Lincoln GlenLincoln GlenIndependent Living. Assisted Living. Nursing Care. Memory Care.
June 5, 2021
Continuing Care Branch
California Department of Social Services
744 P Street, M.S. 9-14-91
Sacramento, California 95814
Attached please find the Continuing Care Annual Report for Lincoln Glen Manor
for Senior
Citizens and the Provider Fee and late fees as calculated on the attached
payment. Please let us know of any additional payment due or concerns
related to any of the attached documents. A copy has been emailed to
ccicccb@dss.ca.gov
and two copies have been mailed with the check attached.
Respectfully,
Signature
Loren Kroeker
CEO/Executive Director
Letterhead Footer - Logo of Oak Tree and contact information
Lincoln Glen
2671 Plummer Avenue
San Jose, CA 95125
T: 408-265-3222
F: 408-265-2839
Website: LGMANOR.org
Lincoln GlenIndependent Living. Assisted Living. Nursing Care. Memory Care.
I have reviewed the information in the Financial Statement, Annual Report and amendments included in this report. The Financial Statement, Annual Report and any amendments and attachments thereto are correct to the best of my knowledge.
All Continuing Care Contract forms in use or offered to new residents have been approved by the Department of Social Services Continuing Care Contracts Branch.
Effective on the date of this report Lincoln Glen Manor for Senior Citizens is maintaining the liquid reserve required. Report prepared 6/4/2021.
Respectfully Submitted,
Loren J Kroeker
CEO/Executive Director
Letterhead Footer - Logo of Oak Tree and contact information
Lincoln Glen
2671 Plummer Avenue
San Jose, CA 95125
T: 408-265-3222
F: 408-265-2839
Website: LGMANOR.org
Lincoln GlenIndependent Living. Assisted Living. Nursing Care. Memory Care.
Lincoln Glen Manor for Senior Citizens, a California Corporation
Certificate of Executive Officer of the Corporation
I hereby certify that Lincoln Glen Manor for Senior Citizens, a California Corporation, has caused Its operations for the year ending September 30, 2020 to be reviewed by our accountant, C. Rendell Bayless, CPA. I have reviewed this annual report. Based upon my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, In light of the circumstances under which such statements were made, not misleading with respect to the period covered by this annual report. Based upon my knowledge, the financial statements, and other financial information Included In this annual report, fairly represent In all material respects the financial condition, results of operations, and cash flows of Lincoln Glen Manor for Senior Citizens as of, and for the period presented In this annual report. Based upon my knowledge and the Information provided In this report, no event of default under The Trust Agreement, the Sale Agreement or the Deed of Trust has come to my attention.
Signature: Loren Kroeker
CEO/Executive Director
Letterhead Footer - Logo of Oak Tree and contact information
Lincoln Glen
2671 Plummer Avenue
San Jose, CA 95125
T: 408-265-3222
F: 408-265-2839
Website: LGMANOR.org
Letter head:
C. Rendell Bayless CPA,
51 E Campbell Ave Ste 500E,
Campbell CA 95008, (408)376-4150
Lincoln Glen Manor for Senior Citizens
San Jose, California
I have audited the accompanying continuing care reserve report ("Reports") of Lincoln Glen Manor for Senior Citizens, a California nonprofit, public benefit corporation as of September 30, 2020. These Reports are the responsibility of the Company's management. My responsibility is to express an opinion on the Reports based on my audit.
I conducted my audit in accordance with auditing standards generally accepted in the United States of America. These standards require that I plan and perform the audit to obtain reasonable assurance about whether the Reports are free of material misstatement. An audit includes consideration of the internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, I express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the Reports, assessing the accounting principles used and significant estimates made by the Company's management, as well as evaluating the overall presentation of the Reports. I believe that my audit provides a reasonable basis for my opinion.
The accompanying Reports were prepared for the purpose of complying with California Health and Safety Code section 1792 and are not intended to be a complete presentation of the Company's assets, liabilities, revenues and expenses.
In my opinion, the Reports present fairly, in all material respects, the liquid reserve requirements of the Company as of September 30, 2020, in conformity with the report preparation provisions of California Health and Safety Code section 1792.
This report is intended solely for the use of the Company and for filing with the California Department of Social Services and is no! intended to be and should not be used for any other purpose. However, this report is a matter of public record and its distribution is not limited.
Signature
C. Rendell Bayless
Campbell, California
May 25, 2021
Department Logo and Director, Will Lightbourne
State Seal Logo and Governor of California, Edmund G. Brown, Jr.
Department Header: State of California--Health and Human Services Agency
Department of Social Services, 744 P Street, Sacramento, CA 95814.
Website: www.cdss.ca.gov
March 20, 2018
Mr. Loren Kroeker
Executive Director
Lincoln Glen Manor
2671 Plummer Avenue
San Jose, California 96125
Dear Mr. Kroeker,
This Is In response to your request for review and approval of the revised
Continuing Care
Agreement for Lincoln Glen Manor for Senior Citizens (Lincoln Glen). The
revisions have
been reviewed and found to not conflict with the continuing care contract
statutes;
therefore, the Lincoln Glen may begin using It. (Document Number 6322596.4)
If you have any questions, you may contact me at (916)654-0591 or Linda.Smith@dss.ca.gov
Sincerely,
Signature: Linda L. Smith
Continuing Care Branch
Company Logo "Acord" - Policy Number: LincGle-10 - Agent Name: KDaniels - Date: 6/27/2021
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATNELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED QYTHE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATNE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
Producer
Resource Partners
313 West Liberty Street, Suite 358
Lancaster, PA 17603
Contact Name: Kathryn Daniels
Phone: (717) 293-7840
Fax: (717) 293-7864
Email Address: (Not listed)
Insured Name and Address
Lincoln Glen Manor
2671 Plummer Avenue
San Jose, CA 95125-4867
INSURERS AFFORDING COVERAGE
Insurer A: Chubb Group of Insurance Cos. NAIC # - Not listed
Insurer B: CNA Surety. NAIC #- Not listed
Insurer C-F. No additional Insurance Companies listed
Coverages, Certificate Number, Revision Number, Type of Insurance, Policy Number, and the following declaration. "This is to certify that the policies of Insurance listed below have been issued to the insured named above for the policy period indicated. Notwithstanding any requirement, Term or Condition of any Contract or other document with respect to which this certificate may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and condition of such policies. Limits shown may have been reduced by paid claims."
COVERAGES [None Noted]
CERTIFICATE NUMBER [None Noted]
REVISION NUMBER [None Noted]
Type of Insurance [None Noted], No claims noted, No Limits noted]
Commercial General Liability[None Noted]
General Aggregated Limit Applies per Policy, Project, LOC [None Noted]
Automobile Liability [None Noted]
Umbrella Liab [None Noted]
Excess Liab [None Noted]
Workers Compensation and Employers' Liability [None Noted]
Policy Number: 8249-3065
Policy Effective Date: 3/1/2021
Policy Expiration Date: 3/1/2022
Insurer: Chubb
Limit: $3,000,000
Policy Number: 71787921
Policy Effective Date: 5/192021
Policy Expiration Date: 5/19/2021
Insurer: Bonds
Limit: 50,000
Description of Operations/Locations/Vehicles (Acord101, Additional Remarks Schedule, may be attached if more space is required.) [None Noted]
Certificate Holder: Evidence of Coverage - "Evidence of Coverage"
Cancellation: Should any of the above Described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions.
Authorized Representative with signature
ACORD 25 (2016/03) - Registered Trademark 1988-2015 Acord Corporation. All rights reserved. The ACORD name and logo are registered marks of ACORD
Page header Left: State of California - Health and Human Services Agency. Page header Right: California Department of Social Services, Community Care Licensing
Original sent to Regional Office
Applicant/Licensee Name: Lincoln Glen Manor For Senior Citizens, Inc.
Address: 2671 Plummer Ave., San Jose, CA 95125
Bonding Company: Western Surety Company
Address: P.O. Box 5077, Sioux Falls, SD 57117-5077, Telephone#: 605-336-0850
Local Agent Name: Resource Partners. Telephone#: 717-293-7840
The addresses shown above for licensee and bonding company will be used for
service of notices, papers and documents.
Licensee, as Principal and Bonding Company as Surety, are held and firmly
bound to the State of California, as beneficiary, in the amount of $50,000.00
(Fifty Thousand and 00/100)
for the payment of which the principal and surety bind themselves, their
respective heirs, successors and assigns, jointly and severally.
WHEREAS Health and Safety Code sections 1560, 1568.021, and 1568.50 each require certain applicants for licenses to file with the State Department of Social Services a surety bond; and
WHEREAS the licensee has applied to operate an (check all that apply):Check box with "X" - Adult Residential, Adult Day Programs or Social Rehabilitation Facility, and the licensee handles client/resident funds in any amount; or
Check box without mark: Foster Family Home, Foster Family Agency, Group Home, Small Family Home, Residential Care Facility for Persons with Chronic, Life-Threatening Illness, or Residential Care Facility for the Elderly and the licensee handles funds of $50 or more per client/resident or $500 or more for all clients/residents in any month;
the surety is liable on this bond in the event that the principal fails to handle faithfully and honestly the money of facility clients/residents.
The facility covered by this bond is:
Facility Name: Lincoln Glen Manor for Senior Citizens, Inc.
Facility Address: 2671 Plummer Ave. San Jose, CA 95125
Facility License Number (if facility is currently licensed): Not noted.
(If other facilities are covered by this bond, specify on a separate, attached
page the name, address, facility license number, and bond amount for each
facility.)
Every person injured as a result, of an unfaithful or dishonest handling of client money may bring an action in a proper court on the bond for the amount of damage suffered thereby to the extent covered by the bond.
The aggregate liability of the Surety for all claims against this bond shall not exceed the amount of the bond, shown above.
Page 7b - Surety Bond From - -State of California (Continued)This bond may be canceled by the Surety in accordance with Code of CMI Procedure section 986.030, and notice of cancellation must be sent in accordance with Code of Civil Procedure section 996.320. This bond is effective May 19, 2016 and remains in effect as long as the license is valid.
I certify under penalty of perjury under the laws of the State of California that the information provided on this page and on any attachments is true and correct.
[Editor NOTE: Signatures and dates are not clear]
Bonding Company Representative Signature Western Surety Company Representative
Signature
Bond Number: 71787921 - Date: May 15, 2016
Letter head:
That WESTERN SURETY COMPANY, a corporation organized and existing under the laws of the State of South Dakota, and authorized and licenses to do business in the States of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the United States of America, does hereby make, constitute and appoint C. Bendt of Sioux Falls, State of South Dakota, with limited authority, its true and lawful Attorney-in-Fact, with full power and authority hereby conferred to sign, execute, acknowledge and deliver for and on the behalf as Surety and as its act and deed, the following bond:
One NURSING HOME - NURSING FACILITY RESIDENTS bond with bond number 71787921 for LINCOLN GLEN MANOR FOR SENIOR CITIZENS, INC. AS principal in the penalty amount not to exceed: $50,000.00.
Western Surety Company further certifies that the following is a true and exact copy of Section 7 of the by-laws of Western Surety Company duly adopted and now in force to wit:
Section 7 [of bylaws].
All bonds, policies, undertakings, Powers of Attorney, or other obligations of the corporation shall be executed in the corporate name of the company by the President, Secretary, any assistant Secretary, Treasurer, or any Vice President, or by such other officers as the Board of Directors may authorize. The President, any Vice President, Secretary, any Assistant Secretary, or the Treasurer may appoint Attorneys-In-Fact or agents who shall have authority to issue bonds, policies, or undertakings in the name of the Company. The corporate seal is not necessary for the validity of any bonds, policies, undertakings, Powers of Attorney or other obligations of the corporation. The signature of any such officer and the corporate seal may be printed by facsimile.
In Witness Whereof, the said WESTERN SURETY COMPANY has caused these presents to be executed by its Vice President with the corporate seal affixed this 19th day of May, 2015.
Attest, Vietor, Assistant Secretary
Western Surety Company, by Paul T. Bruflat
State of South Dakota, County of Minnehaha:
On this day 19th day of May 2016, before me, a Notary Public, personally
appeared Paul T. Bruflat and A. Vietor who, being by me duly sworn, acknowledged
that they signed the above Power of Attorney as Vice President and Assistant
Secretary, respectively, of the said WESTERN SURETY COMPANY, and acknowledged
said instrument to be the voluntary act and deed of said Corporation.
Image: Western Surety Company Corporate Seal
Image: Notary Public South Dakota Seal.
Signature J. Mohr and statement, "My Commission Expires June 23, 2021. "To validate Bond authenticity, go to www.onesurety.com >Owner/Obligee Services> Validate Bond Coverage. [Editor NOTE: this link has expired. Contact Western Surety directly to validate authenticity.]
Page 9 Form 1-1 Resident Population
| Line | Continuing Care Residents | Total |
|---|---|---|
| [1] | Number at beginning of fiscal year | 33 |
| [2] | Number at end of fiscal year: | 38 |
| [3] | Total of lines 1 and 2: | 71 |
| [4] | Multiply Line 3 by ".50" and enter result on Line: X.50 | .50 |
| [5] | Mean number of continuing care residents: | 35.5 |
| All residents | ||
| [6] | Number at beginning of fiscal year | 93 |
| [7] | Number at end of fiscal year: | 95 |
| [8] | Total Lines 6 and 7: | 188 |
| [9] | Multiply Line 8 by ".50" and enter result on Line 10 | X.50 |
| [10] | Mean number of all residents: | 94 |
| [11] | Divide the mean number of continuing care residents (Line 5) by the mean number of all residents (Line 10) and enter the result (round to two decimal places): | .38 |
| Line | Annual Provider Fee | Depreciation & Debt Service | Total |
|---|---|---|---|
| [1] | Total Operating Expenses (including depreciation and debt service - interest only | $14,227,278 | |
| [a] | Depreciation | $886,010 | |
| [b] | Debt Service (Interest Only) | $744,331 | |
| [2] | Subtotal (add 1a and 1b): | $1,630,341 | |
| [3] | Subtract Line 2 from Line 1 and enter result: | $12,596,937 | |
| [4] | Percentage allocated to continuing care residents (Form 1-1, Line 11): | 38% | |
| [5] | Total Operating Expense for Continuing Care Residents (multiply Line 3 by Line 4 | $4,757,354 | |
| [6] | Total Amount Due (multiply Line 5 by .001 | X.001 $4,757 |
Provider: Lincoln Glen Manor for Senior Citizens
Community: (Not Noted)
Provider: Lincoln Glen Manor for Senior Citizens
Long-Term Debt Obligation |
(a) Date Incurred |
(b) Principal Paid During Fiscal Year |
(c) Interest Paid During Fiscal year |
(d) Credit Enhancement Premium Paid in FY |
(e) Total Paid |
|---|---|---|---|---|---|
| 1 | 04/27/11 | $415,000 | $40, 675 | 0 | $455,675 |
| 2 | 02/11/15 | $100,000 | $451,669 | 0 | $554,669 |
| 3 | 11/08/18 | $0 | $248,987 | 0 | $248,987 |
| TOTAL: | $744,331 | 0 | $1,259,331 |
The form includes 5 additional lines for Long-Term Debt Obligation. These lines have no data.
Text below the table: (Transfer Column (e) Total Paid $1,259,331 to FORM 5-3, Line 1)
Note [on form]: For column (b), "Principal paid during fiscal year," do not include voluntary payments made to pay down principal.
Editor Note: No data in table. All columns are $0. Reserve Requirement is $0.
Note on Form: (Transfer $0
to Form 5-3, Line 2)
Long-Term Debt Obligation |
(a) Date Incurred |
(b) Total Interest Paid During Fiscal Year |
(c) Amount of Most Recent Payment on the Debt |
(d) Number of Payments over next 12 months |
(e) Reserve Requirement (see Instruction 5) (columns (c) x (d) |
|---|---|---|---|---|---|
| 1 | $0 | ||||
| 2 | $0 | ||||
| 3 | $0 | ||||
| TOTAL: | $0 | $0 | 0 | $0 |
Note [on form]: For column (b), "Principal paid during fiscal year," do not include voluntary payments made to pay down principal.
Provider: Lincoln Glen Manor for Senior Citizens
| Line | Items | Total |
|---|---|---|
| #1 | Total from Form 5-1 bottom of Column (e) | $1,259,331 |
| #2 | Total from Form 5-2 bottom of Column | $0 |
| #3 | Facility leasehold or rental payment paid by provider during fiscal year (including related payments such as lease insurance) | Not applicable |
| #4 | TOTAL AMOUNT REQUIRED FOR LONG-TERM DEBT RESERVE | $1,259,331 |
PROVIDER: Lincoln Glen Manor for Senior Citizens
| Line | Item | Amounts | TOTAL |
|---|---|---|---|
| 1 | Total operating expenses from financial statements | $14,227,278 |
|
| 2 | Deductions: | ||
| 2a | Interest paid on long-term debt (see instructions), | $744,331 | |
| 2b | Credit, enhancement premiums paid for long-term debt (see instructions | $0 | |
| 2c | Depreciation | $886,010 | |
| 2d | Amortization | $31,039 | |
| 2e | Revenues received during the fiscal year for services to persons who did not have a continuing care contract | $9,161,294 | |
| 2f | Extraordinary expenses approved by the Department | $0 | |
| 3 | Total Deductions | $10,822,674 | |
| 4 | Net Operating Expenses | $3,404,604 | |
| 5 | Divide Line 4 by 365 and enter the result | $9,328 | |
| 6 | Multiply Line 5 b6 75 and enter the result. This is the provider's operating expense reserve amount. | $699,576 |
Provider: Lincoln Glen Manor for Senior Citizens Community: 0
| Form 5-4, line 2d | FYE 9-30-20 | |||||
|---|---|---|---|---|---|---|
| Amortization | $34,552 | |||||
| Statement of Cash Flows | ||||||
| Adjustments to reconcile change In net assets to net cash provided by operating activities: | ||||||
| Amortization of debt issuance costs including underwriter's discount | 84,914 | |||||
| Amortization of bond issue discount and premium: | (114,217) | |||||
| Amortization of prepaid mortgage insurance | 63,851 | |||||
| Total | 34,552 | |||||
| Reconciliation of revenue to statement of cash flows: | ||||||
| Residential services revenue per statement of activity | ||||||
| Independent living | 2,373,247 | |||||
| Nursing | 8,060,950 | |||||
| Assisted Living/Memory Care | 4,442,887 | |||||
| Other Income | 97,282 | |||||
| Less insurance rebate included in other income | (21,271) | |||||
| Increase in accounts receivable, net | (178,915) | |||||
| Change in applications and other deposits payable | 2,101 | |||||
| Total cash received from residents | 14,776,281 | |||||
| Cash received from residents, per statement of cash flows | 14,864,144 | |||||
| Change in deferred income | (397,527) | |||||
| Bad debt provision | 309,664 | |||||
| 14,776,281 | ||||||
| Total revenue received | 14,776,281 | |||||
| Percentage allocated to Non CCRC Residents per Form 1-1 | 62% | |||||
| Revenue received from NON-CCRC Residents | 9,161,294 | |||||
| Reconciliation of Interest and Financial Expense to Actual Interest Paid | ||||||
| Interest and financial expense per statement of functional expense | 764,014 | |||||
| Less: | Mortgage Insurance expense (amortized) | (64,860) | ||||
| Loan costs (amortized) | (85,730) | |||||
| Interest expense - net | 613,424 | |||||
| Reconciling Items: | ||||||
| Plus: Capitalized Interest | - | |||||
| Plus: Accrued Interest - 9/30/19 | 372,166 | |||||
| Less: Accrued Interest - 9/30/20 | (360,810) | |||||
| Less: Amortization of OID - 2011 Bond Series | (2,623) | |||||
| Plus: Amortization of Bond Premium - 2015 Bond Series | 94,627 | |||||
| Plus: Amortization of Bond Premium - 2018 Bond Series | 27,547 | |||||
| Interest Actually Paid | 744,331 | |||||
Provider Name: Lincoln Glen Manor for Senior Citizens
Fiscal Year Ended: 9/30/2019
We have reviewed our debt service reserve and operating expense reserve requirements as of. and for the period ended 9/30/2019 and are in compliance with those requirements.
Our liquid reserve requirements, computed using the audited financial
statements for the fiscal year
are as follows :
| Line # | Liquid Reserve requirements | Amount | |
|---|---|---|---|
| [1] | Debt Service Reserve Amount | $1,259,331 | |
| [2] | Operating Expense Reserve Amount | $699,576 | |
| [3] | Total Liquid Reserve Amount | $1,958,907 |
Qualifying assets sufficient to fulfill the above requirements are held as follows:
| Amount (market value at end of quarter) |
||||
|---|---|---|---|---|
| Qualifying Asset Description | Debt Service Reserve | Operating Reserve | ||
| [4] Cash and Cash Equivalents | $0 | $2,484,414 | ||
| [5] Investment Securities | $0 | $1,230,937 | ||
| [6] Equity Securities: Debt Service Reserve | $0 | $0 | ||
| [7] Unused/Available Lines of Credit | $0 | $0 | ||
| [8] Unused/Available Letters of Credit | $0 | $0 | ||
| [9] Debt Service Reserve: | $1,901,634, | Not Applicable | ||
| [10] Other: (None listed) | $0 | $0 | ||
| (describe qualifying asset) | ||||
| Total Amount of Qualifying Assets Listed for Reserve Obligation: | [11] | $1,901,634 | [12] | $3,715,551 |
| Reserve Obligation Amount | [13] | 1,259,331 | [14] | $699,576 |
| Surplus/(Deficiency): | [15] | $642,303 | [16] | $3,015,775 |
Signature: Loren Kroeker,
Authorized Representative
Date: 6/5/21
| Full Details Regarding Reserves: | FYE 9/30/20 | |||
|---|---|---|---|---|
| Cash and Cash Equivalents: | ||||
| Checking and Money Market Accounts - Union Bank | $2,262,048 | |||
| Charles Schwab -Treasury Obligation Money Funds | $ 91,263 | |||
| Charles Schwab - Cash | $ 11,956 | |||
| MB Foundation Investment Certificates | $119,147 | |||
| $2,484,414 | ||||
| Equity Securities: | ||||
| Powershs QQQ Trust Ser 1 | $ 277,840 | |||
| SCH US DIV Equity ETF | $66,360 | |||
| SCH US TIPS ETF: SCHP | $18,489 | |||
| SCHW US BRD MKT ETF | $127,242 | |||
| SCHW US LCAP GRO ETF | $184,272 | |||
| SECTOR SPDR HEALTH FUND: | $147,672 | |||
| SECTOR SPDR TECH SELECT | $ 233,400 | |||
| VANGUARD BOND INDEX FUND | $ 17,644 | |||
| VANGUARD DIV APPRCIATION | : $ 77,196 | |||
| VANGUARD TOTAL WORLD | $ 80,640 | |||
| TOTAL | $ 1,230,937 | |||
| Debt Service Reserves | ||||
| 2011 Bond Issue | ||||
| Revenue Fund | $5,051 | |||
| Interest Fund | $10,482 | |||
| Principal Fund | $215,020 | |||
| Bond Reserve Fund | $473,132 | |||
| TOTAL | $703,685 | |||
| 2015 Bond issue | ||||
| Interest Fund | $234,326 | |||
| Revenue Fund | $3 | |||
| Principal Fund | $52,505 | |||
| Debt Service Reserve fund | $562,499 | |||
| TOTAL | $849,333 | |||
| 2018 Bond Issue | ||||
| Capitalized Interest Fund | $136,931 | |||
| Debt Service Reserve Fund | $211,685 | |||
| $348,616 | ||||
| Total Debt Service Reserves | $1.901,634 | |||
| Total Operating Expenses, as shown on Form 1·2, Line 1 | $14,227,278 | ||
| Average of "All Residents" as shown on form 1-1, Line 10: | 94 | ||
| Average Operating Expense Per Resident: | $151,354* | ||
| Note* [on form]: The above per capita expenses do not include Unlicensed Independent Living Residents | |||
| Average number of residents at 9/30/19: | 51 | ||
| Average number of residents at 9/30/20: 46 | 46 | ||
| Average of Residents in Unlicensed Independent Living Units: |
49 | ||
Date Prepared: 6/1/21
Section: Description
Facility Name: Lincoln Glen Manor for Senior Citizens
Address: 2671 Plummer Avenue, San Jose, CA, Zip Code: 95125, Phone 408-265-3222
Provider Name: Lincoln Glen Manor for Senior Citizens, Facility Operator: Not
Noted
Related Facilities: Not Noted, Religious Affiliation: Not Noted
Year Opened: 1969, # of Acres: 6.2, Single Story: Not Noted, Multi-Story: Not
Noted, Other: Only Assisted is 2 story, Miles to Shopping Ctr: 0.3, Miles to
Hospital: 4.2.
Section: Number of Units
| Number of Units: | Residential Living | Health Care | ||
|---|---|---|---|---|
| Apartments Studio | 7 | Assisted Living | 31 | |
| Apartments - 1 BDRM | 15 | Skilled Nursing | 59 | |
| Apartments - 2 BDRM | 0 | Special Care Description: Memory Care |
28 | |
| Cottages/Houses | 32 | |||
| RLU Occupancy (%) at Year End: | 81.50% | 81.35% | ||
Section: Ownership, Contracts, Fees, Benefits, Resident Representation
Type of Ownership: Not Noted for the Following: Not-For-Profit, For Profit, Accredited?
Form of Contract (Check all that apply): Not Noted for the Following: Continuing Care, Life Care, Entrance Fee, Fee for Service, Assignment of Assets, Equity, Membership, or Rental.
Refund Provisions (Check all that apply): Not noted for Refundable, Repayable, 90%, 75%, or 50% Other: No entrance fee.
Range of Entrance Fees: $ None - $ None.
Long-Term Care Insurance Required? Yes or No: Not Noted
Health Care Benefits included in Contract: I day of Skilled Nursing per year
of occupancy.
Entry Requirements: Min. Age: 65, Prior Profession: None, Other: None
Resident Representative(s) to, and Resident Member(s) on the Board: briefly describe provider's compliance and residents' roles: 2 resident Board Members, Both serve 3 year terms with full voting privileges.
Section: Facility Services and Amenities
Checklist of amenities offered: Beauty/Barber Shop, Card Rooms, Chapel, Exercise Room, Library, Bistro.
Checklist of amenities NOT offered: Billiard Room, Bowling Green, Coffee Shop, Craft Rooms, Golf Course Access, Putting Green, Shuffleboard, Spa, Swimming Pool-Indoor or Outdoor, Tennis Court, Workshop.
Checklist of Services offered: Housekeep (2 times/month), Meals (3/day), Special Diets Available, 24-hour Emergency Response, Activities Program, All Utilities Except Phone, Apartment Maintenance, Cable TV, Linens Furnished in ALC, Linens Laundered in ALC, Medication Management in ALC, Transportation-Prearranged.
Page 17b Form: Continuing Care Retirement Community - Disclosure Statement (continued)
Checklist of Services NOT offered: Nursing/Wellness Clinic, Personal Home Care, Transportation-Personal. No Other Service listed.
Section: All providers are required by Health and Safety Code section 1789.1 to
provide this report to prospective residents before executing a deposit
agreement or continuing care contract, or receiving any payment. Many
communities are part of multi-facility operations. which may influence
financial reporting. Consumer are encouraged to ask questions of the continuing
care retirement community that they are considering and to seek advice from
professional advisors.
Provider Name: Lincoln Glen Manor for Senior Citizens
| Income and Expenses | 2017 | 2018 | 2019 | 2020 |
|---|---|---|---|---|
| Income from Ongoing Operations, Operating Income (Excluding amortization of entrance fee income): | 12,048,107 | 13,078,202 | 13,683,994 | 14,974,366 |
| Less Operating Expenses (Excluding depreciation, amortization, and interest): | 10,602,809 | 10,817,092 | 11,526,369 | 12,577,254 |
| Net Income from Operations | 1,445,298 | 2,261,110 | 2,157,625 | 2,397,112 |
| Less Interest Expense | 535,032 | 526,182 | 627,945 | 729,462 |
| Plus Contributions | 6,982 | 3,801 | 8,123 | 6,334 |
| Plus Non-operating Income (Expenses) (excluding extraordinary items | 34,426 | 117,357 | 135,556 | 323,065 |
| Net Income (Loss) before entrance Fees, Depreciation and Amortization | 1,051,674 | 1,916,086 | 1,673,359 | 1,997,049 |
| Net Cash Flow From Entrance Fees | 0 | 0 | 0 | 0 |
| Lender | Outstanding Balance | Interest Rate | Date of Origination | Date of Maturity | Amortization Period |
|---|---|---|---|---|---|
| CA Muni Fin Auth Ins Rev Bnd 2011 | 430,000 | 4.75% | 04/27/2011 | 04/01/2021 | 299 Months |
| Calif Health Fac. Fin. Auth. Ins. Ref Rev Bnd | 11,675,000 | 3.36% | 02/11/2015 | 04/01/2036 | 254 Months |
| CA Muni Fin. Auth. Ins. Rev. Bonds 2018 | 6,105,000 | 3.35% | 11/08/2018 | 04/01/2043 | 293 Months |
| 2017 CCAC Medians 50th Percentile (optional) | 2018 | 2019 | 2020 | |
|---|---|---|---|---|
| Debt to Asset Ratio | Not Noted | 0.70 | 0.76 | 0.70 |
| Operating Ratio | Not Noted | 0.87 | 0.89 | 0.89 |
| Debt Service Coverage Ratio | Not Noted | 2.42 | 2.28 | 2.71 |
| Days Cash on Hand Ratio | Not noted | 70.76 | 75.95 | 116.44 |
| Unit | 2017 | % | 2018 | % | 2019 | % | 2020 | % |
|---|---|---|---|---|---|---|---|---|
| Studio | $3,540 | 5.0 | $3,717 | 0 | $3,717 | 5.0 | $3,903 | |
| One Bedroom | $3,945 | 5.0 | $4,142 | 0 | $4,142 | 5.0 | $4,350 | |
| Two Bedroom | NA | NA | NA | NA | ||||
| Cottage/House | $3,945 | 5.0 | $4,142 | 0 | $4,142 | 5.0 | $4,350 | |
| Assisted Living | $7,285 | 5.0 | $7,649 | 0 | $7,649 | 5.0 | $8,032 | |
| Skilled Nursing | $13,280 | 5.0 | $13,944 | 0 | $13,944 | 5.0 | $14,642 |
Comments from Provider: See attached summary
Section: Long-term Debt to Total Assets Ratio
Use Long-Term Debt, less Current Portion then divided by Total Assets
Section: Operating Ratio
Use Total Operating Expenses, less Depreciation Expense,
less Amortization
Expense then divided by Total Operating Revenues less Amortization of Deferred
Revenue
Section: Debt Service Coverage Ratio
Use Total Excess of Revenues over Expenses plus Interest, Depreciation, and
Amortization Expenses plus Amortization of Deferred Revenue plus Net Proceeds
from Entrance Fees then divided by Annual Debt Service
Section: Days Cash on Hand Ratio
Use Unrestricted Current Cash and Investments plus Unrestricted Non-Current Cash
and Investments then divide by the sum of (Operating Expenses minus Depreciation
and minus Amortization) divided by 365
NOTE on Form: These formulas are also used by the Continuing Care Accreditation Commission. For each formula, that organization also publishes annual median figures for certain continuing care retirement communities.
Page 20 - Form 7-1 Report on CCRC Monthly Care Fees
FORM 7-1 REPORT ON CCRC MONTHLY CARE FEES
| # | Care Fees | Residential Living | Assisted Living | Skilled Nursing |
|---|---|---|---|---|
| [1] | Monthly Care Fees at beginning of reporting period: (indicate range, if applicable) |
$3,717 - 5,345 | $7651 - 8690 | $13990 |
| [2] | Indicate percentage of increase in fees imposed during reporting
period: (indicate range, if applicable) Check box (not checked): Check here if monthly care fees at this community were not increased during the reporting period. (If you checked this box, please skip down to the bottom of this form and specify the names of the provider and community |
5% | 5% | 5% |
| [3] | Indicate the date the fee increase was implemented: (If more than one (1) increase was implemented, indicate the dates each increase.) |
December 1, 2019 | ||
| [4] | Check each of the appropriate boxes: | |||
| Check box (checked) | Each fee increase is based on the provider's projected costs, prior year per capita costs, and economic indicators | |||
| Check box (checked) | All affected residents were given written notice of this fee increase at least 30 days prior to its implementation. Date of Notice: 9/30 & 10/1 Method of Notice: Meeting 9/30 & letter 10/1 | |||
| Check box (checked) | At least 30 days prior to the increase in fees, the designated representative of the provider convened a meeting that all residents were invited to attend. Date of Meeting 9/30 | |||
| Check box (checked) | At the meeting with residents, the provider discussed and explained the reasons for the increase, the basis for determining the amount of the increase, and the data used for calculating the increase. | |||
| Check box (checked) | The provider provided residents with at least 14 days advance notice of each
meeting held to discuss the fee increases. Date of Notice: 9/9 and 9/16 |
|||
| Check box (checked) | The governing body of the provider, or the designated representative of the provider posted the notice of, and the agenda for, the meeting in a conspicuous place in the community at least 14 days prior to the meeting. Date of Posting:9/1 Location of Posting: In Dining Room on Community Board also announced at Dinner Time 9/9, 9/16 and 9/23 | |||
| [5] | On an attached page, provide a concise explanation for the increase in monthly care fees including the amount of the increase and compliance with the applicable Health and Safety Code sections. See PART 7 REPORT ON CCRC MONTHLY CARE FEE in the Annual Report Instruction booklet for further instructions. | |||
PROVIDER: Lincoln Glen Manor for Senior Citizens.
COMMUNITY: Not Noted
FORM 7-1
Page 21 - Monthly Care Fee Increase - Reporting Year 2019/20 - Lincoln Glen Manor
Monthly Care Fee Increase
Reporting Year 2019/20
Lincoln Glen Manor for Senior Citizens
| FY 2018/19 Operating Expenses: | $13,714,695 | ||
| FY 2019/20 MCF Revenue Based upon current and Projected Occupancy without Increase | $13,683,994 | ||
| Projected Results of Operations: | ($30,701) | ||
| Other Projected Expenses for FY 2019/20 | |||
| Salary Increase for staff of 3%, New requirements in SNF & additional Memory Care Beds: | $200,670 | ||
| Worker's Compensation Increase 8% | $21,800 | ||
| Increase in Health Coverage Costs of 7.3%: | $62,000 | ||
| Estimated Food Cost Increase of 5.3 %: | $32,000 | ||
| Facility Insurance Rate Increase 6%: | $12,300 | ||
| Estimated Increase in Utilities Expense 6%-7%: | $35,700 | ||
| Increase in Bond payments (interest and financial) | $101,500 | ||
| Total Additional Projected Expenses | $465,970 | ||
| Net Operating Results without MFCI (Line 6 + Line 16) | $14,149,964 | ||
| Anticipated Revenue Based on Current & Projected Occupancy with MCFI of 5%: | $14,367,773 | ||
| Grand Total - Projected FY2019/20 Net Operating Activity After 5% MCFI: | $217,809 | ||
General Salaries were anticipated to need to increase a minimum of 3% to keep
pace with the economy and Minimum Wage increases
This salary increase would be an average of 3% across all departments
Our Worker's Compensation Insurance informed us that rates would increase by
7.8-8.1'%
Our health insurance Broker estimated an increase in health premiums of 7.3%
Estimates of increases in our food costs across the board were coming in at
5-5.5%
The required property and crime insurance rates would be increasing by an
estimated 6%
Our utilities companies estimated in local news reports and in letters that our
rates would increase by 6%-7%
Our Bond financing payments and expenses would be increasing by $101,500
Date Prepared: 6/5/2021 Signature Chief Executive Officer - Loren Kroeker
Note on form: Please attach an explanatory memo that summarizes significant trends or variances in the key operational indicators.
| 2016 | 2017 | 2018 | 2019 | 2020 | Projected 2021 |
2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|---|---|
| Operational Statistics | |||||||||
| 1. Average Annual Occupancy by site (%) | 91.50% | 91.16% | 91.16% | 92.36% | 84.13% | 79.00% | |||
| Margin (Profitability) Indicators | |||||||||
| 2. Net operating Margin (%) | 14.08% | 12.00% | 17.29% | 15.77% | 16.01% | 11.50% | |||
| 3. Net Operating Margin - Adjusted (%) |
14.08% | 12.00% | 17.29% | 15.77% | 16.01% | 11.50% | |||
| Liquidity Indicators | |||||||||
| 4. Unrestricted Cash and Investments ($): | $1,843 | $1,817 | $2,199 | $2,529 | $4,245 | $3,850 | |||
| 5. Days Cash on Hand (Unrestricted) | 65 | 60 | 71 | 76 | 119 | 94 | |||
| Capital Structure Indicators | |||||||||
| 6. Deferred Revenue from Entrance Fees | $0 | $0 | $0 | $0 | $0 | $0 | |||
| 7. Net Annual E/F proceeds | $0 | $0 | $0 | $0 | $0 | $0 | |||
| 8. Unrestricted net Assets ($) | $19,293 | $17,427 | $17,295 | $20,495 | $22,224 | $20,600 | |||
| 9. Annual Capital Asset Expenditure ($) |
$705 | $854 | $953 | $3,795 | $1,003 | $1,450 | |||
| 10. Annual Debt Service Coverage, Revenue Basis (x): | 3.98 | 2.16 | 2.42 | 2.28 | 2.71 | 1.60 | |||
| 11. Annual Debt Service Coverage (x) | 3.98 | 2.16 | 2.42 | 2.28 | 2.71 | 1.6 | |||
| 12. Annual Debt Service/Revenue (%) | 3.93% | 6.02% | 7.60% | 6.55% | 5.69% | 6.74% | |||
| 13. Average Annual Effective Interest Rage (%): | 3.74% | 3.75% | 3.72% | 3.68% | 3.82% | 6.85% | |||
| 14. Unrestricted Cash & Investment/Long-term Debt (%) | 12.88% | 13.23% | 16.73% | 13.77% | 22.74% | 18.55% | |||
| 15. Average Age of Facility (years) | 9.98 | 8.7 | 8.3 | 6.82 | 12.71 | 13.15 | |||
Page 23 - Lincoln Glen Manor for Senior Citizens - Financial Statements 2020 - Title Page
Page 24 - Lincoln Glen Financial Statements, Year ended September 30, 2020 - Document Index Page
(A California Nonprofit, Public Benefit Corporation)
Table of Contents
| Index Page Number | ||
| Independent Auditor's Report | 1 | |
| Financial Statements | ||
| Statement of Financial Position | 2 | |
| Statement of Activity | 3 | |
| Statement of Functional Expenses | 4 | |
| Statement of Cash Flows | 5 | |
| Notes to Financial Statement | 7 |
CPA Letterhead:
C. Rendell Bayless CPA
51 E Campbell Ave Ste 500E
Campbell, CA 95008
(408) 378-4150
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Lincoln Glen Manor for Senior Citizens
San Jose, California
I have audited the accompanying financial statements of Lincoln Glen Manor
for Senior Citizens, a
California nonprofit, public benefit corporation which comprise the statement of
financial position
as of September 30, 2020, and the related statements of activity and cash flows
for the year then
ended, and the related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these
financial statements
in accordance with accounting principles generally accepted in the United States
of America; this
includes the design, implementation and maintenance of internal control relevant
to the preparation
and fair presentation of financial statements that are free from material
misstatement, whether due
to fraud or error.
Auditor's Responsibility
My responsibility is to express an opinion on these financial statements based
on my audit, I
conducted my audit in accordance with auditing standards generally accepted in
the United States
of America. Those standards require that I plan and perform the audit to obtain
reasonable
assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the
amounts and
disclosures in the financial statements. The procedures selected depend on the
auditor's judgment,
including the assessment of the risks of material misstatement of the financial
statements, whether
due to fraud or error. In making those risk assessments, the auditor considers
Internal control
relevant to the entity's preparation and fair presentation of the financial
statements 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 entity's internal control.
Accordingly. I express
no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used
and the reasonableness of significant accounting estimates made by management,
as well as
evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained Is sufficient and
appropriate to provide a basis for
my audit opinion.
Opinion
In my opinion, the financial statements referred to above present fairly. In
ail material respects. the
financial position of Lincoln Glen Manor for Senior Citizens as of September 30,
2020 and
statements of activity and cash flows for the year then ended in accordance with
accounting
principles generally accepted in the United States of America.
Campbell, California
March 18, 2021
Signature: C. Rendell Bayless
| Assets | |||
|---|---|---|---|
| Current Assets | |||
| Cash and cash equivalents | $2,799,942 | ||
| Accounts receivable | 1,506,847 | ||
| Investments (Note 3) | 1,322,200 | ||
| Prepaid Expense | 104,362 | ||
| Current portion of prepaid mortgage insurance | 64,860 | ||
| Inventory | 4,623 | ||
| Current portion of assets limited as to use | 895,810 | ||
| Total Current Assets | 6,698,944 | ||
| Assets Limited as to Use | |||
| Under Indenture agreement, held for construction and debt service | $3,692,908 | ||
| Less: current portion shown above | (895,810) | ||
| Assets limited as to Use, (Net of Current Portion) | 2,797,008 | ||
| Property and equipment, net (Note 6) | $15,065,047 | ||
| Other Assets | |||
| Investments in captive Insurance companies (Note 4) | $329,797 | ||
| Prepaid mortgage insurance, net of current portion | 1,025,250 | ||
| Total Other Assets | 1,355,047 | ||
| Total Assets | $25,918,757 | ||
| Liabilities and Net Assets | |||
| Current Liabilities | |||
| Accounts payable | $251,598 | ||
| Accrued Liabilities | |||
| Interest | $360,810 | ||
| Wages and Payroll taxes | 1,113,466 | ||
| Other accrued expense | 45,361 | ||
| Deferred income (Note 8) | 397,527 | ||
| Current portion of long-term debt | 535,000 | ||
| Total Current Liabilities | $2,703,762 | ||
| Other liabilities | |||
| Application and other deposits payable | $29.225 | ||
| Total Other Liabilities | 29,225 | ||
| Long-Term Debt (Note 7) | |||
| Bonds payable | $15,662,761 | ||
| Less: deferred financing costs | (1,397,012) | ||
| Less: current maturities of long-term debt | (535,000) | ||
| Total Long-Term Debt | $16,730,749 | ||
| Total Liabilities | $19,463,736 | ||
| Net Assets - Without Donor Restrictions | 6,453,021 | ||
| Total Liabilities and Net Assets | $25,916,757 | ||
Lincoln Glen Statement of activity
| Without Donor Restrictions |
With Donor Restrictions |
Total | |||
|---|---|---|---|---|---|
| Revenue | |||||
| Residential Services | |||||
| Independent Living | $2,373,247 | - | $2,373,247 | ||
| Nursing | 8,060,950 | - | 8,060,950 | ||
| Assisted Living/Memory Care | 4,442,887 | - | 4,442,887 | ||
| Other income | 97,282 | - | 97,282 | ||
| Total Revenue | 14,974,366 | - | 14,974,366 | ||
| Operating Expenses | |||||
| Program Services | |||||
| Independent Living | $2,396,407 | - | $2,396,407 | ||
| Nursing | 7,109,219 | - | 7,106,219 | ||
| Assisted Living/Memory Care | 3,278,720 | - | 3,278,720 | ||
| Total Program Services | 12,781,346 | - | 12,781,346 | ||
| Management and General | 1,445,932 | - | 1,445,932 | ||
| Total Operating Expenses | 14,227,278 | - | 14,227,278 | ||
| Change in Net Assets from Operations | 747,088 | - | 747,088 | ||
| Other Income | |||||
| Investment Income | 323,065 | - | 323,065 | ||
| Contributions | 6,334 | - | 6,334 | ||
| Total Other Income | 329,399 | - | 329,399 | ||
| Change in Net Assets | 1,076,487 | - | 1,076,487 | ||
| Net Assets, Beginning of Year | 5,376,534 | - | 5,376,534 | ||
| Net Assets, End of Year | 6,453,021 | - | 6,453,021 | ||
Page 28 - Statement of Functional Expense - September 30, 2020 (Index - page 4)
| Program Service Expenses and Total | Program + Management Total | ||||||
|---|---|---|---|---|---|---|---|
| Item | Independent Living | Nursing | Assisted Living & Memory Care | Program Services Total | Manage-ment & General | Fund-raising | Total |
| Salaries & Wages | $753,441 | $4,157,986 | $1,654,649 | $6,566,076 | $726,497 | - | $7,264,97 |
| Payroll Taxes | 52,496 | 299,611 | 100,871 | 452,978 | 115,981 | - | 568,959 |
| Workers Compensation | 27,055 | 150,936 | 75,856 | 253,847 | 18,530 | - | 277,377 |
| Retirement Benefits | 23,001 | 31,647 | 6,626 | 61,274 | 6,780 | - | 68,054 |
| Group health insurance | 132,968 | 512,331 | 130,143 | 775,462 | 85800 | - | 861,262 |
| Consultants | - | 74,733 | 9,733 | 84,466 | - | 84,466 | |
| accounting | - | - | - | - | 28,754 | - | 28,754 |
| advertising & Marketing | 45,643 | 58,629 | 47514 | 151,786 | - | - | 151,786 |
| Computer support and consulting | 35,921 | 42,601 | 14,052 | 92,574 | 39,871 | - | 132,445 |
| Dues & Subscriptions | 10,671 | 14,786 | 8,653 | 34,110 | 3,632 | - | 37,742 |
| General and Administrative Expense | - | - | - | - | 112,740 | - | 112,740 |
| Education, training and seminars | - | 1,776 | 1,776 | 13,601 | - | 15,377 | |
| Legal | - | - | - | - | 26,582 | - | 26,582 |
| :Licenses and taxes | 41,033 | 48,854 | 13,658 | 103,545 | - | - | 103,545 |
| Professional Services | 6,820 | 29,709 | 25,775 | 62,304 | 32,722 | - | 95,026 |
| Supplies | 6,450 | 227,109 | 55,754 | 289,313 | 78,841 | - | 365,154 |
| Telephone | 8,151 | 25,459 | 11,894 | 45,504 | 5,035 | - | 50,539 |
| Travel | - | 832 | - | 3,669 | - | 4,501 | |
| Housekeeping | - | 16,042 | 5,487 | 21,529 | - | - | 21,529 |
| Activities and Social Services | 279 | 15,751 | 8,013 | 24,043 | - | - | 24,043 |
| Food and Dietary Expenses | 276,072 | 258,504 | 126,765 | 661,341 | - | - | 661,341 |
| Grounds, vehicles and maintenance | 108,982 | 71,345 | 42,108 | 222,435 | - | - | 222,435 |
| Insurance | 48,674 | 64,975 | 70,061 | 183,710 | 9,669 | - | 193,379 |
| Utilities | 209,238 | 137,597 | 144,736 | 419,571 | 25,872 | - | 517,443 |
| Interest & Financial | 152,158 | 242,230 | 331,425 | 725,813 | 38,201 | - | 764,014 |
| Bad Debts | 96 | 308,786 | 782 | 309,664 | - | 309,664 | |
| Depreciation | 457,238 | (11,405) | 381,272 | 827,105 | 58,905 | - | 886,010 |
| Nursing Expense | - | 284,685 | - | 284,685 | - | - | 284,685 |
| Laundry & Linens | 34,946 | 436 | 35,382 | - | - | 35,382 | |
| Barber & Beauty Shop | - | 5,764 | 12,457 | 18,221 | - | - | 18,221 |
| Bank charges | - | - | - | - | 14,250 | - | 14,250 |
| Total Expenses | $2,396,407 | $7,106,219 | $3,278,720 | $12,781,346 | $1,442,932 | $- | $14,227,278 |
| Activities | Net Cash Provided | Amount | |
|---|---|---|---|
| Cash flows from operating activities | |||
| 1. | Cash received from residents | $14,864,144 | |
| 2. | Cash paid to suppliers and employees | (11,968,550) | |
| 3. | Investment Income | 54,753 | |
| 4. | Contributions and grants received | 6,334 | |
| 5. | Interest paid | (744,331) | |
| Sub-total | Net cash provided by operating activities | 2,212,350 | |
| Cash flows from investing activities: | |||
| 1. | Acquisition of property and equipment | (1,003,316) | |
| 2. | Increase in investments | (19,538) | |
| 3. | Net (increase) decrease in investments in Captive Insurance Companies | ||
| 4. | Net (increase) decrease in trustee assets whose use is limited to debt services and project costs | 580,231 | |
| Sub-total | Net cash used in investing activities | (442,623) | |
| Cash flows from financing activities | |||
| 1. | Principal payments on 2011 bond series financing | (415,000) | |
| 2. | Principal payments on 2015 bond series financing | (100,000) | |
| Sub-total | Net cash provided (used) in financing activities | (515,000) | |
| Total | INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,254,727 | |
| Cash and cash equivalents at beginning of year | 1,545,215 | ||
| Cash and cash equivalents at end of year | 2,799,942 | ||
| Reconciliation of Changes in Net Assets to Net Cash Provided by Operating Activities | ||||
|---|---|---|---|---|
| Change in Net assets | $1,076,487 | |||
| Adjustments to reconcile change in net assets to net cash provided by operating activities: | ||||
| Depreciation | 886,010 | |||
| Amortization of debt issuance costs including underwriter's discount | 85,730 | |||
| Amortization of bond issue discount and premium | (119,551) | |||
| Amortization of prepaid mortgage insurance | 64,860 | |||
| Realized and unrealized (gains) losses on investments | (268,312) | |||
| Change in operating asset and liability accounts: | ||||
| Accounts receivable | (178,915) | |||
| Prepaid expense | 38,514 | |||
| Inventory | (686) | |||
| Accounts payable | 107,207 | |||
| Accrued interest payable | (11,356) | |||
| Accrued wages and payroll taxes | 140,939 | |||
| Changes In applications and other deposits payable | 2,101 | |||
| Other accrued expense | (8,205) | |||
| Deferred Income | 397,527 | |||
| Total adjustments | 1,135,863 | |||
| Net cash provided by operating activities | $2,212,350 | |||
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30,
Lincoln Glen Manor for Senior Citizens was incorporated October 1, 1965 under the laws of California as a non-profit corporation for the specific purposes of providing housing for the aged. Subsequently, a new division was formed that currently provides skilled nursing services. In October 2001, a 31 unit Assisted Living Center was placed into service. A completely remodeled Central Manor with a new kitchen, dining area, chapel, offices and activity rooms were placed into service in late 2012 and a new Memory Care Center with 11 units was placed into service in Decemberof2012.
In 2015, the organization received approval to change their designation from the status of a Multiple Level Retirement Community (MLRC) to a Continuing Care Retirement Community (CCRC). In order to facilitate this change, a new entity was formed - Lincoln Glen Manor, LLC (a California nonprofit limited liability company). Lincoln Glen Manor LLC leases the Independent, unlicensed residential living apartments and cottages from Lincoln Glen Manor for Senior Citizens, Inc. These financial statements include and consolidate all of the activity of Lincoln Glen Manor, LLC together with Lincoln Glen Manor for Senior Citizens.
Lifetime memberships in the corporation are offered at $500 per individual. Members are entitled to priority admittance to the organization's facilities and have certain other rights including electing the Board of Directors. The benefits and rights represented by the membership terminate at the death of the member.
The facilities account for all transactions using the accrual method of accounting, whereby income is recorded when earned and expenses are recorded when incurred.
The Organization as adopted Financial Accounting Standards Board (FASB) ASC 958, "Financial Statements of Not-far-Profit Entities." Under ASC 958, the Organization is required to report information regarding its financial and activities according to two classes of net assets: net assets without donor restrictions and net assets with donor restrictions. In addition, the Organization is required to present a consolidated statement of cash flows
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
Net Assets, revenues, gains and losses are classified based on the existence or absence of donor-Imposed restrictions. Net assets, without donor restrictions are available for use in general operations and are not subject to donor restrictions. Net assets with donor restrictions are subject to donor-imposed restrictions.
Property and equipment are stated at cost and are being amortized or depreciated over their estimated useful lives ranging from 3 to 40 years by use of the straight-line method.
Interest costs relating to construction in progress are capitalized. Capitalization of interest costs will cease when the construction is completed and the property is placed into service. There was no interest capitalized during the current fiscal year.
There is no provision for income taxes, since the corporation is exempt under provisions of I.R.C. Section 501 C (3). The Organization applied the income tax standard for uncertain tax positions. This standard clarifies the accounting for uncertainty in income taxes recognized in an organization's financial statements in accordance with the income tax standard. This standard prescribes recognition and measurement of tax positions taken or expected to be taken on a tax return that are not certain to be realized.
For the year ended September 30, 2020, there were no liabilities recorded for unrecognized tax benefits related to tax positions taken in the current year or past years and no accruals for interest and penalties related to uncertain tax positions.
The Organization files a United States federal tax return and a California state return. The tax years 2016 through 2019 remain open and subject to examination by the appropriate governmental agencies in the United States and California.
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Actual results could
differ
from those estimates.
For the statement of cash flows, all unrestricted investment instruments with original maturities of three months or less are cash equivalents. The organization maintains its cash balances in financial institutions, which at times may exceed federally insured limits. The organization has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.
The organization invests in exchange traded funds (ETFs) whose net asset value is determined daily and is the basis for current transactions. These ETFs are equity securities having a readily determinable fair value and are reported at fair value in the statement of financial position.
Investment return includes interest, dividends and other investment income; realized and unrealized gains and losses carried at fair value; less external and direct internal investment expenses.
Contributions are recognized as revenue in the period received. Contributions are considered to be available for unrestricted use unless specifically restricted by the donor. Contributions of assets other than cash are recorded at their estimated fair value at date of donation. Amounts received that are designated for future periods or restricted by the donor for specific purposes are reported as temporarily restricted support.
The Organization's policy is to report donor-imposed restricted contributions
whose restrictions are met in the same period as received as unrestricted
support.
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
Contributions of services are recognized when received if the services (a) create or enhance nonfinancial assets or (b) require specialized skills, are provided by individuals possessing those skills and would typically need to be purchased if not provided by donation. For the year ended September 30, 2020, there were no contributed services meeting the requirements for recognition in the financial statements.
The carrying amount of cash and cash equivalents, accounts receivable, prepaid expenses and accrued liabilities, none of which are held for trading purposes, approximate the fair value due to the short-term maturities of those instruments. The carrying amount of the note payable and bonds payable approximates the fair value.
Fair value measurement applied to reported balances that are required or permitted to be measured at fair value under an existing accounting standard. The Organization emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability and establishes a fair value hierarchy. The fair value hierarchy consists of three levels of inputs that may be used to measure fair value as follows:
Level 1 - Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Organization has the ability to access.
Level 2 - Inputs that include quoted prices for similar assets and liabilities in active markets and Inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows.
Level 3 - Inputs that are unobservable Inputs for the asset or liability, which are typically based on an entity's own assumptions, as there Is little, if any, related market activity.
Page 35 - Notes to Financial StatementsLINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
Additionally, from time to time, the Organization may be required to record at fair value other assets on a nonrecurring basis in accordance with generally accepted accounting principles. These adjustments to fair value usually result from the application of the lower-of-cost-or-market accounting or write down of individual assets. Nonfinancial assets measured at fair value on a nonrecurring basis would include nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment test, other real estate owned, and other intangible assets measured at fair value for impairment assessment.
The Organization also adopted the policy of valuing certain financial instruments at fair value. This accounting policy allows entities the irrevocable option to elect fair value for the initial and subsequent measurement for certain financial assets and liabilities on an instrument-by-instrument basis. The Organization has not elected to measure any existing financial instruments at fair value; however the Organization may elect to measure newly acquired financial instruments at fair value in the future.
Healthcare services revenue includes room charges and ancillary services to residents and is recorded at established billing rates net of contractual adjustments resulting from agreements with third-party payors, if applicable.
Provisions for estimated third-party payors settlements are provided in the period the related services are rendered. Differences between the amounts accrued and the subsequent settlements are recorded in operations in the year of settlement.
Medi-Cal
The Organization participates in the Medi-Cal program that is administered
by the California Department of Health and Human Services Agency,
Department of Health Services. The Department determines Medi-Cal rates for the
facility every August 1. The rates are determined by re-basing
all filed cost reports every three years.
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
The final rates are set from facility cost reports with minimum and maximum reimbursements calculated from peer facilities. Medi-Cal pays a flat daily rate which does not account for the acuity of the resident. The Organization must submit a cost report for each year based on its fiscal year. Rates derived from the above system are subject to retroactive adjustment by field audit.
Medicare
A licensed nursing facility which participates in the Medicare program for the year ended September 30, 2020 was reimbursed based on a Prospective Payment System (PPS). This program is administered by the United States Department of Health and Human Services. The PPS is a per diem price based system. Annual cost reports are submitted to the designated intermediary; however, they will not contain a cost settlement.
Change for New Pronouncement
In 2017, the organization adopted the requirements in ASU 2015-03 for FASS ASC 835-30 to present debt issuance costs as a reduction in the carrying amount of the debt rather than as an asset. Amortization of the debt issuance costs is included as financial expense in the statement of activity.
On August 18, 2016, FASB issued Accounting Standards Update (ASU) 2016- 14, Not-for-Profit Entities (Topic 958) - Presentation of Financial Statements of Non-for-Profit Entities. The update addresses the complexity and understandability of net asset classification, deficiencies in information about liquidity and availability of resources, and the lack of consistency in the type of information provided about expenses and investment return. The Organization has implemented ASU 2016-14 and has adjusted the presentation in these consolidated financial statements accordingly.
Assets whose use is limited includes assets restricted by bond indentures for construction and debt service. Assets are held by fiscal agents to be used only for specific bond projects, payments of long-term debt and maintaining required reserves.
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
| Change in Net Assets, per Statement of Activities | $1,076,487 | |
|---|---|---|
| Plus: | Interest Including amortization of OID and loan costs | 764,014 |
| Depreciation | 886,010 | |
| Exclusions: | Profits or losses on the sale or other disposition, not in the ordinary course of business, of fixed or capital assets or resulting from the early extinguishment of debt. | |
| Gifts, grants, bequests, donations and contributions, to the extent specifically restricted by the donor to a particular purpose inconsistent with their use for the payment of Debt Service or operating expense. | ||
| Net proceeds of insurance (other than business Interruption insurance) and condemnation awards. |
||
| Change in net realized and unrealized Investment (gains) losses | (268,312) | |
| Net Income Available for Debt Service | $2,458,199.00 | |
| Annual Debt Service for FYE 9/30/20 | 1,007,907.54 | |
| Ratio of Net Income Available for Debt Service to Aggregate Annual Debt Service | 2.44 | |
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
NOTES TO FINANCIAL STATEMENTS
For the Year Ended September 30, 2020
| Current Assets | |||
|---|---|---|---|
| Cash and cash equivalents | $2,799,942 | ||
| Marketable securities | 1,322,200 | ||
| Current portion of assets whose use is limited | 895,810 | ||
| Receivables | 1,506,847 | ||
| Prepaid expense - exclusive of prepaid mortgage insurance | 104,362 | ||
| Current portion of prepaid mortgage insurance | 64,860 | ||
| Inventory | 4,623 | ||
| Total Current Assets | 6,698,644 | ||
| Current Liabilities | |||
| Accounts payable | 251,598 | ||
| Accrued liabilities | 1,519,637 | ||
| Deferred income | 397,527 | ||
| Current portion of long-term debt | 535,000 | ||
| Total current Liabilities | 2,703,762 | ||
| Current ratio | 2.48 |
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
SCHEDULE OF FUND BALANCES FOR ALL TRUSTEE-HELD FUNDS
For the Year Ended September 30, 2020
| Estimated Fair Value | |||||
|---|---|---|---|---|---|
| U.S. Bank Money Market |
First American Treas Oblig Fd Ci D |
Corporate CD's |
Total | Cost | |
| 2011 Series Bonds: | |||||
| Revenue Fund | $5,051 | 5051 | 5,051 | ||
| Interest Fund | 10,482 | 10,482 | 10,482 | ||
| Principal Fund | 215,020 | 215,020 | 215,050 | ||
| Bond Reserve Fund | 2,726 | 470,407 | 473,133 | 462,343 | |
| 2015 Series Bonds: | |||||
| Revenue Fund | 3 | 3 | 3 | ||
| Interest Account | 234,326 | 234,326 | 234,326 | ||
| Principal Account | 52,505 | 52,505 | 52,505 | ||
| Debt Service Reserve Account | 7,565 | 554,934 | 562,499 | 562,318 | |
| 2018 Series Bonds: | |||||
| Interest Account | 136,931 | 136,931 | 136,931 | ||
| Project Fund | 1,791,273 | 1,791,273 | 1,791,273 | ||
| Debt Service Reserve Account | 211,685 | 211,685 | 211,685 | ||
| Total | 527,678 | 2,139,889 | 1,025,341 | 3,692,908 | 3,681,937 |
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
SCHEDULE OF DAYS CASH ON HAND
For the Year Ended September 30, 2020
| Schedule of Days Cash on Hand | ||
|---|---|---|
| Cash and marketable securities | $4,306,789 | |
| Less: | Donor restricted cash and marketable securities | - |
| Cash and marketable securities not available per discretion of board of directors | (61,734) | |
| Net cash and marketable securities, after exclusions | $4,245,055 | |
| Operating Expenses | $14,227,278 | |
| Less: | Depreciation | (886,010) |
| Amortization | (31,039 | |
| Bad Debt Provisions | (309,664) | |
| Net operating expenses, net of adjustments | $13,000,565 | |
| Number of days in fiscal year | 365 | |
| Costs per day | $35,618 | |
| Days cash on hand | 119 | |
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
SCHEDULE OF DAYS CASH ON HAND
For the Year Ended September 30, 2020
| Schedule of Outstanding Indebtedness | ||
|---|---|---|
| California Municipal Finance Authority Insured Revenue Bonds, Series 2011 | $430,000 | |
| Less unamortized OID | (958) | |
| California Health Facilities Financing Authority, Series 2015 | 11,675,000 | |
| Plus net unamortized premium | 340,555 | |
| California Municipal Finance Authority Insured Revenue Bonds, Series 2018 | 6,105,000 | |
| Plus net unamortized premium | 113,164 | |
| Total Outstanding indebtedness | $18,662,761 | |
Page 42 - Analysis of Capital Replacement Expenditures
LINCOLN GLEN MANOR FOR SENIOR CITIZENS
(A CALIFORNIA NONPROFIT, PUBLIC BENEFIT CORPORATION)
ANALYSIS OF CAPITAL REPLACEMENT EXPENDITURES
For the Year Ended September 30, 2020
| Analysis of Capital Replacement Expenditures | ||
|---|---|---|
| Capital Expenditures Placed Into Service: | ||
| Land and site improvements | $198,340 | |
| Computers | 20,255 | |
| Equipment | 9,528 | |
| Maintenance equipment | - | |
| Dietary equipment | 4,317 | |
| Furniture | 9,857 | |
| Furnishments and furnishings | 246,317 | |
| Chapel Furnishings | - | |
| Building equipment - fixed | 3,400 | |
| Building equipment - portable | - | |
| Building improvements | 3,825,065 | |
| Total | $4,317,069 | |
| Note A: | Purchased Equipment, Repairs and
Maintenance These expenditures were acquired and placed into service during the fiscal year ended September 30, 2020 and are depreciable in accordance with generally accepted accounting principles. |
|