refund Plan is offered at Cypress Glen. The Entrance Fee options, related amortization schedules
and refunds upon termination of the Residency Agreement are as follows:
Entrance Fee Option Amortization Schedule
Standard Plan Entrance Fee amortizes two percent per month for up
to 50 months from the occupancy date. After 50
months of occupancy, no refund is due to the
Resident.
50% Refund Plan
Entrance Fee amortizes two percent per month for up
to 25 months from the occupancy date. After 25
months, the Entrance Fee is 50 percent refundable.
80% Refund Plan
(1)
Entrance Fee amortizes two percent per month for
up to 10 months from the occupancy date. After 10
months, the Entrance Fee is 80 percent refundable.
90% Refund Plan Entrance Fee amortizes two percent per month for up
to five months from the occupancy date. After five
months, the Entrance Fee is 90 percent refundable.
Source: Management
(1) The 80% Refund Plan is only offered at Cypress Glen.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
25
The following table summarizes the current percentage of refund plans for the Existing Cypress
Glen ILUs and for the New Cypress Glen ILUs as of November 30, 2023 and December 20, 2023,
respectively.
Table 10
Utilization of Entrance Fee Options at Cypress Glen
Play Type
Existing
Cypress Glen ILUs
(1)
New
Cypress Glen
ILUs
(1)
Managements
Forecast
(2)
Standard Plan 89.0% 92.0% 100%
90% Refund Plan 7.7% 4.0%
80% Refund Plan 1.9% 2.0%
50% Refund Plan 1.4% 2.0%
Total 100.0% 100.0% 100%
Source: Management
(1) The utilization of Entrance Fee options for the Existing Cypress Glen ILUs and for the New Cypress Glen ILUs are as of
November 30, 2023 and December 20, 2023, respectively.
(2) For purposes of the forecast, Management has assumed 100 percent of New Cypress ILUs utilization to be the Standard
Entrance Fee Plan.
Termination by the Resident Prior to Occupancy Date
If the Residency Agreement is terminated prior to occupancy, the Resident would receive a refund
of the Entrance Fee paid, less a non-refundable portion of the Entrance Fee equal to $2,000 and
less any costs specifically incurred by UMRH at the Residents request. The refund would be paid
within 60 days upon receipt of the written notice of cancellation.
Termination by the Resident After the Occupancy Date
After the occupancy date, the Resident may cancel the Residency Agreement for any reason by
providing written notification of 30 days. Any refund due to the Resident (if applicable) would be
paid, without interest, when the Residents Independent Living Unit has been reserved by a new
resident and upon receipt of the full Entrance Fee paid by a new resident or within two years from
the date of cancellation, whichever occurs first.
Services Provided for in the Assisted Living Units
The following table describes the services provided for residents of the Cypress Glen ALUs,
Croasdale ALUs and the Wesley Pines ALUs (collectively the Assisted Living Units), as
described in the residency agreements for the Assisted Living Units (the AL Residency
Agreement).
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
26
Additional services provided in the Assisted Living Units include:
Assistance or supervision of activities of daily living (ADL);
Supervision or administration of medications;
Periodic medical and social evaluation to determine care required;
Routine measurement and recording of basic vital functions;
Scheduled transportation;
Planned social, cultural, spiritual, physical, intellectual and recreational activities;
24-hour emergency response; and,
Resident funds management in an interest bearing account.
Services Provided for in the Memory Care Units
The following are the basic services for the Cypress Glen MCUs and the Croasdaile MCUs,
(collectively referred to as the Memory Care Units) included in the Monthly Fee as described in
the residency agreements for the Memory Care Units (the MC Residency Agreement).
Three meals per day plus snacks;
Daily housekeeping, including bed making and trash removal;
Laundry service for personal clothing, bed linens and bath linens;
Utilities including electricity, gas, water, sewer;
Cable television;
Assistance or supervision of ADLs;
Supervision or administration of medications;
Periodic medical and social evaluation to determine care required;
Routine measurement and recording of basic vital functions;
Scheduled medical transportation;
Planned social, cultural, spiritual, physical, intellectual and recreational activities;
Secured environment;
24-hour emergency response; and,
Manage Resident personal funds in an interest bearing account.
Number of
Meals
Utilities Housekeeping Laundry Service
Cypress Glen
3/day plus snacks
Electricity, gas,
water, sewer and
Daily including bed
making and trash
Personal clothing,
bed linens and towels
Croasdaile Village 3/day plus snacks
Electricity, gas,
water, sewer and
expanded cable
television service
Weekly
Personal clothing,
bed linens and towels
Wesley Pines 3/day plus snacks
Heating, cooling,
electricity, gas,
water, sewer, trash
removal and cable
television service
2 times per week;
trash removal daily
Bed linens changed
twice per week
Source: Management
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
27
Services Provided for in the Nursing Beds
Upon moving to a Cypress Glen Nursing Bed, Croasdaile Nursing Bed or Wesley Pines Nursing
Bed, a Resident (the Nursing Resident) would be required to execute a nursing residency
agreement (the Health Center Admission Agreement). Nursing Residents are to receive the
following nursing services under the Health Center Admission Agreement:
Licensed nursing services 24-hours per day;
Three meals per day with special diets accommodated and snacks;
Personal laundry and laundering of linens and bedding;
Housekeeping and maintenance;
Utilities including electricity, gas, water, sewer;
Cable television;
24-hour emergency response system;
Assistance with activities of daily living (bathing, dressing, eating, toileting, mobility and
laundry) as needed;
Routine measurement and recording of basic vital functions;
Planned social, culture, spiritual, educational and recreational activities;
Chaplaincy services;
Use of the common areas; and,
Manage Resident personal funds in an interest bearing account..
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
28
Regulatory
Continuing Care Regulatory Requirements
In North Carolina, CCRCs are licensed and regulated by the North Carolina Department of
Insurance (NCDOI or the Department) under Chapter 58, Article 64 of the North Carolina
General Statutes (the General Statutes) and under Title 11 of the North Carolina Administrative
Code. The General Statutes define continuing care as the furnishing to an individual other than
an individual related by blood, marriage, or adoption to the person furnishing the care, of lodging
together with nursing services, medical services, or other health related services, under an
agreement effective for the life of the individual or for a period longer than one year.
A CCRC is required to obtain a license from the NCDOI prior to entering into continuing care
contracts. Registration must include a disclosure statement, including financial statements and
other information required by the NCDOI, which is required to be updated each year subsequent
to initial registration (the Disclosure Statement). The provider is also required to deliver a
Disclosure Statement to prospective residents upon or prior to execution of a residency agreement
or collection of a deposit. In addition, CCRCs are required to maintain certain minimum levels of
operating reserves to provide security to residents that the community will be able to meet its
contractual obligations to provide continuing care.
CCRCs may provide a variety of contracts to residents. Generally, the major distinction in contract
types relates to the health care benefit and the payment of an entrance fee. The most common
contract types are as follows:
Extensive or Life Care Contract (Type A) - Under a Type A contract, a resident typically pays
an upfront entrance fee and an ongoing monthly service fee in exchange for the right to lifetime
occupancy of an independent living unit with certain services and amenities. Residents of
independent living who require assisted living or nursing care may transfer to the appropriate level
of care and continue to pay essentially the same monthly fee they had been paying for their
residence, or upon permanent transfer, the fee may be adjusted to the weighted average of all
monthly fees or to a specified independent living unit monthly fee.
Modified Contract (Type B) - Under a Type B contract, the resident also generally pays an
upfront entrance fee and an ongoing monthly service fee for the right to lifetime occupancy of an
independent living unit with certain services and amenities. However, under a Type B contract,
the CCRC typically provides assisted living or nursing care to residents either (a) at a discounted
rate on the per diem, e.g., 20 percent discount; (b) a certain number of days per year or per lifetime,
e.g., 60-90 days; or, (c) a combination of the two.
Fee-for-Service Contract (Type C) - A Type C contract also generally requires an upfront
entrance fee and an ongoing monthly service fee for the right to lifetime occupancy of an
independent living unit with certain services and amenities. However, under the Type C contract,
residents who require assisted living or nursing care do not receive any discount on assisted living
or nursing services.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
29
Rental Communities (Rental) Under a Rental contract, a resident signs a residency agreement
for the independent living unit selected and pays for various additional services utilized (including
assisted living, memory care or nursing) on a monthly basis at prevailing market rates. The resident
is not required to pay an entrance fee and the contract term is typically on a month-to-month basis.
Assisted Living Regulatory Requirements
Adult Care Homes and Multi-Unit Assisted Housing with Services (MAHS) are regulated by
Department of Health and Human Services (DHHS), under Chapter 131D, Article 1 of the North
Carolina General Statutes and Title 10A, Subchapter 13F of the North Carolina Administrative
Code. DHHS defines MAHS as an assisted living residence in which hands-on personal care
services and nursing services which are arranged by housing management are provided by a
licensed home care or hospice agency through an individualized written care plan. Residents must
not be in need of 24-hour supervision. MAHS must register with DHHS and provide a disclosure
statement. The North Carolina Medical Care Commission (the Commission) also has
rulemaking authority over Adult Care Homes (as defined hereinafter). According to DHHS, most
assisted living facilities are licensed as Adult Care Homes.
Adult Care Homes, licensed by DHHS, are defined as assisted living residences in which the
housing management provides 24-hour scheduled and unscheduled personal care services to two
or more residents, either directly or for scheduled needs, through formal written agreement with
licensed home care or hospice agencies.
For the purpose of the report, the term assisted living is utilized to denote both licensed Adult
Care Homes and unlicensed MAHS. Management does not consider foster homes or assisted
living facilities with less than 20 beds or lower fee structures to be considered comparable to the
assisted living units at the Communities.
For purposes of determining bed need and issuing a Certificate of Need (CON) for Adult Care
Homes, DHHS reviews each application on a case by case basis and applies a bed need
methodology to the corresponding countys bed need. The following factors are used to determine
forecasted bed need by county: bed-to-population ratios, reasonable levels of geographic access
for the population, and beds developed as part of a CCRC.
CCRCs may qualify for an exemption from the CON requirement for any new or reconfigured
Adult Care Home beds by demonstrating that the proposed assisted living beds would be used
exclusively to meet the needs of persons with whom the facility has continuing care contracts (or
internal resident transfers through the continuum of care) and who have lived in an independent
living unit of the CCRC for a period of at least 30 days.
Nursing Care Regulatory Requirements
DHHS licenses and regulates skilled nursing facilities. Nursing facilities are defined under the
North Carolina Nursing Home Licensure Act (Part 1 of Article 6, Chapter 131E of the North
Carolina General Statutes) (the North Carolina Nursing Home Licensure Act) and Title 10A of
the North Carolina Administrative Code as facilities that provide nursing or convalescent care for
three or more persons, unrelated to the licensee. According to the North Carolina Nursing Home
The United Methodist Retirement Summary of Significant Forecast Assumptions
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See Independent Accountants Compilation Report
30
Licensure Act, a nursing home provides care for persons who have remedial ailments or other
ailments for which medical and nursing care are required, but who are not sick enough to require
general hospital care.
There is currently a CON requirement for new nursing beds under the State Medical Facilities
Plan. CCRCs may qualify for an exemption from the CON requirements for any new nursing beds
that would be used exclusively to meet the needs of persons with whom the facility has continuing
care contracts under the sheltered bed policy. The residents under the continuing care contract
must have lived in a non-nursing unit for at least 30 days prior to transferring to a nursing bed.
All of the Cypress Glen Nursing Beds are closed beds, 50 of the Croasdaile Nursing Beds are
closed beds, and 30 of the Wesley Pines Nursing Beds are closed.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
31
Summary of Significant Accounting Policies
(a) Basis of Accounting
The Obligated Group maintains its accounting and financial records according to the accrual
basis of accounting.
(b) Cash and Cash Equivalents
Cash and cash equivalents, excluding those classified as investments and assets whose use is
limited, include certain investments in highly liquid instruments, including short-term debt
securities and money market funds with original maturities of three months or less when
purchased.
(c)
Restricted Cash
The Obligated Group has implemented FASB ASU No. 2016-18, Statement of Cash Flows
(Topic 230): Restricted Cash, which requires that a statement of cash flows explain the change
during the period in the total of cash, cash equivalents and amounts generally described as
restricted cash or restricted cash equivalents. Amounts generally described as restricted cash
and restricted cash equivalents should be included with cash and cash equivalents when
reconciling the beginning-of-period and end of period total amounts shown on the statement
of cash flows. The provisions of FASB ASU No. 2016-18 are effective for the purpose of
Managements forecast.
(d) Investments
Investments in equity securities with readily determinable fair values and all investments in
debt securities are measured at fair value in the statements of financial position. The fair values
of investments are determined based upon quoted market prices. Management has not assumed
any unrealized gains or losses on investments during the forecast period.
(e) Assets Limited as to Use
Assets limited as to use are assumed to be carried at fair value, which, based on the nature of
the underlying securities, is assumed to approximate historical cost. Management assumes no
material changes in fair values that result in material net realized or unrealized gains or losses
during the forecast period.
(f) Property and Equipment
Property and equipment is stated at cost less accumulated depreciation. Contributed property
is recorded at the estimated fair value at the date of receipt. Depreciation is computed under
the straight-line method and is based on estimated useful lives of 35 years for buildings, 8 to
10 years for principal equipment, 5 years for minor equipment and 5 years for vehicles. The
cost of maintenance and repairs is expensed as incurred.
(g) Costs of Borrowing
Net interest cost incurred on borrowed funds during the period of construction of capital assets
is capitalized as a component of the cost of acquiring those assets.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
32
(h) Obligation to Provide Future Services
UMRH enters into continuing care contracts with Residents. A continuing care contract is an
agreement between a Resident and UMRH specifying the services and facilities to be provided
over the Residents remaining life. Under each contract, UMRH has the ability to increase
fees as deemed necessary. As of the end of each year, UMRH calculates the present value of
the estimated net cost of future services to be provided to current Residents, including the cost
of facilities, and compares the amount with the balance of deferred revenue from advance fees
at that date. If the present value of the net cost of future services and use of facilities exceeds
the balance of deferred revenue from advance fees, a liability (obligation to provide future
services) is recorded. Management has calculated that the value will not exceed the balance
of deferred entrance fees as of September 30, 2023; therefore, no liability for the obligation to
provide future services is required to be recorded for the forecast period.
(i) Deferred Marketing Costs
Management has implemented ASU No. 2014-09 Revenue from Contracts with Customers
and adopted the treatment of deferred marketing costs. Under the standard, UMRH capitalizes
marketing sales commissions associated with securing a new Resident as an asset and
amortizes these commissions over five (5) years, the estimated term of the respective
Residency Agreements.
(j) Deferred Revenue from Entrance Fees
Fees paid by a Resident upon entering into a continuing care contract, net of the portion thereof
which is refundable to the Resident, are recorded as deferred revenue and amortized into net
resident services revenue using the straight-line method over the estimated remaining life
expectancy of the Resident, adjusted on an annual basis.
(k) Refundable Entrance Fees
Refundable Entrance Fees received are deferred and the refundable portion of the Entrance
Fee is maintained as a liability, reflecting UMRHs future obligation for repayment.
(l) Tax-Exempt Status
The Obligated Group consists of nonprofit organizations exempt from federal income and
excise taxes under section 501(c)3 of the Internal Revenue Code, that are classified as other
than a private foundation.
(m) Investment Income
Investment income is reported as operating revenue unless restricted by donor or law.
Management assumes no changes in fair values that result in material net realized or unrealized
gains or losses during the forecast period.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
33
Assumed Utilization
The following table summarizes the historical and forecasted utilization of the Croasdaile ILUs.
Table 11
Utilization of the Croasdaile Village Independent Living Units
Fiscal Year Ending
September 30,
Average
Units Occupied
Average Units Available
Average Occupancy
(3)
Historical:
2021 389 413 94%
2022 376 402 94%
2023 375 399 94%
2024
(1) (2)
416 436 95%
Forecasted:
2024
(2)
422 452 93%
2025 428 452 95%
2026 428 452 95%
2027
428 452 95%
2028
428 452 95%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
(2) The 54 Heritage ILUs opened in October 2023.
(3) Management assumes that 100% of the Heritage ILUs will be sold. Management assumes that Monthly Fee revenue of the
Heritage ILUs to be based on 94% occupancy.
On December 31, 2023, the Croasdaile ILUs were 95% (416 units) occupied.
The double occupancy rate for the Croasdaile ILUs is assumed to approximate 40 percent of
occupied units in fiscal year 2024 and throughout the remainder of the forecast period.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
34
The following table summarizes the historical and assumed utilization of the Croasdaile Healthcare
Center.
Table 12
Utilization of the Croasdaile Healthcare Center
Average Units Occupied
Year Ending
September 30,
Assisted
Living
Memory
Care
Skilled
Nursing
Total
Occupancy
Total Units
Available
Total
Occupancy
Historical:
2021 39 5 77 121 157 77%
2022 42 15 82 139 166 84%
2023
42
12 84 138 166 83%
2024
(1)
43 14 84 141 164 86%
Forecasted:
2024
43 13 85 141
164 86%
2025 43 13 85
141
164 86%
2026 43 13 85
141
164 86%
2027
43 13 85
141
164 86%
2028
43 13 85
141
164 86%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
On December 31, 2023, the Croasdaile ALUs, Croasdaile Glen MCUs and the Croasdaile Nursing
Beds were 93% (43 units), 88% (14 units) and 82% (84 beds) occupied, respectively.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
35
The following table summarizes the historical and assumed utilization of Wesley Pines.
Table 13
Wesley Pines Utilization
Average Units Occupied
Year Ending
September 30,
Independent
Living
Assisted
Living
Skilled
Nursing
Total
Occupancy
Total Units
Available
Total
Occupancy
Historical:
2021 25 35 51 111 124 90%
2022 25 34 54 113 124 91%
2023
23 32 58 113 124 91%
2024
(1)
25 31 58 114 124 92%
Forecasted:
2024 25 31 56 112 124 90%
2025 25 31 56 112 124 90%
2026 25 31 56 112 124 90%
2027
25 31 56 112 124 90%
2028
25 31 56 112 124 90%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
On December 31, 2023, the Wesley Pines ILUs, the Wesley Pines ALUs and the Wesley Pines
Nursing Beds were 96% (25 units), 86% (31 units) and 94% (58 beds) occupied, respectively.
The double occupancy rate for the Wesley Pines ILUs is assumed to approximate 36 percent of
occupied units during the forecast period.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
36
The following table summarizes the historical and forecasted utilization of the Existing Cypress
Glen ILUs and the New Cypress Glen ILUs.
Table 14
Utilization of the Cypress Glen Independent Living Units
Existing Cypress Glen ILUs
New Cypress Glen ILUs
Fiscal Year
Ending
September 30,
Average
Units
Occupied
Average
Units
Available
Average
Occupancy
Average
Units
Occupied
Average
Units
Available
Average
Occupancy
(3)
Total
Occupancy
Historical:
2021 204 214 95%
95%
2022 205 212 97%
97%
2023 207 212 98%
98%
2024
(1)
206 212 97%
97%
Forecasted:
2024 203 212 96%
96%
2025
(2)
203 212 96%
96%
2026 203 212 96%
31
57 54% 87%
2027
203 212 96%
53
57 93% 95%
2028
203 212 96%
53
57 93% 95%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
(2) The New Cypress Glen ILUs are anticipated to be available for occupancy beginning in December 2025, and are
anticipated to fill over a
10
-month period at an average of approximately
5.3
units per month.
(3) Management assumes that 93% of the New Cypress Glen ILUs will be sold. Management assumes that Monthly Fee
revenue will be based on 93% occupancy.
On December 31, 2023, the Existing Cypress Glen ILUs were 97% (206 units) occupied.
The double occupancy rate for the Existing Cypress Glen ILUs is assumed to approximate 27
percent of occupied units throughout the forecast period. The double occupancy rate for the New
Cypress Glen ILUs is assumed to approximate 47 percent in fiscal year 2026, 42 percent in fiscal
year 2027, and 37 percent in fiscal year 2028.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
37
The following table summarizes the move-in assumptions for the New Cypress Glen ILUs during
the forecast period through stabilized occupancy.
Table 15
Fill-Up Schedule New Cypress Glen ILUs
Fiscal Year/Month New Cypress Glen ILUs Cumulative Occupied
Cumulative
Occupancy
(1)(2)
Fiscal Year 2026
December 10 10 18%
January 10 20 35%
February 8 28 49%
March 6 34 60%
April 6 40 70%
May 4 44 77%
June 3 47 82%
July 2 49 86%
August 2 51 89%
September 2 53 93%
Total
53 93%
Source: Management
(1) Cumulative occupancy based on 57 New Cypress Glen ILUs.
(2) Management assumed that 93% of the New Cypress Glen ILUs will be sold. Management assumed that Monthly Fee
revenue will be based on 93% occupancy.
The following table summarizes the historical and assumed utilization of the Cypress Glen ALUs
and Cypress Glen MCUs.
Table 16
Utilization of the Cypress Glen Assisted Living and Memory Care Units
Average Units Occupied
Year Ending
September 30, Assisted Living Memory Care
Total
Occupancy
Total Units
Available
Total
Occupancy
Historical:
2021 24 12 36 42 86%
2022 28 12 40 42 95%
2023
29 12 41 42 98%
2024
(1)
29 12 41 42 98%
Forecasted:
2024 28 12 40 42 95%
2025 28 12 40 42 95%
2026 28 12 40 42 95%
2027
28 12 40 42 95%
2028
28 12 40 42 95%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
38
On December 31, 2023, the Cypress Glen ALUs and Cypress Glen MCUs were 97% (29 units)
and 100% (12 units) occupied, respectively.
The following table summarizes the historical and assumed utilization of the Cypress Glen Nursing
Beds.
Table 17
Utilization of the Cypress Glen Nursing Beds
Average Beds Occupied
Fiscal Year Ending
September 30,
Private, HMO
& Hospice Medicare Total
Beds
Available
Average
Occupancy
Historical:
2021 20 2 22 30
73%
2022 22 2 24 30
80%
2023 23 2 25 30 83%
2024
(1)
24 1 25 30 83%
Forecasted:
2024 23 3 26 30
87%
2025 23 3 26 30 87%
2026 23 3 26 30 87%
2027
23 3 26 30 87%
2028
23 3 26 30 87%
Source: Management
(1) Year to date occupancy is through December 31, 2023.
On December 31, 2023, the Cypress Glen Nursing Beds were 83% (25 beds) occupied.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
39
Summary of Revenue and Entrance Fee Assumptions
Independent Living Revenues
Independent living revenue is based upon charges for services provided to independent living
residents of the Communities and the assumed occupancy and the Monthly Fees of the respective
units.
Monthly Fees for the Croasdaile ILUs, Wesley Pines ILUs, Existing Cypress Glen ILUs, and New
Cypress Glen ILUs are assumed to increase 5.0 percent on October 1, 2024, 4.0 percent on October
1, 2025 and 3.0 percent on October 1, 2026 and annually thereafter.
Assisted Living Revenues
Assisted living revenues are generated from services provided to internal residents of the
Communities transferring from independent living units as well as direct admissions from the local
surrounding area. The Monthly Fees for assisted living and memory care units are assumed to
increase 5.0 percent on October 1, 2024, 4.0 percent on October 1, 2025 and 3.0 percent on October
1, 2026 and annually thereafter.
Skilled Nursing Revenues
Skilled nursing revenues are generated from services provided to internal residents of the
Communities transferring from the independent living units, assisted living units or memory care
units as well as direct admissions from the surrounding area. The Communities participate in
Medicare and Medicaid reimbursement programs for certain nursing residents. Nursing service
fees for Medicare and Medicaid residents are assumed to increase 3.0 percent on October 1, 2025,
2.0 percent on October 1, 2026, and annually thereafter. Additionally, nursing service fees for
private pay residents are assumed to increase 5.0 percent on October 1, 2024, 4.0 percent on
October 1, 2025 and 3.0 percent on October 1, 2026 and annually thereafter.
Investment Income
For the fiscal year ending September 30, 2024, Management has assumed investment income
based on its annual budget. For fiscal years ending September 30, 2025 and thereafter,
Management has assumed a 1.5 percent annual rate of return on the Obligated Groups unrestricted
cash, net assets with donor restrictions, assets whose use is limited Operating Reserve for
Department of Insurance, Entrance Fee Fund, and Bond Fund. Management has assumed a 2.5
percent annual rate of return on the Obligated Groups unrestricted investments and the Debt
Service Reserve Fund for the Existing Bonds. Based upon information provided by the
Underwriter, Management has assumed an average annual rate of return of 4.5 percent on the
Project Fund and the Funded Interest Fund.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
40
Entrance Fees
The assumed turnover of the Existing Cypress Glen ILUs, the Croasdaile ILUs and the Wesley
Pines ILUs due to death, withdrawal or transfer to the assisted living, memory care or nursing beds
at the respective communities, and double occupancy of the Existing Cypress Glen ILUs, the
Croasdaile ILUs and the Wesley Pines ILUs has been estimated by Management. The assumed
turnover of the New Cypress Glen ILUs due to death, withdrawal or transfer to the assisted living,
memory care or nursing beds at Cypress Glen, and double occupancy of the New Cypress Glen
ILUs has been estimated by Managements actuary, Continuing Care Actuaries (the Actuary).
The following table presents the assumed Entrance Fees received and refunded.
Table 18
Entrance Fees Receipts and Refunds
(In Thousands)
For the Year Ending September 30,
2024 2025 2026 2027 2028
Number of Entrance Fees Received (Initial)
Croasdaile Village
(1)
32.0
22.0
-
- -
Cypress Glen - - 53.0 - -
Total number of Entrance Fees received (Initial) 32.0 22.0 53.0 - -
Entrance Fees Received (Initial)
Croasdaile Village
(1)
$19,301
$-
$-
$- $-
Cypress Glen - - 14,617 - -
Total Entrance Fees received (Initial) $19,301
$
-
$
14,617
$
-
$
-
Number of Entrance Fees Received (Attrition)
Croasdaile Village 35.5 35.5 35.5 35.5 35.5
Wesley Pines 3.0
3.0
3.0
3.0 3.0
Cypress Glen 25.0 25.0 26.5 28.5 29.4
Total number o
f Entrance Fees received (Attrition) 63.5
63.5
65.0
67.0 67.9
Entrance Fees Received (Attrition)
Croasdaile Village $9,063 $9,241 $9,430 $9,618 $9,810
Wesley Pines 393
401
409
417 426
Cypress Glen 4,030 4,114 4,640 5,381 $5,823
Total Entrance Fees received (Attrition) $13,486 $13,756 $14,479 $15,416 $16,059
Total Entrance Fees Received (all)
$
32,787
$13,756 $29,096 $15,416 $16,059
Total Entrance Fees Refunded
$
(3,383)
$
(3,123)
$
(3,399)
$
(3,609)
$(3,557)
Entrance Fees Received, Net of Refunds $29,404
$
10,633
$
25,697
$
11,807
$12,502
Source: Management and the Actuary
(1) Management assumed that 100% of the Heritage ILUs will be sold.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
41
Attrition Entrance Fees for the Existing Cypress Glen ILUs, Croasdaile ILUs, and Wesley Pines
ILUs are assumed to increase 2.0 percent annually during the forecast period. Attrition Entrance
Fees for the New Cypress Glen ILUs are assumed to increase 4.0 percent annually during the
forecast period.
Summary of Operating Expense Assumptions
Operating expenses are estimated by Management based on its experience at each Community and
with the development and operation of other similar LCS retirement communities. Staff salaries
and benefits are based on prevailing local salary and wage rates and for the Communities are
assumed to increase 5.0 percent on October 1, 2024, 4.0 percent on October 1, 2025 and 3.0 percent
on October 1, 2026 and annually thereafter.
Other non-salary operating expenses are assumed to include ongoing marketing costs, raw food
costs, utilities, supplies, maintenance and security contracts, building and general liability
insurance, legal and accounting fees and other miscellaneous expenses. The cost of these non-
salary operating expenses for the Communities are assumed to increase 5.0 percent on October 1,
2024, 4.0 percent on October 1, 2025 and 3.0 percent on October 1, 2026 and annually thereafter.
Assets Limited as to Use
The following funds and accounts for the Series 2024 Bonds and Existing Bonds (hereinafter
defined) are assumed to be maintained:
(1) Assets Limited as to Use, current Existing Bonds, which contains the bond principal and
interest payments to be used for payment of debt service on the Existing Bonds.
(2) Assets Limited as to Use, current Series 2024 Bonds, which, upon financing, contains the
bond principal and interest payments to be used for payment of debt service on the Series
2024 Bonds.
(3) Debt Service Reserve Funds Existing Bonds, which has been funded with proceeds received
from previously issued bonds, including certain of the Existing Bonds.
(4) Funded Interest Account, net funded from the Series 2024 Bonds proceeds to be used to fund
interest on the Series 2024 Bonds for a period of approximately 25 months.
(5) Construction Account, to be gross funded at the closing from a portion of the Series 2024
Bonds proceeds, to be used to pay for construction and related costs for the Project.
(6) Entrance Fees Fund, to be funded with initial Entrance Fees from the New Cypress Glen ILUs.
For the purposes of the forecast, the Entrance Fees Fund is used for Series 2024B Bond
redemptions during the fiscal year ending September 30, 2026.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
42
In addition, the Obligated Group maintains the following funds and accounts based on restrictions
of the Boards, outside donors, or other legal requirements (collectively defined as Other Assets
Limited as to Use) and include the following:
(1) Operating Reserve for Department of Insurance: North Carolina General Statute § 58-64-33
requires CCRCs to maintain an operating reserve (the Statutory Operating Reserve) equal
to 50 percent of the total operating costs in a given year, or 25 percent of such total operating
costs if occupancy as of a certain date exceeds 90 percent of the independent living unit
capacity.
(2) Net assets with donor restrictions: Net assets with donor restrictions have been restricted by
donors to be maintained in perpetuity.
(3) Investments Restricted: Permanently restricted assets have been restricted to be maintained
in perpetuity.
For purposes of the forecast, other than increases in the Operating Reserve for Department of
Insurance associated with expense changes, Management has assumed no change in the Other
Assets Limited as to Use during the forecast period.
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
43
Property and Equipment and Depreciation Expense
The Obligated Group is to incur routine capital additions during the forecast period that are to be
capitalized as property and equipment. Depreciation expense for all capital assets is computed
based on the straight-line method for buildings and equipment over estimated average useful lives
of 40 and 20 years, respectively.
The Obligated Groups property and equipment costs, net of accumulated depreciation, during the
forecast period are summarized in the table below.
Source: Management and LCS Development
Table 19
Schedule of Property and Equipment
(In Thousands)
Years Ending September 30, 2024 2025 2026 2027 2028
Property and equipment, gross
Beginning balance $386,567 $422,472 $479,094 $495,403 $505,233
Project costs Cypress Glen
Projec
t
27,344 45,959 6,702 - -
Interest cost capitalized 1,565 3,260 267 - -
Interest earnings on trustee held
funds (1,627) (1,644) (138) - -
Routine capital additions 8,623 9,047 9,478 9,830 10,128
Property and equipment, gross $422,472 $479,094 $495,403 $505,233 $515,361
Accumulated depreciation (178,995) (194,656) (213,433) (233,385) (254,342)
Property and equipment, net
Ending balance $243,477 $284,438 $281,970 $271,848 $261,019
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
44
Debt and Interest Expense
As of September 30, 2023, the Obligated Group had debt outstanding of approximately
$154,745,000 comprised of the following:
Series 2014A Bonds and Series 2014B Bonds:
In September 2014, the Commission issued tax-exempt, variable rate Retirement Facilities First
Mortgage Revenue Refunding Bonds (the Series 2014A Bonds), the proceeds of which were
used to refund then outstanding debt. In December 2014, the Commission issued tax-exempt,
variable rate Retirement Facilities First Mortgage Revenue Refunding Bonds (the Series 2014B
Bonds), the proceeds of which were used to refund then outstanding debt. The Series 2014A
Bonds and the Series 2014B Bonds are collectively defined as the Series 2014 Bonds. As of
September 30, 2023, approximately $2,670,000 of the Series 2014 Bonds were outstanding.
Principal on the Series 2014 Bonds is paid monthly with a final maturity on October 1, 2024.
Interest on the Series 2014A Bonds and Series 2014B Bonds is payable monthly at assumed
interest rates based on the swap contracts described below of 2.77 percent and 3.00 percent,
respectively.
Series 2016A Bonds:
In May 2016, the Commission issued tax-exempt, fixed rate Retirement Facilities First Mortgage
Revenue Refunding Bonds (the Series 2016A Bonds), the proceeds of which were used to refund
then outstanding debt. Principal on the Series 2016A Bonds is to be paid annually beginning
October 1, 2027 with a final maturity on October 1, 2035. Interest on the Series 2016A Bonds is
payable April 1 and October 1 each year with average interest rate of 5.00 percent. As of September
30, 2023, approximately $24,640,000 of the Series 2016A Bonds were outstanding.
Series 2021A Bonds:
In December 2021, the Public Finance Authority (the "Authority") issued Retirement Facilities
First Mortgage Revenue and Revenue Refunding Bonds (the "Series 2021A Bonds") for the benefit
of the Obligated Group, the proceeds of which were used to refund a portion of the outstanding
2016 Bonds and construct the Croasdaile Village Project. Principal on the Series 2021A Bonds is
to be paid annually on October 1 with a final maturity on October 1, 2051. Average interest rates
on the Series 2021A Bonds range from 2.39 percent and 2.76 percent. As of September 30, 2023,
approximately $49,395,000 of the Series 2021A Bonds were outstanding.
Series 2023B Bonds:
In July 2023, the Commission issued its Retirement Facilities First Mortgage Revenue Refunding
Bonds (the "Series 2023B Bonds") for the benefit of the Obligated Group, the proceeds of which
were used to refund the Taxable Series 2021B Bonds originally issued in December 2021.
Principal on the Series 2023B Bonds is to be paid monthly with a final maturity on October 1,
2047. Interest on the Series 2023B Bonds is payable monthly at an assumed interest rate based on
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
45
the swap contract described below of 2.47 percent. As of September 30, 2023, approximately
$78,040,000 of the Series 2023B Bonds were outstanding.
Interest Rate Swap Agreements
The Obligated Group entered into two interest rate swap contracts under which the Obligated
Group pays a fixed-rate of interest and receives, in return, a variable rate of interest on a notional
amount currently corresponding to the outstanding principal amount of the Series 2014 Bonds. No
other cash payments are made unless the contracts are terminated prior to maturity, in which case
the amount paid or received in settlement is established by an agreement at the time of termination,
and usually represents the net present value, at current rates of interest, of the remaining obligations
to exchange payments under the terms of the contracts.
The Obligated entered into an interest rate swap contract under which the Obligated Group pays a
fixed-rate of interest and receives, in return, a variable rate of interest on a notional amount
currently corresponding to the outstanding principal amount of the Series 2023B Bonds. No other
cash payments are made unless the contract is terminated prior to maturity, in which case the
amount paid or received in settlement is established by an agreement at the time of termination,
and usually represents the net present value, at current rates of interest, of the remaining obligations
to exchange payments under the terms of the contract.
The Obligated Group recorded an asset for the fair value of interest rate swaps of approximately
$11,566,000 at September 30, 2023. For purposes of the forecast, Management has assumed no
change to the value of the interest rate swaps.
The Series 2014 Bonds, the Series 2016A Bonds, the Series 2021A Bonds, and the Series 2023B
Bonds are collectively defined as the Existing Bonds.
Series 2024 Bonds:
During the forecast period, the Obligated Group intends to issue the Series 2024 Bonds to fund
Project costs. The Series 2024 Bonds are to consist of:
$53,905,000 of tax-exempt Series 2024A Bonds; and
$13,275,000 of tax-exempt Series 2024B Bonds.
The Series 2024A Bonds consist of $53,905,000 rated tax-exempt fixed rate bonds, issued at a
premium, with interest rates ranging from 5.00 to 5.125 percent per annum and average yields
ranging from 4.19 to 4.92 percent per annum. Interest on the Series 2024A Bonds is to be payable
on October 1 and April 1 of each year beginning on October 1, 2024. Principal on the Series 2024A
Bonds is to be payable annually commencing on October 1, 2036 with a final on maturity October
1, 2054.
The Series 2024B Bonds consist of $13,275,000 rated tax-exempt fixed rate TEMPS
SM
, with
interest rates ranging from 3.75 to 4.25 percent per annum. The Series 2024B Bonds consist of
$7,800,000 of Series 2024B-2 Bonds (TEMPS-50
SM
) and $5,475,000 of Series 2024B-1 Bonds
(TEMPS-85
SM
). Interest on the Series 2024B Bonds is to be payable semiannually on each October
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
46
1, and April 1, commencing in October 2024. Principal on the Series 2024B-2 Bonds (TEMPS-
50
SM
) is to be paid in January 2026 and April 2026. Principal on the Series 2024B-1 Bonds
(TEMPS-85
SM
) is to be paid in April 2026 and July 2026. The Series 2024B Bonds are assumed
to be redeemed fully with initial Entrance Fee proceeds received from the New Cypress Glen ILUs
prior to the stated maturity date(s) of the Series 2024B Bonds. Accrued interest will be due on
each such redemption date.
The following table presents the assumed annual debt service for the Series 2014 Bonds, the Series
2016A Bonds, the Series 2021A Bonds, the Series 2023B Bonds, and the Series 2024 Bonds during
the forecast period and thereafter.
Table 20
Annual Debt Service
(In Thousands)
Series
2014 Bonds
Series
2016A Bonds
Series
2021A Bonds
Series
2023B Bonds
Series
2024 Bonds
Year Ending
September 30,
Principal
Interest
Payment Principal
Interest
Payment Principal
Interest
Payment Principal
Interest
Payment
Principal
Interest
Payment Total
2024 $2,460 $46 $- $1,232 $40 $1,975 $2,910 1,927 $- $- $10,590
2025 210 1 - 1,232 35 1,974 5,320 1,821 - 3,495 14,088
2026 - - - 1,232 2,885 1,915 2,835 1,716 13,275 3,233 27,091
2027 - - - 1,232 3,030 1,797 2,890 1,644 - 2,734 13,327
2028 - - 1,935 1,184 1,175 1,713 3,010 1,575 - 2,734 13,326
Thereafter - - 22,705 5,065 42,230 25,687 61,075 13,893 53,905 $58,233 282,793
Total $2,670 $47 $24,640 $11,177 $49,395 $35,061 $78,040 $22,576 $67,180 $70,429 $361,215
Source: Management and the Underwriter
The United Methodist Retirement Summary of Significant Forecast Assumptions
Homes Obligated Group and Rationale, Continued
See Independent Accountants Compilation Report
47
Current Assets and Current Liabilities
Operating expenses exclude amortization, depreciation, other non-cash expenses and interest
expense. Operating revenues include the monthly and daily services fees for each Community,
other revenue and ancillary revenues. Working capital components have been estimated based on
industry standards and Managements historical experience as follows:
Table 21
Working Capital Days on Hand
Accounts receivable, net 14 days operating revenues
Inventory 1 days operating revenues
Prepaid expenses and other 6 days operating revenues
Other receivables 12 days operating revenues
Accounts payable 24 days operating expenses
Accrued salaries and benefits 12 days operating expenses
Source: Management
ATTACHMENT 3
Interim Unaudited Financial Statements
of
The United Methodist
Retirement Homes, Incorporated
Includes
Consolidated Operations of Croasdaile
Village, Cypress Glen and Wesley Pines
Individual Operations of Croasdaile
Village
The United Methodist Retirement Homes, Inc.
Corporate Office
Balance Sheet
December 31, 2023
Change date in AB4. Advance through column in formulas in AD, AE and AG by one letter.
ASSETS
Current assets
Current month
Prior month
Variance
Prior year end
Variance
Cash & cash equivalents 7,774,172.45 13,635,293.19 (5,861,120.74) 5,015,324.14 2,758,848.31
Investments 121,213,996.75 108,967,055.54 12,246,941.21 104,964,339.05 16,249,657.70
Accounts receivable - others 14,995.14 14,812.66 182.48 14,649.79 345.35
Due from related parties 329,668.47 272,816.69 56,851.78 253,144.69 76,523.78
Inventories - 550.00 (550.00) 450.00
(450.00)
Prepaid expenses
206,750.80
246,832.56
(40,081.76)
80,053.55
126,697.25
Total current assets 129,539,583.61 123,137,360.64 6,402,222.97 110,327,961.22 19,211,622.39
Non-current assets
Assets limited as to use
Temporarily restricted investments 291.19 59.81 231.38 59.81 231.38
Permanently restricted investments
674,524.66
674,524.66
-
674,524.66
-
674,815.85 674,584.47 231.38 674,584.47 231.38
Less current obligation requirements
-
-
-
-
-
Non-current assets limited as to use 674,815.85 674,584.47 231.38 674,584.47 231.38
Property & equipment, net
68,003.41
71,176.98
(3,173.57)
77,524.12
(9,520.71)
Total assets 130,282,402.87 123,883,122.09 6,399,280.78 111,080,069.81 19,202,333.06
LIABILITIES & NET ASSETS
Current liabilities
Current month
Prior month
Variance
One year ago
Variance
Accounts payable 446,473.44 393,320.16 (53,153.28) 739,922.11 293,448.67
Accrued payroll & benefits 548,689.73 640,374.99 91,685.26 361,850.83
(186,838.90)
Due to related parties
135,298,507.11
132,782,397.73
(2,516,109.38)
122,863,762.55
(12,434,744.56)
Total current liabilities 136,293,670.28 133,816,092.88 (2,477,577.40) 123,965,535.49 (12,328,134.79)
Long-term liabilities
Deferred revenue
-
-
-
6,500.25
6,500.25
Total long-term liabilities - - - 6,500.25 6,500.25
Total liabilities 136,293,670.28 133,816,092.88 (2,477,577.40) 123,972,035.74 (12,321,634.54)
Net assets
Without donor restriction (6,686,083.26) (10,607,555.26) (3,921,472.00) (13,566,550.40)
(6,880,467.14)
With donor restriction
674,815.85
674,584.47
(231.38)
674,584.47
(231.38)
Total net assets (6,011,267.41) (9,932,970.79) (3,921,703.38) (12,891,965.93) (6,880,698.52)
Total liabilities & net assets 130,282,402.87 123,883,122.09 (6,399,280.78) 111,080,069.81 (19,202,333.06)
Page 1 of 2
The United Methodist Retirement Homes, Inc.
Corporate Office
Statement of Revenues and Expenses
December 31, 2023
Annual
Budget
Actual
Variance
Budget
Actual
Variance
Budget
OPERATING REVENUE
622,802.00
902,497.44
279,695.44
0199692000
Investment Interest/Dividends
1,037,322.00
1,439,922.16
402,600.16
3,276,171.00
1,000.00
663.62
(336.38)
0199699600
Net Assets Released From Restriction
1,000.00
663.62
(336.38)
1,000.00
2,467.00
(5.00)
(2,472.00)
0199699000
Other
7,401.00
(40.00)
(7,441.00)
29,600.00
626,269.00
903,156.06
276,887.06
Total Operating Revenue
1,045,723.00
1,440,545.78
394,822.78
3,306,771.00
GENERAL AND ADMINISTRATIVE EXPENSE
15,396.00
14,885.47
510.53
0101722800
Development Staff
45,008.00
45,422.27
(414.27)
181,439.00
89,363.00
97,400.10
(8,037.10)
0101720200
Accounting Staff
367,718.00
283,580.15
84,137.85
1,176,911.00
31,691.00
29,127.06
2,563.94
0101724100
IT Staff
57,576.00
56,166.30
1,409.70
177,970.00
2,917.00
1,182.93
1,734.07
0101739900
Accrued PTO
8,751.00
15,506.18
(6,755.18)
35,000.00
139,367.00
142,595.56
(3,228.56)
Total Salaries & Wages
479,053.00
400,674.90
78,378.10
1,571,320.00
10,263.00
9,776.35
486.65
0101730000
Payroll Taxes & Insurance
28,622.00
26,474.51
2,147.49
117,369.00
16,329.00
12,923.17
3,405.83
0101731000
Insurance
49,342.00
36,921.92
12,420.08
195,366.00
4,852.00
5,641.78
(789.78)
0101733000
Retirement
17,004.00
12,177.43
4,826.57
54,233.00
711.00
555.00
156.00
0101732000
Other
2,133.00
565.00
1,568.00
8,540.00
32,155.00
28,896.30
3,258.70
Total Employee Benefits
97,101.00
76,138.86
20,962.14
375,508.00
1,729.00
1,470.66
258.34
0101735200
Employee Related Expense
5,187.00
2,028.49
3,158.51
20,750.00
1,121.00
1,273.18
(152.18)
0101762800
Supply
3,363.00
3,851.57
(488.57)
13,450.00
3,250.00
2,877.45
372.55
0101741500
Computer Line Charges
9,750.00
9,153.05
596.95
39,000.00
1,915.00
774.91
1,140.09
0101740900
Bank Charges
52,228.00
46,454.46
5,773.54
211,600.00
-
-
-
0101741800
Consultants
6,875.00
6,902.00
(27.00)
27,500.00
1,000.00
713.62
286.38
0101742100
Contributions
1,000.00
713.62
286.38
1,000.00
-
-
-
0101743000
Director Fees & Benefits
1,600.00
1,571.50
28.50
1,600.00
80.00
80.37
(0.37)
0101743300
Waste Disposal
240.00
160.74
79.26
960.00
422.00
167.07
254.93
0101743900
Dues & Subscriptions
1,266.00
776.34
489.66
5,060.00
6,322.00
6,322.16
(0.16)
0101749300
Insurance General
18,966.00
18,966.48
(0.48)
76,812.00
5,200.00
13,000.16
(7,800.16)
0101749900
Labor - Outside Contract
15,600.00
24,010.48
(8,410.48)
62,400.00
40,813.00
27,083.50
13,729.50
0101750800
Legal & Professional
82,939.00
62,322.00
20,617.00
127,250.00
917.00
481.78
435.22
0101752000
Licenses & Fees
2,751.00
2,240.25
510.75
11,000.00
425.00
436.20
(11.20)
0101753200
Maintenance & Repair - Contract
1,275.00
1,308.60
(33.60)
5,100.00
41,367.00
35,245.28
6,121.72
0101754800
Managed Services - SaaS
124,101.00
118,763.56
5,337.44
496,400.00
237,009.00
244,951.10
(7,942.10)
0101755000
Management Fees
711,027.00
729,715.52
(18,688.52)
2,844,107.00
21,122.00
21,121.95
0.05
0101761600
Salaries & Benefits - LCS
63,366.00
66,769.61
(3,403.61)
361,407.00
83.00
47.67
35.33
0101760400
Postage
249.00
289.51
(40.51)
1,000.00
8.00
-
8.00
0101760500
Public Relations
24.00
100.00
(76.00)
100.00
1,042.00
-
1,042.00
0101786800
Development - Printing
3,126.00
493.43
2,632.57
12,500.00
1,092.00
1,053.34
38.66
0101787100
Development - Software Maintenance
3,276.00
3,160.02
115.98
13,100.00
42.00
-
42.00
0101787400
Development - Special Functions
126.00
-
126.00
500.00
200.00
612.50
(412.50)
0101788300
Development - Dues & Subscriptions
600.00
887.50
(287.50)
2,400.00
250.00
2,053.40
(1,803.40)
0101788600
Development - Travel & Training
750.00
2,583.16
(1,833.16)
3,000.00
104.00
-
104.00
0101788900
Development - Supplies
312.00
98.23
213.77
1,250.00
80.00
-
80.00
0101761000
Rental & Leasing
240.00
239.94
0.06
960.00
275.00
323.10
(48.10)
0101766400
Telephone
825.00
869.30
(44.30)
3,300.00
365,868.00
360,089.40
5,778.60
Total Other Expense
1,111,062.00
1,104,429.36
6,632.64
4,343,506.00
537,390.00
531,581.26
5,808.74
Total General & Administrative
1,687,216.00
1,581,243.12
105,972.88
6,290,334.00
88,879.00
371,574.80
282,695.80
Net Operating Income/(Loss)
(641,493.00)
(140,697.34)
500,795.66
(2,983,563.00)
NON-OPERATING REVENUE AND EXPENSE
(2,969.00)
(3,173.57)
(204.57)
0185709700
Depreciation Expense
(8,907.00)
(9,520.71)
(613.71)
(35,628.00)
-
740.00
740.00
0199691800
Contribution Revenue
-
1,040.00
1,040.00
-
-
3,552,330.77
3,552,330.77
0199695400
Unrealized Gain/(Loss) on Investments
-
7,029,645.19
7,029,645.19
-
(2,969.00)
3,549,897.20
3,552,866.20
Total Non-Operating Revenue and Expense
(8,907.00)
7,021,164.48
7,030,071.48
(35,628.00)
85,910.00
3,921,472.00
3,835,562.00
Net Income/(Loss)
(650,400.00)
6,880,467.14
7,530,867.14
(3,019,191.00)
CURRENT PERIOD
YEAR TO DATE
Home
Croasdaile Village
Dashboard
Occupancy Financial Accounts Receivable Marketing
December-23
Total IL AL/MC HC
MTD
NOI
YTD
NOI
REV/POR EXP/POR
MTD
Revenue
YTD
Revenue
MTD
Expense
YTD
Expense
IL > 90
Day %
HC > 90
Day %
All > 90
Day %
YTD
Days
in A/R
MTD Sales
IL Units
YTD Sales
IL Units
MTD Closings
IL Units
YTD
Closings
IL Units
612.00 448.00 62.00 102.00
566.00 425.00 56.00 85.00 844,897 2,482,738 7,738 6,226 4,275,605 12,703,167 3,430,708 10,220,429 11.00 2.00 6.00 2.00 6.00
563.94 425.39 57.97 80.58 866,647 3,271,565 7,901 5,941 4,363,796 13,192,619 3,497,149 9,921,054 5.43% 22.40% 18.99% 27.27 4.00 10.00 3.00 7.00
-0.36% 0.09% 3.52% -5.20% 2.57% 31.77% 2.10% 4.79% 2.06% 3.85% -1.90% 3.02% 66.67% 16.67%
4.00 (49,289) 375,552 340,763 13.27
Occupancy Financial Accounts Receivable Marketing
November-23
Total IL AL/MC HC
MTD
NOI
YTD
NOI
REV/POR EXP/POR
MTD
Revenue
YTD
Revenue
MTD
Expense
YTD
Expense
IL > 90
Day %
HC > 90
Day %
All > 90
Day %
YTD
Days
in A/R
MTD Sales
IL Units
YTD Sales
IL Units
MTD Closings
IL Units
YTD
Closings
IL Units
609.30 445.30 62.00 102.00
558.00 417.00 56.00 85.00 935,374 1,637,841 7,837 6,314 4,413,724 8,427,562 3,478,350 6,789,721 11.00 2.00 4.00 2.00 4.00
564.33 424.20 57.20 82.93 1,200,399 2,404,918 7,984 5,809 4,531,990 8,828,823 3,331,591 6,423,905 4.50% 17.06% 13.99% 26.91 5.00 6.00 1.00 4.00
1.13% 1.73% 2.14% -2.44% 28.33% 46.83% 1.88% 8.69% 2.68% 4.76% 4.41% 5.69% 50.00% 0.00%
1.65 199,961 149,679 12.91 -
Occupancy Financial Accounts Receivable Marketing
October-23
Total IL AL/MC HC
MTD
NOI
YTD
NOI
REV/POR EXP/POR
MTD
Revenue
YTD
Revenue
MTD
Expense
YTD
Expense
IL > 90
Day %
HC > 90
Day %
All > 90
Day %
YTD
Days
in A/R
MTD Sales
IL Units
YTD Sales
IL Units
MTD Closings
IL Units
YTD
Closings
IL Units
580.32 416.32 62.00 102.00
518.00 377.00 56.00 85.00 702,467 702,467 7,749 6,393 4,013,838 4,013,838 3,311,371 3,311,371 11.00 2.00 2.00 2.00 2.00
541.81 397.97 55.29 88.55 1,204,519 1,204,519 7,931 5,707 4,296,833 4,296,833 3,092,313 3,092,313 7.40% 15.29% 13.25% 23.02 1.00 1.00 3.00 3.00
4.60% 5.56% -1.27% 4.18% 71.47% 71.47% 2.35% 12.01% 7.05% 7.05% 7.08% 7.08% -50.00% 50.00%
0.43 123,226 102,191 9.02 1.00 To get to
green
To get to
green
Actual
Total available
Budget / goal
Budget / goal
Variance
Actual
Variance
Actual
To get to
green
Total available
Variance
Budget / goal
Total available
Home
Croasdaile Village
Balance Sheet
December-23 November-23 Variance September-23 Variance
Cash & cash equivalents 300.00 300.00 - 300.00 -
Contributions receivable - UMRH Foundation 151,741.57 142,683.89 9,057.68 65,922.72 85,818.85
Assets limited as to use 1,807,079.43 1,550,282.43 256,797.00 2,280,588.00 (473,508.57)
Accounts receivable - members, net 3,924,369.61 3,904,080.39 20,289.22 2,820,175.66 1,104,193.95
Accounts receivable - others 1,221,580.01 1,195,853.79 25,726.22 2,135,860.75 (914,280.74)
Due from related parties 102,475,138.47 100,189,985.58 2,285,152.89 89,742,899.53 12,732,238.94
Prepaid expenses 469,763.18 529,553.22 (59,790.04) 691,995.24 (222,232.06)
Total current assets 110,140,903.00 107,593,752.83 2,547,150.17 97,835,767.71 12,305,135.29
Debt service 7,796,746.16 7,516,691.69 280,054.47 8,683,123.22 (886,377.06)
Insurance regulation - statutory operating reserve 12,098,205.00 12,098,205.00 - 10,217,181.00 1,881,024.00
Residents' funds 8,843.27 6,923.13 1,920.14 5,001.93 3,841.34
Future construction - LOC 234,120.00 234,120.00 - 234,120.00 -
Temporarily restricted investments 65,273.18 65,273.18 - 6,930.12 58,343.06
Subtotal 20,203,187.61 19,921,213.00 281,974.61 19,146,356.27 1,056,831.34
Less current obligation requirements 1,807,079.43 1,550,282.43 256,797.00 2,280,588.00 (473,508.57)
Non-current assets limited as to use 18,396,108.18 18,370,930.57 25,177.61 16,865,768.27 1,530,339.91
Property & equipment, net 168,173,574.58 168,408,551.26 (234,976.68) 168,818,457.74 (644,883.16)
Contributions receivable - UMRH Foundation 3,840,282.12 3,615,488.30 224,793.82 3,452,603.12 387,679.00
Deferred costs, net 77,505.76 78,645.56 (1,139.80) 80,925.16 (3,419.40)
Interest rate swap agreement 8,421,867.65 8,421,867.65 - 8,421,867.65 -
Total assets 309,050,241.29 306,489,236.17 2,561,005.12 295,475,389.65 13,574,851.64
Current portion of long-term debt 4,433,000.00 4,471,000.00 38,000.00 4,400,000.00 (33,000.00)
Accounts payable 1,299,775.62 830,928.34 (468,847.28) 2,642,060.74 1,342,285.12
Accrued payroll & benefits 1,275,339.89 1,092,655.93 (182,683.96) 846,627.72 (428,712.17)
Accrued interest payable 1,307,778.79 919,556.58 (388,222.21) 1,721,866.46 414,087.67
Insurance regulation - statutory operating reserve 12,098,205.00 12,098,205.00 - 10,217,181.00 (1,881,024.00)
Total current liabilities 20,414,099.30 19,412,345.85 (1,001,753.45) 19,827,735.92 (586,363.38)
Long-term debt, less current portion 133,374,744.64 133,697,473.34 322,728.70 134,574,930.74 1,200,186.10
Liability for refundable advance fees 11,335,831.05 11,988,552.85 652,721.80 11,526,882.14 191,051.09
Deferred revenue from non-refundable advance fees 70,883,675.13 68,804,388.09 (2,079,287.04) 57,666,911.89 (13,216,763.24)
Residents' funds 8,843.27 6,923.13 (1,920.14) 5,001.93 (3,841.34)
Total long-term liabilities 215,603,094.09 214,497,337.41 (1,105,756.68) 203,773,726.70 (11,829,367.39)
Total liabilities 236,017,193.39 233,909,683.26 (2,107,510.13) 223,601,462.62 (12,415,730.77)
Unrestricted 68,975,751.03 68,756,107.54 (219,643.49) 68,348,471.07 (627,279.96)
Temporarily restricted 2,081,805.01 1,911,284.89 (170,520.12) 1,615,845.48 (465,959.53)
Permanently restricted 1,975,491.86 1,912,160.48 (63,331.38) 1,909,610.48 (65,881.38)
Total net assets 73,033,047.90 72,579,552.91 (453,494.99) 71,873,927.03 (1,159,120.87)
Total liabilities and net assets 309,050,241.29 306,489,236.17 (2,561,005.12) 295,475,389.65 (13,574,851.64)
Liabilities and net assets
Current liabilities
Long-term liabilities
Net assets
Classification
Current assets
Assets
Non-current assets
Assets limited as to use
Budget Actual Variance Number Description Budget Actual Variance
1,894,225.00 1,924,359.16 30,134.16 2593610001 Monthly Fees - 1st Person 5,433,083.00 5,615,517.73 182,434.73 22,579,162.00
262,498.00 277,662.56 15,164.56 2593610301 Monthly Fees - 2nd Person 745,497.00 815,348.82 69,851.82 3,124,422.00
(2,692.00) (2,178.00) 514.00 2593610601 Discount - Absence (8,076.00) (9,968.55) (1,892.55) (32,300.00)
(583.00) - 583.00 2593610901 Discount - Administration (1,749.00) - 1,749.00 (7,000.00)
(6,250.00) (4,322.25) 1,927.75 2593611201 Discount - Benevolent (18,750.00) (13,917.90) 4,832.10 (75,000.00)
833.00 1,200.00 367.00 2593612101 Admission Fee 2,499.00 6,200.00 3,701.00 10,000.00
(30.00) - 30.00 2593613301 Contra - Beauty & Barber (84.00) - 84.00 (348.00)
3,667.00 4,480.46 813.46 2593615101 Guest Room 11,001.00 12,860.34 1,859.34 44,000.00
542.00 (97.16) (639.16) 2593616001 Lounge/Pub 1,626.00 547.81 (1,078.19) 6,500.00
267.00 (1,338.34) (1,605.34) 2593616301 Maintenance Services 801.00 (238.04) (1,039.04) 3,200.00
1,017.00 2,029.09 1,012.09 2593616601 Meals - Catering 3,051.00 7,252.15 4,201.15 12,200.00
5,542.00 6,280.82 738.82 2593616901 Meals - Guests & Employees 16,626.00 19,890.41 3,264.41 66,500.00
4,250.00 (470.10) (4,720.10) 2593617201 Meals - Residents 12,750.00 8,453.05 (4,296.95) 51,000.00
317.00 - (317.00) 2593617401 Pet Fee 951.00 1,200.00 249.00 3,800.00
235.00 19.30 (215.70) 2593626501 Medical Supplies 664.00 289.04 (374.96) 2,747.00
3,708.00 3,693.12 (14.88) 2593617501 Telephone 11,124.00 11,611.99 487.99 44,500.00
876.00 840.00 (36.00) 2593617801 Transportation 2,477.00 3,580.00 1,103.00 10,236.00
83.00 1,127.00 1,044.00 2593630401 Other 249.00 1,559.72 1,310.72 1,000.00
Annual
Budget
December YTDAccountDecember-23
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
2,168,535.00 2,213,285.66 44,750.66 6,213,824.00 6,480,186.57 266,362.57 25,844,967.00
49,918.00 41,950.00 (7,968.00) 2598632200 Physicians 143,228.00 125,850.00 (17,378.00) 585,083.00
- - - 2598630707 Contractual Discounts - - - -
49,918.00 41,950.00 (7,968.00) 143,228.00 125,850.00 (17,378.00) 585,083.00
4,635.00 4,914.45 279.45 2591610001 Nursing 13,905.00 13,894.95 (10.05) 56,520.00
168,782.00 155,092.28 (13,689.72) 2591610301 CNA 506,346.00 455,702.88 (50,643.12) 2,025,384.00
2,588.00 2,943.25 355.25 2591610501 Companion 7,764.00 9,589.00 1,825.00 31,056.00
176,005.00 162,949.98 (13,055.02) 528,015.00 479,186.83 (48,828.17) 2,112,960.00
149,916.00 172,608.00 22,692.00 2592620001 Monthly Fees - 1st Person 444,912.00 483,228.00 38,316.00 1,765,140.00
(3,000.00) - 3,000.00 2592622701 Discount - Benevolent (9,000.00) - 9,000.00 (36,000.00)
3.00 4.46 1.46 2592626201 Drugs 8.00 4.46 (3.54) 31.00
597.00 574.64 (22.36) 2592626501 Medical Supplies 1,772.00 1,533.95 (238.05) 7,030.00
- - - 2592626000 Beauty & Barber - - - -
- 2.88 2.88 2592629201 Medical Equipment - 2.88 2.88 -
12.00 - (12.00) 2592629501 Oxygen 35.00 - (35.00) 138.00
Total Independent Living Revenue
Total Clinic Revenue
Total Home Care Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
147,528.00 173,189.98 25,661.98 437,727.00 484,769.29 47,042.29 1,736,339.00
473,215.00 480,860.00 7,645.00 2595620001 Room & Board - 1st Person 1,404,380.00 1,416,534.00 12,154.00 5,582,730.00
10,354.00 10,354.00 - 2595620101 Room & Board - 2nd Person 30,728.00 30,728.00 - 121,910.00
(11,695.00) (7,001.00) 4,694.00 2595622101 Discount - Administrative (35,085.00) (20,595.00) 14,490.00 (140,338.00)
(8,023.00) - 8,023.00 2595622701 Discount - Benevolent (24,069.00) (6,469.84) 17,599.16 (96,271.00)
589.00 75.49 (513.51) 2595626501 Medical Supplies 1,747.00 1,245.25 (501.75) 6,941.00
2.00 - (2.00) 2595629501 Oxygen 6.00 13.80 7.80 24.00
464,442.00 484,288.49 19,846.49 1,377,707.00 1,421,456.21 43,749.21 5,474,996.00
659,742.00 562,382.00 (97,360.00) 2597620001 Room & Board 1,957,944.00 1,893,112.00 (64,832.00) 7,796,164.00
6,200.00 - (6,200.00) 2597620201 Room & Board - Differential 18,400.00 - (18,400.00) 59,350.00
(4,167.00) (41.00) 4,126.00 2597622101 Discount - Administration (12,501.00) (313.00) 12,188.00 (50,000.00)
(14,010.00) (9,807.00) 4,203.00 2597622401 Discount - Free Days (42,030.00) (16,345.00) 25,685.00 (168,120.00)
647,765.00 552,534.00 (95,231.00) 1,921,813.00 1,876,454.00 (45,359.00) 7,637,394.00
107.00 3.95 (103.05) 2597626201 Drugs 318.00 250.92 (67.08) 1,262.00
2,373.00 1,976.56 (396.44) 2597626501 Medical Supplies 7,042.00 7,297.27 255.27 27,940.00
14.00 53.91 39.91 2597626601 Diabetic Supplies 41.00 82.16 41.16 160.00
5,978.00 6,764.28 786.28 2597626701 Incontinent Supplies 17,741.00 23,683.27 5,942.27 70,394.00
Net Private Pay Room & Board
Total Memory Care Revenue
Total Assisted Living Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
25.00 139.65 114.65 2597627101 Supplements/Nutrition 74.00 307.23 233.23 296.00
601.00 - (601.00) 2597627401 Occupational Therapy 1,784.00 - (1,784.00) 7,079.00
2,718.00 520.00 (2,198.00) 2597627701 Physical Therapy 8,066.00 1,120.00 (6,946.00) 32,004.00
468.00 - (468.00) 2597628001 Speech Therapy 1,389.00 - (1,389.00) 5,514.00
211.00 - (211.00) 2597628601 Ambulance/Transportation 626.00 - (626.00) 2,484.00
742.00 1,378.30 636.30 2597629201 Medical Equipment 2,202.00 3,587.02 1,385.02 8,734.00
2,002.00 907.88 (1,094.12) 2597629501 Oxygen 5,942.00 2,182.45 (3,759.55) 23,576.00
1,254.00 776.70 (477.30) 2597613001 Beauty & Barber 3,721.00 2,915.30 (805.70) 14,763.00
(1,395.00) (968.70) 426.30 2597626000 Contra - Beauty & Barber (4,139.00) (3,470.30) 668.70 (16,442.00)
(31.00) 501.01 532.01 2597630701 Contractual Discount - Ancillaries (92.00) 4,294.85 4,386.85 (368.00)
15,067.00 12,053.54 (3,013.46) 44,715.00 42,250.17 (2,464.83) 177,396.00
662,832.00 564,587.54 (98,244.46) 97.00 Total Private Pay Revenue 1,966,528.00 1,918,704.17 (47,823.83) 7,814,790.00
174,251.00 175,367.00 1,116.00 2597620002 Room & Board 517,132.00 516,343.00 (789.00) 2,075,545.00
(69,503.00) (60,147.67) 9,355.33 2597623602 Contractual Discount - R & B (206,267.00) (177,580.93) 28,686.07 (818,830.00)
104,748.00 115,219.33 10,471.33 310,865.00 338,762.07 27,897.07 1,256,715.00
974.00 465.95 (508.05) 2597626202 Drugs 2,890.00 1,935.10 (954.90) 11,681.00
765.00 982.94 217.94 2597626502 Medical Supplies 2,270.00 3,521.21 1,251.21 9,177.00
8.00 105.52 97.52 2597626602 Diabetic Supplies 23.00 134.15 111.15 91.00
2,600.00 4,387.44 1,787.44 2597626702 Incontinent Supplies 7,716.00 11,852.88 4,136.88 31,193.00
Net Private Pay Ancillaries
Net Medicaid Room & Board
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
14.00 - (14.00) 2597626802 Therapy Supplies 42.00 - (42.00) 170.00
1.00 - (1.00) 2597626902 IV Supplies 3.00 - (3.00) 12.00
57.00 83.79 26.79 2597627102 Supplements/Nutrition 169.00 195.51 26.51 682.00
589.00 880.73 291.73 2597629202 Medical Equipment 1,748.00 2,711.53 963.53 7,066.00
244.00 480.00 236.00 2597629502 Oxygen 725.00 1,347.56 622.56 2,931.00
89.00 192.00 103.00 2597630202 Beauty & Barber 264.00 555.00 291.00 1,068.00
(5,341.00) (7,578.37) (2,237.37) 2597630702 Contractual Discount - Ancillaries (15,850.00) (22,252.94) (6,402.94) (64,071.00)
- - - - - - -
104,748.00 115,219.33 10,471.33 310,865.00 338,762.07 27,897.07 1,256,715.00
54,808.00 12,927.00 (41,881.00) 2597620004 Room & Board 162,656.00 38,364.00 (124,292.00) 645,320.00
(22,578.00) (4,019.77) 18,558.23 2597623604 Contractual Discount - R & B (67,006.00) (11,929.64) 55,076.36 (265,839.00)
32,230.00 8,907.23 (23,322.77) 95,650.00 26,434.36 (69,215.64) 379,481.00
147.00 - (147.00) 2597626204 Drugs 436.00 - (436.00) 1,729.00
214.00 5.43 (208.57) 2597626504 Medical Supplies 635.00 63.57 (571.43) 2,518.00
1.00 - (1.00) 2597626604 Diabetic Supplies 3.00 - (3.00) 12.00
622.00 97.13 (524.87) 2597626704 Incontinent Supplies 1,846.00 262.71 (1,583.29) 7,323.00
23.00 - (23.00) 2597627104 Supplements/Nutrition 68.00 - (68.00) 270.00
399.00 - (399.00) 2597629504 Oxygen 1,184.00 - (1,184.00) 4,697.00
168.00 - (168.00) 2597629404 Medical Equipment 499.00 - (499.00) 1,980.00
Net Medicaid Ancillaries
Net Hospice Room & Board
Total Medicaid Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
52.00 - (52.00) 2597630204 Beauty & Barber 154.00 - (154.00) 611.00
(1,626.00) (102.56) 1,523.44 2597630704 Contractual Discount - Ancillaries (4,825.00) (326.28) 4,498.72 (19,140.00)
- 0.00 (0.00) - - 0.00 -
32,230.00 8,907.23 (23,322.77) 95,650.00 26,434.36 (69,215.64) 379,481.00
98,239.00 145,872.00 47,633.00 2597620005 Room & Board 291,548.00 417,986.00 126,438.00 1,156,685.00
(5,363.00) 30,387.78 35,750.78 2597623605 Contractual Discount - R & B (15,916.00) 110,530.69 126,446.69 (63,145.00)
92,876.00 176,259.78 83,383.78 275,632.00 528,516.69 252,884.69 1,093,540.00
11,980.00 16,694.40 4,714.40 2597626205 Drugs 35,553.00 54,187.79 18,634.79 141,053.00
888.00 3,061.12 2,173.12 2597626505 Medical Supplies 2,636.00 6,589.94 3,953.94 10,458.00
14.00 - (14.00) 2597626605 Diabetic Supplies 42.00 30.09 (11.91) 167.00
1,131.00 1,800.30 669.30 2597626705 Incontinent Supplies 3,357.00 6,419.08 3,062.08 13,319.00
190.00 - (190.00) 2597626905 IV Supplies 564.00 60.98 (503.02) 2,237.00
5.00 27.93 22.93 2597627105 Supplements/Nutrition 15.00 29.90 14.90 60.00
18,871.00 20,640.00 1,769.00 2597627405 Occupational Therapy 56,004.00 59,920.00 3,916.00 222,189.00
18,524.00 19,400.00 876.00 2597627705 Physical Therapy 54,975.00 59,440.00 4,465.00 218,108.00
10,213.00 16,080.00 5,867.00 2597628005 Speech Therapy 30,309.00 45,120.00 14,811.00 120,247.00
411.00 - (411.00) 2597628605 Ambulance/Transportation 1,220.00 - (1,220.00) 4,840.00
663.00 694.18 31.18 2597628905 Laboratory 1,968.00 2,894.43 926.43 7,808.00
199.00 10.25 (188.75) 2597629505 Oxygen 591.00 313.06 (277.94) 2,345.00
Net Hospice Ancillaries
Total Hospice Revenue
Net HMO A Room & Board
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
100.00 21.00 (79.00) 2597629505 Medical Equipment 297.00 117.20 (179.80) 1,179.00
358.00 862.78 504.78 2597630105 X-Ray 1,063.00 2,274.69 1,211.69 4,217.00
(63,547.00) (79,291.96) (15,744.96) 2597630705 Contractual Discount - Ancillaries (188,594.00) (237,397.16) (48,803.16) (748,227.00)
- 0.00 0.00 - 0.00 (0.00) -
92,876.00 176,259.78 83,383.78 275,632.00 528,516.69 252,884.69 1,093,540.00
13,809.00 10,680.00 (3,129.00) 2597627403 Occupational Therapy 39,621.00 45,400.00 5,779.00 161,847.00
20,011.00 24,920.00 4,909.00 2597627703 Physical Therapy 57,417.00 71,720.00 14,303.00 234,548.00
7,710.00 7,880.00 170.00 2597628003 Speech Therapy 22,122.00 32,000.00 9,878.00 90,365.00
(14,139.00) (13,408.38) 730.62 2597630703 Contractual Discount - Ancillaries (40,568.00) (47,576.17) (7,008.17) (165,716.00)
27,391.00 30,071.62 2,680.62 78,592.00 101,543.83 22,951.83 321,044.00
214,055.00 233,968.00 19,913.00 2597620006 Room & Board 635,260.00 625,451.00 (9,809.00) 2,520,325.00
62,936.00 80,892.28 17,956.28 2597623606 Contractual Discount - R & B 186,778.00 216,336.54 29,558.54 741,022.00
276,991.00 314,860.28 37,869.28 822,038.00 841,787.54 19,749.54 3,261,347.00
16,312.00 14,623.63 (1,688.37) 2597626206 Drugs 48,411.00 35,012.40 (13,398.60) 192,066.00
2,253.00 3,711.20 1,458.20 2597626506 Medical Supplies 6,686.00 6,079.81 (606.19) 26,526.00
36.00 79.71 43.71 2597626606 Diabetic Supplies 107.00 136.10 29.10 425.00
2,686.00 2,732.73 46.73 2597626706 Incontinent Supplies 7,971.00 7,203.85 (767.15) 31,624.00
Net HMO A Ancillaries
Total HMO A Revenue
Net Medicare Part A Room & Board
Total HMO B Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
4.00 - (4.00) 2597626806 Therapy Supplies 11.00 - (11.00) 43.00
298.00 140.05 (157.95) 2597626906 IV Supplies 885.00 192.45 (692.55) 3,512.00
9.00 - (9.00) 2597627106 Supplements/Nutrition 27.00 139.65 112.65 107.00
36,487.00 28,520.00 (7,967.00) 2597627406 Occupational Therapy 108,284.00 82,240.00 (26,044.00) 429,605.00
33,857.00 25,120.00 (8,737.00) 2597627706 Physical Therapy 100,479.00 77,960.00 (22,519.00) 398,640.00
22,051.00 13,440.00 (8,611.00) 2597628006 Speech Therapy 65,441.00 61,215.00 (4,226.00) 259,630.00
240.00 - (240.00) 2597626206 Ambulance/Transportation 712.00 - (712.00) 2,825.00
1,266.00 769.46 (496.54) 2597628906 Laboratory 3,757.00 3,196.40 (560.60) 14,905.00
787.00 321.78 (465.22) 2597629206 Medical Equipment 2,335.00 484.98 (1,850.02) 9,263.00
600.00 83.54 (516.46) 2597629506 Oxygen 1,782.00 687.05 (1,094.95) 7,071.00
1,198.00 1,481.70 283.70 2597630106 X-ray 3,555.00 3,109.59 (445.41) 14,104.00
(118,084.00) (91,023.80) 27,060.20 2597630706 Contractual Discount - Ancillaries (350,443.00) (277,657.28) 72,785.72 (1,390,346.00)
- (0.00) 0.00 - 0.00 0.00 -
276,991.00 314,860.28 37,869.28 822,038.00 841,787.54 19,749.54 3,261,347.00
27,677.00 13,840.00 (13,837.00) 2597627407 Occupational Therapy 79,413.00 58,360.00 (21,053.00) 324,399.00
53,842.00 35,360.00 (18,482.00) 2597627707 Physical Therapy 154,486.00 122,280.00 (32,206.00) 631,067.00
12,809.00 21,080.00 8,271.00 2597628007 Speech Therapy 36,751.00 65,040.00 28,289.00 150,126.00
(33,401.00) (21,848.87) 11,552.13 2597630707 Contractual Discount - Ancillaries (95,835.00) (77,832.39) 18,002.61 (391,483.00)
60,927.00 48,431.13 (12,495.87) 174,815.00 167,847.61 (6,967.39) 714,109.00
Total Medicare Part B Revenue
Net Medicare Part A Ancillaries
Total Medicare Part A Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
1,257,995.00 1,258,336.91 341.91 3,724,120.00 3,923,596.27 199,476.27 14,841,026.00
1,233.00 1,319.00 86.00 2599692600 Methodist Conference - General Giving 3,699.00 3,957.00 258.00 14,800.00
4,583.00 26,478.48 21,895.48 2599692200 Interest Income 13,749.00 70,547.09 56,798.09 55,000.00
4,333.00 - (4,333.00) 2599699600 Net Assets Released From Restriction 257,999.00 200,763.00 (57,236.00) 297,000.00
1,033.00 1,997.72 964.72 2599691200 Miscellaneous Operating Revenue 3,099.00 2,306.64 (792.36) 12,400.00
11,182.00 29,795.20 18,613.20 278,546.00 277,573.73 (972.27) 379,200.00
4,275,605.00 4,363,796.22 88,191.22 12,703,167.00 13,192,618.90 489,451.90 50,974,571.00
52,812.00 41,132.66 11,679.34 2501720000 Administrator 89,353.00 77,674.10 11,678.90 258,402.00
38,774.00 34,196.59 4,577.41 2501720100 Associate Director 65,600.00 61,397.65 4,202.35 189,713.00
3,829.00 3,824.84 4.16 2501720200 Accounting Assistant 12,447.00 11,784.75 662.25 46,344.00
26,230.00 18,752.66 7,477.34 2501722800 Department Managers & Assistants 78,844.00 58,180.56 20,663.44 312,175.00
6,787.00 8,804.59 (2,017.59) 2501721600 Clerical & Secretary 22,085.00 25,923.86 (3,838.86) 83,435.00
4,331.00 3,994.34 336.66 2501721700 Executive Assistant 13,054.00 13,352.67 (298.67) 52,491.00
41,295.00 31,409.53 (9,885.47) 2501724700 Marketing 125,842.00 99,040.98 26,801.02 497,275.00
3,445.00 3,531.61 (86.61) 2501720800 Resident Services Director 10,424.00 10,335.62 88.38 40,876.00
26,473.00 21,399.20 5,073.80 2501724000 Human Resources 79,750.00 68,623.22 11,126.78 315,209.00
13,728.00 14,366.38 (638.38) 2501724100 IT Staff 42,357.00 42,496.66 (139.66) 164,937.00
Total Health Center Revenue
Total Other Operating Revenue
Total Operating Revenue
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
4,500.00 3,856.93 643.07 2501739900 Accrued PTO 13,500.00 8,421.61 5,078.39 54,000.00
222,204.00 185,269.33 17,163.73 01 Total Salaries & Wages 553,256.00 477,231.68 76,024.32 2,014,857.00
17,222.00 12,826.43 4,395.57 2501730000 Payroll Taxes & Insurance 42,993.00 34,506.86 8,486.14 156,946.00
16,637.00 16,044.14 592.86 2501731000 Insurance 49,253.00 46,503.45 2,749.55 195,864.00
4,737.00 6,487.01 (1,750.01) 2501733000 Retirement 10,726.00 12,920.45 (2,194.45) 38,159.00
6,500.00 77.80 6,422.20 2501731400 Nurse Practioner Program 19,500.00 15,731.08 3,768.92 78,000.00
1,333.00 604.00 729.00 2501732000 Other 3,999.00 712.00 3,287.00 16,000.00
46,429.00 36,039.38 10,389.62 01 Total Employee Benefits 126,471.00 110,373.84 16,097.16 484,969.00
2,542.00 1,069.00 1,473.00 2501735200 Recruiting & Relocation 7,626.00 4,447.00 3,179.00 30,500.00
3,413.00 12,503.74 (9,090.74) 2501735400 Training & Meetings 10,239.00 17,895.72 (7,656.72) 40,950.00
1,125.00 67.13 1,057.87 2501735600 Travel & Transportation 3,375.00 7,929.12 (4,554.12) 13,500.00
13,209.00 5,850.09 7,358.91 2501735700 Employee Retention 39,627.00 23,248.03 16,378.97 158,500.00
1,992.00 2,131.39 (139.39) 2501735800 Employee Screening 5,976.00 5,132.54 843.46 23,900.00
6,250.00 - 6,250.00 2501740600 Bad Debts 18,750.00 1,549.70 17,200.30 75,000.00
192.00 307.01 (115.01) 2501740900 Bank Charges 576.00 907.47 (331.47) 2,300.00
13,417.00 11,772.00 1,645.00 2501741500 Computer Line Charges 40,251.00 35,316.00 4,935.00 161,000.00
450.00 - 450.00 2501741800 Consultants 1,350.00 594.00 756.00 5,400.00
208.00 - 208.00 2501742100 Contributions 624.00 - 624.00 2,500.00
533.00 736.69 (203.69) 2501743300 Waste Disposal 1,599.00 1,729.03 (130.03) 6,400.00
25,150.00 22,555.33 2,594.67 2501743900 Dues & Subscriptions 75,450.00 68,085.78 7,364.22 301,800.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
43,495.00 39,741.17 3,753.83 2501749300 Insurance General 130,485.00 119,223.51 11,261.49 521,938.00
17,433.00 14,268.60 3,164.40 2501749900 Labor - Outside Contract 52,299.00 46,272.77 6,026.23 209,200.00
1,108.00 - 1,108.00 2501751100 Legal & Professional - Cost Report 3,324.00 - 3,324.00 13,300.00
667.00 1,577.25 (910.25) 2501751400 Legal & Professional - Legal 2,001.00 1,919.25 81.75 8,000.00
50.00 - 50.00 2501751700 Legal & Professional - Other 150.00 - 150.00 600.00
1,761.00 810.41 950.59 2501752000 Licenses & Fees 5,283.00 5,315.41 (32.41) 21,130.00
4,851.00 11,437.06 (6,586.06) 2501753200 Maintenance & Repair - Equipment 14,553.00 14,118.06 434.94 58,200.00
8,484.00 14,332.68 (5,848.68) 2501754800 Managed Services - SaaS 25,452.00 25,724.28 (272.28) 101,800.00
654.00 - 654.00 2501755900 Marketing - AL 1,962.00 - 1,962.00 7,850.00
813.00 - 813.00 2501756200 Marketing - HC 2,439.00 - 2,439.00 9,750.00
16,167.00 19,541.17 (3,374.17) 2501756800 Marketing - IL: Advertising 48,501.00 34,505.66 13,995.34 194,000.00
44.00 - 44.00 2501757100 Marketing - IL: Market Research 132.00 - 132.00 525.00
775.00 7,615.69 (6,840.69) 2501757400 Marketing - IL: Miscellaneous 2,325.00 7,918.33 (5,593.33) 9,300.00
3,900.00 2,103.71 1,796.29 2501757700 Marketing - IL: Outside Labor 11,700.00 6,311.13 5,388.87 46,800.00
25.00 - 25.00 2501758000 Marketing - IL: Postage 75.00 - 75.00 300.00
2,417.00 816.89 1,600.11 2501758300 Marketing - IL: Site Events 7,251.00 1,428.71 5,822.29 29,000.00
667.00 2,068.81 (1,401.81) 2501758600 Marketing - IL: Travel & Training 2,001.00 3,732.40 (1,731.40) 8,000.00
400.00 10.06 389.94 2501760400 Postage 1,200.00 759.61 440.39 4,800.00
50.00 435.00 (385.00) 2501760500 Public Relations 150.00 735.00 (585.00) 600.00
1,207.00 789.00 418.00 2501761000 Rental & Leasing 3,621.00 4,089.05 (468.05) 14,480.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
2,583.00 - 2,583.00 2501761300 Safety Program 7,749.00 21,035.00 (13,286.00) 31,000.00
8,458.00 3,736.58 4,721.42 2501762800 Supply - Durable/Expendable Goods 25,374.00 10,372.51 15,001.49 101,500.00
500.00 3,100.00 (2,600.00) 2501763700 Supply - Minor Equipment 1,500.00 3,100.00 (1,600.00) 6,000.00
1,717.00 753.09 963.91 2501764300 Supply - Office 5,151.00 3,293.73 1,857.27 20,600.00
950.00 281.98 668.02 2501764500 Supply - Computer & Peripheral Equipment 2,850.00 606.86 2,243.14 11,400.00
200.00 - 200.00 2501764700 Supply - IT & Communications Equipment 600.00 28.75 571.25 2,400.00
100.00 - 100.00 2501765300 Supply - Computer Software 300.00 - 300.00 1,200.00
5,280.00 6,166.12 (886.12) 2501766400 Telephone 15,840.00 15,080.83 759.17 63,357.00
193,237.00 186,577.65 6,659.35 579,711.00 492,405.24 87,305.76 2,318,780.00
461,870.00 407,886.36 34,212.70 1,259,438.00 1,080,010.76 179,427.24 4,818,606.00
10,669.00 11,861.83 (1,192.83) 2569722800 Department Manager 32,736.00 33,931.29 (1,195.29) 128,620.00
6,317.00 6,316.91 0.09 2569726800 Supervisor 18,747.00 19,686.97 (939.97) 76,066.00
4,487.00 4,657.29 (170.29) 2569721600 Clerical & Secretary 14,124.00 14,983.03 (859.03) 54,855.00
45,080.00 35,256.23 9,823.77 2569723200 General Maintenance 138,790.00 109,867.76 28,922.24 545,365.00
375.00 (505.67) 880.67 2569739900 Accrued PTO 1,125.00 2,158.84 (1,033.84) 4,500.00
66,928.00 57,586.59 9,341.41 69 Total Salaries & Wages 205,522.00 180,627.89 24,894.11 809,406.00
5,470.00 5,077.01 392.99 2569730000 Payroll Taxes & Insurance 16,772.00 15,116.23 1,655.77 66,199.00
11,599.00 9,628.31 1,970.69 2569731000 Insurance 34,824.00 30,572.93 4,251.07 139,219.00
1,091.00 1,439.27 (348.27) 2569733000 Retirement 3,237.00 3,134.13 102.87 13,092.00
Total Other Expense
Total General & Administrative Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
42.00 250.00 (208.00) 2569732000 Other 126.00 250.00 (124.00) 500.00
18,202.00 16,394.59 1,807.41 69 Total Employee Benefits 54,959.00 49,073.29 5,885.71 219,010.00
525.00 287.35 237.65 2569735000 Uniforms 1,575.00 731.61 843.39 6,300.00
104.00 - 104.00 2569735400 Training & Meetings 312.00 - 312.00 1,250.00
283.00 - 283.00 2569735600 Travel & Transportation 849.00 - 849.00 3,400.00
71.00 34.86 36.14 2569735700 Employee Retention 213.00 72.76 140.24 850.00
10,334.00 11,493.05 (1,159.05) 2569740300 Auto & Bus 31,002.00 33,755.11 (2,753.11) 124,000.00
20,950.00 25,051.61 (4,101.61) 2569741200 Cable TV 62,850.00 61,770.14 1,079.86 251,400.00
175.00 - 175.00 2569741800 Consultants 525.00 4,880.00 (4,355.00) 2,100.00
13,380.00 13,492.94 (112.94) 2569743300 Disposal & Trucking 40,140.00 41,039.14 (899.14) 160,550.00
100.00 98.85 1.15 2569743900 Dues & Subscriptions 300.00 789.68 (489.68) 1,200.00
467.00 1,600.00 (1,133.00) 2569745700 Extermination Service 1,401.00 1,825.00 (424.00) 5,600.00
2,925.00 - 2,925.00 2569749900 Labor - Outside Contract 8,775.00 - 8,775.00 35,100.00
1,565.00 2,457.17 (892.17) 2569752000 License & Fees 4,695.00 4,458.26 236.74 18,780.00
25,341.00 48,115.81 (22,774.81) 2569752900 Maintenance & Repair - Building 76,023.00 107,808.29 (31,785.29) 304,100.00
6,535.00 10,482.06 (3,947.06) 2569753200 Maintenance & Repair - Equipment 19,605.00 16,379.83 3,225.17 78,420.00
58,871.00 49,227.53 9,643.47 2569753500 Maintenance & Repair - Grounds 176,613.00 141,209.15 35,403.85 706,450.00
2,633.00 10,540.58 (7,907.58) 2569753800 Maintenance & Repair - HVAC 7,899.00 29,641.58 (21,742.58) 31,600.00
25,229.00 16,755.25 8,473.75 2569754100 Maintenance & Repair - Scheduled Refurb 75,687.00 55,065.03 20,621.97 302,750.00
2,233.00 4,475.45 (2,242.45) 2569754800 Managed Services - SaaS 6,699.00 9,286.06 (2,587.06) 26,800.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
1,375.00 19.19 1,355.81 2569761000 Rental & Leasing 4,125.00 2,383.15 1,741.85 16,500.00
450.00 - 450.00 2569762500 Supply - Chemical 1,350.00 - 1,350.00 5,400.00
2,933.00 7,124.14 (4,191.14) 2569762800 Supply - Durable/Expendable Goods 8,799.00 15,152.46 (6,353.46) 35,200.00
783.00 1,130.00 (347.00) 2569763700 Supply - Minor Equipment 2,349.00 5,559.42 (3,210.42) 9,400.00
34.00 39.99 (5.99) 2569764300 Supply - Office 102.00 141.20 (39.20) 405.00
11,958.00 9,048.01 2,909.99 2569764900 Supply - Repairs - Buildings 35,874.00 27,767.31 8,106.69 143,500.00
292.00 169.99 122.01 2569765200 Supply - Repairs - Grounds 876.00 169.99 706.01 3,500.00
189,546.00 211,643.83 (22,097.83) 568,638.00 559,885.17 8,752.83 2,274,555.00
77,583.00 71,831.82 5,751.18 2569767000 Utilities - Electric 232,749.00 226,852.15 5,896.85 931,000.00
79,190.00 30,152.97 49,037.03 2569767300 Utilities - Gas 137,430.00 59,830.64 77,599.36 435,000.00
42,125.00 35,257.88 6,867.12 2569767900 Utilities - Water 126,375.00 105,773.63 20,601.37 505,500.00
198,898.00 137,242.67 61,655.33 496,554.00 392,456.42 104,097.58 1,871,500.00
473,574.00 422,867.68 50,706.32 1,325,673.00 1,182,042.77 143,630.23 5,174,471.00
13,472.00 13,388.30 83.70 2531722800 Department Manager 41,663.00 41,706.99 (43.99) 161,376.00
16,971.00 16,780.70 190.30 2531726800 Housekeeping Supervisor 52,630.00 54,784.69 (2,154.69) 202,762.00
112,207.00 107,031.06 5,175.94 2531723800 Housekeepers 358,438.00 330,181.37 28,256.63 1,364,759.00
45,767.00 45,509.07 257.93 2531724200 Janitors 146,164.00 142,705.25 3,458.75 557,418.00
1,833.00 7,850.50 (6,017.50) 2531739900 Accrued PTO 5,499.00 9,940.05 (4,441.05) 22,000.00
190,250.00 190,559.63 (309.63) 31 Total Salaries & Wages 604,394.00 579,318.35 25,075.65 2,308,315.00
Total Plant Expense
Total Other Expense
Total Utility Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
15,688.00 16,296.18 (608.18) 2531730000 Payroll Taxes & Insurance 49,637.00 48,976.40 660.60 190,458.00
31,486.00 25,738.15 5,747.85 2531731000 Insurance 94,654.00 77,546.15 17,107.85 377,981.00
1,751.00 3,112.38 (1,361.38) 2531733000 Retirement 5,172.00 6,933.14 (1,761.14) 20,803.00
208.00 1,475.00 (1,267.00) 2531732000 Other 624.00 1,475.00 (851.00) 2,500.00
49,133.00 46,621.71 2,511.29 31 Total Employee Benefits 150,087.00 134,930.69 15,156.31 591,742.00
67.00 - 67.00 2531735000 Uniforms 201.00 - 201.00 800.00
42.00 - 42.00 2531735400 Training & Meetings 126.00 - 126.00 500.00
42.00 - 42.00 2531735600 Travel & Transportation 126.00 - 126.00 500.00
492.00 317.59 174.41 2531735700 Employee Retention 1,476.00 557.42 918.58 5,900.00
2,325.00 4,280.28 (1,955.28) 2531745700 Extermination Service 6,975.00 8,802.84 (1,827.84) 27,900.00
604.00 1,057.26 (453.26) 2531753200 Maintenance & Repair - Equipment 1,812.00 2,757.09 (945.09) 7,250.00
83.00 - 83.00 2531760100 Outside Cleaning 35,249.00 35,000.00 249.00 36,000.00
2,100.00 900.63 1,199.37 2531762500 Supply - Chemical 6,300.00 4,697.13 1,602.87 25,200.00
8,667.00 11,309.26 (2,642.26) 2531762800 Supply - Durable/Expendable Goods 26,001.00 23,311.75 2,689.25 104,000.00
50.00 47.37 2.63 2531764300 Supply - Office 150.00 413.60 (263.60) 600.00
42.00 354.99 (312.99) 2531764500 Supply - Computer & Peripheral Equipment 126.00 354.99 (228.99) 500.00
14,514.00 18,267.38 (3,753.38) 78,542.00 75,894.82 2,647.18 209,150.00
253,897.00 255,448.72 (1,551.72) 833,023.00 790,143.86 42,879.14 3,109,207.00
3,665.00 3,770.06 (105.06) 2533724500 Laundry Supervisor 11,670.00 12,470.12 (800.12) 44,289.00
Total Other Expense
Total Environmental Services Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
9,397.00 9,674.94 (277.94) 2533724400 Laundry 30,665.00 32,115.02 (1,450.02) 115,216.00
23.00 184.20 (161.20) 2533739900 Accrued PTO 69.00 (210.13) 279.13 280.00
13,085.00 13,629.20 (544.20) 33 Total Salaries & Wages 42,404.00 44,375.01 (1,971.01) 159,785.00
1,113.00 1,133.57 (20.57) 2533730000 Payroll Taxes & Insurance 3,580.00 3,739.15 (159.15) 13,589.00
2,777.00 2,886.38 (109.38) 2533731000 Insurance 8,349.00 8,661.14 (312.14) 33,338.00
64.00 91.31 (27.31) 2533733000 Retirement 190.00 214.85 (24.85) 765.00
21.00 150.00 (129.00) 2533732000 Other 63.00 150.00 (87.00) 250.00
3,975.00 4,261.26 (286.26) 33 Total Employee Benefits 12,182.00 12,765.14 (583.14) 47,942.00
142.00 218.13 (76.13) 2533735700 Employee Retention 426.00 218.13 207.87 1,700.00
383.00 - 383.00 2533749900 Labor - Outside Contract 1,149.00 - 1,149.00 4,600.00
425.00 1,477.78 (1,052.78) 2533753200 Maintenance & Repair - Equipment 1,275.00 1,956.96 (681.96) 5,100.00
1,800.00 1,827.52 (27.52) 2533762200 Supply - Central Laundry 5,400.00 3,537.87 1,862.13 21,600.00
- - - 2533762800 Supply - Durable/Expendable Goods - 108.99 (108.99) -
1,104.00 248.32 855.68 2533763400 Supply - Linen & Etc. 3,312.00 1,530.71 1,781.29 13,250.00
3,854.00 3,771.75 82.25 11,562.00 7,352.66 4,209.34 46,250.00
20,914.00 21,662.21 (748.21) 66,148.00 64,492.81 1,655.19 253,977.00
434,992.00 455,970.60 (20,978.60) 2529729900 Morrison's 1,304,976.00 1,249,686.62 55,289.38 5,219,900.00
1,050.00 247.63 802.37 2529735000 Uniforms 3,150.00 1,650.15 1,499.85 12,600.00
850.00 672.00 178.00 2529735200 Recruiting & Relocation 2,550.00 960.00 1,590.00 10,200.00
Total Other Expense
Total Laundry Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
996.00 163.00 833.00 2529735400 Training & Meetings 2,988.00 211.00 2,777.00 11,950.00
350.00 - 350.00 2529735600 Travel & Transportation 1,050.00 2,316.49 (1,266.49) 4,200.00
4,534.00 - 4,534.00 2529735700 Employee Retention 13,602.00 - 13,602.00 54,400.00
1,000.00 1,594.79 (594.79) 2529735800 Employee Screening 3,000.00 1,594.79 1,405.21 12,000.00
692.00 498.00 194.00 2529743900 Dues & Subscriptions 2,076.00 998.99 1,077.01 8,300.00
239,199.00 233,353.83 5,845.17 2529746000 Food 717,597.00 697,855.27 19,741.73 2,870,388.00
13,938.00 9,540.96 4,397.04 2529748400 Food Service Contract 41,814.00 28,238.31 13,575.69 167,250.00
3,958.00 3,867.00 91.00 2529749300 Insurance - General 11,874.00 7,734.00 4,140.00 47,500.00
25,000.00 19,762.28 5,237.72 2529749900 Labor - Outside Contract 75,000.00 41,181.64 33,818.36 300,000.00
263.00 135.00 128.00 2529752000 Licenses & Fees 789.00 285.00 504.00 3,150.00
6,616.00 11,569.95 (4,953.95) 2529753200 Maintenance & Repair - Equipment 19,848.00 28,901.45 (9,053.45) 79,400.00
958.00 1,160.54 (202.54) 2529754800 Managed Services - SaaS 2,874.00 2,270.83 603.17 11,500.00
12,491.00 1,687.75 10,803.25 2529761000 Rental & Leasing 37,473.00 2,009.78 35,463.22 149,900.00
5,625.00 5,693.41 (68.41) 2529762500 Supply - Chemical 16,875.00 18,672.27 (1,797.27) 67,500.00
39,958.00 26,183.49 13,774.51 2529762800 Supply - Durable/Expendable Goods 119,874.00 85,342.66 34,531.34 479,500.00
2,483.00 481.65 2,001.35 2529763400 Supply - Linens 7,449.00 481.65 6,967.35 29,800.00
375.00 - 375.00 2529763700 Supply - Minor Equipment 1,125.00 1,917.14 (792.14) 4,500.00
1,325.00 300.30 1,024.70 2529764300 Supply - Office 3,975.00 3,067.62 907.38 15,900.00
350.00 - 350.00 2529764500 Supply - Computer & Peripheral Equipment 1,050.00 - 1,050.00 4,200.00
4,250.00 6,483.38 (2,233.38) 2529765500 Supply - Silverware/Dishes 12,750.00 7,940.05 4,809.95 51,000.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
801,253.00 779,365.56 21,887.44 2,403,759.00 2,183,315.71 220,443.29 9,615,038.00
10,965.00 22,166.94 (11,201.94) 2537720000 Associate Director 32,541.00 43,427.23 (10,886.23) 129,457.00
19,084.00 22,205.48 (3,121.48) 2537722800 Department Managers & Assistants 57,709.00 60,639.48 (2,930.48) 227,914.00
16,792.00 19,179.68 (2,387.68) 2537726800 Supervisor 50,638.00 62,839.01 (12,201.01) 199,598.00
8,256.00 7,500.14 755.86 2537721600 Clerical & Secretary 26,606.00 25,356.44 1,249.56 101,497.00
9,081.00 5,890.91 3,190.09 2537720700 Admissions Coordinator 28,023.00 19,057.69 8,965.31 110,362.00
14,922.00 8,436.83 6,485.17 2537724900 MDS Staff 45,358.00 25,978.33 19,379.67 179,065.00
7,251.00 7,411.05 (160.05) 2537720600 Activities Staff 22,735.00 21,704.24 1,030.76 88,402.00
5,022.00 5,021.25 0.75 2537725000 Medical Records 15,977.00 15,976.75 0.25 60,813.00
19,226.00 24,702.30 (5,476.30) 2537725200 Medicine Aides 61,863.00 73,857.47 (11,994.47) 235,306.00
3,713.00 3,404.02 308.98 2537726900 Supply Clerks 11,693.00 9,752.78 1,940.22 45,072.00
181,803.00 148,287.01 33,515.99 2537721800 CNA 562,446.00 434,341.47 128,104.53 2,185,587.00
103,137.00 154,519.95 (51,382.95) 2537724600 LPN 313,557.00 437,150.28 (123,593.28) 1,247,898.00
58,379.00 75,935.60 (17,556.60) 2537725800 RN 180,427.00 214,194.44 (33,767.44) 705,821.00
5,093.00 (1,254.10) 6,347.10 2537725900 Scheduler 15,529.00 3,495.11 12,033.89 61,517.00
254.00 9,354.79 (9,100.79) 2537726500 Staff Development 1,826.00 26,986.93 (25,160.93) 7,121.00
7,595.00 8,236.74 (641.74) 2537726100 Ward Clerks 24,161.00 24,879.94 (718.94) 93,900.00
9,525.00 7,578.46 1,946.54 2537726400 Social Services Staff 29,340.00 25,097.49 4,242.51 115,116.00
5,100.00 5,989.36 (889.36) 2537739900 Accrued PTO 15,300.00 23,016.36 (7,716.36) 61,200.00
Total Food & Beverage Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
485,198.00 534,566.41 (49,368.41) 37 Total Salaries & Wages 1,495,729.00 1,547,751.44 (52,022.44) 5,855,646.00
42,130.00 45,255.02 (3,125.02) 2537730000 Payroll Taxes & Insurance 129,461.00 132,252.66 (2,791.66) 509,011.00
52,469.00 48,954.48 3,514.52 2537731000 Insurance 157,640.00 152,065.77 5,574.23 629,823.00
4,051.00 9,099.14 (5,048.14) 2537733000 Retirement 12,008.00 19,755.06 (7,747.06) 48,586.00
333.00 2,250.00 (1,917.00) 2537732000 Other 999.00 2,250.00 (1,251.00) 4,000.00
98,983.00 105,558.64 (6,575.64) 37 Total Employee Benefits 300,108.00 306,323.49 (6,215.49) 1,191,420.00
1,142.00 1,913.93 (771.93) 2537735400 Training & Meetings 3,426.00 2,378.93 1,047.07 13,700.00
325.00 - 325.00 2537735600 Travel & Transportation 975.00 468.25 506.75 3,900.00
1,292.00 603.02 688.98 2537735700 Employee Retention 3,876.00 1,389.27 2,486.73 15,500.00
1,375.00 738.32 636.68 2537740000 Activities Expense 4,125.00 1,827.82 2,297.18 16,500.00
5,252.00 8,859.66 (3,607.66) 2537741800 Consultants 15,756.00 19,940.98 (4,184.98) 63,020.00
250.00 (800.10) 1,050.10 2537743600 Drugs - House Use 750.00 348.69 401.31 3,000.00
1,487.00 722.71 764.29 2537743900 Dues & Subscriptions 4,461.00 2,266.13 2,194.87 17,845.00
1,118.00 1,076.35 41.65 2537745300 Culture Change 3,354.00 2,932.40 421.60 13,410.00
2,500.00 5,002.00 (2,502.00) 2537749000 Hazardous Waste Disposal 7,500.00 14,104.00 (6,604.00) 30,000.00
47,917.00 76,615.39 (28,698.39) 2537749900 Labor - Outside Contract 143,751.00 235,402.07 (91,651.07) 575,000.00
605.00 291.50 313.50 2537752000 Licenses & Fees 1,815.00 524.50 1,290.50 7,251.00
1,292.00 79.30 1,212.70 2537753200 Maintenance & Repair - Equipment 3,876.00 1,286.24 2,589.76 15,500.00
3,677.00 3,714.54 (37.54) 2537754800 Managed Services - SaaS 11,031.00 10,708.40 322.60 44,127.00
3,773.00 3,663.18 109.82 2537758900 Medical Director Fees 11,319.00 10,989.54 329.46 45,274.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
5,042.00 6,134.60 (1,092.60) 2537759500 Medical Supplies - House Use 15,126.00 17,489.99 (2,363.99) 60,500.00
333.00 - 333.00 2537760600 Therapy Supplies - House Use 999.00 41.85 957.15 4,000.00
530.00 - 530.00 2537760700 Professional Fees 1,590.00 (730.00) 2,320.00 6,360.00
450.00 209.95 240.05 2537761000 Rental & Leasing 1,350.00 947.45 402.55 5,400.00
2,667.00 41,696.20 (39,029.20) 2537762800 Supply - Durable/Expendable Goods 8,001.00 43,146.54 (35,145.54) 32,000.00
1,459.00 - 1,459.00 2537763700 Supply - Minor Equipment 4,377.00 - 4,377.00 17,510.00
1,300.00 1,473.36 (173.36) 2537764300 Supply - Office 3,900.00 3,704.99 195.01 15,600.00
1,433.00 449.45 983.55 2537764500 Supply - Computer & Peripheral Equipment 4,299.00 1,377.13 2,921.87 17,200.00
85,219.00 152,443.36 (67,224.36) 255,657.00 370,545.17 (114,888.17) 1,022,597.00
96.00 1.58 94.42 2537770001 Drugs 285.00 246.75 38.25 1,131.00
951.00 819.52 131.48 2537770301 Medical Supplies 2,822.00 2,962.48 (140.48) 11,199.00
6.00 21.56 (15.56) 2537770401 Diabetic Supplies 18.00 32.86 (14.86) 72.00
2,448.00 2,707.29 (259.29) 2537770501 Incontinent Supplies 7,265.00 9,477.07 (2,212.07) 28,827.00
7.00 - 7.00 2537770601 Therapy Supplies 20.00 - 20.00 77.00
10.00 55.85 (45.85) 2537770901 Supplements/Nutrition 30.00 122.87 (92.87) 119.00
412.00 - 412.00 2537771201 Occupational Therapy 1,223.00 - 1,223.00 4,853.00
2,595.00 316.10 2,278.90 2537771501 Physical Therapy 7,701.00 672.13 7,028.87 30,555.00
223.00 - 223.00 2537771801 Speech Therapy 662.00 - 662.00 2,632.00
211.00 - 211.00 2537772401 Ambulance 626.00 - 626.00 2,484.00
485.00 1,195.30 (710.30) 2537773001 Medical Equipment 1,440.00 2,689.47 (1,249.47) 5,711.00
Total HC Administrative
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
803.00 46.34 756.66 2537773301 Oxygen 2,383.00 156.13 2,226.87 9,452.00
8,247.00 5,163.54 3,083.46 24,475.00 16,359.76 8,115.24 97,112.00
957.00 462.31 494.69 2537770002 Drugs 2,840.00 1,920.99 919.01 11,480.00
323.00 408.48 (85.48) 2537770302 Medical Supplies 959.00 1,432.83 (473.83) 3,880.00
4.00 42.20 (38.20) 2537770402 Diabetic Supplies 12.00 53.65 (41.65) 48.00
1,064.00 1,761.65 (697.65) 2537770502 Incontinent Supplies 3,158.00 4,748.12 (1,590.12) 12,767.00
6.00 - 6.00 2537770602 Therapy Supplies 18.00 - 18.00 72.00
23.00 33.51 (10.51) 2537770902 Supplements/Nutrition 68.00 78.19 (10.19) 273.00
537.00 827.10 (290.10) 2537773002 Medical Equipment 1,593.00 2,654.90 (1,061.90) 6,439.00
72.00 - 72.00 2537773302 Oxygen 214.00 17.42 196.58 866.00
2,986.00 3,535.25 (549.25) 8,862.00 10,906.10 (2,044.10) 35,825.00
144.00 - 144.00 2537770004 Drugs 427.00 - 427.00 1,693.00
85.00 4.14 80.86 2537770304 Medical Supplies 253.00 27.39 225.61 1,004.00
253.00 38.85 214.15 2537770504 Incontinent Supplies 751.00 105.09 645.91 2,979.00
23.00 - 23.00 2537770904 Supplements/Nutrition 68.00 - 68.00 270.00
65.00 - 65.00 2537773204 Medical Equipment 193.00 - 193.00 766.00
111.00 - 111.00 2537773304 Oxygen 329.00 - 329.00 1,306.00
681.00 42.99 638.01 2,021.00 132.48 1,888.52 8,018.00
11,862.00 17,225.77 (5,363.77) 2537770005 Drugs 35,203.00 54,686.64 (19,483.64) 139,665.00
479.00 1,245.97 (766.97) 2537770305 Medical Supplies 1,421.00 2,666.43 (1,245.43) 5,637.00
Total Private Pay
Total Medicaid
Total Hospice
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
8.00 - 8.00 2537770405 Diabetic Supplies 24.00 12.04 11.96 95.00
463.00 720.08 (257.08) 2537770505 Incontinent Supplies 1,375.00 2,567.52 (1,192.52) 5,456.00
184.00 - 184.00 2537770705 IV Supplies 546.00 60.98 485.02 2,166.00
2.00 11.17 (9.17) 2537770905 Supplements/Nutrition 6.00 11.96 (5.96) 24.00
9,126.00 11,960.20 (2,834.20) 2537771205 Occupational Therapy 27,084.00 33,686.77 (6,602.77) 107,452.00
9,427.00 11,515.23 (2,088.23) 2537771505 Physical Therapy 27,977.00 33,165.67 (5,188.67) 110,996.00
3,762.00 6,408.34 (2,646.34) 2537771805 Speech Therapy 11,165.00 15,493.72 (4,328.72) 44,296.00
411.00 - 411.00 2537772405 Ambulance 1,220.00 - 1,220.00 4,840.00
663.00 694.18 (31.18) 2537772705 Laboratory 1,968.00 2,894.43 (926.43) 7,808.00
181.00 4.10 176.90 2537773305 Oxygen 538.00 288.25 249.75 2,135.00
358.00 862.78 (504.78) 2537773905 X-ray 1,063.00 2,274.69 (1,211.69) 4,217.00
36,926.00 50,647.82 (13,721.82) 109,590.00 147,809.10 (38,219.10) 434,787.00
8,178.00 6,611.61 1,566.39 2537771203 Occupational Therapy 23,464.00 28,158.65 (4,694.65) 95,846.00
11,626.00 14,722.47 (3,096.47) 2537771503 Physical Therapy 33,358.00 42,107.47 (8,749.47) 136,272.00
3,622.00 3,538.06 83.94 2537771803 Speech Therapy 10,393.00 14,310.78 (3,917.78) 42,454.00
23,426.00 24,872.14 (1,446.14) 67,215.00 84,576.90 (17,361.90) 274,572.00
16,007.00 14,618.17 1,388.83 2537770006 Drugs 47,506.00 35,003.30 12,502.70 188,475.00
1,238.00 1,304.74 (66.74) 2537770306 Medical Supplies 3,673.00 2,287.48 1,385.52 14,572.00
17.00 31.88 (14.88) 2537770406 Diabetic Supplies 51.00 54.44 (3.44) 203.00
1,088.00 1,094.73 (6.73) 2537770506 Incontinent Supplies 3,229.00 2,883.08 345.92 12,811.00
2.00 - 2.00 2537770606 Therapy Supplies 5.00 - 5.00 19.00
Total HMO B
Total HMO A
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
292.00 140.05 151.95 2537770706 IV Supplies 867.00 192.45 674.55 3,440.00
4.00 - 4.00 2537770906 Supplements/Nutrition 12.00 55.85 (43.85) 47.00
15,398.00 15,692.74 (294.74) 2537771206 Occupational Therapy 45,697.00 44,962.96 734.04 181,297.00
14,525.00 14,195.18 329.82 2537771506 Physical Therapy 43,106.00 43,254.37 (148.37) 171,018.00
6,013.00 3,504.69 2,508.31 2537771806 Speech Therapy 17,845.00 14,666.98 3,178.02 70,798.00
240.00 - 240.00 2537772406 Ambulance 712.00 - 712.00 2,825.00
1,266.00 769.46 496.54 2537772706 Laboratory 3,757.00 3,196.40 560.60 14,905.00
753.00 219.91 533.09 2537773006 Medical Equipment 2,235.00 323.07 1,911.93 8,867.00
196.00 30.20 165.80 2537773306 Oxygen 581.00 108.39 472.61 2,305.00
1,198.00 1,481.70 (283.70) 2537773906 X-ray 3,555.00 3,109.59 445.41 14,104.00
58,237.00 53,083.45 5,153.55 172,831.00 150,098.36 22,732.64 685,686.00
16,783.00 8,798.85 7,984.15 2537771207 Occupational Therapy 48,156.00 36,209.99 11,946.01 196,715.00
31,961.00 20,599.53 11,361.47 2537771507 Physical Therapy 91,703.00 71,541.28 20,161.72 374,600.00
6,077.00 10,035.77 (3,958.77) 2537771807 Speech Therapy 17,435.00 30,251.74 (12,816.74) 71,219.00
54,821.00 39,434.15 15,386.85 157,294.00 138,003.01 19,290.99 642,534.00
854,724.00 969,347.75 (114,623.75) 2,593,782.00 2,772,505.81 (178,723.81) 10,248,197.00
11,872.00 11,871.45 0.55 2546722800 Department Managers & Assistants 36,306.00 36,037.40 268.60 142,641.00
3,975.00 3,970.96 4.04 2546721600 Clerical & Secretary 12,217.00 12,383.41 (166.41) 47,354.00
3,901.00 3,738.58 162.42 2546721800 CNA 12,651.00 12,222.77 428.23 48,501.00
Total Medicare A
Total Medicare B
Total Health Center Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
7,573.00 7,626.52 (53.52) 2546724600 Clinic Wages 22,574.00 22,898.23 (324.23) 89,510.00
18,188.00 21,016.17 (2,828.17) 2546725800 Nurses 55,051.00 52,062.45 2,988.55 217,583.00
608.00 (480.17) 1,088.17 2546739900 Accrued PTO 1,824.00 (789.01) 2,613.01 7,300.00
46,117.00 47,743.51 (1,626.51) 46 Total Salaries & Wages 140,623.00 134,815.25 5,807.75 552,889.00
4,063.00 4,406.82 (343.82) 2546730000 Payroll Taxes & Insurance 12,362.00 12,196.58 165.42 48,810.00
3,298.00 3,416.42 (118.42) 2546731000 Insurance 9,907.00 10,251.26 (344.26) 39,575.00
1,547.00 1,899.10 (352.10) 2546733000 Retirement 4,571.00 4,225.43 345.57 18,377.00
23.00 175.00 (152.00) 2546732000 Other 69.00 175.00 (106.00) 275.00
8,931.00 9,897.34 (966.34) 46 Total Employee Benefits 26,909.00 26,848.27 60.73 107,037.00
234.00 2,590.00 (2,356.00) 2546735400 Training & Meetings 702.00 2,590.00 (1,888.00) 2,800.00
104.00 - 104.00 2546735600 Travel & Transportation 312.00 - 312.00 1,250.00
67.00 204.67 (137.67) 2546735700 Employee Retention 201.00 245.49 (44.49) 800.00
250.00 - 250.00 2546740600 Bad Debts 750.00 - 750.00 3,000.00
121.00 - 121.00 2546743600 Drugs - House Use 363.00 0.46 362.54 1,450.00
38.00 179.99 (141.99) 2546743900 Dues & Subscriptions 114.00 179.99 (65.99) 450.00
117.00 - 117.00 2546752000 Licenses & Fees 351.00 250.00 101.00 1,400.00
2,734.00 2,503.75 230.25 2546754800 Managed Services - SaaS 8,202.00 7,421.25 780.75 32,808.00
13,390.00 13,000.00 390.00 2546758900 Medical Director Fees 40,170.00 39,000.00 1,170.00 160,680.00
458.00 48.42 409.58 2546759500 Medical Supplies - House Use 1,374.00 780.03 593.97 5,500.00
92.00 - 92.00 2546762800 Supply - Durable/Expendable Goods 276.00 59.79 216.21 1,100.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
113.00 107.32 5.68 2546764300 Supply - Office 339.00 121.23 217.77 1,350.00
38.00 - 38.00 2546764500 Supply - Computer & Peripheral Equipment 114.00 - 114.00 450.00
17,756.00 18,634.15 (878.15) 53,268.00 50,648.24 2,619.76 213,038.00
72,804.00 76,275.00 (3,471.00) 220,800.00 212,311.76 8,488.24 872,964.00
8,894.00 - 8,894.00 2550720000 Administrator 27,468.00 8,326.50 19,141.50 106,607.00
4,289.00 4,824.88 (535.88) 2550721600 Clerical & Secretary 13,675.00 14,797.32 (1,122.32) 51,582.00
111,457.00 147,512.80 (36,055.80) 2550721800 CNA 361,896.00 444,149.59 (82,253.59) 1,347,030.00
4,411.00 6,378.33 (1,967.33) 2550725900 Scheduler 30,043.00 19,678.43 10,364.57 69,159.00
11,074.00 12,588.74 (1,514.74) 2550725800 RN 34,980.00 39,232.15 (4,252.15) 134,169.00
525.00 425.06 99.94 2550739900 Accrued PTO 1,575.00 (2,385.32) 3,960.32 6,300.00
140,650.00 171,729.81 (31,079.81) 50 Total Salaries & Wages 469,637.00 523,798.67 (54,161.67) 1,714,847.00
12,477.00 15,439.21 (2,962.21) 2550730000 Payroll Taxes & Insurance 41,078.00 47,761.92 (6,683.92) 152,090.00
11,505.00 11,546.80 (41.80) 2550731000 Insurance 34,547.00 38,787.95 (4,240.95) 138,076.00
423.00 3,545.36 (3,122.36) 2550733000 Retirement 1,250.00 8,513.90 (7,263.90) 5,007.00
283.00 2,200.00 (1,917.00) 2550732000 Other 849.00 2,200.00 (1,351.00) 3,400.00
24,688.00 32,731.37 (8,043.37) 50 Total Employee Benefits 77,724.00 97,263.77 (19,539.77) 298,573.00
188.00 - 188.00 2550735000 Uniforms 564.00 - 564.00 2,250.00
155.00 249.91 (94.91) 2550735400 Training & Meetings 465.00 1,601.56 (1,136.56) 1,850.00
146.00 34.14 111.86 2550735600 Travel & Transportation 438.00 58.40 379.60 1,750.00
Total Other Expense
Total Clinic Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
167.00 72.77 94.23 2550735700 Employee Retention 501.00 548.14 (47.14) 2,000.00
100.00 179.98 (79.98) 2550741500 Computer Line Charges 300.00 309.96 (9.96) 1,200.00
63.00 - 63.00 2550752000 Licenses & Fees 189.00 100.00 89.00 750.00
865.00 839.52 25.48 2550754800 Managed Services - SaaS 2,595.00 2,363.52 231.48 10,382.00
250.00 120.29 129.71 2550756500 Marketing - Home Care 750.00 143.73 606.27 3,000.00
250.00 217.48 32.52 2550759500 Medical Supplies - House Use 750.00 232.47 517.53 3,000.00
79.00 55.00 24.00 2550762800 Supply - Durable/Expendable Goods 237.00 844.38 (607.38) 950.00
100.00 172.57 (72.57) 2550764300 Supply - Office 300.00 229.35 70.65 1,200.00
2,363.00 1,941.66 421.34 7,089.00 6,431.51 657.49 28,332.00
167,701.00 206,402.84 (38,701.84) 554,450.00 627,493.95 (73,043.95) 2,041,752.00
4,715.00 4,725.70 (10.70) 2544720600 Activites 14,262.00 13,462.41 799.59 56,074.00
49,310.00 60,722.45 (11,412.45) 2544721800 CNA 153,120.00 161,453.45 (8,333.45) 597,660.00
6,553.00 - 6,553.00 2544726800 Supervisor 19,983.00 4,377.52 15,605.48 79,643.00
742.00 (599.68) 1,341.68 2544739900 Accrued PTO 2,226.00 (213.44) 2,439.44 8,900.00
61,320.00 64,848.47 (3,528.47) 44 Total Salaries & Wages 189,591.00 179,079.94 10,511.06 742,277.00
5,441.00 5,921.69 (480.69) 2544730000 Payroll Taxes & Insurance 16,754.00 16,163.19 590.81 65,925.00
6,065.00 5,439.29 625.71 2544731000 Insurance 18,227.00 16,864.32 1,362.68 72,814.00
391.00 993.95 (602.95) 2544733000 Retirement 1,160.00 2,192.25 (1,032.25) 4,698.00
50.00 350.00 (300.00) 2544732000 Other 150.00 350.00 (200.00) 600.00
Total Home Care Expense
Total Other Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
11,947.00 12,704.93 (757.93) 44 Total Employee Benefits 36,291.00 35,569.76 721.24 144,037.00
83.00 111.75 (28.75) 2544735400 Training & Meetings 249.00 111.75 137.25 1,000.00
308.00 - 308.00 2544735700 Employee Retention 924.00 - 924.00 3,700.00
1,083.00 379.58 703.42 2544740000 Activities Expense 3,249.00 1,388.12 1,860.88 13,000.00
24.00 - 24.00 2544743900 Dues & Subscriptions 72.00 - 72.00 290.00
4,167.00 11,565.34 (7,398.34) 2544749900 Labor - Outside Contract 12,501.00 37,900.14 (25,399.14) 50,000.00
8.00 - 8.00 2544752000 Licenses & Fees 24.00 - 24.00 100.00
208.00 376.40 (168.40) 2544762800 Supply - Durable/Expendable Goods 624.00 399.94 224.06 2,500.00
63.00 - 63.00 2544764300 Supply - Office 189.00 - 189.00 750.00
158.00 - 158.00 2544764500 Supply - Computer & Peripheral Equipment 474.00 - 474.00 1,900.00
253.00 231.46 21.54 2544770301 Resident Ancillaries 749.00 616.13 132.87 2,970.00
6,355.00 12,664.53 (6,309.53) 19,055.00 40,416.08 (21,361.08) 76,210.00
79,622.00 90,217.93 (10,595.93) 244,937.00 255,065.78 (10,128.78) 962,524.00
8,304.00 7,386.86 917.14 2563722800 Director of Safety/Security 25,718.00 23,237.29 2,480.71 99,359.00
27,944.00 28,814.07 (870.07) 2563721200 Bus Driver/Valet 86,421.00 93,173.33 (6,752.33) 336,101.00
5,791.00 5,791.20 (0.20) 2563720400 Activities Director 19,762.00 17,723.78 2,038.22 70,946.00
6,044.00 5,902.92 141.08 2563720600 Activities Staff 19,284.00 19,380.47 (96.47) 74,344.00
14,173.00 8,809.80 5,363.20 2563721400 Chaplain 43,135.00 27,220.22 15,914.78 169,425.00
44,231.00 54,818.17 (10,587.17) 2563726000 Security 138,087.00 155,516.19 (17,429.19) 534,492.00
Total Memory Care Expense
Total Other Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
10,747.00 10,746.72 0.28 2563726400 Social Services Staff 32,968.00 32,967.45 0.55 130,387.00
11,358.00 4,894.03 6,463.97 2563726800 Supervisor 34,781.00 15,108.08 19,672.92 137,209.00
9,791.00 6,070.69 3,720.31 2563727000 Wellness Coordinator 29,593.00 18,284.23 11,308.77 117,030.00
1,792.00 3,716.53 (1,924.53) 2563739900 Accrued PTO 5,376.00 10,303.93 (4,927.93) 21,500.00
140,175.00 136,950.99 3,224.01 63 Total Salaries & Wages 435,125.00 412,914.97 22,210.03 1,690,793.00
11,500.00 12,026.91 (526.91) 2563730000 Payroll Taxes & Insurance 35,617.00 34,766.07 850.93 138,861.00
23,361.00 18,950.87 4,410.13 2563731000 Insurance 70,167.00 57,672.54 12,494.46 280,378.00
1,294.00 2,360.91 (1,066.91) 2563733000 Retirement 3,843.00 5,123.57 (1,280.57) 15,520.00
117.00 750.00 (633.00) 2563732000 Other 351.00 750.00 (399.00) 1,400.00
36,272.00 34,088.69 2,183.31 63 Total Employee Benefits 109,978.00 98,312.18 11,665.82 436,159.00
804.00 - 804.00 2563735000 Uniforms 2,412.00 - 2,412.00 9,650.00
326.00 2,570.29 (2,244.29) 2563735400 Training & Meetings 978.00 2,601.81 (1,623.81) 3,900.00
358.00 - 358.00 2563735600 Travel & Transportation 1,074.00 1,258.85 (184.85) 4,300.00
184.00 106.15 77.85 2563735700 Employee Retention 552.00 472.38 79.62 2,200.00
4,875.00 8,322.62 (3,447.62) 2563740000 Activities Expense 14,625.00 16,727.32 (2,102.32) 58,500.00
805.00 362.41 442.59 2563743900 Dues & Subscriptions 2,415.00 1,087.23 1,327.77 9,668.00
167.00 200.00 (33.00) 2563749900 Labor - Outside Contract 501.00 200.00 301.00 2,000.00
42.00 - 42.00 2563752000 Licenses & Fees 126.00 - 126.00 505.00
4,150.00 3,762.44 387.56 2563752900 Maintenance & Repair - Building 12,450.00 9,552.86 2,897.14 49,800.00
354.00 - 354.00 2563753200 Maintenance & Repair - Equipment 1,062.00 1,873.93 (811.93) 4,250.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
3,683.00 3,840.00 (157.00) 2563759800 Wellness 11,049.00 8,625.00 2,424.00 44,200.00
- 3,020.00 (3,020.00) 2563761000 Rental & Leasing - 3,673.00 (3,673.00) -
1,459.00 1,798.99 (339.99) 2563762800 Supply - Durable/Expendable Goods 4,377.00 3,894.44 482.56 17,500.00
100.00 - 100.00 2563763700 Supply - Minor Equipment 300.00 - 300.00 1,200.00
579.00 165.14 413.86 2563764300 Supply - Office 1,737.00 781.76 955.24 6,950.00
250.00 - 250.00 2563764500 Supply - Computer & Peripheral Equipment 750.00 510.03 239.97 3,000.00
117.00 - 117.00 2563764700 Supply - IT & Communications Equipment 351.00 - 351.00 1,400.00
80.00 7.72 72.28 2563770301 Resident Ancillaries 240.00 64.01 175.99 960.00
18,333.00 24,155.76 (5,822.76) 54,999.00 51,322.62 3,676.38 219,983.00
194,780.00 195,195.44 (415.44) 600,102.00 562,549.77 37,552.23 2,346,935.00
24,926.00 9,598.24 15,327.76 2543722800 Department Managers & Assistants 42,689.00 27,361.96 15,327.04 124,076.00
3,373.00 2,768.83 604.17 2543720600 Activities 10,283.00 7,634.55 2,648.45 40,617.00
3,720.00 5,564.36 (1,844.36) 2543720800 Resident Associate 11,845.00 14,893.11 (3,048.11) 45,385.00
10,167.00 12,720.44 (2,553.44) 2543721600 Clerical & Secretary 31,669.00 36,948.95 (5,279.95) 122,710.00
58,734.00 84,709.12 (25,975.12) 2543721800 CNA 181,173.00 247,935.18 (66,762.18) 707,193.00
7,481.00 7,816.43 (335.43) 2543726800 Supervisor 22,578.00 23,421.64 (843.64) 88,698.00
300.00 1,761.82 (1,461.82) 2543739900 Accrued PTO 900.00 8,270.29 (7,370.29) 3,600.00
108,701.00 124,939.24 (16,238.24) 43 Total Salaries & Wages 301,137.00 366,465.68 (65,328.68) 1,132,279.00
9,308.00 10,981.81 (1,673.81) 2543730000 Payroll Taxes & Insurance 26,015.00 31,701.64 (5,686.64) 98,692.00
Total Other Expense
Total Resident Services Expense
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
14,041.00 14,620.74 (579.74) 2543731000 Insurance 41,977.00 43,249.63 (1,272.63) 167,489.00
1,223.00 3,065.88 (1,842.88) 2543733000 Retirement 3,612.00 6,968.08 (3,356.08) 14,517.00
75.00 550.00 (475.00) 2543732000 Other 225.00 550.00 (325.00) 900.00
24,647.00 29,218.43 (4,571.43) 43 Total Employee Benefits 71,829.00 82,469.35 (10,640.35) 281,598.00
304.00 1,477.86 (1,173.86) 2543735400 Training & Meetings 912.00 1,477.86 (565.86) 3,650.00
92.00 - 92.00 2543735600 Travel & Transportation 276.00 - 276.00 1,100.00
429.00 174.82 254.18 2543735700 Employee Retention 1,287.00 482.28 804.72 5,150.00
983.00 1,304.73 (321.73) 2543740000 Activities 2,949.00 3,673.36 (724.36) 11,800.00
125.00 609.00 (484.00) 2543741800 Consultants 375.00 609.00 (234.00) 1,500.00
83.00 67.35 15.65 2543743600 Drugs - House Use 249.00 67.35 181.65 1,000.00
50.00 48.75 1.25 2543743900 Dues & Subscriptions 150.00 143.25 6.75 600.00
268.00 - 268.00 2543745300 Culture Change 804.00 - 804.00 3,216.00
6,250.00 8,184.62 (1,934.62) 2543749900 Labor - Outside Contract 18,750.00 16,142.01 2,607.99 75,000.00
146.00 126.72 19.28 2543752000 License & Fees 438.00 380.16 57.84 1,750.00
700.00 1,716.10 (1,016.10) 2543759500 Medical Supplies - House Use 2,100.00 3,414.23 (1,314.23) 8,400.00
- 52.00 (52.00) 2543761100 Rental & Leasing - Life Sustaining - 78.00 (78.00) -
308.00 592.54 (284.54) 2543762800 Supply - Durable/Expendable Goods 924.00 699.73 224.27 3,700.00
300.00 - 300.00 2543763700 Supply - Minor Equipment 900.00 - 900.00 3,600.00
400.00 207.28 192.72 2543764300 Supply - Office 1,200.00 419.44 780.56 4,800.00
475.00 188.56 286.44 2543764500 Supply - Computer & Peripheral Equipment 1,425.00 659.96 765.04 5,700.00
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
240.00 31.12 208.88 2543770001 Resident Ancillaries 712.00 507.59 204.41 2,829.00
11,153.00 14,781.45 (3,628.45) 33,451.00 28,754.22 4,696.78 133,795.00
144,501.00 168,939.12 (24,438.12) 406,417.00 477,689.25 (71,272.25) 1,547,672.00
3,525,640.00 3,593,608.61 (87,739.55) 10,508,529.00 10,207,622.23 300,906.77 40,991,343.00
2,168,535.00 2,213,285.66 44,750.66 6,213,824.00 6,480,186.57 266,362.57 25,844,967.00
49,918.00 41,950.00 (7,968.00) 143,228.00 125,850.00 (17,378.00) 585,083.00
176,005.00 162,949.98 (13,055.02) 528,015.00 479,186.83 (48,828.17) 2,112,960.00
147,528.00 173,189.98 25,661.98 437,727.00 484,769.29 47,042.29 1,736,339.00
464,442.00 484,288.49 19,846.49 1,377,707.00 1,421,456.21 43,749.21 5,474,996.00
1,257,995.00 1,258,336.91 341.91 3,724,120.00 3,923,596.27 199,476.27 14,841,026.00
11,182.00 29,795.20 18,613.20 278,546.00 277,573.73 (972.27) 379,200.00
4,275,605.00 4,363,796.22 88,191.22 12,703,167.00 13,192,618.90 489,451.90 50,974,571.00
461,870.00 407,886.36 34,212.70 1,259,438.00 1,080,010.76 179,427.24 4,818,606.00
473,574.00 422,867.68 50,706.32 1,325,673.00 1,182,042.77 143,630.23 5,174,471.00
253,897.00 255,448.72 (1,551.72) 833,023.00 790,143.86 42,879.14 3,109,207.00
20,914.00 21,662.21 (748.21) 66,148.00 64,492.81 1,655.19 253,977.00
801,253.00 779,365.56 21,887.44 2,403,759.00 2,183,315.71 220,443.29 9,615,038.00
854,724.00 969,347.75 (114,623.75) 2,593,782.00 2,772,505.81 (178,723.81) 10,248,197.00
Total Environmental Services
Total Health Center
Total Clinic
Total Assisted Living
Total Health Center
Total Other Operating
Total Independent Living
Total Home Care
Total Memory Care
Total General & Administrative
Total Plant
Total Laundry
Total Food & Beverage
Total Operating Revenue
Total Assisted Living Expense
Total Operating Expense
Total AL Administrative
Budget Actual Variance Number Description Budget Actual Variance
Annual
Budget
December YTDAccountDecember-23
72,804.00 76,275.00 (3,471.00) 220,800.00 212,311.76 8,488.24 872,964.00
167,701.00 206,402.84 (38,701.84) 554,450.00 627,493.95 (73,043.95) 2,041,752.00
79,622.00 90,217.93 (10,595.93) 244,937.00 255,065.78 (10,128.78) 962,524.00
194,780.00 195,195.44 (415.44) 600,102.00 562,549.77 37,552.23 2,346,935.00
144,501.00 168,939.12 (24,438.12) 406,417.00 477,689.25 (71,272.25) 1,547,672.00
3,525,640.00 3,593,608.61 (87,739.55) 10,508,529.00 10,207,622.23 300,906.77 40,991,343.00
749,965.00 770,187.61 20,222.61 2,194,638.00 2,984,996.67 790,358.67 9,983,228.00
597,250.00 819,194.48 221,944.48 2599693800 Amortization of Deferred Revenue 1,791,750.00 1,976,370.72 184,620.72 7,167,000.00
- 9,985.45 9,985.45 2599693100 Unrealized Gain/(Loss) on Investments - 21,222.35 21,222.35 -
(382,250.00) (892,073.61) (509,823.61) 2585709500 Depreciation Expense (1,146,750.00) (2,677,442.42) (1,530,692.42) (4,587,000.00)
(1,140.00) (1,139.80) 0.20 2585710100 Amortization Expense (3,420.00) (3,419.40) 0.60 (13,678.00)
- 56,464.32 56,464.32 2599691800 Contribution Revenue - 56,464.32 56,464.32 -
- (3,672.96) (3,672.96) 2585699100 Gain/(Loss) on Sale of Other Assets - (3,422.96) (3,422.96) -
(392,599.00) (502,708.14) (110,109.14) 2587713500 Interest Expense (1,177,797.00) (1,550,945.21) (373,148.21) (4,711,187.00)
- (36,146.25) (36,146.25) 2587714200 Construction Related Marketing Costs - (176,096.50) (176,096.50) -
(178,739.00) (550,096.51) (371,357.51) (536,217.00) (2,357,269.10) (1,821,052.10) (2,144,865.00)
571,226.00 220,091.10 (351,134.90) 1,658,421.00 627,727.57 (1,030,693.43) 7,838,363.00
Total Clinic
Total Resident Services
Total Memory Care
Total Non-Operating Revenue/(Expense)
Net Income/(Loss)
Total Assisted Living
Total Operating Expense
Net Operating Income/(Loss)
Total Home Care
Home G&A Plant ES F&B HC AL MC RS Clinic Refurb CIP Unbudgeted Summary
Croasdaile Village
Capital Expenditures
Annual
Budget
Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
YTD
Actual
Remaining
Balance/
(Overage)
Comments
202
800,000 - - - - - - - - - - - - - 800,000
202
135,000 - - - - - - - - - - - - - 135,000
202
59,000 - - - - - - - - - - - - - 59,000
202
15,500 - - - - - - - - - - - - - 15,500
202
6,500 - - 839 - - - - - - - - - 839 5,661
202
210,000 - - - - - - - - - - - - - 210,000
202
75,000 - - - - - - - - - - - - - 75,000
202
244,000 - - - - - - - - - - - - - 244,000
202
48,000 - - 1,000 - - - - - - - - - 1,000 47,000
202
12,000 - - - - - - - - - - - - - 12,000
202
22,000 - - - - - - - - - - - - - 22,000
Total General and Administrative 1,627,000 - - 1,839 - - - - - - - - - 1,839 1,625,161
202
65,000 - - - - - - - - - - - - - 65,000
202
19,000 - - - - - - - - - - - - - 19,000
202
12,000 - - - - - - - - - - - - - 12,000
202
21,000 - - - - - - - - - - - - - 21,000
202
79,000 - - - - - - - - - - - - - 79,000
202
105,000 - - - - - - - - - - - - - 105,000
202
525,000 - - - - - - - - - - - - - 525,000
202
140,000 21,270 - - - - - - - - - - - 21,270 118,730
202
147,000 13,260 - - - - - - - - - - - 13,260 133,740
202
6,000 - - - - - - - - - - - - - 6,000
202
60,000 - - - - - - - - - - - - - 60,000
Total Plant 1,179,000 34,530 - - - - - - - - - - - 34,530 1,144,470
202
21,000 - 17,680 - - - - - - - - - - 17,680 3,320
Total Environmental Services 21,000 - 17,680 - - - - - - - - - - 17,680 3,320
202
36,450 - - - - - - - - - - - - - 36,450
202
5,900 - - - - - - - - - - - - - 5,900
202
11,825 - - - - - - - - - - - - - 11,825
202
51,000 - - - - - - - - - - - - - 51,000
202
160,000 - - - - - - - - - - - - - 160,000
202
945,000 - - - - - - - - - - - - - 945,000
Total Food and Beverage Services 1,210,175 - - - - - - - - - - - - - 1,210,175
202
24,600 - - - - - - - - - - - - - 24,600
202
17,400 - 2,879 - - - - - - - - - - 2,879 14,521
202
55,000 - - - - - - - - - - - - - 55,000
202
5,300 - - - - - - - - - - - - - 5,300
202
4,200 4,392 804 812 - - - - - - - - - 6,008 (1,808)
202
266,400 - - - - - - - - - - - - - 266,400
202
24,000 - - - - - - - - - - - - - 24,000
202
45,334 - - - - - - - - - - - - - 45,334
202
168,000 - - - - - - - - - - - - - 168,000
Total Health Center 610,234 4,392 3,683 812 - - - - - - - - - 8,887 601,348
202
4,500 - - - - - - - - - - - - - 4,500
Total Assisted Living 4,500 - - - - - - - - - - - - - 4,500
202
12,160 - - - - - - - - - - - - - 12,160
Total Memory Care 12,160 - - - - - - - - - - - - - 12,160
202
12,000 - - - - - - - - - - - - - 12,000
202
Mobile activity cart 9,000 - - - - - - - - - - - - - 9,000
202
12-passenger van 80,000 - - - - - - - - - - - - - 80,000
202
Hallas Garden & Bird Sanctuary updates 200,000 - - 15,243 - - - - - - - - - 15,243 184,757
202
Pub sound & equipment 34,000 - 28,080 - - - - - - - - - - 28,080 5,920
202
Chapel A/V upgrade 13,000 - - - - - - - - - - - - - 13,000
202
Auditorium stage lighting 11,290 - - - - - - - - - - - - - 11,290
Total Resident Services 359,290 - 28,080 15,243 - - - - - - - - - 43,323 315,967
202
3,100 - - - - - - - - - - - - - 3,100
Total Clinic 3,100 - - - - - - - - - - - - - 3,100
202
- 319,471 91,283 380,500 - - - - - - - - - 791,254 (791,254)
Total Unit Refurbishment - 319,471 91,283 380,500 - - - - - - - - - 791,254 (791,254)
202
14,500 - - - - - - - - - - - - - 14,500
202
Chapel refurbishment & A/V upgrade 132,000 - - - - - - - - - - - - - 132,000
202
Replace/upgrade elevators in Homestead 90,000 - - - - - - - - - - - - - 90,000
202
Update Homestead entrance awnings 12,000 - - - - - - - - - - - - - 12,000
202
Renovation of Village Commons North entrance bathroom entrance 9,000 - - - - - - - - - - - - - 9,000
202
Elevator motor replacement 22,667 - - - - - - - - - - - - - 22,667
202
Heritage capital 142,250 - - - - - - - - - - - - - 142,250
Total Other 422,417 - - - - - - - - - - - - - 422,417
202
- 40,041 798,279 227,515 - - - - - - - - - 1,065,835 (1,065,835)
202
Master planning - - 483 1,549 - - - - - - - - - 2,033 (2,033)
Irrigation repairs
Remove and replace asphalt walk paths
Kiosks for resident and employee portal use
Charboiler gas countertop
Mobile heated cabinets (3)
Memory Care
Sensory interactive machine
Clinic
Unit Refurbishment
Other
Construction In Progress
Heritage Hall
Bariatric lab draw chair- electric
Unit refurbishments
Hot water boiler in laundry
Replacement of Homestead hallway HVAC split systems
Asset Description
General and Administrative
Plant
Fire alarm panel upgrade for the Homestead building
Golf carts (2)
Fiberoptic for cottages
Homestead wiring for upgrading resident wi-fi
Refurbishment of current Administration office suite
New carpet in the Great Room
Cell booster installation for The Orchard
Phone system hardware replacement
Conference room/resident meeting rooms AV equipment upgrade
Administration suite renovation
Marketing suite renovation
Homestead sunrooms, bathrooms, etc. refurbishment
Replace roofing - Village Commons & Chapel
Replace gutters & downspouts
Hallway emergency lighting for Homestead
Replace shingles on cottages
Replace asphalt roof shingles - Homestead, Village Commons & Pavilion
Cottage driveway repairs
Environmental Services
Golf carts (2)
Dining room floors
Food and Beverage Services
Health Center
New technology (meal delivery to cottages, kitchen ticketing system, robots)
Dining renovation (café, kitchen,take-out)
Kettle, gas tilting
New dining portal & POS system
Front lobby flooring replacement (buildings D & E)
Elevator motor replacement
Vital machines
Handrails for the Pavilion
Activity board/wooden calendar
Front lobby, hallway and office renovation
Building wide furniture replacement
Dance floor for Fassett Auditorium
Common area lighting
Resident Services
Raizer lift
Assisted Living
Annual
Budget
Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24
YTD
Actual
Remaining
Balance/
(Overage)
Comments
Asset Description
Total Construction In Progress - 40,041 798,762 229,065 - - - - - - - - - 1,067,868 (1,067,868)
202
- 8,255 - - - - - - - - - - - 8,255 (8,255)
202
Homestead generator transfer switch - 750 - 6,574 - - - - - - - - - 7,324 (7,324)
202
Wanderguard - Departure alert system for Pavilion - - 28,536 - - - - - - - - - - 28,536 (28,536)
202
Lochinvar spa heater - - - 11,400 - - - - - - - - - 11,400 (11,400)
202
Enhancements around Door #7 - - - 3,750 - - - - - - - - - 3,750 (3,750)
202
Village Commons gift shop renovations - - - 3,257 - - - - - - - - - 3,257 (3,257)
Total Unbudgeted Capital - 9,005 28,536 24,981 - - - - - - - - - 62,522 (62,522)
Total General and Administrative 1,627,000 - - 1,839 - - - - - - - - - 1,839 1,625,161
Total Plant 1,179,000 34,530 - - - - - - - - - - - 34,530 1,144,470
Total Environmental Services 21,000 - 17,680 - - - - - - - - - - 17,680 3,320
Total Food and Beverage Services 1,210,175 - - - - - - - - - - - - - 1,210,175
Total Health Center 610,234 4,392 3,683 812 - - - - - - - - - 8,887 601,348
Total Assisted Living 4,500 - - - - - - - - - - - - - 4,500
Total Memory Care 12,160 - - - - - - - - - - - - - 12,160
Total Resident Services 359,290 - 28,080 15,243 - - - - - - - - - 43,323 315,967
3,100 - - - - - - - - - - - - - 3,100
Total Unit Refurbishments - 319,471 91,283 380,500 - - - - - - - - - 791,254 (791,254)
Total Other 422,417 - - - - - - - - - - - - - 422,417
Total Construction in Progress - 40,041 798,762 229,065 - - - - - - - - - 1,067,868 (1,067,868)
Total Unbudgeted Capital - 9,005 28,536 24,981 - - - - - - - - - 62,522 (62,522)
Grand Total 5,448,876 407,438 968,024 652,439 - - - - - - - - - 2,027,902 3,420,974
Total Capital Expenditures 5,448,876 47,927 77,979 42,875 - - - - - - - - - 168,780 5,280,096
Total Unit Refurbishments - 319,471 91,283 380,500 - - - - - - - - - 791,254 (791,254)
Total Construction in Progress - 40,041 798,762 229,065 - - - - - - - - - 1,067,868 (1,067,868)
Grand Total 5,448,876 407,438 968,024 652,439 - - - - - - - - - 2,027,902 3,420,974
Summary by Type
Unbudgeted Capital
Summary by Department
Japanese garden trellis
Total Clinic
Croasdaile Village
Schedule of FTE's
November-23
Croasdaile Village
Schedule of FTE's
Croasdaile Village
Schedule of FTE's
December YTD
Croasdaile Village
Schedule of FTE's
Home HC IL Total
Croasdaile Village
Accounts Receivable
Month Private Pay Medicare A Medicaid Other Totals % of total $ change
YTD
$ change
% change
YTD
% change
12/31/23 265,179 242,001 93,450 294,824
895,454
29.54% (74,836) 63,019 -7.71% 8.37%
11/30/23 376,451 221,967 91,292 280,580
970,290
34.25% 36,816 137,855 3.94% 16.08%
10/31/23 284,034 227,262 92,686 329,491
933,474
40.04% 101,039 101,039 12.14% 12.14%
09/30/23 199,829 207,029 79,437 346,139
832,435
41.70% - - - -
12/31/23 184,001 240,013 3,702 282,777
710,493
23.44% (93,700) 326,099 -11.65% 77.64%
11/30/23 215,705 227,262 15,523 345,703
804,193
28.39% 242,964 419,799 43.29% 89.29%
10/31/23 65,806 207,029 (6,356) 294,750
561,229
24.07% 176,835 176,835 46.00% 46.00%
09/30/23 105,837 17,005 12,203 249,350
384,394
19.26% - - - -
12/31/23 168,535 26,683 7,757 283,848
486,823
16.06% 161,774 164,753 49.77% 54.19%
11/30/23 63,644 29,314 (5,336) 237,427
325,050
11.47% 56,456 2,979 21.02% 4.42%
10/31/23 95,077 16,564 (7,149) 164,101
268,593
11.52% (53,477) (53,477) -16.60% -16.60%
09/30/23 85,907 36,247 21,432 178,484
322,070
16.13% - - - -
12/31/23 57,184 23,797 (5,336) 183,875
259,520
8.56% 9,362 26,047 3.74% 12.59%
11/30/23 86,360 6,463 (343) 157,677
250,157
8.83% 38,557 16,684 18.22% 8.85%
10/31/23 83,416 14,913 14,582 98,689
211,600
9.08% (21,873) (21,873) -9.37% -9.37%
09/30/23 70,378 53,102 7,492 102,500
233,473
11.70% - - - -
12/31/23 261,540 42,060 12,015 363,031
678,646
22.40% 195,390 454,709 40.43% 135.17%
11/30/23 199,431 42,100 18,613 223,112
483,256
17.06% 126,905 259,320 35.61% 94.74%
10/31/23 157,386 37,363 170 161,432
356,351
15.29% 132,415 132,415 59.13% 59.13%
09/30/23 85,019 19,793 24,640 94,484
223,936
11.21% - - - -
12/31/23 936,438 574,555 111,588 1,408,355
3,030,936
N/A 197,990 1,034,627 6.99% 45.29%
11/30/23 941,591 527,107 119,749 1,244,499
2,832,946
N/A 501,699 836,637 21.52% 38.30%
10/31/23 685,719 503,131 93,934 1,048,464
2,331,247
N/A 334,938 334,938 16.78% 16.78%
09/30/23 546,970 333,177 145,205 970,957
1,996,309
N/A - - - -
Health Center Current
Health Center 30 Days
Health Center 60 Days
Health Center 90 Days
Health Center > 90 Days
Health Center Total
Independent/Assisted Living/Memory Care Current
12/31/23 424,332 - - -
424,332
55.87% (386,693) 80,704 -47.68% 69.34%
11/30/23 811,025 - - -
811,025
88.56% 132,200 467,397 19.47% 117.02%
10/31/23 678,825 - - -
678,825
83.49% 335,197 335,197 97.55% 97.55%
09/30/23 343,628 - - -
343,628
67.34% - - - -
12/31/23 196,480 - - -
196,480
25.87% 61,160 119,294 45.20% 935.91%
11/30/23 135,320 - - -
135,320
14.78% 122,725 58,134 974.39% 890.71%
10/31/23 12,595 - - -
12,595
1.55% (64,591) (64,591) -83.68% -83.68%
09/30/23 77,186 - - -
77,186
15.12% - - - -
12/31/23 65,559 - - -
65,559
8.63% 159,791 38,528 -169.57% -403.07%
11/30/23 (94,232) - - -
(94,232)
-10.29% (140,375) (121,262) -304.21% -233.50%
10/31/23 46,143 - - -
46,143
5.68% 19,113 19,113 70.71% 70.71%
09/30/23 27,030 - - -
27,030
5.30% - - - -
12/31/23 31,928 - - -
31,928
4.20% 9,510 23,416 42.42% 168.55%
11/30/23 22,418 - - -
22,418
2.45% 7,189 13,906 47.21% 126.13%
10/31/23 15,229 - - -
15,229
1.87% 6,717 6,717 78.92% 78.92%
09/30/23 8,512 - - -
8,512
1.66% - - - -
12/31/23 41,156 - - -
41,156
5.43% (144) (12,814) -0.35% -20.16%
11/30/23 41,300 - - -
41,300
4.50% (18,971) (12,670) -31.48% -19.81%
10/31/23 60,271 - - -
60,271
7.40% 6,301 6,301 11.67% 11.67%
09/30/23 53,970 - - -
53,970
10.58% - - - -
12/31/23 759,455 - - -
759,455
N/A (156,377) 249,129 -17.07% 54.89%
11/30/23 915,832 - - -
915,832
N/A 102,768 405,506 12.64% 71.96%
10/31/23 813,064 - - -
813,064
N/A 302,738 302,738 59.32% 59.32%
09/30/23 510,326 - - -
510,326
N/A - - - -
12/31/23 689,511 242,001 93,450 294,824
1,319,787
34.82% (461,529) 143,723 -25.91% 21.66%
11/30/23 1,187,477 221,967 91,292 280,580
1,781,316
47.52% 169,017 605,252 10.48% 47.57%
10/31/23 962,859 227,262 92,686 329,491
1,612,299
51.28% 436,236 436,236 37.09% 37.09%
09/30/23 543,457 207,029 79,437 346,139
1,176,063
46.92% - - - -
12/31/23 380,481 240,013 3,702 282,777
906,973
23.93% (32,540) 445,393 -3.46% 84.59%
11/30/23 351,025 227,262 15,523 345,703
939,513
25.06% 365,689 477,933 63.73% 88.05%
Grand total 30 Days
Independent/Assisted Living/Memory Care > 90 Days
Independent/Assisted Living/Memory Care Total
Grand total Current
Independent/Assisted Living/Memory Care 30 Days
Independent/Assisted Living/Memory Care 60 Days
Independent/Assisted Living/Memory Care 90 Days
10/31/23 78,401 207,029 (6,356) 294,750
573,824
18.25% 112,244 112,244 24.32% 24.32%
09/30/23 183,022 17,005 12,203 249,350
461,580
18.41% - - - -
12/31/23 234,094 26,683 7,757 283,848
552,382
14.57% 321,564 203,281 139.32% 102.82%
11/30/23 (30,588) 29,314 (5,336) 237,427
230,818
6.16% (83,919) (118,283) -26.66% -36.50%
10/31/23 141,220 16,564 (7,149) 164,101
314,737
10.01% (34,364) (34,364) -9.84% -9.84%
09/30/23 112,938 36,247 21,432 178,484
349,101
13.93% - - - -
12/31/23 89,112 23,797 (5,336) 183,875
291,447
7.69% 18,872 49,463 6.92% 20.83%
11/30/23 108,778 6,463 (343) 157,677
272,575
7.27% 45,746 30,591 20.17% 13.91%
10/31/23 98,645 14,913 14,582 98,689
226,829
7.21% (15,155) (15,155) -6.26% -6.26%
09/30/23 78,890 53,102 7,492 102,500
241,985
9.65% - - - -
12/31/23 302,697 42,060 12,015 363,031
719,802
18.99% 195,246 441,895 37.22% 113.04%
11/30/23 240,731 42,100 18,613 223,112
524,556
13.99% 107,934 246,650 25.91% 75.82%
10/31/23 217,657 37,363 170 161,432
416,622
13.25% 138,715 138,715 49.91% 49.91%
09/30/23 138,989 19,793 24,640 94,484
277,907
11.09% - - - -
12/31/23 1,695,893 574,555 111,588 1,408,355
3,790,391
N/A 41,613 1,283,756 1.11% 45.77%
11/30/23 1,857,424 527,107 119,749 1,244,499
3,748,778
N/A 604,467 1,242,143 19.22% 44.66%
10/31/23 1,498,783 503,131 93,934 1,048,464
3,144,311
N/A 637,676 637,676 25.44% 25.44%
09/30/23 1,057,296 333,177 145,205 970,957
2,506,635
N/A - - - -
Grand total 60 Days
Grand total 90 Days
Grand total > 90 Days
Grand total
Croasdaile Village
Financial Variance Report
Budget Actual Variance Budget Actual Variance
2,168,535 2,213,286 44,751 6,213,824 6,480,187 266,363
147,528 173,190 25,662 437,727 484,769 47,042
49,918 41,950 (7,968) 143,228 125,850 (17,378)
176,005 162,950 (13,055) 528,015 479,187 (48,828)
464,442 484,288 19,846 1,377,707 1,421,456 43,749
1,257,995 1,258,337 342 3,724,120 3,923,596 199,476
11,182 29,795 18,613 278,546 277,574 (972)
4,275,605 4,363,796 88,191 12,703,167 13,192,619 489,452
222,204 185,269 36,935 553,256 477,232 76,024
43,495 39,741 3,754 130,485 119,224 11,261
196,171 182,876 13,295 575,697 483,556 92,141
461,870 407,886 53,984 1,259,438 1,080,011 179,427
December YTD
Account Categories
Wages & benefits
Insurance
Other
December-23
Operating Revenue
General & Administrative
Total Operating Revenue
Croasdaile Village
Financial Variance Report
66,928 57,587 9,341 205,522 180,628 24,894
198,898 137,243 61,655 496,554 392,456 104,098
207,748 228,038 (20,290) 623,597 608,958 14,639
473,574 422,868 50,706 1,325,673 1,182,043 143,630
190,250 190,560 (310) 604,394 579,318 25,076
63,647 64,889 (1,242) 228,629 210,826 17,803
253,897 255,449 (1,552) 833,023 790,144 42,879
13,085 13,629 (544) 42,404 44,375 (1,971)
7,829 8,033 (204) 23,744 20,118 3,626
20,914 21,662 (748) 66,148 64,493 1,655
434,992 455,971 (20,979) 1,304,976 1,249,687 55,289
Environmental Services
Food & Beverage
Other
Other
Wages & benefits
Wages & benefits
Utilities/cable TV
Other
Wages & benefits
Laundry
Wages & benefits
Plant
Croasdaile Village
Financial Variance Report
478,398 234,818 243,580 1,435,194 702,695 732,499
(112,137) 88,577 (200,714) (336,411) 230,934 (567,345)
801,253 779,366 21,887 2,403,759 2,183,316 220,443
485,198 534,566 (49,368) 1,495,729 1,547,751 (52,022)
369,526 434,781 (65,255) 1,098,053 1,224,754 (126,701)
854,724 969,348 (114,624) 2,593,782 2,772,506 (178,724)
46,117 47,744 (1,627) 140,623 134,815 5,808
26,687 28,531 (1,844) 80,177 77,497 2,680
72,804 76,275 (3,471) 220,800 212,312 8,488
140,650 171,730 (31,080) 469,637 523,799 (54,162)
27,051 34,673 (7,622) 84,813 103,695 (18,882)
167,701 206,403 (38,702) 554,450 627,494 (73,044)
Wages & benefits
Other
Health Center
Clinic
Wages & benefits
Other
Home Care
Food costs
Other
Wages & benefits
Other
Croasdaile Village
Financial Variance Report
61,320 64,848 (3,528) 189,591 179,080 10,511
18,302 25,369 (7,067) 55,346 75,986 (20,640)
79,622 90,218 (10,596) 244,937 255,066 (10,129)
140,175 136,951 3,224 435,125 412,915 22,210
54,605 58,244 (3,639) 164,977 149,635 15,342
194,780 195,195 (415) 600,102 562,550 37,552
108,701 124,939 (16,238) 301,137 366,466 (65,329)
35,800 44,000 (8,200) 105,280 111,224 (5,944)
144,501 168,939 (24,438) 406,417 477,689 (71,272)
Resident Services
Assisted Living
Wages & benefits
Other
Wages & benefits
Other
Wages & benefits
Other
Memory Care
Croasdaile Village
Ratio analysis
Measures Desired Trend Dec-23 Sep-23
CCAC
25th%
CCAC
50th%
CCAC
75th%
Net Operating Margin Ratio
Margin generated by cash operating revenues after
payment of cash operating expenses.
Up 20.99% 15.54% -5.32% 1.98% 8.87%
Net Operating Margin Ratio - Adjusted
Margin generated by cash operating revenues and net
proceeds from entrance fees after payment of cash
operating expenses.
Up 36.29% 30.34% 10.78% 19.57% 27.96%
Operating Ratio
Whether current year cash operating revenues are
sufficient to cover current year cash operating
expenses.
Down 89.12% 90.19% 108.08% 101.46% 95.91%
Operating Margin Ratio
The portion of total operating revenues remaining after
operating expenses are met.
Up 4.81% 3.85% -12.45% -4.17% 1.48%
Total Excess Margin Ratio
The portion of total revenues (exclusive of unrealized
gains) remaining after operating expenses are met.
Up 3.51% 4.63% -12.29% -2.04% 3.57%
Days in Accounts Receivable Ratio
Average number of days accounts receivable remain
outstanding.
Down 27.96 22.77 24.00 15.00 8.00
Days of Cash on Hand Ratio
Number of days of cash operating expenses a provider
could cover with its unrestricted cash.
Up N/A N/A 266.00 419.00 720.00
Cushion Ratio
Cash position in relation to annual debt service. Up N/A N/A 6.12 10.54 17.89
Debt Service Coverage Ratio - Revenue Basis
Ability to meet debt obligations through revenues
alone.
Up N/A N/A 0.03 0.66 1.22
Debt Service Coverage Ratio
Ability to fund annual debt service with cash flow from
net cash revenues and net entrance fees.
Up N/A N/A 1.58 2.30 3.47
Percentage of all operating revenues and nonoperating
gains and losses that is utilized for annual debt service.
Down N/A N/A 14.27% 10.07% 7.21%
Position in available cash and marketable securities in
relation to its long-term debt, less current portion.
Up N/A N/A 34.02% 55.70% 139.81%
Extent to which a provider has relied on debt versus
retained earnings and invested or donated capital.
Down N/A N/A 131.71% 80.17% 51.75%
Extent to which a provider has relied on debt versus
retained earnings, deferred revenue and invested or
donated capital.
Down N/A N/A 94.10% 54.14% 34.31%
Long-Term Debt to Total Assets Ratio
Indebtedness to total assets. Down N/A N/A 49.70% 37.42% 23.04%
Average Age of Facility Ratio
Average age of the facility. Down 10.32 10.57 15.38 12.28 9.54
Sufficiency of annual reinvestment in physical
plant.
Up 35.86% 48.86% 70.00% 105.00% 199.00%
*CCAC ratios are based upon 2022 single site numbers.
Description
Long-Term Debt as a Percentage of Total Capital Ratio -
Adjusted
Capital Expenditures as a Percentage of
Depreciation Ratio
Liquidity
Margin (Profitability)
Capital Structure
Debt Service as a Percentage of Total Operating
Revenues and Net Non-Operating Gains and Losses
Ratio
Unrestricted Cash and Investments to Long-Term Debt
Ratio
Long-Term Debt as a Percentage of Total Capital Ratio
ATTACHMENT 4
Explanations of Material Differences
Balance Sheet
Statement of Operations
Statement of Cash Flows
Sources and (Uses)
(Figures stated below are in thousands)
2023 2023 Fav/(Unfav) Variance
Actual
Projected
Difference
Percentage
Assets
Current Assets:
Cash (1) 5,018 23,428 (18,410) -78.58%
Short-term investments 88,037 81,660 6,377 7.81%
Accounts receivable, net (2) 6,408 4,797 1,611 33.58%
Assets limited as to use, current portion (3) 6,636 1,126 5,510 489.34%
Inventories and prepaid expenses 1,525 1,417 108 7.62%
Contributions receivable from UMRH Foundation, current portion
2,753 2,583 170 6.58%
Due from related party, current (4) 253 201 52 25.87%
Total current assets 110,630 115,212 (4,582)
Assets limited as to use:
Insurance regulation 16,927 16,927 - 0.00%
Other assets limited as to use (5) 7,038 5,719 1,319 23.06%
Investment in Wesley Ridge (6) - 75 (75) -100.00%
Assets limited as to use, non-current 23,965 22,721 1,244
Property and equipment, net 222,349 209,476 12,873 6.15%
Contributions receivable from UMRH Foundation, net of current portion (7)
7,249 6,340 909 14.34%
Deferred marketing costs, net
87 87 - 0.00%
Interest rate swap agreement (8)
11,566 10,442 1,124 10.76%
Total non-current assets 18,902 16,869 2,033
Total assets
375,846
364,278
(2,549)
Liabilities and Net Assets
Current Liabilities:
Current maturities of long-term debt (9) 5,410 6,398 (988) -15.44%
Accounts payable and accrued expenses 8,492 8,501 (9) -0.11%
Total current liabilities 13,902 14,899 (9)
Long-term liabilities
Liability for refundable advance fees and deposits 14,651 14,907 (256) -1.72%
Deferred revenue from non--refundable advance fees 80,659 77,388 3,271 4.23%
Long-term debt, less current portion 154,830 154,918 (88) -0.06%
Funds held for others (10) 87 148 (61) -41.22%
Total long-term liabilities 250,227 247,361 2,866
Total liabilities
264,129
262,260
1,869
Net assets:
Without donor restriction
99,249
90,916
8,333
9.17%
With donor restriction (11) 12,468 11,102 1,366 12.30%
Total liabilities and net assets 375,846 364,278 11,568
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences
Between Previous Pro Forma Balance Sheet Projection for 2023
and 2023 Actual Results from Operations
The following explanation is provided pursuant to the requirements of North Carolina G.S. 58-64-30. Set forth below is a comparison on the 2023 actual results with
the projected results for 2023.
1.
Cash Excess funds were moved to short-term investments.
2.
Accounts receivable, net Collection efforts suffered in the wake of 75% turnover in
staff.
3.
Assets limited as to use, current portion Construction funds expected to be spent
down had not been requested as construction wasn't complete until October 2024.
4.
Contributions receivable from UMRH Foundation, current portion
Since the change in
this number is dependent upon donations to the UMRH Foundation for the benefit of
UMRH, the forecast conservatively assumes no change year over year. The variance
is due to greater than anticipated donations.
5.
Other assets limited as to use The addition of the escrow account for the future
construction at Cypress Glen was not anticipated in the forecast.
6.
Investment in Wesley Ridge The legal structure of this relationship changed in fiscal
2023 requiring the removal of this asset.
7.
Contributions receivable from UMRH Foundation, current portion
Since the change in
this number is dependent upon donations to the UMRH Foundation for the benefit of
UMRH, the forecast conservatively assumes no change year over year. The variance
is due to greater than anticipated donations.
8.
Interest rate swap agreement The forecast assumes no change year over year. The
variance represents the actual change.
9.
Current maturities of long-term debt
The refinancing of bonds, not included in the
forecast, changed the amortization of debt.
10.
Funds held for others Resident deposits exceeded expectation. The forecast
assumes no change for conservatism.
Variances of 10% or greater between actual and projected results are considered material
variances which are explained below:
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences Footnotes
Balance Sheet
11.
Net assets with donor restriction
Since the change in this number is mostly dependent
upon donations to the UMRH Foundation for the benefit of UMRH, the forecast
conservatively assumes no change year over year. The variance is due to greater
than anticipated donations.
Sources and (Uses)
(Figures stated below are in thousands)
2023
2023
Fav/(Unfav)
Variance
Actual
Projected
Difference
Percentage
Revenues
Apartments
34,151
33,992
159
0.47%
Health care
25,097
23,312
1,785
7.66%
Assisted living
13,430
13,310
120
0.90%
Home care
2,189
2,324
(135)
-5.81%
Amortization of deferred residence fees (1)
11,303
9,511
1,792
18.84%
Investment income (2)
4,263
1,853
2,410
130.06%
Net assets released from restrictions (3)
499
603
(104)
-17.25%
Other (4)
227
161
66
40.99%
Total revenue
91,159
85,066
6,093
Expenses
Health care
17,691
17,099
592
3.46%
Assisted living
5,035
4,613
422
9.15%
Resident services
2,779
2,935
(156)
-5.32%
Home care (5)
2,803
2,223
580
26.09%
Dietary
13,990
13,384
606
4.53%
Housekeeping
4,373
4,577
(204)
-4.46%
Plant
7,985
7,638
347
4.54%
General and administration
13,797
13,160
637
4.84%
Depreciation and amortization
14,346
14,575
(229)
-1.57%
Interest
3,448
3,135
313
9.98%
(Gain)/loss on disposal of property and equipment (6)
7
-
7
100.00%
Total expenses
86,254
83,339
2,915
Operating income (loss)
4,905
1,727
3,178
Non-operating gains (losses) (7)
5,305
-
5,305
100.00%
Change in unrestricted net assets
10,210
1,727
8,483
Change in donor restricted net assets (8)
1,216
-
13,788
100.00%
Change in net assets
11,426
1,727
9,699
Net assets, beginning of the year
100,291
100,291
-
Net assets, end of the year
111,717
102,018
9,699
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences
Between Previous Pro Forma Statement of Operations and Change in Net Deficits for 2023
and 2023 Actual Results from Operations
The following explanation is provided pursuant to the requirements of North Carolina G.S. 58-64-30. Set forth below is a comparison on the 2023 actual results
with the projected results for 2023.
1.
Amortization of deferred residence fees A record number of move-ins at
Croasdaile Village resulted in a increase in entrance fees.
2.
Investment income
Actual investment returns exceeded what was expected in the
forecast.
3.
Net assets released from restriction The forecast assumes no change in
temporarily restricted net assets for conservatism. The audit reflects the actual use
of these funds.
4.
Other revenue The forecast did not include provider relief funds.
5.
Home care expense Home Care expenses were more than anticipated on the
forecast.
6.
(Gain)/loss on disposal of property and equipment The forecast assumes no fixed
asset disposals for conservatism. The audit reflects the actual (gain)/loss for
disposal of assets.
7.
Non-operating gains (losses) Due to the uncertainty and volatility of investment
gains or losses, contributions, changes in the fair value of interest rate swap
agreements and gains or losses on the disposal of PP&E, the forecast
conservatively assumes zero. Also, the audit reflects the actual use of provider
relief funds here, whereas the forecast includes this in other revenue.
8.
Change in donor restricted net assets
For conservatism, the forecast assumes no
change in temporarily restricted net assets unless there is certainty in the use of or
receipt of funds.
Variances of 10% or greater between actual and projected results are considered material
variances which are explained below:
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences Footnotes
Operating Statement
Sources and (Uses)
(Figures stated below are in thousands)
2023 2023 Fav/(Unfav) Variance
Actual
Projected
Difference
Percentage
Cash flows from operating activities
Change in net assets (1) 11,426 1,727 9,699 561.61%
Adjustments to reconcile increase in net assets
to net cash from operating activities
Depreciation 14,332 14,575 (243) -1.67%
Amortization of deferred financing costs (2) 65 - 65 100.00%
Amortization of bond premium (3) (153) - (153) 100.00%
Amortization of marketing costs (4) 14 - 14 100.00%
Amortization of deferred resident fees (5) (11,303) (9,511) (1,792) 18.84%
Proceeds from non-refundable advance fees (6) 16,623 12,739 3,884 30.49%
Bad debt expense (7) 927 168 759 451.79%
Loss on disposal of property & equipment (8) 7 - 7 100.00%
Unrealized gains on investments and assets limited as to use (9) (2,539) - (2,539) 100.00%
Realized gains on investments and assets limited as to use (10) (2,263) - (2,263) 100.00%
Change in fair value of swap agreement (11) (1,123) - (1,123) 100.00%
Net change in:
Current/non-current assets (12) (4,357) (495) (3,862) 780.20%
Current/non-current liabilities (13) 140 (588) 728 -123.81%
Net cash from operating activities 21,796 18,615 3,181 17.09%
Cash flows from investing activities
Additions to property and equipment and construction in progress (14) (22,177) (7,750) (14,427) 186.15%
Net change in investments and assets limited as to use (15) (3,824) 14,348 (18,172) -126.65%
Change in assets held for resale 197 197 - 0.00%
Net cash from investing activities (25,804) 6,795 (32,599) -479.75%
Cash flows from financing activities
Refunds of entrance fees (16) (2,216) (3,003) 787 -26.21%
Proceeds from refundable advance fees (17) 1,389 1,007 382 37.93%
Principal payments on debt (5,785) (5,785) - 0.00%
Net cash from financing activities (6,612) (7,781) 1,169 -15.02%
Net change in cash (10,620) 17,629 (28,249) -160.24%
Cash at beginning of year
15,638
5,799
9,839
169.67%
Cash at end of year 5,018 23,428 (18,410) -78.58%
The following explanation is provided pursuant to the requirements of North Carolina G.S. 58-64-30. Set forth below is a comparison on the 2023 actual results with
the projected results for 2023.
and 2023 Actual Results from Operations
Between Previous Pro Forma Statement of Cash Flows Projection for 2023
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences
1.
Change in net assets See various explanations in footnotes to operating
statement.
2.
Amortization of deferred financing costs The refinancing of bonds, not included in
the forecast, changed the amount of deferred costs.
3.
Amortization of bond premium The refinancing of bonds, not included in the
forecast, changed the amount of bond premiums.
4.
Amortization of marketing costs The refinancing of bonds, not included in the
forecast, changed the amount of marketing costs capitalized.
5.
Proceeds from non-refundable advance fees A record number of move-ins at
Croasdaile Village resulted in a increase in entrance fees.
6.
Proceeds from non-refundable advance fees Proceeds were greater than
forecasted.
7.
Bad debt expense Actual expenses were more than forecasted.
8.
Loss on disposal of property & equipment
This is not separately categorized in the
cash flow on the forecast as it is on the audit.
9.
Unrealized gains on investments and assets limited as to use Conservatively, the
forecast assumes no unrealized gains or losses.
10.
Realized gains on investments and assets limited as to use Conservatively, the
forecast assumes no realized gains or losses.
11.
Change in fair value of swap agreement The forecast assumes no change year
over year. The variance represents the actual change.
12.
Current/non-current assets See the variances listed on the balance sheet material
differences spreadsheet.
Variances of 10% or greater between actual and projected results are considered material
variances which are explained below:
The United Methodist Retirement Homes, Inc.
Explanation of Material Differences Footnotes
Cash Flow
13.
Current/non-current liabilities See the variances listed on the balance sheet
material differences spreadsheet.
14.
Additions of property and equipment and construction in progress The forecast
excluded the new construction project at Croasdaile Village in error.
15.
Net change in investments and assets limited as to use
See the variances listed on
the balance sheet material differences spreadsheet.
16.
Refunds of entrance fees Actual refunds were less than forecasted.
17.
Proceeds from refundable advance fees Proceeds were greater than forecasted.
ATTACHMENT 5
Standard Residency Agreement
2600 Croasdaile Farm Parkway
Durham, North Carolina 27705
(919) 384-2000
www.croasdailevillage.org
Standard
Residency Agreement
2021-03-10
i
TABLE OF CONTENTS
GLOSSARY.................................................................................................................................IV
INTRODUCTION......................................................................................................................... 1
1. CHARGES FOR RESIDENCE AND PRIMARY SERVICES ....................................... 2
1.1
A
PPLICATION
F
EE
.................................................................................................... 2
1.2 E
NTRANCE
F
EE
........................................................................................................ 2
1.3 M
ONTHLY
F
EE
......................................................................................................... 2
1.4
I
NITIAL
M
ONTHLY
F
EE
........................................................................................... 2
1.5
C
ONTINUANCE OF
M
ONTHLY
F
EE
........................................................................... 2
1.6
I
NCREASE IN
M
ONTHLY
F
EE
................................................................................... 3
1.7 R
EDUCTION IN
M
ONTHLY
F
EE
D
UE TO
A
BSENCE
.................................................. 3
1.8 R
ESERVE
F
UNDS
....................................................................................................... 3
1.9
L
ATE
P
AYMENT
C
HARGE
........................................................................................ 3
2. DESCRIPTION OF PRIMARY AND SUPPLEMENTAL SERVICES ........................ 3
2.1
S
ERVICES
P
ROVIDED FOR THE
M
ONTHLY
F
EE
....................................................... 3
2.2
S
UPPLEMENTAL
S
ERVICES
P
ROVIDED FOR
E
XTRA
C
HARGE
................................. 4
3. TERMS OF RESIDENCY .................................................................................................. 4
3.1
U
SE OF THE
R
ESIDENCE
........................................................................................... 4
3.2
D
URATION OF
Y
OUR
R
IGHT TO
O
CCUPY THE
R
ESIDENCE
..................................... 5
3.3
O
CCUPANTS OF THE
R
ESIDENCE
............................................................................. 5
3.4
G
UESTS
..................................................................................................................... 5
3.5
R
ELEASE
................................................................................................................... 5
3.6
I
NSURANCE
............................................................................................................... 5
3.7
R
EMOVAL AND
S
TORAGE OF
R
ESIDENT
'
S
P
ERSONAL
P
ROPERTY
.......................... 5
3.8
F
URNISHINGS
........................................................................................................... 6
3.9
E
MERGENCY
E
NTRY AND
R
ELOCATION
................................................................. 6
3.10 A
LTERATIONS BY
Y
OU
............................................................................................. 6
3.11
C
ONDITION OF
R
ESIDENCE
...................................................................................... 6
3.12
R
IGHTS OF
S
ECOND
S
INGLE
R
ESIDENT
.................................................................. 6
3.13
S
MOKE
-F
REE
C
OMMUNITY
..................................................................................... 7
3.14
F
IREARMS
P
OLICY
................................................................................................... 7
4. THE VILLAGE HEALTH CENTER................................................................................ 7
4.1
D
ESCRIPTION
........................................................................................................... 7
4.2
A
LTERNATE
A
CCOMMODATIONS
............................................................................ 7
4.3
C
LINIC
...................................................................................................................... 7
4.4
S
IX
(6) D
AYS OF
A
SSISTED
L
IVING OR
N
URSING
C
ARE IN THE
V
ILLAGE
H
EALTH
C
ENTER
..................................................................................................... 7
4.5
T
RANSFER TO
H
EALTH
C
ENTER
L
EVEL
S
ERVICES
................................................ 8
4.6
T
EMPORARY
R
ELOCATION TO THE
V
ILLAGE
H
EALTH
C
ENTER
........................... 8
4.7
P
ERMANENT
R
ELOCATION TO
H
EALTH
C
ENTER
L
EVEL
S
ERVICES
...................... 8
4.8
R
ELOCATION WITHIN THE
V
ILLAGE
H
EALTH
C
ENTER
......................................... 8
4.9
R
ETURN TO
R
ESIDENCE
........................................................................................... 8
ii
4.10
M
EDICAL
D
IRECTOR
, A
TTENDING
P
HYSICIAN
,
AND
A
DDITIONAL
H
EALTH
S
ERVICES
.................................................................................................................. 8
4.11 A
DVANCED
P
AYMENT FOR
M
EDICAL
T
REATMENT
................................................ 9
4.12
L
ONG
-T
ERM
C
ARE
I
NSURANCE
.............................................................................. 9
4.13
M
EDICARE AND
H
EALTH
I
NSURANCE
..................................................................... 9
4.14
M
ANAGED
C
ARE
...................................................................................................... 9
4.14.1 Participating Provider........................................................................... 10
4.14.2 Not a Participating Provider................................................................. 10
4.14.3
Negotiated Managed Care Rate............................................................ 10
4.14.4
No Negotiated Managed Care Rate ...................................................... 10
4.14.5
Post Medicare-Qualified Stay ............................................................... 10
4.15 T
RANSFER TO
H
OSPITAL OR
O
THER
C
ARE
F
ACILITY
.......................................... 11
4.16 V
ILLAGE
H
EALTH
C
ENTER
A
DMISSION
A
GREEMENT
......................................... 11
4.17
U
NDER
A
GE
62 ....................................................................................................... 11
5. REPRESENTATIONS ...................................................................................................... 11
5.1
O
UR
R
EPRESENTATIONS
........................................................................................ 11
5.2
Y
OUR
R
EPRESENTATIONS
...................................................................................... 11
6. PROMISES......................................................................................................................... 11
6.1
O
UR
P
ROMISES
...................................................................................................... 11
6.2
Y
OUR
P
ROMISES
.................................................................................................... 12
7. CANCELLATION BY RESIDENT................................................................................. 12
7.1
R
IGHT OF
R
ESCISSION
........................................................................................... 12
7.2
C
ANCELLATION
P
RIOR TO
O
CCUPANCY
............................................................... 12
7.3
C
ANCELLATION
A
FTER
O
CCUPANCY
.................................................................... 12
7.4
C
ANCELLATION
D
UE TO
D
EATH
A
FTER
O
CCUPANCY
......................................... 12
8. CANCELLATION BY UMRH......................................................................................... 13
8.1
C
ANCELLATION
U
PON
N
OTICE
............................................................................. 13
8.1.1 Noncompliance...................................................................................... 13
8.1.2
Misrepresentation.................................................................................. 13
8.1.3
Nonpayment .......................................................................................... 13
8.1.4
Threat to Health or Safety .................................................................... 13
8.1.5
Change in Condition............................................................................. 13
8.2
D
EFAULT
N
OTICE
.................................................................................................. 13
9. REFUND OF ENTRANCE FEE ...................................................................................... 13
9.1
N
ONACCEPTANCE BY
U
S
........................................................................................ 13
9.2
R
IGHT OF
R
ESCISSION
........................................................................................... 13
9.3
C
ANCELLATION
P
RIOR TO
O
CCUPANCY
D
UE TO
D
EATH
,
I
LLNESS
,
I
NJURY
,
OR
I
NCAPACITY
...................................................................................................... 14
9.4
C
ANCELLATION
P
RIOR TO
O
CCUPANCY FOR
O
THER
R
EASONS
.......................... 14
9.5
C
ANCELLATION
A
FTER
O
CCUPANCY
.................................................................... 14
9.6
O
FFSET
A
GAINST
E
NTRANCE
F
EE
R
EFUND
.......................................................... 14
10. MISCELLANEOUS .......................................................................................................... 15
iii
10.1
N
ATURE OF
R
IGHTS
............................................................................................... 15
10.2 R
ELEASE
................................................................................................................. 15
10.3 F
ORCE
M
AJEURE
................................................................................................... 15
10.4
A
MENDMENT
.......................................................................................................... 15
10.5
L
AW
C
HANGES
....................................................................................................... 15
10.6
E
NTIRE
A
GREEMENT
............................................................................................. 15
10.7 M
ONTHLY
S
TATEMENT
......................................................................................... 16
10.8 R
ESPONSIBLE
P
ARTY FOR
B
USINESS AND
F
INANCIAL
D
ECISION
M
AKING
.......... 16
10.9
D
ISPOSITION OF
F
URNITURE
, P
OSSESSIONS
,
AND
P
ROPERTY
.............................. 16
10.10 N
ONWAIVER
........................................................................................................... 16
10.11 N
OTICES
................................................................................................................. 16
10.12 I
NDEMNITY
............................................................................................................. 16
10.13 S
EVERABILITY
........................................................................................................ 16
10.14 S
UBORDINATION
.................................................................................................... 16
10.15 C
APACITY
............................................................................................................... 17
10.16 R
ESIDENT
............................................................................................................... 17
10.17 R
EIMBURSEMENT FOR
L
OSS OR
D
AMAGE
............................................................ 17
10.18 C
HARGES FOR
C
OLLECTION
................................................................................. 17
10.19 S
ALE OR
T
RANSFERS OF
I
NTEREST
....................................................................... 17
10.20 P
RIVATE
E
MPLOYEE OF
R
ESIDENT
....................................................................... 17
10.21 T
AX
C
ONSIDERATIONS
........................................................................................... 17
10.22 M
ANAGEMENT
....................................................................................................... 17
10.23 G
OVERNING
L
AW
................................................................................................... 17
10.24 S
URVIVAL OF
R
EPRESENTATIONS AND
O
BLIGATIONS
.......................................... 17
11. MEDIATION AND ARBITRATION .............................................................................. 18
11.1
M
EDIATION
............................................................................................................ 18
11.2
A
RBITRATION
......................................................................................................... 18
11.3
V
OLUNTARY
A
RBITRATION OF
N
EGLIGENT
H
EALTH
C
ARE
C
LAIMS
.................. 18
Exhibit A – Options and Custom Features Added at Resident's Request
iv
GLOSSARY
The following terms are described as used in the accompanying Residency Agreement. Reference
to the Residency Agreement and the context in which the terms are used is recommended to
provide a fuller understanding of each of the terms:
"Agreement" means the Residency Agreement, entered into between the Resident and The United
Methodist Retirement Homes, Incorporated, which outlines the contractual obligations of both
parties.
"Entrance Fee" means payment that assures a resident a place at the Village for life as long as
the resident complies with terms of this Agreement. At the time the resident makes application
for residency at the Village, the resident will sign a Residency Agreement to reserve the residence
selected and will pay an Entrance Fee deposit to the Village. The balance of the Entrance Fee will
be paid upon the earlier of (i) occupancy or (ii) 90 days after the Residency Agreement is executed.
Specific information is located in Paragraph 1.2 of this Agreement.
"Extra Charges" means the additional fees required to be paid for the additional services and
amenities requested by Resident, as set forth in Paragraph 2.2 of this Agreement.
"Health Center" means the portion of the Village, which is licensed to provide two levels of care:
assisted living care and skilled nursing care, as described in Section 4 of the Agreement.
"Monthly Fee" means that fee payable each month by the Resident as set forth in Paragraphs 1.3
and 1.4 of the Agreement, in consideration for the services and amenities provided to the residents
of the Village described in Paragraph 2.1 of this Agreement. If there are Joint Residents under this
Agreement, the Monthly Fee will include a "Second Person Monthly Fee."
"Residence" means the apartment, cottage or home at the Village identified in the introductory
paragraph of the Agreement, in which the Resident has the right to live pursuant to this Agreement
in exchange for paying the Entrance Fee and the Monthly Fee.
"Resident" or "you" means the Resident(s) who sign this Agreement. Sometimes a second
resident (if there are two of you) is referred to in this Agreement as the "Joint Resident." Further,
both Residents may be referred to as "Joint Residents." Unless otherwise indicated, "you" refers
to both of you if there are two of you.
"The United Methodist Retirement Homes, Incorporated" or "we" or "our" or "us" means
the owner of the retirement community known as Croasdaile Village, including all of the
residences, common areas, and site amenities associated with these areas. The United Methodist
Retirement Homes, Incorporated is a North Carolina non-profit corporation.
"Village" means the continuing care retirement community known as "Croasdaile Village,"
including all of the residences, common areas, and site amenities.
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Residency Agreement
Standard
INTRODUCTION
This Standard Residency Agreement ("Agreement") is entered into by The United
Methodist Retirement Homes, Incorporated ("UMRH," "we," "us," or "our") and
(individually or collectively, "you," "your," or "Resident"). Croasdaile Village is a continuing care
retirement community located at 2600 Croasdaile Farm Parkway; Durham, NC 27705 (hereafter
the "Village").
We will provide residential housing for seniors along with a wide array of personal services
and amenities outlined in this Agreement. Subject to the conditions contained in this Agreement,
we agree to make available to you the Residence described as follows:
Residence Number
Residence Style
You may select certain options and custom features in the Residence at an additional
charge, which shall not be subject to any refund provision herein. Any such options and custom
features selected and paid for by you will become our property. Such options and custom features
must be approved by the Executive Director of the Village prior to adding them to the Residence.
The Executive Director of the Village has consented to your request to add the options and custom
features set forth on Exhibit A attached to this Agreement. You agree to pay the amount(s) set
forth on Exhibit A to cover the charges for such items.
As a Resident of the Village, you are offered lifetime use of your Residence and lifetime
access to the Village Health Center, subject to the terms and conditions of this Agreement.
To be accepted for residency, you must meet our residency criteria, which includes: having
reached the age of 62 (or sharing your Residence with a Joint Resident who is 62 or older);
financial guidelines; and the ability to live in a residence (with or without reasonable
accommodation and/or reasonable modification) – all as outlined in our current residency policy.
The purpose of this Agreement is to set forth your rights and duties as a Resident of the
Village and to delineate the services to be provided at the Village.
UMRH is also affiliated with The United Methodist Retirement Homes Foundation, Inc. (the
"Foundation"). The Foundation is a not-for-profit corporation, which was organized for the benefit
of the retirement communities operated by UMRH. Its purpose is to raise endowment funds, to
support benevolent care for those residents who are unable to pay for care, and to support special
programs.
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1. CHARGES FOR RESIDENCE AND PRIMARY SERVICES.
1.1 Application Fee. Prior to or upon execution of this Agreement, you will pay to us
a non-refundable Application Fee of $ . The Application Fee will be used by us to process
your application for residency.
1.2 Entrance Fee. In order to reside at the Village for life, subject to this Agreement,
and to receive the services and amenities described below, you agree to pay to us (in addition to
the Monthly Fee described below) an Entrance Fee in the amount of $ . The total amount of
the Entrance Fee shall be payable as follows:
1.2.1 Ten percent (10%) of the total Entrance Fee is $ , less any previously
paid Future Resident Fee ($ ), equals $ , which amount is due and payable upon
your execution of this Agreement.
1.2.2 The balance of $ of the Entrance Fee shall be paid on the date of
occupancy at the Village but in no event later than ninety (90) days after your execution of
this Agreement.
1.3 Monthly Fee. You are obligated to begin paying a Monthly Fee (or a pro rata
portion thereof) on the date you assume occupancy at the Village or within ninety (90) days from
the date this Agreement is executed by you, whichever is earlier. Thereafter, the Monthly Fee is
due upon receipt of a statement from us and by no later than the fifteenth (15
th
) of each month. The
Monthly Fee is initially set at a specific amount that can be increased as described in Paragraph
1.6 below. A "Second Person Monthly Fee" shall become part of the Monthly Fee and shall be
paid if two persons are Joint Residents under this Agreement. If there are Joint Residents under
this Agreement and one Joint Resident dies, the Second Person Monthly Fee shall cease and the
remaining Resident shall continue to pay the Monthly Fee without the Second Person Monthly Fee
component.
1.4 Initial Monthly Fee. The initial Monthly Fee payable by you is $ per month
and an additional $ per month as a Second Person Monthly Fee component of the Monthly
Fee if two persons reside as Joint Residents pursuant to this Agreement.
1.5 Continuance of Monthly Fee. Payment of the Monthly Fee will continue as
follows:
1.5.1 In the event of your death (in the case of Joint Residents, the death of the
surviving Resident), until your estate removes all of your personal property from the
Residence and from any storage unit.
1.5.2 In the event of your permanent relocation to Health Center Level Services
or Comparable Facility for Health Center Level Services (see definitions in Paragraphs 4.1
and 4.2), or to another care facility licensed to provide the appropriate care you need, until
you or your personal representative removes all of your personal property from the
Residence and from any storage unit.
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1.5.3 In the event of cancellation of this Agreement as outlined in Section 7 or 8,
until expiration of the cancellation period and continues until you remove all of your
personal property from the Residence and from any storage unit.
1.6 Increase in Monthly Fee. The Monthly Fee is paid to us to provide the services
and amenities described in this Agreement and is intended to meet the expenses associated with
the operation of the Village. We may increase the Monthly Fee (which includes the Second Person
Monthly Fee where applicable) upon thirty (30) days' written notice if we, in our sole discretion,
deem it necessary to meet the financial needs of the Village or to provide quality services to the
Residents.
1.7 Reduction in Monthly Fee Due to Absence. If you are absent from the Village
for more than fourteen (14) consecutive days, your Monthly Fee will be reduced by the raw food
cost determined through the Village's budgeting process. You are required to notify us of your
absence in order to qualify for the reduction in the Monthly Fee.
1.8 Reserve Funds. The amount of the Monthly Fee also is and will continue to be
affected by our policy of maintaining reserve funds for the financial security of the Village.
1.9 Late Payment Charge. We will charge a late payment charge in the amount of
twenty-five dollars ($25.00) if the Monthly Fee or any Extra Charges are not paid by the fifteenth
(15
th
) day of the month. Balances over thirty (30) days old will be assessed a one percent (1%)
interest charge per month. If we hire a collection agency or attorney to collect the Monthly Fee
and Extra Charges past due from you, you are to pay any and all costs of collection, including
reasonable attorney’s fees, costs, and expenses associated with such collection efforts.
2. DESCRIPTION OF PRIMARY AND SUPPLEMENTAL SERVICES.
2.1 Services Provided for the Monthly Fee. We will provide you, in consideration for
the Monthly Fee referred to above, the following services and amenities at the Village:
Under the Flexible Meal Program, each Resident living in Cottages and Apartments
(excluding studio apartments) will receive a Dining Allocation as part of the Monthly Fee
and second person Monthly Fee. The meal program will provide you sufficient credits to
dine daily, and may be expended by you, or with your permission, your guests. For more
information, please refer to the Flexible Meal Program Policy;
Studio apartment residents receive three (3) meals per day;
Limited tray service to be provided when approved by authorized staff;
Consultation and preparation of routine special diets;
Utilities, which include heating, air conditioning, electricity, water, sewer and trash
removal;
Cable television package;
Building janitor and maintenance;
Grounds keeping;
Weekly housekeeping services;
Availability of laundry facilities so that you can wash and dry personal laundry;
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Planned activities (social, cultural, recreational, educational, and spiritual) for those who
wish to participate;
Services of a chaplain;
Parking for you and your guests;
Carpeting (except in kitchen and bath), unless some other floor surface has been installed;
Kitchen facilities, except some studio apartments only contain a refrigerator and a
microwave;
Local transportation as scheduled by us and as posted;
Limited additional storage space;
Personal emergency transmitter system;
Smoke detectors;
Security – 24 hours a day; and
Six (6) days each year of assisted living or nursing care in the Village Health Center as
outlined in Paragraph 4.4.
2.2 Supplemental Services Provided for Extra Charge. Supplemental services,
when available, will be provided at Extra Charge and are described below. A list of Extra Charges
for these supplemental services can be obtained from administration.
Meals, guest meals, and other food charges in excess of your Dining Allocations, as
outlined in Section 2.1. Extended tray service as approved by authorized staff;
Preparation of special diets (beyond those which are routine and based upon our ability to
prepare/offer such diet), as prescribed by your attending physician;
Additional housekeeping services;
Guest accommodations, if available;
Private catered functions;
Personal transportation and transportation for special events and group trips;
Expanded cable television package;
Services of the Clinic – a copy of the charges for Clinic services can be obtained from the
Clinic;
Home care services through the Croasdaile Village Home Care Program;
Assisted living services or nursing care services through the Village Health Center as
outlined in Section 4; and
Certain ancillary services and supplies (such as therapies, pharmacy, laboratory, thera-
peutic activities, rehabilitative treatments, medical equipment, medical supplies, medical
treatment, physician services, and other miscellaneous medical services and supplies) as
outlined in Paragraph 4.10.
3. TERMS OF RESIDENCY.
3.1 Use of the Residence. The Residence is for living only and will not be used for
carrying on any business or profession, nor in any manner in violation of zoning restrictions. This
Agreement is not a lease, and grants you only the right to live in the Residence, access to other
facilities of the Village, and to available services and amenities, subject to the terms and conditions
of this Agreement.
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3.2 Duration of Your Right to Occupy the Residence. You may reside in your
Residence for as long as you (or either of you in the case of Joint Residents) live unless you (both
of you in the case of Joint Residents) are not capable of occupancy as set forth in our residency
policy, or this Agreement is canceled by you or by us. If, in the opinion of your attending physician
or the Medical Director, your physical or mental health requires that you need home care services,
assisted living services, or nursing care services, you will be requested to obtain the needed
services in your Residence (at your expense), relocate to the Village Health Center or Comparable
Facility (as defined in Paragraph 4.2).
3.3 Occupants of the Residence. Except as hereinafter provided, no person other than
you (both of you in case of Joint Residents) may occupy the Residence. In the event that a second
person who is not a party to this Agreement is accepted for residency in the Residence at a time
subsequent to the date hereof (said acceptance to be in accordance with our current residency
policy), an Entrance Fee in an amount to be determined by us (which will be no more than one-
half of the then-current Entrance Fee for the Residence) shall be paid upon residency, and each
month thereafter, the then-current Second Person Monthly Fee shall be paid as part of the Monthly
Fee. If such second person does not meet the requirements for residency, such second person will
not be permitted to occupy the Residence for more than thirty (30) days, except with our express
written approval.
If the Resident marries a person who is also a resident of the Village, and should they
decide to occupy one residence as Joint Residents, they must declare which residence will be
occupied and which residence will be released. The refund due for the released residence, if any,
will be provided as described in Paragraph 9.5 of this Agreement.
3.4 Guests. Guests are welcome to stay in your Residence for short stays not to exceed
ten (10) consecutive days. Such stay shall not, in the opinion of the Executive Director, adversely
affect the operation of the Village or be inconsistent with the welfare of our residents.
3.5 Release. We are not responsible for theft, loss of or damage to your personal
property, unless such theft, loss or damage is caused by our negligence or the negligence of our
agents or employees, and you hereby release us from such liability.
3.6 Insurance. Our insurance does not cover your personal property or your liability. It
is recommended that you carry personal property insurance and liability insurance at your own
expense to cover against any loss or damage to your personal property or to the property of others
caused by your negligence or that of your guests. If requested by us, you agree to provide us with
proof of such insurance coverage.
3.7 Removal and Storage of Resident's Personal Property. Your personal property
must be removed from the Residence and from any storage unit as follows:
3.7.1 Within thirty (30) days following the date of your death (if Joint Residents,
the date of death of the surviving Resident). If your personal property is not removed from
the Residence and from any storage unit within such thirty (30) days, we will continue to
charge your estate the Monthly Fee as outlined in Paragraph 1.5.1 above, or we may remove
and store such personal property at the expense and risk of your estate. Your Entrance Fee
will continue to amortize, if applicable, until the Residence and any storage unit is
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completely vacated. We will only allow the executor(s) named in your Will to remove or
dispose of your personal property in your living accommodation and any related storage
unit at the Village. Members of your family or those to whom you have granted power of
attorney will not be allowed access to your personal property after your death, unless they
are the executor(s) named in your Will.
3.7.2 Within thirty (30) days following the date notice is delivered to you of your
permanent relocation to the Village Health Center or a Comparable Facility for Health
Center Level Services (see definitions in Paragraphs 4.1 and 4.2), or to another care facility
licensed to provide the appropriate care you need. If your personal property is not removed
from the Residence and from any storage unit within such thirty (30) days, we will continue
to charge you the Monthly Fee as outlined in Paragraph 1.5.2 above, or we may remove
and store such personal property at your expense and risk.
3.7.3 At the end of the cancellation period outlined in Section 7 or 8. If your
personal property is not removed from the Residence and from any storage unit by the end
of the cancellation period, we will continue to charge you the Monthly Fee as outlined in
Paragraph 1.5.3 above, or we may remove and store such personal property at your expense
and risk. Your Entrance Fee will continue to amortize, if applicable, until the Residence
and any storage unit is completely vacated.
3.8 Furnishings. Furnishings within the Residence will not be provided by us except
as stated in Paragraph 2.1. Furnishings provided by you shall not be such as to interfere with your
health, safety or general welfare, or that of other residents or others.
3.9 Emergency Entry and Relocation. We may enter your Residence should it be
necessary in an emergency to protect your health or safety or the health or safety of other residents.
If relocation is recommended by the Medical Director or your attending physician, we will request
that you relocate to another residence within the Village, to the Village Health Center or a
Comparable Facility (as defined in Paragraph 4.2), or to a hospital or other care facility for the
protection of your health or safety or for the health or safety of the other residents of the Village.
3.10 Alterations by You. You may not undertake any alterations to your Residence
without our prior written approval. Said alterations will be set forth in a separate addendum to this
Agreement, signed by you and us. Any alterations to the landscaping of your Residence must meet
the covenants of Croasdaile Farm Master Homeowners’ Association and be approved by the
Village’s Building and Grounds Committee.
3.11 Condition of Residence. Upon vacating the Residence, you agree to leave it in
good and clean condition. You shall be liable to us for any charges incurred to restore your
Residence to good and clean condition, except for normal wear and tear.
3.12 Rights of Second Single Resident. When two Joint Residents reside in a single
Residence under this Agreement, upon the death or permanent relocation of one Resident to a
different level of care at the Village, or other inability of that Resident to continue residing in the
Residence, the remaining Resident may continue to reside in the Residence under the terms of this
Agreement and shall pay the Monthly Fee.
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3.13 Smoke-Free Community. The Village is a smoke-free community pursuant to its
Smoke-Free Campus Policy (a copy of which is available upon request), wherein the campus and
buildings have been designated as "smoke free". Smoking (including E-Cigarettes) is not allowed
by residents, guests, and business invitees on the Village campus (inside or outside), except in a
designated outside area. No smoking areas include, but are not limited to, the residences, the
Village Health Center (including both the assisted living facility and nursing facility), hallways,
dining rooms, public restrooms, lounge areas, reception areas, waiting rooms, courtyards,
entrances, walking paths, driveways, and any other common areas. Smoking is only permitted at
the designated outdoor area. Violation of the Smoke-Free Campus Policy can result in our
cancellation of this Agreement for just cause as outlined in Paragraph 8.1 hereof.
3.14 Firearms Policy. The Village has adopted a policy governing the possession of
firearms at the Village. Firearms need to be registered with the Village and properly secured. In
the event that you are unable to safely maintain a firearm, we will contact your designated power
of attorney, legal representative or family member to remove any firearms from your Residence.
4. THE VILLAGE HEALTH CENTER.
4.1 Description. The Village Health Center is the portion of the Village which is
licensed to provide two levels of care: assisted living care and skilled nursing care (collectively
"Health Center Level Services"). The Village Health Center is staffed by licensed nursing
personnel 24 hours a day.
4.2 Alternate Accommodations. You will be given priority over non-residents for
admission to the Village Health Center. In the event the Village Health Center is fully occupied
when you are determined to need such care, you agree to relocate to an alternate health care facility
that provides services similar to the Village Health Center or to another care facility licensed to
provide the appropriate care you need (a "Comparable Facility") until an appropriate space
becomes available for you at the Village. We will not be responsible for the charges associated
with the Comparable Facility. Upon your relocation to a Comparable Facility, you shall continue
to pay the Monthly Fee in accordance with Paragraph 1.5.2 above.
4.3 Clinic. The Clinic is available for certain examinations, consultations, tests and
appointments. Such services will be at an Extra Charge to you.
4.4 Six (6) Days of Assisted Living or Nursing Care in the Village Health Center.
You are eligible to receive a total of six (6) days each year of either assisted living care or nursing
care in the Village Health Center while you are a resident of your Residence. In the case of Joint
Residents, each of you will receive six (6) days, but the days cannot be combined and used by only
one of you. Such six (6) days renews on an annual basis and does not accumulate. You are
required to pay the charges for physician services and any additional health services as outlined in
Paragraph 4.10. Once you are permanently assigned to assisted living or nursing care in the Village
Health Center or Comparable Facility, you no longer qualify for the six (6) free days of assisted
living or nursing care and will be required to pay the per diem charge for such care. [NOTE: The
six (6) days of care is a combined annual total for assisted living care and nursing care at the
Village
.]
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4.5 Transfer to Health Center Level Services. In the event your physical or mental
health is determined by us to be appropriate for Health Center Level Services, you agree to relocate
to the Village Health Center or a Comparable Facility. Such a determination will be made by us
after a review by the Director of Nursing, the Medical Director and the Executive Director in
consultation with your attending physician, your personal representative, and you to the extent
possible.
4.6 Temporary Relocation to the Village Health Center. In the event you require
temporary care in the Village Health Center (beyond the six (6) days of care as outlined in
Paragraph 4.4, if applicable), you will pay the per diem charge applicable to the level of care
needed by you, as well as the charges for physician services and any additional health services as
outlined in Paragraph 4.10. Subject to the terms and conditions of this Agreement, you will
continue to pay the Monthly Fee for your Residence in accordance with Paragraph 1.5.2 above.
4.7 Permanent Relocation to Health Center Level Services. In the event you require
permanent care in the Village Health Center (beyond the six (6) days of care as outlined in
Paragraph 4.4, if applicable), you will pay the per diem charge applicable to the level of care
needed by you, as well as the charges for physician services and any additional health services as
outlined in Paragraph 4.10. If you are determined appropriate for Health Center Level Services,
and are permanently relocated to the Village Health Center or a Comparable Facility, you will be
required to release your Residence to us, and remove all of your personal property from the
Residence and from any storage unit as outline in Paragraph 3.7.2. We shall have the right to
reassign the Residence for occupancy by others except as provided in Paragraph 3.12. Release of
the Residence due to your permanent relocation to the Village Health Center or to a Comparable
Facility does not qualify you for a refund of the Entrance Fee, unless this Agreement is canceled.
Subject to the terms and conditions of this Agreement, you will continue to pay the Monthly Fee
in accordance with Paragraph 1.5.2 above.
4.8 Relocation within the Village Health Center. We reserve the right to relocate you
to a different level of care within the Village Health Center if you require such care. Such
relocation will be made after a review by the Director of Nursing, the Medical Director and the
Executive Director in consultation with your attending physician, your personal representative,
and you to the extent possible.
4.9 Return to Residence. If we subsequently determine, in consultation with your
attending physician, your personal representative and you to the extent possible, that you can
resume occupancy in a residence equivalent to the residence you previously occupied, you shall
have the right to relocate to such equivalent residence as soon as one is available. Upon
reoccupying a residence, your Monthly Fee will be based on the then-current Monthly Fee for the
residence.
4.10 Medical Director, Attending Physician, and Additional Health Services. We
have designated a licensed physician to serve as Medical Director of the Village Health Center.
You are required to have a local attending physician. You may engage the services of the Medical
Director at your expense. If your personal physician will be providing you with services in the
Village Health Center, he/she may do so upon providing us with his/her credentials and with proof
of liability insurance, and he/she agrees to abide by our policies and procedures. We will not be
responsible for the charges for medical treatment or services by the Medical Director or your
9
attending physician, nor will we be responsible for the charges for medication, prescribed therapy,
nursing supplies, and other medical and miscellaneous supplies and services associated with
medical treatment.
4.11 Advanced Payment for Medical Treatment. In the event we incur or advance
payment for your medical treatment or for medication, prescribed therapy, nursing supplies, and
other medical and miscellaneous supplies and services associated with medical treatment (even in
the event such medical care is given at the direction of your attending physician or the Medical
Director without your prior approval), you shall promptly reimburse us for such payments. Upon
cancellation of this Agreement for any reason, any amounts due to us under this Paragraph 4.11
shall be offset against any refund of the Entrance Fee.
4.12 Long-Term Care Insurance. We will use reasonable efforts to assist you in
working with your long-term care insurance provider to obtain the benefits to which you may be
entitled.
4.13 Medicare and Health Insurance. When eligible, you are required to maintain
Medicare Part A, Medicare Part B, and one supplemental health insurance policy or equivalent
insurance coverage acceptable to us to assure your ability to fully cover a Medicare-qualified stay
in the Village Health Center or a Comparable Facility. You shall furnish to us such evidence of
coverage as we may from time to time request. Such supplemental insurance should cover
Medicare co-insurance and deductibles. Should your supplemental health insurance or equivalent
coverage not fully cover a Medicare-qualified stay in the Village Health Center or a Comparable
Facility, or should you fail to purchase supplemental health insurance or equivalent coverage to
fully cover a Medicare-qualified stay in the Village Health Center or a Comparable Facility, you
shall be financially responsible for paying deductibles, co-insurance amounts, and any other
charges for each Medicare-qualified admission and stay in the Village Health Center or a
Comparable Facility. If you are eligible to receive the six (6) days of nursing care in the Village
Health Center as provided in Paragraph 4.4 and your stay in the Village Health Center is a
Medicare-qualified stay, such six (6) days will be applied after the expiration of your Medicare-
qualified stay providing you have Medicare Part A, Medicare Part B and acceptable supplemental
health insurance or equivalent insurance coverage.
If you are not eligible for Medicare, you shall maintain health insurance coverage
acceptable to us and shall furnish us with evidence of such coverage upon our request. Should your
health insurance not fully cover your stay in the Village Health Center or a Comparable Facility,
you shall be financially responsible for paying deductibles, co-insurance amounts, and any other
charges for each admission and stay in the Village Health Center or a Comparable Facility.
If failure to maintain Medicare Part A, Medicare Part B, supplemental health insurance or
other health insurance coverage causes depletion of your resources and impairs your ability to meet
your financial obligations, we need not defer your financial obligations to us as outlined in
Paragraph 6.1, and we retain the right to cancel the Residency Agreement as provided in Section
8.
4.14 Managed Care. If you have chosen to participate in a managed care program as an
alternative to Medicare Part A, Medicare Part B, and supplemental insurance coverage, the terms
of this Agreement governing nursing care will include the following provisions:
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4.14.1 Participating Provider. If the Village Health Center is a participating
provider with your managed care program and your stay is a Medicare-qualified stay, the
Village agrees to be reimbursed at the rate negotiated with your managed care program.
Such a managed care stay in the Village Health Center will not reduce the number of days
of care you are eligible to receive without additional charge pursuant to Paragraph 4.4, as
applicable. You will continue to pay the Monthly Fee for your Residence in accordance
with Paragraph 1.5.2 above, as well as any charges for physician services and any
additional health services as outlined in Paragraph 4.10.
4.14.2 Not a Participating Provider. If the Village Health Center is not an
approved participating provider with your managed care program and you choose to
receive health care services at a managed care participating provider, then you agree that
you must relocate for as long as necessary for those services to be provided, and be
responsible for all charges for health care services. In addition, while receiving health care
services at the managed care participating provider, you will continue to pay the Monthly
Fee for your Residence in accordance with Paragraph 1.5.2 above. Such a stay at a managed
care participating provider will not reduce the number of days of care that you are eligible
to receive without additional charge pursuant to Paragraph 4.4, as applicable.
4.14.3 Negotiated Managed Care Rate. If the Village Health Center is not a
participating provider in your managed care program and your stay is a Medicare-qualified
stay, we attempt to negotiate a reimbursement rate with your managed care program. If
we are able to negotiate an acceptable rate, we agree to accept as full payment the rate
provided by your managed care program. Such a managed care stay in the Village Health
Center will not reduce the number of days of care that you are eligible to receive without
additional charge pursuant to Paragraph 4.4, as applicable. You will continue to pay the
Monthly Fee for your Residence in accordance with Paragraph 1.5.2 above, as well as any
charges for physician services and any additional health services as outlined in Paragraph
4.10.
4.14.4 No Negotiated Managed Care Rate. If the Village Health Center is not a
participating provider in your managed care program and a negotiated rate is not agreed
upon and you would still like to receive nursing care in the Village Health Center during a
Medicare-qualified stay, then each day of your stay in the Village Health Center will reduce
by one day the number of days of care you are eligible to receive without additional charge
pursuant to Paragraph 4.4, as applicable. During any such Medicare-qualified stay in the
Village Health Center, you agree that you will continue to pay the Monthly Fee for your
Residence in accordance with Paragraph 1.5.2 above and any charges for physician
services and any additional health services as outlined in Paragraph 4.10. If at any time
during any such Medicare-qualified stay in the Village Health Center you are no longer
eligible to receive any of the days of care provided for in Paragraph 4.4, then you agree to
pay the per diem charge for your care in the Village Health Center, the Monthly Fee for
your Residence, in accordance with Paragraph 1.5.2 above, and any charges for physician
services and any additional health services as outlined in Paragraph 4.10.
4.14.5 Post Medicare-Qualified Stay. At the conclusion of each such Medicare-
qualified stay, you will be entitled to care in the Village Health Center in accordance with
the terms of this Agreement other than as provided in this Paragraph 4.14, as adjusted to
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reflect any reduction during such stay in the number of days of care that you are eligible to
receive without additional charge as provided in Paragraph 4.4, as applicable.
4.15 Transfer to Hospital or Other Care Facility. If we determine after consultation
with your attending physician, your personal representative and you to the extent possible, that
you need care beyond that which the Village Health Center is licensed to provide, you will be
transferred to a hospital or other care facility. Our staff will not accompany you to the hospital or
other facility. We shall not be responsible for any charges associated with the transfer and health
care expenses or charges incurred by you after such a transfer. You shall continue to pay the
Monthly Fee for your Residence in accordance with Paragraph 1.5 above.
4.16 Village Health Center Admission Agreement. If you require care in the Village
Health Center, you agree to enter into a separate admission agreement for the appropriate level of
care, which will be signed by you and us.
4.17 Under Age 62. If you are under the age of 62 when you occupy your Residence
under this Agreement, you are not eligible to receive the six (6) days of care in the Village Health
Center as described in Paragraph 4.4 until you attain the age of 62. During this time, you will be
entitled to Health Center Level Services at the then-current per diem charge being charged to
nonresidents until age 62.
5. REPRESENTATIONS.
5.1 Our Representations. We represent and warrant that we are a nonprofit
corporation. We are exempt from payment of Federal income tax under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended. We are affiliated with the North Carolina Conference
of The United Methodist Church of the Southeastern Jurisdiction. The North Carolina Conference
of The United Methodist Church of the Southeastern Jurisdiction is not responsible for our
financial or contractual obligations.
5.2 Your Representations. You represent and warrant that the representations made
in the application for residency, your personal health history, and the confidential financial
statement are true and correct and may be relied upon by us as a basis for your acceptance for
residency at the Village. You also represent and warrant that you have not made any gift of your
property in contemplation of the execution of this Agreement.
6. PROMISES.
6.1 Our Promises. It is and shall be our declared policy to operate as a non-profit
organization. We will not cancel this Agreement without just cause as specified in Section 8.
Further, we shall not cancel this Agreement solely by reason of your financial inability to pay the
full Monthly Fee, or the per diem charge for care in the Village Health Center, provided you have
met all "spend-down" provisions of eligibility for the Medicaid program and any public assistance
funds. This provision shall not apply if you have impaired your ability to meet your financial
obligations hereunder by transfer of assets other than to meet ordinary and customary living
expenses or by not maintaining Medicare Part A, Medicare Part B, supplemental insurance, or
other health insurance after assuming occupancy. You shall be permitted to remain at the Village
for a reduced fee based on your ability to pay for as long as you establish facts to justify deferment
12
of such charges and when deferment of such charges can, in our sole discretion, be granted without
impairing our ability to operate the Village on a sound financial basis for the benefit of all residents.
6.2 Your Promises. You agree to comply with all policies and procedures of the
Village as now existing or as hereafter amended; to pay the Entrance Fee, Monthly Fee, and any
other charges as provided in this Agreement; to not impair your ability to meet the financial
obligations under this Agreement by transferring assets, other than to meet ordinary and customary
living expenses, or by not maintaining Medicare Part A, Medicare Part B, supplemental insurance
or other health insurance, without our consent; to apply for public assistance funds and/or Medicaid
if you should need financial assistance as outlined in Paragraph 6.1 above while receiving Health
Center Level Services; and to abide by all other terms of this Agreement.
7. CANCELLATION BY RESIDENT.
7.1 Right of Rescission. Within thirty (30) days following the later of the execution of
this Agreement by you or the receipt of a Disclosure Statement from us, you may rescind this
Agreement by giving us written notice. You shall not be required to move into the Residence prior
to the expiration of the thirty (30) day rescission period. However, if you occupy the Residence
during the rescission period and then rescind this Agreement, you will only be charged a Monthly
Fee for the period of time that you actually occupied the Residence. Refund of the amount of the
Entrance Fee paid shall be as outlined in Paragraph 9.2.
7.2 Cancellation Prior to Occupancy. You may cancel this Agreement for any reason
at any time before you move into the Village by giving us written notice signed by you (both of
you in the case of Joint Residents). Refund of the amount of the Entrance Fee paid shall be as
outlined in Paragraph 9.3 or 9.4. If you die prior to occupying the Residence or if, on account of
illness, injury or incapacity, you are precluded from occupying the Residence under the terms of
this Agreement, this Agreement will automatically cancel upon our receipt of notice of your death,
illness, injury or incapacity. If you elect to cancel this Agreement because of a substantial change
in your physical, mental or financial condition prior to occupancy, then this Agreement will cancel
upon written notice from you. Refund of the Entrance Fee shall be as outlined in Paragraph 9.3.
7.3 Cancellation After Occupancy. You may cancel this Agreement for any reason
after moving into the Village by giving us thirty (30) days' prior written notice of cancellation,
which shall be effective and irrevocable upon delivery. Cancellation shall occur thirty (30) days
after written notice is delivered, and you must remove your personal property from the Residence
and from any storage unit within the thirty (30) day notice period as outlined in Paragraph 3.7.3.
You are obligated to pay the Monthly Fee during the thirty (30) days, and thereafter if the
Residence has not been released to us in accordance with Paragraph 1.5.3 above. Refund of the
Entrance Fee shall be as outlined in Paragraph 9.5.
7.4 Cancellation Due to Death After Occupancy. This Agreement will automatically
cancel upon your death (the death of the surviving Resident in the case of Joint Residents). Your
estate must remove your personal property from the Residence and from any storage unit within
thirty (30) days after your death as outlined in Paragraph 3.7.1. Your estate will be obligated to
pay the Monthly Fee as outlined in Paragraph 1.5.1 above. Refund of the Entrance Fee shall be as
outlined in Paragraph 9.5.
13
8. CANCELLATION BY UMRH.
8.1 Cancellation Upon Notice. We may, upon notice and opportunity to cure as
hereinafter provided, cancel this Agreement for just cause. Just cause shall include the occurrence
of any of the following events (hereinafter referred to as a "Default"):
8.1.1 Noncompliance. You do not comply with the terms of this Agreement or
the published operating procedures, covenants, rules, regulations, and policies now existing
or later amended by us.
8.1.2 Misrepresentation. You misrepresent yourself or fail to disclose
information during the residency process.
8.1.3 Nonpayment. You fail to pay any charges to us, subject to the provisions
of Paragraph 6.1, within forty-five (45) days of the date when such charges are due.
8.1.4 Threat to Health or Safety. Your health status or behavior constitutes a
substantial threat to the health, safety or peace of yourself, other residents, or others
including your refusal to consent to relocation, or behavior that would result in physical
damage to the property of the Village or others.
8.1.5 Change in Condition. There is a major change in your physical or mental
condition and your condition cannot be cared for in the Village Health Center within the
limits of our license.
8.2 Default Notice. Prior to cancellation for any Default described in Paragraph 8.1.1,
8.1.2 or 8.1.3 above, we shall give you notice in writing of such Default, and you shall have at
least thirty (30) days thereafter within which to correct such Default. No Default shall eliminate
your obligation to pay the Monthly Fee. If you correct such Default within such time, this
Agreement shall not be canceled. If you fail to correct such Default within such time, this
Agreement shall cancel at the expiration of such thirty (30) days.
In the event of the occurrence of a Default described in Paragraph 8.1.4 or 8.1.5 above, if
we or the Medical Director determine that either the giving of notice of Default or the lapse of
time as above provided might be detrimental to you or others, then such notice and/or waiting
period prior to cancellation shall not be required. Also, in the event of the occurrence of a Default
described in Paragraph 8.1.4 or 8.1.5, we are expressly authorized by you to transfer you to an
appropriate hospital or other facility, and we will promptly notify your personal representative or
attending physician.
9. REFUND OF ENTRANCE FEE.
9.1 Nonacceptance by Us. If we do not accept you for residency at the Village, the full
amount of the Entrance Fee you have paid will be promptly refunded to you, without interest.
9.2 Right of Rescission. If you rescind this Agreement as provided in Paragraph 7.1,
you shall receive a full refund of the portion of the Entrance Fee paid by you, without interest,
within sixty (60) days of our receipt of the written notice of rescission.
14
9.3 Cancellation Prior to Occupancy Due to Death, Illness, Injury, or Incapacity.
If, prior to occupancy and after your right of rescission period has expired, you die or you cancel
this Agreement because of illness, injury or incapacity, you or your estate will receive a refund in
full of the portion of the Entrance Fee you have paid, without interest, less any costs specifically
incurred by us at your request and set forth on Exhibit A or in writing in a separate addendum to
this Agreement, signed by you and us. Said refund shall be paid within sixty (60) days following
(i) the date of automatic cancellation of this Agreement; or (ii) the date of our receipt of your
written notice of cancellation.
9.4 Cancellation Prior to Occupancy for Other Reasons. If you cancel this
Agreement for reasons other than those stated in Paragraph 9.2 or 9.3 above, you shall receive a
refund of the Entrance Fee paid, less a non-refundable portion of the Entrance Fee equal to Two
Thousand Dollars ($2,000) and less any costs specifically incurred by us at your request and set
forth on Exhibit A or in writing in a separate addendum to this Agreement, signed by you and us.
Said refund shall be paid within sixty (60) days after our receipt of the written notice of
cancellation.
9.5 Cancellation After Occupancy. In the event you or we cancel this Agreement after
occupancy or in the event of your death (the death of the survivor in the case of Joint Residents),
you or your estate will be reimbursed the amount of the Entrance Fee previously paid by you, less
two percent (2%) for each month of residency or portion thereof, for up to fifty (50) months. After
fifty (50) months of occupancy, no refund of the Entrance Fee will be made. Said refund, if any,
will be paid, without interest, at such time as your Residence has been reserved by a new resident
and our receipt of the full amount of the Entrance Fee paid by such new resident or within two (2)
years from the date of cancellation, whichever occurs first.
9.6 Offset Against Entrance Fee Refund. In the event of cancellation of this
Agreement as described in Paragraph 9.5 above, we will offset against any Entrance Fee refund
due to you or your estate the following:
9.6.1 The amount of any unpaid Monthly Fees, pro-rated Monthly Fees for the
period of time the Residence was occupied (which shall include the period of time until
you or your personal representative removes all of your personal property from the
Residence and from any storage unit) after cancellation of this Agreement, any Extra
Charges, or other charges deferred by us on your behalf under Paragraph 6.1; and
9.6.2 Any health care expenses incurred on your behalf and other amounts
payable to us, which remain unreimbursed; and
9.6.3 Any charges incurred to restore the Residence to good condition, normal
wear and tear excepted, as outlined in Paragraph 3.11; and
9.6.4 Any charges incurred as a result of options and custom features added to
the Residence at your request as outlined in Exhibit A or in a separate addendum to this
Agreement.
15
10. MISCELLANEOUS.
10.1 Nature of Rights. You understand and agree that (i) this Agreement or your rights
(including the use of the Residence) under it may not be assigned, and no rights or benefits under
this Agreement shall inure to the benefit of your heirs, legatees, assignees, or representatives,
except as to receipt of the amounts described in Section 9; (ii) this Agreement and your contractual
right to occupy the Village will exist and continue to exist during your lifetime unless canceled as
provided herein; (iii) this Agreement grants you the right to occupy and use space in the Village
but does not give you exclusive possession of the Residence against us, and you will not be entitled
to any rights of specific performance but will be limited to such remedies as set forth herein and
as provided by continuing care law; (iv) this Agreement is not a lease or easement and does not
transfer or grant you any interest in real property owned by us; and (v) this Agreement grants to
us complete decision-making authority regarding the management and operation of the Village.
10.2 Release. We are not responsible for theft, loss of or damage to your personal
property, unless such theft, loss or damage is caused by our negligence or the negligence of our
agents or employees, and you hereby release us from any such liability. You may want to obtain
at your own expense insurance to protect against such losses.
10.3 Force Majeure. Community shall not be liable to Resident for any default, breach
or damages arising out of or relating to the suspension or termination of any of its obligations or
duties under this Agreement by reason of the occurrence of a Force Majeure Event. A “Force
Majeure Event” is defined as the occurrence of an event which materially interferes with the ability
of Community to perform its obligations or duties hereunder which is not within the reasonable
control of Community, and which could not with the exercise of diligent efforts have been avoided,
including, but not limited to, war, rebellion, terrorism, government uprising, natural disasters
(including floods, earthquake, fire, hurricanes, windstorms, tornadoes), accident, strike, riot, civil
commotion, act of God, pandemic, epidemic, outbreak of infectious diseases or other public health
crisis, including quarantine or other employee restrictions, acts of authority or change in law.
Community shall promptly notify Resident of the occurrence and particulars of such Force
Majeure Event and shall provide Resident, from time to time, with its best estimate of the duration
of such Force Majeure Event and with notice of the termination thereof. Community shall use
diligent efforts to avoid or remove such causes of non-performance as soon as is reasonably
practicable.
10.4 Amendment. This Agreement may be amended by agreement of the parties to this
Agreement. No amendment of this Agreement shall be valid unless in writing and signed by you
and us.
10.5 Law Changes. This Agreement may be modified by us at any time in order to
comply with applicable laws or regulations. Further, we may change any part of the Village,
including the Residence, to meet the requirements of any applicable law or regulation.
10.6 Entire Agreement. This Agreement and any addenda or amendments thereto
contain our entire understanding with respect to your residency at the Village.
16
10.7 Monthly Statement. You shall receive a monthly statement from us showing the
total amount of fees and other charges owed by you, which shall be paid upon receipt and by no
later than the fifteenth (15
th
) day of each month.
10.8 Responsible Party for Business and Financial Decision Making. Prior to
assuming residency at the Village, you agree to execute and deliver to us a Durable Power of
Attorney, trust documents, or other documentation naming a responsible party for business and
financial decision-making. These documents should be drafted to remain effective notwithstanding
your incompetence or disability and shall be in a form acceptable to us. You agree to keep such
documents in effect as long as this Agreement is in effect. The person(s) named as your responsible
party shall not be a person(s) employed by us or any other entity engaged in the management of
the Village.
10.9 Disposition of Furniture, Possessions, and Property. You agree to make
provision by Will or otherwise for the disposition of all of your furniture, property, and possessions
located on the premises of the Village within sixty (60) days after the date of residency.
10.10 Nonwaiver. If we fail to insist in any instance upon performance of any of the
terms, promises, or conditions of this Agreement, it shall not be construed as a waiver or
relinquishment of the future performance of any such terms, promises, or conditions, but your
obligation with respect to such future performances shall continue in full force and effect.
10.11 Notices. Any notice required to be given to us under this Agreement shall be in
writing and sent certified mail, return receipt requested, with all postage and charges prepaid, or
hand-delivered to the Executive Director of the Village at 2600 Croasdaile Farm Parkway;
Durham, North Carolina 27705. Such notices shall be dated and signed.
Any notice required to be given to you shall be delivered to you at the Village or at such
other place as you shall designate to us in writing and sent by certified mail or hand delivered. All
notices mailed in accordance with this Paragraph shall be deemed to be given when mailed whether
or not they are actually received.
10.12 Indemnity. We will not be liable for and you agree to indemnify, defend and hold
us harmless from claims, damages and expenses, including attorneys' fees and court costs, resulting
from any injury or death to persons and any damages to property caused by, resulting from,
attributable to or in any way connected with your negligent or intentional act or omission or that
of your guests.
10.13 Severability. The invalidity of any restriction, condition or other provision of this
Agreement, or any part of the same, shall not impair or affect in any way the validity or
enforceability of the rest of this Agreement.
10.14 Subordination. You agree that all your rights under this Agreement will always be
subordinate and junior to the lien of all mortgages or other documents creating liens encumbering
the Village, which have been or will be executed by us. Upon request, you agree to execute,
acknowledge and deliver to such lender(s) such further written evidence of such subordination as
such lender(s) may reasonably require. Except to the extent of your obligation to pay the Monthly
Fee and Second Person Monthly Fee, you shall not be liable for any such indebtedness.
17
10.15 Capacity. This Agreement has been executed on our behalf by our duly authorized
agent, and no officer, director, agent or employee of ours shall have any personal liability
hereunder to you under any circumstances. This Agreement will become effective upon
acceptance and signature by us.
10.16 Resident. In the case of Joint Residents, the rights and obligations of each are joint
and several except as the context of this Agreement otherwise requires.
10.17 Reimbursement for Loss or Damage. You or your responsible party, if
applicable, agree to reimburse us for any loss or damage to the Village caused by your intentional,
careless, or negligent acts or omissions or that of your guests.
10.18 Charges for Collection. You agree to reimburse us for any charges we incur to
collect any unpaid amounts you or your estate owes to us under this Agreement.
10.19 Sale or Transfers of Interest. We may sell or transfer our interest in the Village
provided the buyer will agree to assume this Agreement and all other existing Residency
Agreements. Upon the assumption of this Agreement by a buyer of the Village and its agreement
to perform this Agreement and all other agreements, we will have no further obligation hereunder.
Your signature hereto constitutes your consent and approval of any such future transaction.
10.20 Private Employee of Resident. If you need additional services, you can obtain
these needed services from a private employee, an independent contractor, or through an agency
(personal service provider). In such instances, we strongly advise you to obtain these needed
services from a licensed and/or certified home health agency. In any event, you must comply with
our policy regarding personal service providers, and ensure that your private employee, independ-
ent contractor, or person you employ through an agency complies with our policies and rules of
conduct set forth in our policy. If you fail to follow or enforce the policies and rules set forth
therein, then we may elect, at our sole option, to cancel this Agreement.
10.21 Tax Considerations. You should consult with your tax advisor regarding the tax
considerations associated with this Agreement as more fully explained in our Disclosure
Statement.
10.22 Management. We have engaged the services of Life Care Services LLC ("LCS")
to manage the Village. We are not affiliated with LCS nor is LCS responsible for our contractual
or financial obligations or the contractual or financial obligations of the Village.
10.23 Governing Law. This Agreement will be governed, interpreted and construed
according to the laws of the State of North Carolina.
10.24 Survival of Representations and Obligations. Your representations and
obligations under this Agreement, including but not limited to, your obligation to pay all sums
owed by you to us, and your agreement to indemnify us as set forth in Paragraph 10.11, and our
representations and obligations under this Agreement, will survive any cancellation of your
residency in the Village, regardless of the reason for such cancellation and regardless of whether
it is initiated by you or by us.
18
11. MEDIATION AND ARBITRATION.
11.1 Mediation. In the event a dispute, claim or controversy of any kind arises between
the parties – except for those disputes, claims or controversies arising under Paragraph 11.3 below
– that cannot be resolved by mutual agreement, the parties agree to submit such dispute, claim or
controversy to a neutral mediator for possible resolution. The parties will jointly agree on a neutral
mediator. Each party shall submit all evidence or information in writing to the mediator in support
of its contentions or allegations and any defense either party may have with respect to the dispute,
claim or controversy. Each party shall have the right to a hearing before the mediator and to
personally present information pertinent to such dispute, claim or controversy. The mediator shall
assist each party, in an unbiased manner, in reaching an amicable agreement regarding the dispute,
claim or controversy. If an amicable agreement is not reached, or if either party fails or refuses to
negotiate or mediate in good faith to resolve the matter, or if a neutral mediator cannot be agreed
upon between the parties, then the parties agree to submit such dispute, claim or controversy to an
arbitration process as outlined below.
11.2 Arbitration. In the event a dispute, claim or controversy of any kind arising out
of or relating to this Agreement – except for those disputes, claims or controversies arising under
Paragraph 11.3 below – cannot be resolved through mediation as described in Paragraph 11.1
above, the parties agree that said dispute, claim, or controversy will be submitted to and determined
by arbitration in Durham County, North Carolina in accordance with the Federal Arbitration Act.
You and we will jointly agree on an arbitrator and the arbitrator will be selected according to the
procedure set forth in state law, if applicable. In reaching a decision, the arbitrator shall prepare
findings of fact and conclusions of law. Any direct arbitration costs incurred by you will be borne
by you. Costs of arbitration, including our legal costs and attorneys' fees, arbitrators' fees, and
similar costs, will be borne by all residents of the Village provided that the arbitrator may choose
to award the costs of arbitration against us if the arbitrator determines that the proposed resolution
urged by us was not reasonable. If the issue affects more than one (1) resident, we may elect to
join all affected residents into a single arbitration proceeding, and you hereby consent to such
joinder.
You may withdraw your agreement to arbitrate within thirty (30) days after signing this
Agreement by giving written notice of your withdrawal to us. This arbitration clause binds all
parties to this Agreement and their spouses, heirs, representatives, executors, administrators,
successors, and assigns, as applicable. After cancellation of this Agreement, this arbitration clause
shall remain in effect for the resolution of all claims and disputes that are unresolved as of that
date.
11.3 Voluntary Arbitration of Negligent Health Care Claims. For all claims for
damages in personal injury or wrongful death actions, based on alleged negligence in the provision
of health care, the parties may voluntarily elect to submit to arbitration pursuant to the procedures
set forth in Article 1H of Chapter 90 of the North Carolina General Statutes. N.C. G.S. §90-
21.60(b) prohibits any contract from requiring prior agreement of the parties to arbitrate negligent
health care claims. Thus, Paragraphs 11.1 and 11.2 do not apply to personal injury or wrongful
death actions based on alleged negligence in the provision of health care. If the parties agree to
arbitrate such actions, said arbitration will be governed in accordance with N.C.G.S. §90-21.60, et
seq.
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You hereby certify that you received a copy of this Agreement and a copy of our most current
Disclosure Statement dated , 20 .
Executed this _____ day of _____________,
20_______.
RESIDENT
Witness
RESIDENT
Witness
THE UNITED METHODIST
RETIREMENT HOMES,
INCORPORATED
d/b/a Croasdaile Village
By
Executive Director
Date:
By
Authorized Agent of UMRH
Date:
Attachment: Exhibit A
03/10/2021
Standard Residency Agreement (2021-03-10)
20
Exhibit A
Options and Custom Features Added at Resident’s
Request:
Amount
$
$
$
$
$
$
Total $
Initials ___________ __________ _________________________
Community Resident(s)
_________________________
Resident(s)
WBD(US) 41242208v3
ATTACHMENT 6
Communities Managed by
Life Care Services LLC
EXHIBIT A
SENIOR LIVING COMMUNITIES MANAGED
BY LIFE CARE SERVICES
AS OF 1/31/2024
Alabama, Birmingham – Galleria Woods
Alabama, Hoover – Danberry at Inverness
Arizona, Chandler – Clarendale of Chandler
Arizona, Fountain Hills – Fountain View Village
Arizona, Phoenix – Clarendale of Arcadia
Arizona, Phoenix – Sagewood
Arizona, Tempe (Phoenix) – Friendship Village of Tempe
California, Cupertino – Forum at Rancho San Antonio, The
California, Palo Alto – Moldaw Residences
California, San Diego – Casa de las Campanas
California, San Rafael – Aldersly
California, Santa Rosa – Arbol Residences of Santa Rosa
California, Santa Rosa – Oakmont Gardens
Connecticut, Essex – Essex Meadows
Connecticut, Mystic – StoneRidge
Connecticut, Southbury – Pomperaug Woods
Delaware, Newark – Millcroft Living
Delaware, Wilmington – Foulk Living
Delaware, Wilmington – Shipley Living
Florida, Aventura – Sterling Aventura
Florida, Bradenton – Freedom Village of Bradenton
Florida, Celebration – Windsor at Celebration
Florida, Clearwater – Regency Oaks
Florida, Hollywood – Presidential Place
Florida, Jacksonville – Cypress Village
Florida, Leesburg – Lake Port Square
Florida, Naples – The Glenview at Pelican Bay
Florida, Naples – The Arlington of Naples
Florida, Palm City – Sandhill Cove
Florida, Port Charlotte – South Port Square
Florida, Seminole – Freedom Square of Seminole
Florida, Seminole – Lake Seminole Square
Florida, Sun City Center – Freedom Plaza
Florida, The Villages – Freedom Point at The Villages
Georgia, Evans – Brandon Wilde
Georgia, Savannah – Marshes of Skidaway Island, The
Illinois, Addison – Clarendale of Addison
Illinois, Algonquin – Clarendale of Algonquin
Illinois, Chicago – Clare, The
Illinois, Chicago – Clarendale Six Corners
Illinois, Godfrey – Asbury Village
Illinois, Lincolnshire – Sedgebrook
Illinois, Mokena – Clarendale of Mokena
Illinois, Naperville – Monarch Landing
Illinois, Wheaton – Wyndemere
Indiana, Carmel – Magnolia Springs at Bridgewater
Indiana, Carmel – Rose Senior Living – Carmel
Indiana, Greenwood (Indianapolis) – Greenwood Village South
Indiana, Indianapolis – Magnolia Springs Southpointe
Indiana, Indianapolis – Marquette
Indiana, West Lafayette – Westminster Village West Lafayette
Iowa, Ames – Green Hills Community
Iowa, Cedar Rapids – Cottage Grove Place
Kansas, Atchison – Dooley Center
Kentucky, Florence – Magnolia Springs Florence
Kentucky, Lexington – Magnolia Springs Lexington
Kentucky, Lexington – Richmond Place Senior Living
Kentucky, Louisville – Magnolia Springs East
Maryland, Columbia – Residences at Vantage Point
Maryland, Timonium – Mercy Ridge
Maryland, Towson (Baltimore) – Blakehurst
Massachusetts, Woburn – The Delaney at The Vale
Michigan, Auburn Hills – The Avalon of Auburn Hills
Michigan, Battle Creek – NorthPointe Woods
Michigan, Bloomfield Township – The Avalon of Bloomfield Township
Michigan, Clinton Township – Rose Senior Living – Clinton Township
Michigan, East Lansing – Burcham Hills
Michigan, Holland – Freedom Village
Michigan, Kalamazoo – Friendship Village
Michigan, Novi – Rose Senior Living at Providence Park
Michigan, Auburn Hills – The Avalon of Auburn Hills
Michigan, Commerce Township – The Avalon of Commerce Township
Minnesota, Buffalo – Havenwood of Buffalo
Minnesota, Burnsville – Havenwood of Burnsville
Minnesota, Maple Grove – Havenwood of Maple Grove
Minnesota, Minnetonka – Havenwood of Minnetonka
Minnesota, Richfield – Havenwood of Richfield
Minnesota, Plymouth – Trillium Woods
Minnesota, Vadnais Heights – Gable Pines
Missouri, St. Peters – Clarendale of St. Peters
New Jersey, Bridgewater – Delaney of Bridgewater, The
New Jersey, Bridgewater – Laurel Circle
New Jersey, Burlington – Masonic Village at Burlington
New Jersey, Florham Park – The Delaney at The Green
New York, Rye Brook – Broadview Senior Living at Purchase College
New York, Staten Island – Brielle at Seaview, The
North Carolina, Chapel Hill – Cedars of Chapel Hill, The
North Carolina, Charlotte – Cypress of Charlotte, The
North Carolina, Durham – Croasdaile Village
North Carolina, Greensboro – WhiteStone
North Carolina, Greenville – Cypress Glen
North Carolina, Lumberton – Wesley Pines
North Carolina, Raleigh – Cypress of Raleigh, The
North Carolina, Wilmington – Porters Neck Village
Ohio, Avon – Rose Senior Living – Avon
Ohio, Beachwood – Rose Senior Living – Beachwood
Ohio, Lewis Center – The Avalon of Lewis Center
Ohio, New Albany – The Avalon of New Albany
Ohio, Mason – Magnolia Springs Loveland
Oklahoma, Bartlesville – Green Country Village
Oregon, Dallas – Dallas Retirement Village
Oregon, Salem – Capital Manor
Pennsylvania, Coatesville – Freedom Village at Brandywine
Pennsylvania, Warrington – Solana Doylestown, The
South Carolina, Greenville – Rolling Green Village
South Carolina, Hilton Head Island – Bayshore on Hilton Head Island
South Carolina, Hilton Head Island – Cypress of Hilton Head, The
Tennessee, Brentwood – Heritage at Brentwood, The
Tennessee, Hendersonville – Clarendale at Indian Lake
Tennessee, Memphis – Heritage at Irene Woods
Tennessee, Nashville – Clarendale at Bellevue Place
Texas, Austin – Westminster
Texas, Bedford – Parkwood Healthcare
Texas, Bedford – Parkwood Retirement
Texas, Dallas – Autumn Leaves
Texas, Dallas – Monticello West
Texas, Dallas – Signature Pointe
Texas, Dallas – Walnut Place
Texas, Georgetown – Delaney at Georgetown Village, The
Texas, League City – Delaney at South Shore, The
Texas, Lubbock – Carillon
Texas, Richmond – Delaney at Parkway Lakes, The
Texas, Spring – Village at Gleannloch Farms, The
Texas, The Woodlands – Village at the Woodlands Waterway, The
Texas, Waco – Delaney at Lake Waco, The
Vermont, White River – Village at White River Junction, The
Virginia, Fairfax – Virginian, The
Virginia, Gainesville – Heritage Village Assisted Living and Memory Care
Virginia, Virginia Beach – Atlantic Shores
Washington, Issaquah – Timber Ridge at Talus
Wisconsin, Greendale – Harbour Village
Wisconsin, Milwaukee – Eastcastle Place
ATTACHMENT 7
List of Extra Charges
Summary of Charges
Effective October 1, 2023- September 30, 2024
SERVICES
Clinic: Services of the clinic are billed according to the type of services received, and
charges for the services are filed with residents’ insurance carriers. Residents are
responsible for any co-pays, deductibles, and for charges not covered by insurance.
Podiatry and psychiatry are available by appointment in the clinic, but are charged and
billed by the provider and not through the Clinic.
Beauty Shop/Barber Service: The Croasdaile Village Beauty Shops are operated by
private contractors.
Charges are set by the contractors and not by Croasdaile Village Administration.
Cable: Spectrum Community Plan-Included
Additional Services are at the expense of the resident at the Spectrum rate.
Dining Services:
Café, Bistro, and Pub charges:
Breakfast
A la carte
Lunch
A la carte
Dinner
A la carte
Main Dining Buffet Charges:
Dinner/Brunch
Adult $14.00
Child (Ages 3-12) $ 7.00
Weekends and Holidays Varies per menu
Azalea Room Charges
Dinner (varies per menu)
Meal Delivery:
Each resident receives three free meal deliveries per quarter if they are ill.
Additional deliveries are $4.00 per meal
Guest Rooms: $95.00/night
Housekeeping:
Weekly Housekeeping: No charge
Annual Deep Cleaning: No charge
Additional personal housekeeping $35.00 per hour
Set-up fee for personal reservations:
(Fassett Auditorium, Resident Meeting Rooms, etc.)
Normal Hours Set-up $80.00
Clean-up
$80.00
Night and/or Weekend Set-up $80.00 per person
Weekend Clean-up $80.00 per person
Laundry:
Croasdaile Village will happily provide personal laundry services to residents
Clothing hourly rate:
$22.00
Linens hourly rate:
$22.00
Maintenance:
Croasdaile Village will happily provide personal Maintenance services to
residents.
Hourly rate:
$22.00 per hour per person
Security:
Replace #7 door key $150.00 per key
PET Button $169.00 per transmitter
Telephone:
Voice Mail $4.00 monthly
Transportation:
Medical Transportation No
Charge North Durham, North of NC 147 $
10.00 South Durham, South of NC 147
$15.00 Hillsborough or Chapel Hill
$20.00
Mebane $25.00
Cary
$35.00
Roxboro $40.00
RDU Airport $40.00
Raleigh $45.00
Prices above are one-way
Any approved private trips beyond the location list shall be calculated using vehicle mileage and
driver-hours added together.
The department will not provide long-distance personal transportation.
Pet Deposit:
$200.00 per pet
Note: Resident is required to pay a separate pet deposit for new pets, regardless of
previous fees paid.
Croasdaile Village Home Care:
Telephone: 919-384-2441
Fax: 919-384-2449
C.N.A. Hourly Rates M-F $23.50
C.N.A. Hourly Rates Weekends $24.50
C.N.A. Hourly Rate Holiday & Premium* Double
C.N.A. Hourly Couple Care M-F $35.25
C.N.A. Hourly Couple Care Weekends $36.25
C.N.A. Hourly Couple Care Holiday & Premium* Double
Companions Hourly Rates M-F $20.00
Companions Hourly Rates Weekends $21.00
Companions Hourly Rates Holiday & Premium* Double
All above rates are there is a 3-hour minimum
All above rate are for less than 3 hours:
CNA Hourly Rate $28.50
Companion Care Hourly $25.00
Pet Care Visits: 15 to 30 min M-F $12.00
Pet Care Visits: 15 to 30 min Weekend $13.00
Pet Care Visits: 31-60 min M-F $24.00
Pet Care Visits: 31-60 minutes Weekend $26.00
Medication Reminder Visit: 15 minutes $10.00
RN Visit Assessments $75.00
RN Visit Dressing Change Visit $40.00
RN Visit Medication Management Pour $30.00
RN Hourly Medication Change & Wellness $40.00
*Holidays/Premium Days are billed at double the hourly rate:
New Year’s Eve (Premium)
New Year’s Day (Holiday) Easter Sunday (Premium)
Mother’s Day (Premium)
Father’s Day (Premium)
Memorial Day (Holiday)
4th of July (Holiday)
Labor Day (Holiday)
Thanksgiving (Holiday)
Christmas Eve (Premium)
