Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: RENTAL REVENUE

  total $76,678 · related or exempt $76,678

• 3 · Investment income

  total $24 · excluded $24

• 6a · Gross rents

  real property $3,996

• 6b · Less rental expenses

  real property $0

• 6c · Rental income or loss

  real property $3,996

• 6d · Net rental income or loss

  total $3,996 · excluded $3,996

• 7a · Gross sales of assets other than inventory

  other assets $3,500,000

• 7b · Less cost or other basis and sales expenses

  other assets $1,028,816

• 7c · Gain or loss

  other assets $2,471,184

• 7d · Net gain or loss

  total $2,471,184 · excluded $2,471,184

• 11a · Other revenue: MISCELLANEOUS REVENUE

  total $243 · excluded $243

• 11b · Other revenue: LAUNDRY SERVICES

  total $75 · excluded $75

• 11e · Other revenue, total

  $318

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $23,726 · program services $20,656 · management and general $3,070

• 9 · Other employee benefits

  total $2,687 · program services $2,233 · management and general $454

• 10 · Payroll taxes

  total $1,711 · program services $1,422 · management and general $289

• 11a · Fees: management

  total $1,212 · management and general $1,212

• 11b · Fees: legal

  total $1,934 · management and general $1,934

• 11g · Fees: other

  total $9,727 · program services $1,945 · management and general $7,782

• 13 · Office expenses

  total $4,105 · program services $3,273 · management and general $832

• 16 · Occupancy

  total $26,769 · program services $26,501 · management and general $268

• 17 · Travel

  total $38 · program services $38

• 20 · Interest

  total $6,729 · program services $6,630 · management and general $99

• 22 · Depreciation, depletion and amortization

  total $19,108 · program services $18,917 · management and general $191

• 24a · Other expenses: MISCELLANEOUS

  total $4,045 · management and general $4,045

• 24b · Other expenses: DUES AND SUBSCRIPTIONS

  total $973 · management and general $973

• 24c · Other expenses: LICENSES AND PERMITS

  total $250 · management and general $250

• 24d · Other expenses: BAD DEBT EXPENSE

  total $60 · program services $60

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $39,027 · end of year $4,889

• 2 · Savings and temporary cash investments

  beginning of year $24,803

• 4 · Accounts receivable

  beginning of year $305

• 9 · Prepaid expenses and deferred charges

  beginning of year $4,860

• 10a · Land, buildings and equipment: cost or other basis

  $0

• 10c · Land, buildings and equipment, net

  beginning of year $638,603

• 15 · Other assets

  beginning of year $370,065 · end of year $2,181,864

• 17 · Accounts payable and accrued expenses

  beginning of year $39,422

• 21 · Escrow or custodial account liability

  beginning of year $17,238

• 23 · Secured mortgages and notes payable

  beginning of year $1,232,128

• 25 · Other liabilities

  beginning of year $13,917 · end of year $0

• 27 · Net assets without donor restrictions

  beginning of year -$225,088 · end of year $2,186,707

• 28 · Net assets with donor restrictions

  beginning of year $46 · end of year $46

The filer's explanations (Part III)

PART I, LINE 3

THE ORGANIZATION RELIED ON WALKER SENIOR SERVICES, INC., A RELATED ORGANIZATION, WHEN SETTING REASONABLE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER. WALKER SENIOR SERVICES, INC. RELIED UPON WRITTEN EMPLOYMENT CONTRACTS, COMPENSATION SURVEYS OR STUDIES AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINE 5

WALKER SENIOR HOUSING CORPORATIONII'S PARENT, WALKER METHODIST, HAS AN INCENTIVE PLAN FOR THE OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THE FOLLOWING IS A COPY OF THE PLAN DESCRIPTION FROM WALKER METHODIST'S 2022 FORM 990: PURPOSE: THE PURPOSE OF THE PLAN IS TO PROVIDE INCENTIVE COMPENSATION TO ITS MANAGEMENT AND PROFESSIONAL STAFF WHO MAKE SIGNIFICANT CONTRIBUTIONS TO THE ACHIEVEMENT OF BUDGETED FINANCIAL AND STRATEGIC GOALS AS ESTABLISHED BY WALKER METHODIST, INC. ELIGIBILITY: ELIGIBILITY FOR THE PLAN IS LIMITED TO REGULAR MANAGEMENT EMPLOYEES WHO RETAIN THE JOB TITLE OF CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, CHIEF ADMINISTRATIVE OFFICER, VICE PRESIDENT OF OPERATIONS, VICE PRESIDENT OF HUMAN RESOURCES, EXECUTIVE DIRECTORS, DIRECTORS, CONTROLLER, DIRECTORS OF HOUSING, DIRECTOR OF SPIRITUAL CARE, CORPORATE DIRECTORS OF HUMAN RESOURCES AND EDUCATION, AND DEPARTMENT HEADS. OTHER KEY EMPLOYEES MAY BE INCLUDED IN THE PLAN AS APPROVED BY THE CHIEF EXECUTIVE OFFICER. FOR 2022, THE CHIEF EXECUTIVE OFFICER HAS APPROVED INCLUSION OF CORPORATE MANAGERS AND NURSE MANAGERS. IN ORDER TO PARTICIPATE IN THE PLAN FOR A PARTICULAR PLAN YEAR, EMPLOYEES, WHO ARE NEWLY HIRED OR PROMOTED TO AN ELIGIBLE POSITION, MUST BE EMPLOYED IN THE POSITION BY JUNE 30TH OF THAT PLAN YEAR. PLAN GOALS: THE CHIEF EXECUTIVE OFFICER HAS APPROVED THE INCLUSION OF DEPARTMENT HEADS, CORPORATE MANAGERS, AND NURSE MANAGERS IN THE PLAN. DEPARTMENT HEADS, CORPORATE MANAGERS, AND NURSE MANAGERS HAD ONLY ONE GOAL AROUND THEIR RESPECTIVE COMMUNITY'S BUDGETED OPERATING EBITDA. IN ADDITION TO MEETING THE FINANCIAL PLAN GOAL, THEY MUST HAVE BEEN CONTRIBUTING MEANINGFULLY TO THE ADVANCEMENT OF WALKER'S MISSION TO ENHANCE THE LIVES OF OLDER ADULTS THROUGH A CULTURE OF CARE, RESPECT AND SERVICE, AND HAVE OVERALL PERFORMANCE IN LINE WITH WALKER'S VALUES OF RESPECT, IMAGINATION AND COLLABORATION. IF THEIR COMMUNITY ACHIEVED AN OPERATING EBITDA GREATER THAN THE THRESHOLD LEVEL, THEY EARNED A PLAN PAYMENT OF $500. IF THEIR RESPECTIVE COMMUNITY ACHIEVED AN OPERATING EBITDA THAT IS GREATER THAN TARGET BY 3% OR MORE, THEY EARNED A PLAN PAYMENT OF $1,000. EACH DEPARTMENT HEAD, CORPORATE MANAGER, OR NURSE MANAGER WAS ELIGIBLE FOR ONLY ONE OF THE TWO PAYMENTS DESCRIBED ABOVE; PAYMENTS WERE NOT CUMULATIVE. FOR 2022, PLAN PAYMENTS TO ALL OTHER ELIGIBLE EMPLOYEES IDENTIFIED IN THE PLAN WERE EARNED BASED ON ACHIEVING AN ACTUAL EBITDA OF THE PLAN YEAR THAT FALLS WITHIN RANGE OF 93.0% - 115.0% OF BUDGETED OPERATING EBITDA. CORPORATE STAFF PARTICIPANTS HAD ONLY ONE GOAL AROUND WALKER'S BUDGETED OPERATING EBITDA. LOCATION PARTICIPANTS HAD TWO GOALS, WITH 70.0% BASED ON COMMUNITY'S BUDGETED OPERATING EBITDA ACHIEVEMENT AND 30.0% ON CONSOLIDATED ACHIEVEMENT. BOTH THE COMMUNITY AND THE CONSOLIDATED THRESHOLDS MUST HAVE BEEN MET IN ORDER FOR THE LOCATION PARTICIPANTS TO RECEIVE ANY PAYMENT UNDER THIS PLAN, EXCEPT AS OTHERWISE EXPLICITLY SET FORTH IN THE PLAN AGREEMENT. IF A COMMUNITY ACHIEVED OPERATING EBITDA GREATER THAN THE THRESHOLD LEVEL AND WALKER ACHIEVED AN OPERATING EBITDA OF THRESHOLD LEVEL OR GREATER, AFTER TAKING INTO CONSIDERATION THE INCENTIVE PLAN EXPENSES, THE LOCATION PARTICIPANTS EARNED THE VARIABLE PAYOUT AS CALCULATED UNDER THE PLAN. IF A COMMUNITY ACHIEVED AN OPERATING EBITDA OF THRESHOLD LEVEL OR GREATER AND WALKER DID NOT MEET THE THRESHOLD LEVEL, THE DIRECTOR OF THE COMMUNITY RECEIVED 50% OF THE PORTION OF THE ELIGIBLE VARIABLE PAYOUT ATTRIBUTABLE TO THE COMMUNITY'S BUDGETED OPERATING EBITDA ACHIEVEMENT (50% OF THE 70%). WALKER RESERVES THE RIGHT TO CHANGE THE EBITDA TO REFLECT CHANGES IN THE CURRENT BUSINESS PORTFOLIO. CHANGES ARE COMMUNICATED TO PARTICIPANTS.

PART I, LINE 6

SEE THE NARRATIVE IN SCHEDULE J, PART III, RELATED TO PART I, LINE 5. THE BONUSES ARE BASED ON EBITDA (EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION), WHICH IS CLOSELY RELATED TO BOTH REVENUES AND NET EARNINGS.

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• WALKER ELDERCARE SERVICES INC

  C · MANAGEMENT SERVICES · MN