FORM 990 - ORGANIZATION'S MISSION |
THE HOMEWOOD GROUP OF COMPANIES PRIMARILY PROVIDES A CONTINUUM OF CARE FOR ELDERLY PERSONS IN BEAUTIFUL RETIREMENT COMMUNITIES AND NURSING HOMES IN FIVE LOCATIONS: FREDERICK, MARYLAND; WILLIAMSPORT, MARYLAND; HANOVER, PENNSYLVANIA; MARTINSBURG, PENNSYLVANIA; AND EVERETT, PENNSYLVANIA. THESE FACILITIES CONTAIN A TOTAL OF 1,149 INDEPENDENT LIVING COTTAGES AND APARTMENTS, 288 ASSISTED LIVING UNITS, AND 451 NURSING HOME BEDS. THE NURSING HOME BEDS ARE PROVIDED FOR SKILLED AND SPECIAL MEMORY CARE. |
FORM 990 |
STATEMENT REGARDING CORPORATE STRUCTURE: AS OF DECEMBER 31, 2020 THE HOMEWOOD GROUP OF COMPANIES CONSISTS OF A PARENT CORPORATION, SIX SUBSIDIARY OPERATING COMPANIES, AND A SUBSIDIARY FOUNDATION. THIS CORPORATION STRUCTURE RESULTS FROM THE RESTRUCTURING OF A FORMER SINGLE CORPORATION EFFECTIVE JANUARY 1, 1996. THE COMPANIES CONSTITUTING THE HOMEWOOD GROUP ARE AS FOLLOWS: PARENT: HOMEWOOD RETIREMENT CENTERS, INC. 52-1892688 SUBSIDIARIES: HOMEWOOD AT WILLIAMSPORT MD, INC. 52-0619001 (FORMER SINGLE CORPORATION BEFORE RESTRUCTURING) HOMEWOOD AT HANOVER PA, INC. 52-1931788 HOMEWOOD AT MARTINSBURG PA, INC. 52-1931790 HOMEWOOD AT FREDERICK MD, INC. 52-1931794 HOMEWOOD FOUNDATION, INC. 52-1892689 HOMEWOOD AT SPRING HOUSE ESTATES, INC. 20-5189952 (BECAME PART OF THE GROUP IN 2007.) HOMEWOOD AT SHENANDOAH VALLEY, INC. 26-2624652 (BECAME PART OF THE GROUP IN 2008.) AS REQUIRED BY THE INTERNAL REVENUE SERVICE, EACH COMPANY IN THE HOMEWOOD GROUP FILES A SEPARATE FORM 990. HOMEWOOD RETIREMENT CENTERS, INC., THE PARENT COMPANY, SERVES EACH OF THE SUBSIDIARY COMPANIES WITH ADMINISTRATIVE SUPPORT, CENTRALIZED ACCOUNTING INCLUDING BILLING AND COLLECTION, COMPUTER AND TECHNICAL SUPPORT, HUMAN RESOURCES, PURCHASING, AND FUNDRAISING THROUGH THE HOMEWOOD FOUNDATION. ACCORDINGLY, APPROXIMATELY 95% OF ITS FUNCTIONAL EXPENSES ARE REPORTED AS "MANAGEMENT AND GENERAL" ON ITS FORM 990. THE REMAINING 5% IS ALLOCATED TO "PROGRAM SERVICES" WITH LESS THAN 1 % ALLOCATED TO FUNDRAISING RELATED ACTIVITIES. THE SUBSIDIARY OPERATING COMPANIES HAVE THE SOLE PURPOSE OF PROVIDING SERVICES TO CLIENTS. ACCORDINGLY, APPROXIMATELY 90% OF THEIR FUNCTIONAL EXPENSES ARE REPORTED AS "PROGRAM SERVICES" ON THEIR RESPECTIVE FORM 990. THE REMAINING 10% IS ALLOCATED TO "MANAGEMENT AND GENERAL" WITH LESS THAN 1 % ALLOCATED TO FUNDRAISING RELATED ACTIVITIES. THE SUBSIDIARY FOUNDATION IS INVOLVED IN PROMOTIONAL AND PUBLIC RELATIONS SUPPORT FOR THE OPERATING COMPANIES AND FUNDRAISING ACTIVITIES FOR THE BENEVOLENT FUND. IN ADDITION, THE FOUNDATION MANAGES INVESTMENTS AND MAKES GRANTS TO THE OPERATING COMPANIES IN SUPPORT OF CHARITY SERVICES. THE FOUNDATION CLASSIFIES GRANTS AND DEPRECIATION EXPENSE AS "PROGRAM SERVICES- AND ALLOCATES OTHER EXPENSES BETWEEN "MANAGEMENT AND GENERAL- AND "FUNDRAISING". |
FORM 990, PAGE 1, PART I, LINE 6 |
HOMEWOOD RETIREMENT CENTERS HAS CONSISTENTLY PARTICIPATED IN AND HAS HELPED TO DEVELOP PROGRAMS THAT SERVE THE BROADER COMMUNITY, THOSE WITH LIMITED RESOURCES, AS WELL AS ITS OWN RESIDENTS. AS A NOT-FOR-PROFIT, TAX-EXEMPT ORGANIZATION, HOMEWOOD RETIREMENT CENTERS FROM ITS VERY BEGINNINGS HAS PROVIDED RESOURCES TO HELP SERVE OUR COMMUNITY WHILE ALSO PROVIDING OPPORTUNITIES FOR COMMUNITY MEMBERS TO LEARN FROM AND INTERACT WITH SENIOR CITIZENS. IN 2020 HOMEWOOD RETIREMENT CENTERS CELEBRATED 88 YEARS OF SERVICE TO SENIORS. FROM OUR GENESIS, WE HAVE ACCEPTED OUR RESPONSIBILITY AS A NON- PROFIT, FAITH-BASED ORGANIZATION, TO BE ACCOUNTABLE TO OUR LOCAL COMMUNITIES AND HAVE TAKEN PRIDE IN ENGAGING THE COMMUNITY AND LIVING OUT OUR MISSION IN CREATIVE AND MEANINGFUL WAYS. IN PRIOR YEARS THE ORGANIZATION HAS REPORTED A SUMMARY OF THE YEARLY ACTIVITIES FOR EACH LOCATION FROM ITS ANNUAL SOCIAL ACCOUNTABILITY REPORT, "THE SPIRIT OF GIVING." HOWEVER, DUE TO THE COVID-19 PANDEMIC, THE SOCIAL ACCOUNTABILITY REPORT WAS NOT ISSUED IN 2020. ALL HOMEWOOD CAMPUSES AND BUILDINGS WERE CLOSED AND ONLY AUTHORIZED PERSONNEL WERE PERMITTED. VOLUNTEERS WERE UNABLE TO PERFORM IN ANY CAPACITY. SHOWN BELOW IS A SUMMARY FROM THE 2019 REPORT WHICH IS A TYPICAL REFLECTION OF THE OPERATIONS OF THE ORGANIZATION. IT IS THE HOPES OF THE ORGANIZATION TO BE ABLE TO RETURN TO ITS NORMAL ACTIVITIES AND ISSUE A REPORT FOR 2021. THE SUMMARY INCLUDES ACTIVITIES FOR EACH OF HOMEWOOD'S FIVE SUBSIDIARY OPERATIONS IN WILLIAMSPORT AND FREDERICK, MARYLAND; HANOVER, MARTINSBURG, AND EVERETT, PENNSYLVANIA. PROJECTS DESCRIBED ARE ONGOING AND ANNUAL, ONE-TIME, AND SEASONAL. HOMEWOOD RETIREMENT CENTERS HAS CONSISTENTLY PARTICIPATED IN AND HAS HELPED TO DEVELOP PROGRAMS THAT SERVE THE BROADER COMMUNITY, THOSE WITH LIMITED RESOURCES, AS WELL AS ITS OWN RESIDENTS. VOLUNTEER HOURS DONATED: RESIDENTS, CO-WORKERS AND COMMUNITY MEMBERS CONTRIBUTED THE FOLLOWING IN 2019 (VALUES ARE BASED ON ACCEPTABLE RATES ESTABLISHED BY MARYLAND AND PENNSYLVANIA): HOMEWOOD AT WILLIAMSPORT, WILLIAMSPORT, MARYLAND CONTRIBUTED 11,377 HOURS IN 2019 VALUED AT 325,951 (13,062 HOURS IN 2018 VALUED AT 359,205) AND DEVOTED 3,810 HOURS FOR TRAINING PURPOSES THAT INCLUDED, NURSING, REHAB, GERIATRIC ASSESSMENT AND TECHNICAL TRAINING. HOMEWOOD AT FREDERICK, FREDERICK, MARYLAND CONTRIBUTED 40,631 HOURS IN 2019 VALUED AT 1,164,078 (43,048 HOURS IN 2018 VALUED AT 1,183,820.) HOMEWOOD AT FREDERICK PARTNERED WITH THE FREDERICK RESCUE MISSION FOR THE MISSION'S ADOPT-A-FAMILY PROGRAM TO PROVIDE GIFTS FOR A FAMILY IN NEED DURING THE CHRISTMAS SEASON. OTHER PROGRAMS OFFERED TRAINING OPPORTUNITIES FOR STUDENTS IN THE MEDICAL FIELDS, SOCIALIZATION FOR GUIDE DOGS IN TRAINING AND MEETING SPACE FOR A VARIETY OF COMMUNITY ORGANIZATIONS. HOMEWOOD AT PLUM CREEK, HANOVER, PENNSYLVANIA CONTRIBUTED 45,388 HOURS IN 2019 VALUED AT 1,131,977 (49,500 HOURS IN 2018 VALUED AT 1,205,325.) 1,575 HOURS WERE DEVOTED SPECIFICALLY TO TRAINING NURSING AND OTHER HEALTH-RELATED STUDENTS. LOCAL HIGH SCHOOL STUDENTS GAINED INVALUABLE EXPERIENCE IN THE PERFORMING ARTS PRESENTING CONCERTS AND PLAYS FOR RESIDENTS. HOMEWOOD AT MARTINSBURG, MARTINSBURG, PENNSYLVANIA CONTRIBUTED 42,200 HOURS IN 2019 VALUED AT 1,052,468 (41,502 HOURS IN 2018 VALUED AT 1,010,573.) HOMEWOOD AT MARTINSBURG COORDINATED AND PRESENTED TRAINING THAT INCLUDED NURSING, MEDICARE/MEDICAID, SOCIAL SECURITY, SENIOR LIVING, NUTRITION, HOSPICE, CULTURE CHANGE, HANDICAP, AND COMPUTER TRAINING. HOMEWOOD AT SPRING HOUSE ESTATES, EVERETT, PENNSYLVANIA CONTRIBUTED 5,847 HOURS IN 2019 VALUED AT 145,824 (2,804 HOURS IN 2018 VALUED AT 68,277.) 100 HOURS WERE SPECIFICALLY DEVOTED TO TRAINING THAT INCLUDED HEALTH AND WELLNESS TOPICS. A TOTAL OF 145,443 HOURS WERE GIVEN IN 2019 VALUED AT 3,820,298. SUBSIDIES: THE HOMEWOOD FAMILY PRIDES ITSELF ON ITS ABILITY TO PROVIDE BENEVOLENT CARE TO RESIDENTS WHO HAVE DEPLETED THEIR ASSETS THROUGH NO FAULT OF THEIR OWN, AND FOR SHORTFALLS NOT REIMBURSED UNDER MEDICAID AND MEDICARE. FOR 2020, SUBSIDIZED ALLOWANCES TO RESIDENTS UNABLE TO PAY FULLY ESTABLISHED RATES AND PAYMENTS FOR ITEMS NOT REIMBURSED TOTALED 10,951,161. NOTE THE FOLLOWING: HOMEWOOD AT WILLIAMSPORT - 2,190,616 HOMEWOOD AT FREDERICK - 1,476,114 HOMEWOOD AT PLUM CREEK - 3,369,271 HOMEWOOD AT MARTINSBURG - 3,915,160 HOMEWOOD AT SPRING HOUSE ESTATES HAD NO REIMBURSEMENT ACTIVITY IN 2020 BECAUSE OF THE NATURE OF ITS FACILITIES. THE COMPLETE ANNUAL REPORT ON SOCIAL ACCOUNTABILITY IS AVAILABLE TO THE PUBLIC UPON REQUEST. |
FORM 990, PAGE 2, PART III, LINE 4A |
RESIDENT CARE - PAYMENTS ENABLE THE HOMEWOOD GROUP TO (A) PROVIDE SERVICES TO RESIDENTS WHO ARE UNABLE TO PAY FOR THEIR SERVICES, (B) MAXIMIZE OCCUPANCY WHICH KEEPS DAILY FEES AT A REASONABLE LEVEL. THE HOMEWOOD FOUNDATION RAISES FUNDS FOR A VARIETY OF IMPORTANT INITIATIVES, INCLUDING: BENEVOLENT CARE FOR HOMEWOOD RESIDENTS WHO MAY NEED SPECIAL ASSISTANCE THE HOMEWOOD BENEVOLENT ENDOWMENT FUND, ESTABLISHED IN 1972, RECEIVES GIFTS FOR BENEVOLENT CARE. THESE FUNDS ARE DISTRIBUTED AMONG THE RETIREMENT COMMUNITIES TO ASSIST WITH THE FINANCIAL NEEDS OF RESIDENTS WHO MEET ESTABLISHED QUALIFICATION CRITERIA. THE BENEVOLENT FUNDS ARE RAISED ANNUALLY THROUGH: 1. BENEVOLENT AND MEMORIAL GIFTS 2. A MOTHER'S DAY APPEAL IN COOPERATION WITH UNITED CHURCH OF CHRIST CHURCHES 3. AN ANNUAL APPEAL AT YEAR-END 4. SITE PROJECTS, SUCH AS THE "GARDEN OF LIFE- AND "TREE OF LOVE" DURING THE HOLIDAYS |
FORM 990, PART V |
FORM 990, PART V, LINE 1(A), REGARDING NUMBER OF U.S. INFORMATION RETURNS: NO U.S. INFORMATION RETURNS ARE FILED BY HOMEWOOD FOUNDATION, INC. THE PARENT ORGANIZATION, THE HOMEWOOD RETIREMENT CENTERS, INC., PROCESSES ALL THE PAYABLES FOR THE SUBSIDIARY ORGANIZATIONS AND PROCESSES AND FILES ALL OF THE U.S. INFORMATION RETURNS. FORM 990, PART V, LINE 2(A), REGARDING NUMBER OF EMPLOYEES: HOMEWOOD FOUNDATION, INC. HAD 4 EMPLOYEES THAT WERE PAID BY THE PARENT ORGANIZATION, HOMEWOOD RETIREMENT CENTERS, INC. THE PARENT ORGANIZATION, THE HOMEWOOD RETIREMENT CENTERS, INC., PROCESSES THE PAYROLL FOR ALL OF THE SUBSIDIARY ORGANIZATIONS. ALL OF THE PAYROLL TAX REPORTS ARE SUBMITTED BY THE HOMEWOOD RETIREMENT CENTERS, INC. |
FORM 990, PAGE 6, PART VI, LINE 11B |
THE FORM 990 IS PROVIDED TO THE CHIEF FINANCIAL OFFICER OF THE PARENT ORGANIZATION AND TO THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES FOR REVIEW AND COMMENT BEFORE THE FORM IS FILED. THE OTHER MEMBERS OF THE BOARD OF TRUSTEES ARE NOTIFIED THAT THE FORM 990 WILL BE FILED AND IS AVAILABLE UPON REQUEST FOR THEIR REVIEW. |
FORM 990, PAGE 6, PART VI, LINE 15A |
EXECUTIVE COMPENSATION PHILOSOPHY: THE EXECUTIVE COMPENSATION COMMITTEE SERVES IN A GOVERNANCE AND OVERSIGHT ROLE FOR THE HOMEWOOD BOARD OF TRUSTEES TO ENSURE THAT HOMEWOOD MAINTAINS EXECUTIVE COMPENSATION STRATEGIES AND PRACTICES THAT ARE COMPLIANT WITH REGULATIONS, PRUDENT WITHIN THE HOMEWOOD'S RESOURCES AND ABILITY TO HONOR ITS COMMITMENTS, INTERNALLY EQUITABLE, AND ARE EXTERNALLY COMPETITIVE. THE COMMITTEE WILL REVIEW THE EXECUTIVE COMPENSATION PHILOSOPHY ANNUALLY AND MAKE ANY RECOMMENDATIONS TO THE TRUSTEES FOR FINAL APPROVAL. THE INDEPENDENT EXECUTIVE COMPENSATION COMMITTEE OF THE HOMEWOOD RETIREMENT CENTERS BOARD OF TRUSTEES, AS DESIGNATED IN THE BY-LAWS, WILL DETERMINE THE TOTAL COMPENSATION PHILOSOPHY AND COMPENSATION PACKAGES FOR SENIOR MANAGEMENT (PRESIDENT/CEO AND VICE PRESIDENTS AND THE FOUNDATION PRESIDENT). THE EXECUTIVE COMPENSATION COMMITTEE WILL BE STRUCTURED, AND WILL OPERATE, IN A MANNER INTENDED TO SATISFY THE REQUIREMENTS OF THE IRS "INTERMEDIATE SANCTIONS" RULES. HOMEWOOD'S GOAL FOR SALARY RANGES AND INCENTIVE PLANS ARE LINKED TO THE MID-POINT OF THE 60TH PERCENTILE AND A 40% SPREAD IS USED TO ESTABLISH THE RANGE MINIMUM AND MAXIMUM TO THE MARKET LEVELS FOR CCRCS AND SENIOR HOUSING/SERVICES ORGANIZATIONS REFLECTING REGIONAL AND NATIONAL BENCHMARKS. DEFERRED OR SUPPLEMENTAL BENEFITS/COMPENSATION PLANS WILL BE USED TO SUPPORT RETENTION AND SMOOTH SUCCESSION PLANNING FOR SENIOR MANAGEMENT WITH BENEFIT LEVELS TARGETED AT 60TH PERCENTILE MARKET LEVELS FOR THE CEO AND FOR THE VICE PRESIDENTS AND THE FOUNDATION PRESIDENT. BENEFITS AND PERQUISITES FOR SENIOR MANAGEMENT WILL REFLECT 60TH PERCENTILE MARKET PRACTICES. THE EXECUTIVE PAY PLAN ARCHITECTURE USED FOR IMPLEMENTATION OF THIS PHILOSOPHY WILL BE APPROVED BY THE EXECUTIVE COMPENSATION COMMITTEE FROM TIME TO TIME. THE CEO WILL BE RESPONSIBLE FOR MAKING RECOMMENDATIONS TO THE COMMITTEE CONCERNING SUBORDINATE PAY, ENSURING THAT THOSE RECOMMENDATIONS REFLECT HOMEWOOD'S OVERALL PHILOSOPHY. THE EXECUTIVE COMPENSATION COMMITTEE WILL KEEP THE FULL BOARD INFORMED OF KEY DECISIONS, AND WILL CONSIST OF INDEPENDENT DECISION MAKERS WHO DO NOT PERFORM PAID SERVICES FOR HOMEWOOD, WHO ARE NOT RELATED TO THE EXECUTIVES AND WHO OTHERWISE MEET THE "NO CONFLICT-OF-INTEREST" RULES OF THE IRS INTERMEDIATE SANCTIONS RULES. TRUSTEES APPROVED: SEPTEMBER 2006, DECEMBER 2012, APRIL 2015, MARCH 22, 2018. EXECUTIVE COMPENSATION PLAN ARCHITECTURE: HOMEWOOD'S EXECUTIVE REWARD PLAN IS DESIGNED TO SUPPORT A "BEST PRACTICES" APPROACH TO THE GOVERNANCE OF EXECUTIVE PAY UTILIZING THE FOLLOWING COMPONENTS: 1. TOTAL COMPENSATION PRACTICES WILL BE BENCHMARKED TO COMPARABLE CCRCS AND SENIOR HOUSING/SERVICE ORGANIZATIONS WITH SIMILAR MISSIONS AND GROWTH STRATEGIES REFLECTING REGIONAL AND NATIONAL RESULTS AT THE 60TH PERCENTILE MARKET LEVELS FOR TOTAL ANNUAL CASH COMPENSATION, WITH EARNINGS OPPORTUNITIES TIED TO MISSION, PERFORMANCE, AND GROWTH GOALS. MULTIPLE SURVEYS WILL BE USED TO IDENTIFY THEMES AND TRENDS. TOTAL COMPENSATION CONSISTS OF BASE COMPENSATION, INCENTIVE COMPENSATION, RETIREMENT COMPENSATION AND PERQUISITES/BENEFITS. IN DEVELOPING THE ORGANIZATION'S EXECUTIVE SALARY RANGES, THE COMPETITIVE MARKET DATA IS USED TO ESTABLISH THE RANGE MIDPOINT, AND A 40% SPREAD IS USED TO ESTABLISH THE RANGE MINIMUM AND MAXIMUM. (20% ABOVE AND BELOW THE TARGET). THE LOWER PORTION OF THE RANGE IS WHERE LESS EXPERIENCED EXECUTIVES (I.E., NEW TO THE POSITION) ARE COMPENSATED. THE MIDDLE OF THE RANGE, IMMEDIATELY AROUND THE TARGET (OR "GOING RATE"), IS WHERE FULLY EXPERIENCED EXECUTIVES WHO MEET ALL PERFORMANCE EXPECTATIONS SHOULD BE REMUNERATED. EXECUTIVES WHO ARE HIGHLY EXPERIENCED AND CONSISTENTLY EXCEED JOB EXPECTATIONS SHOULD BE PAID IN THE UPPER PORTION OF THE RANGE. MINIMUM NEW OR LITTLE EXPERIENCE; PARTIALLY MEETS EXPECTATIONS MIDPOINT (TARGET) EXPERIENCED; MEETS EXPECTATIONS MAXIMUM FULLY SEASONED; CONSISTENTLY EXCEEDS EXPECTATIONS 2. PERFORMANCE APPRAISAL - THE CHAIR AND VICE CHAIR OF THE BOARD OF TRUSTEES WILL OVERSEE THE PREPARATION AND PRESENTATION OF THE PERFORMANCE APPRAISAL FOR THE CEO ANNUALLY. PERFORMANCE APPRAISALS FOR THE CEO WILL NORMALLY BE COMPLETED THE LAST QUARTER OF THE FISCAL YEAR. THE CEO IS RESPONSIBLE FOR SETTING THE EVALUATION TIMETABLE FOR OTHER KEY EXECUTIVES. EACH POSITION IS EVALUATED, IN WRITING, ANNUALLY. 3. THE EXECUTIVE REWARD PLAN WILL GENERALLY USE NON-QUALIFIED DEFERRED COMPENSATION PLANS AS A RETENTION METHOD FOR THE CEO AND VPS/FOUNDATION PRESIDENT WITH BENEFIT LEVELS TARGETED AT 60TH PERCENTILE MARKET LEVELS FOR THE CEO AND VPS/FOUNDATION PRESIDENT. THE EXECUTIVE REWARD PLAN WILL ENABLE HOMEWOOD TO ATTRACT, MOTIVATE, AND RETAIN MANAGEMENT TALENT NEEDED TO CARRY OUT ITS MISSION AS WELL AS SMOOTH SUCCESSION OF THE CEO AND VPS/FOUNDATION PRESIDENT. THE EXECUTIVE REWARD PLAN WILL GENERALLY USE A MODERATE LEVEL OF INCENTIVE OR "AT RISK" COMPENSATION TO MOTIVATE AND REWARD THE EXECUTIVE TEAM'S PERFORMANCE. 4. THE EXECUTIVE COMPENSATION COMMITTEE WILL BE RESPONSIBLE FOR MANAGING THE PARTICIPANTS' TOTAL REWARD PACKAGE, WITH THE CEO BEING RESPONSIBLE FOR MAKING RECOMMENDATIONS TO THE COMMITTEE CONCERNING SUBORDINATE REWARD PACKAGES, REFLECTING HOMEWOOD'S OVERALL PHILOSOPHY. IT IS RECOGNIZED THAT THE COMMITTEE MAINTAINS DISCRETIONARY AUTHORITY TO MAKE FINAL DETERMINATIONS AS TO WHETHER AND TO WHAT EXTENT TO PAY INCENTIVE COMPENSATION. 5. THE COMMITTEE WILL MEET SEMI-ANNUALLY OR MORE OFTEN AS NEEDED AND KEEP THE FULL BOARD INFORMED; ENSURING THAT THE BOARD KNOWS THE PROCESSES USED BY THE COMMITTEE AND ALL KEY DECISIONS RELATED TO THE CEO'S AND VPS'/FOUNDATION PRESIDENT PAY. THE COMMITTEE WILL PROTECT THE CONFIDENTIALITY OF INCUMBENT EXECUTIVE DATA IN ALL REPORTS TO THE FULL BOARD. 6. THE EXECUTIVE COMPENSATION COMMITTEE SHALL CONSIST OF INDEPENDENT DECISION MAKERS WHO DO NOT PERFORM PAID SERVICES FOR HOMEWOOD, HAVE NO PERSONAL FINANCIAL INTERESTS NOR ANY FAMILY RELATIONSHIPS WITH THE EXECUTIVES AND WHO OTHERWISE SATISFY THE "NO CONFLICT-OF-INTEREST" RULES OF THE IRS INTERMEDIATE SANCTIONS RULES. THE CHAIR OF THE BOARD OF TRUSTEES SERVES AS THE CHAIR OF THIS COMMITTEE. THE COMMITTEE WILL BE COMPOSED OF NO LESS THAN FIVE (5) MEMBERS FROM THE TRUSTEES. COMMITTEE MEMBERS SHALL BE APPOINTED BY THE BOARD CHAIR FROM AMONG THE MEMBERSHIP OF THE BOARD. (SEE TRUSTEES BYLAWS) DETAILED MINUTES OF THE MEETINGS ARE KEPT AND APPROVED AT THE NEXT FOLLOWING COMMITTEE MEETING. 7. AFFIRM ANNUALLY COMPLIANCE WITH THE VARIOUS REQUIREMENTS OF THE IRS INTERMEDIATE SANCTIONS RULES IN ORDER TO ENSURE ENJOYMENT OF THE "REBUTTABLE PRESUMPTION" OF REASONABLENESS OF HOMEWOOD'S EXECUTIVE COMPENSATION PACKAGES. 8. WORK DIRECTLY WITH INDEPENDENT ADVISORS AND/OR RECEIVE SALARY SURVEYS FROM THIRD PARTIES. 9. A COPY OF THE HOMEWOOD RETIREMENT CENTERS AND FOUNDATION'S ANNUAL FORM 990, AS PROFESSIONALLY PREPARED BY HOMEWOOD'S AUDITORS WILL BE E-MAILED TO THE EXECUTIVE COMPENSATION COMMITTEE 72 HOURS PRIOR TO FILING FOR REVIEW AND COMMENT. ECC APPROVED NOVEMBER 21, 2006, REVISED 11/6/08, 6/4/10, 4/8/16, 9/8/17. EXECUTIVE COMPENSATION PLAN FRAMEWORK: THE EXECUTIVE COMPENSATION FRAMEWORK PROVIDES THE DETAILS AND PROCESS IN MEETING THE OBJECTIVES OF THE COMPENSATION PHILOSOPHY AND ARCHITECTURE. THE REFERENCE TO EXECUTIVES IN THIS DOCUMENT INCLUDES THE PRESIDENT/CEO AND THE VICE PRESIDENTS/FOUNDATION PRESIDENT. 1. HOMEWOOD WILL PRIMARILY USE THE MOST RECENT CEMO (AAHSA), ERI SENIOR CARE AND THE HCS SURVEYS TO BENCHMARK BASE SALARIES AS WELL AS INCENTIVE COMPENSATION. THE AVERAGE OF THE THREE MID POINTS WILL BE USED AS THE METHOD TO DETERMINE THE 60TH PERCENTILE RANGE. THE VPHR WILL PROVIDE SUMMARY DATA OF THE SURVEYS AND A TALLY SHEET OF CURRENT TOTAL COMPENSATION FOR THE CEO AND VPS'/FOUNDATION PRESIDENT. THE SURVEYS WILL ALSO BE AVAILABLE FOR REVIEW. ANALYSIS AND SUMMARY OF SURVEY DATA WILL GENERALLY BE ADMINISTERED BY AN INDEPENDENT THIRD PARTY CONSULTANT. 2. HOMEWOOD'S EXECUTIVE COMPENSATION WILL HAVE FOUR COMPONENTS. ALL COMPONENTS WILL SUPPORT THE RETENTION, REWARD AND SMOOTH SUCCESSION PLANNING OF EACH POSITION. A) BASE COMPENSATION: SALARY INCREASES - IN GRANTING SALARY INCREASES FOR THE CEO, MISSION OBJECTIVES, PERFORMANCE OF THE ORGANIZATION AND THE POSITION'S INCREASED JOB RESPONSIBILITIES, IN ADDITION TO THE COMPETITIVE SALARY POSITION AND RANGE, MAY BE CONSIDERED. FOR THE CEO, VPS AND THE FOUNDATION PRESIDENT, SALARY INCREASES ARE ESTABLISHED BY THE COMPENSATION COMMITTEE AND RANGES ARE REPORTED TO THE BOARD OF TRUSTEES, BASED ON THE ANNUAL INCREASE GUIDELINES RECOMMENDED BY THE COMMITTEE. THE CEO WILL BE RESPONSIBLE FOR MAKING RECOMMENDATIONS TO THE COMMITTEE CONCERNING SUBORDINATE PAY, ENSURING THAT THOSE RECOMMENDATIONS REFLECT HOMEWOOD'S OVERALL PHILOSOPHY. B) INCENTIVE COMPENSATION: THIS WILL BE IN THE FORM OF TAXABLE COMPENSATION OR ADDITIONAL EMPLOYER CONTRIBUTION TO THE 401A PLAN AS DETERMINED BY HOMEWOOD. THIS MAY ALSO BE AN EMPLOYER CONTRIBUTION TO THE 457(B) PLAN. THIS IS VARIABLE PAY BASED ON |
FORM 990, PAGE 6, PART VI, LINE 15B |
WAGE ADMINISTRATION GUIDELINES FOR THE CALENDAR BUDGET YEAR 2020: HOMEWOOD'S WAGE ADMINISTRATION PROGRAM LOOKS AT BASE PAY RATES THAT TAKE INTO CONSIDERATION IF IT IS: O INTERNALLY EQUITABLE. O EXTERNALLY COMPETITIVE. O AFFORDABLE/COST EFFECTIVE. O LEGAL/DEFENSIBLE. O UNDERSTANDABLE. O APPROPRIATE FOR THE ORGANIZATION. O APPROPRIATE FOR THE WORKFORCE. HOMEWOOD'S WAGE ADMINISTRATION PROGRAM APPLIES PRINCIPLES TO ASSIST IN THE RETENTION AND RECRUITMENT OF CO-WORKERS. HOMEWOOD'S GOAL IS TO PAY WAGES IN THE 60TH PERCENTILE IN THE LONG-TERM CARE INDUSTRY FOR MOST POSITIONS TAKING INTO CONSIDERATION THE GEOGRAPHIC AREA. SOME POSITIONS REQUIRE A HIGHER PERCENTAGE DUE TO MARKET CONDITIONS. HOMEWOOD WILL USE THE PA LEADINGAGE STATE WAGE SURVEY TO BENCHMARK STARTING WAGES, IMPLEMENT MARKET WAGE ADJUSTMENTS AND REVIEW WAGE CEILINGS. OTHER WAGE SURVEYS WILL ALSO BE USED TO COMPARE DATA IN OUR INDUSTRY AS WELL AS OTHER INDUSTRIES. HOMEWOOD'S GOAL FOR THE STARTING WAGE AND AVERAGE WAGE WILL BE THE 60TH PERCENTILE. WHEN EITHER THE AVERAGE WAGE OR STARTING WAGE DOES NOT MEET THIS STANDARD A MARKET WAGE ADJUSTMENT WILL BE CONSIDERED. IT IS AT HOMEWOOD'S DISCRETION TO HAVE A HIGHER PERCENTILE THAN THE 60TH FOR SOME POSITIONS. A MARKET ADJUSTMENT IS CONSIDERED WHEN A SPECIFIC POSITION IS DETERMINED TO BE BELOW THE 60TH PERCENTILE FOR THAT GEOGRAPHIC AREA. THE MARKET ADJUSTMENT IS DETERMINED BY THE DOLLARS NEEDED TO REACH THE 60TH PERCENTILE. A FIXED DOLLAR AMOUNT IS GIVEN TO CO-WORKERS IN THAT JOB CATEGORY. HOMEWOOD DOES NOT WANT TO HAVE A PRACTICE WHERE POSITIONS ARE IN THE 95TH OR ABOVE PERCENTILE OF THE PA LEADINGAGE STATE WAGE SURVEY. WAGE INCREASES FOR CO-WORKERS AT OR ABOVE THE 95TH PERCENTILE WILL RECEIVE 50% OF THEIR PERFORMANCE WAGE INCREASE. HOMEWOOD'S UNDERLYING PHILOSOPHY FOR WAGE INCREASES WILL BE BASED ON PERFORMANCE, ON THE POSITION, ON THE CURRENT PAY RATE AND MARKET COMPARISONS. HOMEWOOD EVALUATES AND CONSIDERS HOW SOMEONE IS CURRENTLY PAID BEFORE DETERMINING THE APPROPRIATE WAGE ADJUSTMENT. THE WAGE ADMINISTRATION PROGRAM IS PROVIDED TO SERVE AS A GUIDELINE IN A SYSTEMATIC APPROACH TO WAGE INCREASES. WAGE INCREASES FOR THE CALENDAR YEAR 2020 ARE SEPARATED INTO THE FOLLOWING THREE COMPONENTS: 1. THE AVERAGE WAGE OF EACH JOB CATEGORY (OR ANOTHER DETERMINED WAGE BASED ON WAGE SURVEYS) WILL BE USED AS THE BASIS TO ESTABLISH THE WAGE INCREASE. A PAY GRID IS ESTABLISHED FOR EACH POSITION WHICH HAS A DOLLAR/CENTS AMOUNT LINKED TO THE EVALUATION POINTS. WAGE ADJUSTMENTS ARE ADMINISTERED BASED ON THE CO-WORKER'S PERFORMANCE AND DOES NOT TAKE INTO CONSIDERATION LONGEVITY. EXAMPLE: IF ALL CO-WORKERS IN A JOB CATEGORY HAVE THE SAME TOTAL POINTS FROM THE EVALUATION THEY ALL WILL RECEIVE THE SAME DOLLAR/CENTS PER HOUR INCREASE. 2. AN ADDITIONAL INCREASE MAY BE APPROVED IF PARTICULAR POSITION(S) ARE DETERMINED TO BE BELOW THE MARKET VALUE FOR THAT AREA. THIS INCREASE IS NOT REFLECTIVE OF THE CO-WORKER'S PERFORMANCE OR LONGEVITY. IT IS SOLELY BASED ON THE NEED TO BECOME MORE COMPETITIVE WITH THE SALARY. THE VICE PRESIDENT-HUMAN RESOURCES WILL MAKE INITIAL RECOMMENDATIONS FOR MARKET ADJUSTMENT CONSIDERATION. SITE EXECUTIVES WILL THEN MAKE FINAL RECOMMENDATIONS TO THE VICE PRESIDENT-HUMAN RESOURCES FOR SENIOR MANAGEMENT FINAL APPROVAL. ALL MARKET ADJUSTMENT REQUESTS BY THE SITE EXECUTIVE(S) MUST BE PROVIDED TO THE VICE PRESIDENT-HUMAN RESOURCES FOR THE BUDGET PROCESS AND PRIOR TO SEPTEMBER. 3. THE FOLLOWING WILL BE USED FOR THE DEPARTMENT DIRECTOR POSITIONS. AN INCREASE OF UP TO A MAXIMUM OF 3.25% MAY BE AWARDED WHERE PERFORMANCE EXCEEDS THE NORM IN ALL AREAS AND IS DOCUMENTED IN WRITING IN THE PERFORMANCE APPRAISAL PROCESS. THIS INCREASE WOULD BE CONSISTENT WITH OTHER DIRECTOR'S WHOSE PERFORMANCE IS SIMILAR. THE PERFORMANCE WAGE ADJUSTMENT GRID WILL USE THE PARAMETER OF THE AVERAGE WAGE BEING SET AT 2.75% FOR THE 2020 YEAR. CO-WORKERS ACTIVELY EMPLOYED AS OF JANUARY 1, 2020 MAY BE ELIGIBLE FOR THE WAGE INCREASE. GENERALLY, CO- WORKERS WHO HAVE NOT COMPLETED THE INTRODUCTORY PERIOD WOULD RECEIVE A 1.5% ADJUSTMENT. (IN LIEU OF ANY ADJUSTMENT, A CO-WORKER WHO IS HIRED IN DECEMBER MAY BE PAID THE NEW 2020 STARTING RATE.) PERFORMANCE IS THE KEY FACTOR- NOT LENGTH OF SERVICE- FOR WAGE INCREASE CONSIDERATION. THE MERE FACT THAT A CO-WORKER HAS CONTINUED TO BE EMPLOYED BY HOMEWOOD IS NOT JUSTIFICATION FOR A WAGE ADJUSTMENT. WAGE ADJUSTMENTS MUST BE BASED UPON A THOROUGH REVIEW OF A CO-WORKER'S PERFORMANCE. EACH SUPERVISOR WILL CONDUCT A FORMAL PERFORMANCE EVALUATION ANNUALLY. THIS TIME IS USED TO PROVIDE OPPORTUNITY FOR FURTHER DEVELOPMENT TO THE CO-WORKER, SUMMARIZING EVENTS ALREADY DISCUSSED THROUGHOUT THE YEAR. THE EVALUATIONS SHOULD BE PRESENTED DURING THE MONTHS OF NOVEMBER AND DECEMBER. IF A CO- WORKER'S JOB PERFORMANCE DOES NOT JUSTIFY ANY INCREASE, THE CO-WORKER SHOULD BE PLACED ON PROBATION AND IF IMPROVEMENT IS NOT EVIDENT, TERMINATION OF EMPLOYMENT IS APPROPRIATE. STARTING WAGE RATES FOR POSITIONS WILL BE ESTABLISHED THROUGH THE BUDGET PROCESS. HUMAN RESOURCES WILL DISTRIBUTE A WORKSHEET TO INITIATE THE PROCESS. THESE RATES ARE ESTABLISHED FOR EACH FACILITY WITH FINAL HUMAN RESOURCES APPROVAL. STARTING PAY RATES ARE INTENDED TO KEEP EACH POSITION COMPETITIVE WITHIN THE JOB MARKET. HR 6/7/18 |
FORM 990, PAGE 6, PART VI, LINE 19 |
THE ORGANIZATION MAKES THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. MUCH OF THE INFORMATION IS MADE AVAILABLE TO THE RESIDENTS AS PART OF THE DISCLOSURE STATEMENTS REQUIRED BY THE STATES. |
FORM 990, PART VIII |
LINES 8 AND 9: NO FUNDRAISING OR GAMING EVENTS WERE HELD IN 2020 DUE TO THE COVID-19 PANDEMIC. |
FORM 990, PART XI, LINE 9 |
EFFECTIVE DECEMBER 2020, THE BOARD OF TRUSTEES AND EACH SUBSIDIARY BOARD ADOPTED A RESOLUTION TO ELIMINATE ALL EXISTING INTERCOMPANY TRANSACTIONS, WITH THE EXCEPTION OF A NOTE BETWEEN HOMEWOOD RETIREMENT CENTERS, INC. AND HOMEWOOD AT FREDERICK MD, INC. IN THE AMOUNT OF 20,062,350, BY TREATING ADVANCES DUE TO/FROM AFFILIATES AS A ONE-TIME TRANSFER OF NET ASSETS ON THE CONSOLIDATING BALANCE SHEET. AS A RESULT, HOMEWOOD FOUNDATION INC. RECOGNIZED A LOSS RELATED TO THE TRANSFER OF NET ASSETS IN THE AMOUNT OF 6,759,820, WHICH IS REPORTED AS OTHER CHANGES IN NET ASSETS ON FORM 990 PART XI, LINE 9. THE INTERCOMPANY TRANSACTIONS REMAINING ON THE CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 2020 WERE MADE AS CASH FLOW TRANSFERS TO COVER OPERATING EXPENSES BUT ARE EXPECTED TO BE REPAID WITHIN THE NORMAL COURSE OF OPERATIONS. |