Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $2,174

• 2a · Program service revenue: MANAGEMENT/CONSULTING

  total $3,475,396 · related or exempt $3,475,396

• 2b · Program service revenue: THERAPY SERVICES REVEN

  total $1,220,764 · related or exempt $1,220,764

• 2c · Program service revenue: FITNESS REVENUE

  total $46,633 · related or exempt $46,633

• 3 · Investment income

  total $222 · excluded $222

• 11a · Other revenue: MISCELLANEOUS REVENUE

  total $105,872 · excluded $105,872

• 11e · Other revenue, total

  $105,872

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $1,401,271 · program services $1,401,271

• 7 · Other salaries and wages

  total $5,718,051 · program services $5,718,051

• 9 · Other employee benefits

  total $609,616 · program services $609,616

• 10 · Payroll taxes

  total $524,934 · program services $524,934

• 11b · Fees: legal

  total $63,190 · program services $63,190

• 11c · Fees: accounting

  total $179,723 · program services $179,723

• 11g · Fees: other

  total $1,678,563 · program services $1,678,563

• 12 · Advertising and promotion

  total $172,037 · program services $172,037

• 13 · Office expenses

  total $1,404,232 · program services $1,404,232

• 14 · Information technology

  total $229,608 · program services $229,608

• 16 · Occupancy

  total $277,380 · program services $277,380

• 17 · Travel

  total $54,659 · program services $54,659

• 19 · Conferences, conventions and meetings

  total $21,179 · program services $21,179

• 20 · Interest

  total $117,318 · program services $117,318

• 22 · Depreciation, depletion and amortization

  total $583,780 · program services $583,780

• 23 · Insurance

  total $103,086 · program services $103,086

• 24a · Other expenses: DUES & SUBSCRIPTIONS

  total $25,711 · program services $25,711

• 24b · Other expenses: FOOD

  total $15,953 · program services $15,953

• 24c · Other expenses: MEDICAL SUPPLIES

  total $14,055 · program services $14,055

• 24d · Other expenses: MISCELLANEOUS

  total $9,326 · program services $9,326

• 24e · All other expenses

  total $5,698 · program services $5,698

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $51,341 · end of year $184,115

• 4 · Accounts receivable

  beginning of year $209,495 · end of year $332,921

• 9 · Prepaid expenses and deferred charges

  beginning of year $537,584 · end of year $476,090

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

  $7,117,072

• 10b · Land, buildings and equipment: accumulated depreciation

  $3,828,381

• 10c · Land, buildings and equipment, net

  beginning of year $880,773 · end of year $3,288,691

• 13 · Investments: program-related

  beginning of year $126,531 · end of year $126,531

• 15 · Other assets

  beginning of year $7,592,758 · end of year $7,043,264

• 17 · Accounts payable and accrued expenses

  beginning of year $4,283,705 · end of year $2,886,480

• 25 · Other liabilities

  beginning of year $45,402,518 · end of year $56,833,399

• 27 · Net assets without donor restrictions

  beginning of year -$40,287,741 · end of year -$48,268,267

The filer's explanations (Part III)

PART I, LINE 5

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 IN THE PLAN. DEPARTMENT HEADS HAD ONLY ONE GOAL AROUND THEIR RESPECTIVE COMMUNITY'S BUDGETED OPERATING EBITDA. IN ADDITION TO MEETING THE FINANCIAL PLAN GOAL, DEPARTMENT HEADS MUST HAVE BEEN CONTRIBUTING MEANINGFULLY TO THE ADVANCEMENT OF WALKER'S MISSION TO ENHANCE THE LIVES OF OLDER ADJUSTS 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