2023-11-08T15:45:52-06:00 2022-12-31 390859910 BAKER TILLY US LLP 20 STANWIX STREET PITTSBURGH PA 15222 990 2022-01-01 233014613 DIAKON DIAK 6106821262 1 S HOME AVE TOPTON PA 19562 LISA WEBSTER VICE PRESIDENT OF FINANCE 6106821262 2023-11-07 1 LISA WEBSTER 999009999 0 JEFFREY J PETRELL P00138808 4126976400 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z SCOTT HABECKER 1 S HOME AVE TOPTON PA 19562 8552130 0 9386 X WWW.DIAKON.ORG X 1999 PA THE ORGANIZATION IS THE SOLE MEMBER OF VARIOUS SUBSIDIARY ORGANIZATIONS THROUGH WHICH IT PROVIDES SENIOR LIVING SERVICES AND OTHER SOCIAL SERVICES IN PENNSYLVANIA AND MARYLAND. X 9 8 0 8 0 0 393531 22986 11967766 -419225 206503 8813442 120359 134927 12688159 8552130 0 0 0 0 0 0 0 0 0 14300756 1397297 14300756 1397297 -1612597 7154833 25282356 1858057 34949266 5234756 -9666910 -3376699 X IN RESPONSE TO GOD'S LOVE IN JESUS CHRIST, DIAKON WILL DEMONSTRATE GOD'S COMMAND TO LOVE THE NEIGHBOR THROUGH ACTS OF SERVICE. 0 1 1261540 -419225 DIAKON SENIOR LIVING - HAGERSTOWN/THE RAVENWOOD & ROBINWOOD CAMPUSES OFFERS A CONTINUUM OF SERVICE FOR OLDER ADULTS INCLUDING RESIDENTIAL ACCOMMODATIONS, ASSISTED LIVING SERVICES, AND SKILLED NURSING AND REHABILITATIVE CARE.DURING 2022, THE CONTINUING CARE RETIREMENT COMMUNITY KNOWN AS DIAKON LUTHERAN SENIOR LIVING - HAEGERSTOWN WAS SOLD. 134927 MANAGEMENT FEES FOR SERVICES PROVIDED TO DIAKON LUTHERAN SOCIAL MINISTRIES. 1261540 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 9 8 0 1 0 0 0 1 0 1 1 0 0 1 1 1 1 1 1 0 0 0 MD X LISA WEBSTER 7177950431 1022 N UNION STREET MIDDLETOWN PA 17057 LARRY DELP CHAIR 1.00 X X 0 0 0 EMRIED D COLE JR ESQ VICE CHAIR 1.00 1.00 X X 0 0 0 REV DR DON MAIN BOARD MEMBER 1.00 1.00 X 0 0 0 SUSAN SCHELLENBERG BOARD MEMBER 1.00 1.00 X 0 0 0 KENNETH G MERTZ II BOARD MEMBER 1.00 1.00 X 0 0 0 MAURICE BOBST BOARD MEMBER 1.00 1.00 X 0 0 0 SCOTT HABECKER CEO/PRESIDENT 5.00 32.50 X X 0 726993 186556 DIANE BATCHIK BOARD MEMBER 1.00 X 0 0 0 JENNIFER SCHLEGEL BOARD MEMBER 1.00 1.00 X 0 0 0 JARROD LEO SENIOR VP/CFO (UNTIL 3/22) 1.00 36.50 X 0 129958 5909 LISA WEBSTER VP/FINANCE 1.00 36.50 X 0 194342 19575 0 1051293 212040 0 0 1 0 0 22986 22986 SENIOR LIVING SERVICES 900099 -419225 -419225 -419225 97453 97453 8715989 0 8715989 8715989 8715989 MANAGEMENT FEE REVENUE 900099 134927 134927 134927 8552130 -284298 0 8813442 134550 134550 2693 1861 832 -29471 -29846 375 542 542 128306 128306 7098 7098 613899 613899 431653 431653 56781 56781 REIMBURSED SALARIES/BEN 26210 26210 25036 25036 1397297 1261540 135757 0 1227335 82904 270438 270438 333212 -677 101495 28390 6028250 1480440 17321626 -3438 25282356 1858057 52151 178226 4891132 30005983 5056530 34949266 5234756 X -9873490 -3523436 206580 146737 -9666910 -3376699 25282356 1858057 X 7154833 -847385 -17237 X X 0 1 X 1 0 X X 2 DIAKON LUTHERAN SOCIAL MINISTRIES 231857015 10 1 0 0 DIAKON CHILD FAMILY & COMMUNITY MINISTRIES 465390969 10 1 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SCHEDULE A, PART IV, SECTION C, QUESTION 1 DIAKON AND ITS SUPPORTED ORGANIZATIONS HAVE THE SAME PRESIDENT/CEO AND VICE PRESIDENT OF FINANCE. 262880 155 -37395 10497 215143 232286 12781 26346 8533 262880 197041 12883 29012 6650 232286 143925 24026 34254 5164 197041 132837 25102 -10240 3774 143925 0.81000 0.19000 0 0 0 SECURITY DEPOSITS 2968 DUE TO AFFILIATES 5051751 OPERATING LEASE LIABILITY 1811 5056530 X PART V, LINE 4: THE PRIMARY USE OF THE ENDOWMENT FUNDS IS TO PROVIDE BENEVOLENT CARE FOR RESIDENTS THAT QUALIFY AT THE HAGERSTOWN SENIOR LIVING CAMPUS. PART X, LINE 2: DIAKON AND ITS CONTROLLED AFFILIATES ARE NOT-FOR-PROFIT CORPORATIONS AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (CODE) AND HAVE BEEN RECOGNIZED AS TAX EXEMPT UNDER 501(A) OF THE CODE. THE CORPORATION USES A THRESHOLD OF MORE LIKELY THAN NOT FOR RECOGNITION AND DERECOGNITION OF THE TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE CORPORATION DOES NOT BELIEVE THAT THERE ARE ANY UNRECOGNIZED TAX BENEFITS OR LIABILITIES THAT SHOULD BE RECORDED. 0 1 0 0 0 0 0 0 0 SCOTT HABECKER CEO/PRESIDENT 0 515423 0 211570 0 0 0 157714 0 28842 0 913549 0 0 LISA WEBSTER VP/FINANCE 0 165152 0 29190 0 0 0 2413 0 17162 0 213917 0 0 PART I, LINE 3 ALL EMPLOYEES ARE COMPENSATED BY DIAKON LUTHERAN SOCIAL MINISTRIES (DLSM). SEE SCHEDULE O IN REFERENCE TO PART VI, SECTION B, LINE 15 FOR A DETAILED DESCRIPTION OF DLSM'S EXECUTIVE COMPENSATION PROGRAM. THE CEO'S COMPENSATION IS PAID BY DIAKON LUTHERAN SOCIAL MINISTRIES (DLSM). DLSM USES THE FOLLOWING METHODS TO ESTABLISH THE COMPENSATION OF THE CEO: -COMPENSATION COMMITTEE -INDEPENDENT COMPENSATION CONSULTANT -FORM 990 OF OTHER ORGANIZATIONS -COMPENSATION SURVEY OR STUDY -APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 4B DLSM HAS A 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT PLAN TO RECOGNIZE CERTAIN EMPLOYEES FOR THEIR SIGNIFICANT CONTRIBUTIONS AND IN CONSIDERATION OF EXPECTED CONTRIBUTION TO THE GROWTH OF DLSM, ITS AFFILIATES AND SUBSIDIARIES IN THE FUTURE. THE ANNUAL ACCRUALS AND INTEREST EARNINGS FOR THE 457(F) SUPPLEMENTAL NONQUALIFIED BENEFIT PLAN IS REPORTED IN PART VII, SECTION A, COLUMN F AND SCHEDULE J, PART II, COLUMN C AND IS LISTED BELOW: SCOTT D. HABECKER $154,600 AS A CONDITION FOR PARTICIPATING IN THE 457(F) SUPPLEMENTAL NON QUALIFIED BENEFIT PLAN, THE INDIVIDUAL MUST BE EMPLOYED AT THE VESTING DATE AND HAVE AGREED TO CERTAIN RESTRICTIVE COVENANTS. INVENTORY 2022-06-30 11038 BOOK VALUE 19800 TRANQUILITY CIRCLE LLC 50 CHESTNUT RIDGE RD STE 107 MONTVALE NJ 07645 FINANCING LEASES 2022-06-30 16834388 BOOK VALUE 19800 TRANQUILITY CIRCLE LLC 50 CHESTNUT RIDGE RD STE 107 MONTVALE NJ 07645 LEASE OBLIGATION 2022-06-30 -20541631 BOOK VALUE 19800 TRANQUILITY CIRCLE LLC 50 CHESTNUT RIDGE RD STE 107 MONTVALE NJ 07645 DEFERRED REVENUE & OTHER LIABILITIES 2022-06-30 -7235584 BOOK VALUE 19800 TRANQUILITY CIRCLE LLC 50 CHESTNUT RIDGE RD STE 107 MONTVALE NJ 07645 0 0 0 0 FORM 990, PART III, LINE 3 DURING 2022, THE CONTINUING CARE RETIREMENT COMMUNITY KNOWN AS DIAKON LUTHERAN SENIOR LIVING - HAEGERSTOWN WAS SOLD. FORM 990, PART VI, SECTION A, LINE 3 ON DECEMBER 1, 2021, THE DIAKON LUTHERAN SENIOR LIVING MARYLAND, LLC (DIAKON - MD) ENTERED A MANAGEMENT AGREEMENT WITH LION HEALTHCARE MANAGEMENT, LLC ("LHM") WHEREBY LHM WOULD TAKE MANAGEMENT RESPONSIBILITY OF THE CONTINUING CARE RETIREMENT COMMUNITY KNOWN AS DIAKON LUTHERAN SENIOR LIVING - HAGERSTOWN, THE RAVENWOOD AND ROBINWOOD CAMPUSES ("THE COMMUNITY"). THE COMMUNITY WAS PREVIOUSLY MANAGED BY DIAKON LUTHERAN SOCIAL MINISTRIES, AN AFFILIATE OF DIAKON - MD. LHM MANAGED THE COMMUNITY UNDER AN AT-RISK ARRANGEMENT WHEREBY LHM BENEFITED FROM ANY OPERATING INCOME FROM THE COMMUNITY AND WAS RESPONSIBLE FOR ANY OPERATING LOSSES OF THE COMMUNITY DURING THE MANAGEMENT PERIOD. THE MANAGEMENT AGREEMENT BETWEEN DIAKON - MARYLAND AND LHM WAS TERMINATED UPON THE SALE OF THE COMMUNITY ON JUNE 30, 2022. FORM 990, PART VI, SECTION A, LINE 7A A MAJORITY OF THE MEMBERS OF THE GOVERNING BODY (THE DIAKON BOARD OF DIRECTORS) ARE ELECTED BY A MAJORITY VOTE OF THE BISHOPS OF THE FOLLOWING SYNODS OF THE EVANGELICAL LUTHERAN CHURCH OF AMERICA: NORTHEASTERN PENNSYLVANIA SYNOD, SOUTHEASTERN PENNSYLVANIA SYNOD, DELAWARE-MARYLAND SYNOD, UPPER SUSQUEHANNA SYNOD, AND LOWER SUSQUEHANNA SYNOD. THE REMAINING MEMBERS OF THE BOARD ARE ELECTED BY THE BOARD FROM A SLATE OF CANDIDATES PRESENTED BY THE BOARD DEVELOPMENT COMMITTEE. FORM 990, PART VI, SECTION B, LINE 11B DIAKON HAS A CPA FIRM PREPARE ITS FORM 990. THE RETURN IS COMPLETED IN DRAFT FORM AND REVIEWED BY MANAGEMENT OF THE ORGANIZATION. THE RETURN IS THEN FINALIZED AND THE BOARD IS PROVIDED A COPY OF THE FORM 990 BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE COMPLIANCE OFFICER OF THE ORGANIZATION REVIEWS DIAKON'S CONFLICT OF INTEREST STATEMENT AND CERTIFICATION FORMS WITH THE BOARD ON A REGULAR BASIS. ALL BOARD MEMBERS AND ALL OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE A CERTIFICATION FORM AND DISCLOSE POSSIBLE OR ACTUAL CONFLICTS OF INTEREST. THE COMPLETED FORMS ARE REVIEWED BY THE COMPLIANCE OFFICER AND BY THE ORGANIZATION'S OUTSIDE AUDITOR ON A REGULAR BASIS. FORM 990, PART VI, SECTION B, LINE 15 DIAKON'S CEO IS PAID BY DIAKON LUTHERAN SOCIAL MINISTRIES (DLSM). EXECUTIVE COMPENSATION PHILOSOPHY A COMPENSATION COMMITTEE OF INDEPENDENT DIRECTORS OF DLSM'S SOLE MEMBER, WHICH INCLUDES DIRECTORS FROM DLSM (COMPENSATION COMMITTEE), UTILIZES EXTERNAL CONSULTANTS TO ASSIST WITH THE DEVELOPMENT, ADMINISTRATION, AND DETERMINATION OF COMPENSATION, WELFARE, BENEFIT, PENSION AND OTHER PLANS, WHICH TAKE INTO ACCOUNT APPROPRIATE INDUSTRY BENCHMARKS AND THE COMPENSATION POLICIES FOLLOWED BY ORGANIZATIONS SIMILARLY SITUATED TO DLSM. THE COMPENSATION COMMITTEE HAS ADOPTED A WRITTEN "CHARTER," WHICH SETS FORTH THE PURPOSE, MEMBERSHIP AND RESPONSIBILITIES OF THE COMMITTEE. IN ADDITION, IT CONDUCTS ITS ACTIVITIES IN COMPLIANCE WITH DLSM'S "EXCESS BENEFITS TRANSACTIONS" POLICY, WHICH REQUIRES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. DLSM'S EXECUTIVE COMPENSATION PROGRAM CONSISTS OF A BASE SALARY REFLECTING THE VALUE OF AN EXECUTIVE'S CAPABILITIES, EXPERIENCE, AND SUCCESS IN MEETING MISSION, FINANCIAL, OPERATIONAL AND QUALITY OBJECTIVES. INFORMATION ABOUT EXECUTIVE COMPENSATION ISSUES AND DECISIONS IS REPORTED TO THE FULL BOARD OF DIRECTORS AT REGULAR MEETINGS. EMPLOYEE BENEFITS DLSM PROVIDES ALL EMPLOYEES, INCLUDING EXECUTIVES, WITH A COMPREHENSIVE BENEFIT PLAN THAT INCLUDES HEALTH INSURANCE, DENTAL INSURANCE, LIFE AND DISABILITY INSURANCE AND A DEFINED CONTRIBUTION RETIREMENT PLAN. THE DLSM DEFINED BENEFIT RETIREMENT PLAN ACCRUALS WERE FROZEN AS OF 12/31/11. FORM 990, PART VI, SECTION C, LINE 19 DIAKON MAKES ITS GOVERNING DOCUMENTS (ARTICLES OF INCORPORATION AND BYLAWS) AND CONFLICT OF INTEREST POLICY AVAILABLE UPON REQUEST. A STATEMENT OF FINANCIAL POSITION IS PUBLISHED IN THE ORGANIZATION'S ANNUAL REPORT. THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND ANNUAL REPORT ARE AVAILABLE ON THE DIAKON WEBSITE AT DIAKON.ORG AS WELL AS AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: WITH DONOR RESTRICTIONS NET ASSETS RELEASED WITH DONOR RESTRICTIONS - OPERATIONS -22,986. INVESTMENT INCOME, NET OF EXPENSES 5,593. CONTRIBUTIONS AND BEQUESTS 156. FORM 990, PART XII, LINE 2C: DIAKON HAS AN ANNUAL AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR DIAKON AND CONTROLLED AFFILIATES PERFORMED BY AN INDEPENDENT ACCOUNTING FIRM. THE AUDIT COMMITTEE OF THE DIAKON BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT AND SELECTION OF THE INDEPENDENT ACCOUNTING FIRM. FORM 990, PART XII, LINE 3B: DIAKON ALSO HAS AN ANNUAL AUDIT UNDER THE SINGLE AUDIT ACT AND OMB CIRCULAR A-133 PERFORMED BY AN INDEPENDENT ACCOUNTING FIRM FOR THE CONSOLIDATED GROUP. DIAKON LUTHERAN SNR LIVING-MARYLAND LLC 1 S HOME AVE TOPTON PA 19562 272352873 SENIOR HOUSING MD 6523558 351056 DIAKON DIAKON HOME CARE SERVICES LLC 1 S HOME AVE TOPTON PA 19562 454004627 HOSPICE/HOMECARE PA 0 0 DIAKON DIAKON MEDICAL GROUP 1 S HOME AVE TOPTON PA 19562 814497693 MEDICAL SERVICES PA -10162 61677 DIAKON DIAKON LUTHERAN SOCIAL MINISTRIES 1 S HOME AVE TOPTON PA 19562 231857015 PRGM OPERATIONS PA 501(C)(3) LINE 10 DIAKON 1 DIAKON LUTHERAN FUND 1 S HOME AVE TOPTON PA 19562 231365978 FUND PROGRAMS PA 501(C)(3) LINE 12B, II DIAKON 1 DLSH AT LUTHER MEADOWS 1 S HOME AVE TOPTON PA 19562 232837747 HUD HOUSING PA 501(C)(3) LINE 10 DLSM 0 DLSH AT HEILMAN HOUSE 1 S HOME AVE TOPTON PA 19562 232463233 HUD HOUSING PA 501(C)(3) LINE 10 DLSM 0 DIAKON CHILD FAMILY & COMMUNITY MINISTRIES 1 S HOME AVE TOPTON PA 19562 465390969 SOCIAL SVCS PA 501(C)(3) LINE 10 DIAKON 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 DIAKON LUTHERAN SOCIAL MINISTRIES K 894476 BOOK VALUE DIAKON LUTHERAN SOCIAL MINISTRIES P 137620 BOOK VALUE DIAKON LUTHERAN SOCIAL MINISTRIES Q 134927 BOOK VALUE DIAKON LUTHERAN SOCIAL MINISTRIES O 26210 BOOK VALUE