2024-05-02T09:52:14-05:00 2023-06-30 540504608 BROWN EDWARDS & COMPANY LLP 3906 ELECTRIC ROAD ROANOKE VA 24018 990 2022-07-01 541427948 FRIENDSHIP FOUNDATION FRIE 5402652177 367 HERSHBERGER RD NW ROANOKE VA 24012 C MICHAEL SHANNON CFO 5402652177 2024-04-26 1 C MICHAEL SHANNON 999009999 0 EVAN ROSS P01786214 5403450936 2024-04-26 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z C MICHAEL SHANNON 367 HERSHBERGER RD NW ROANOKE VA 24012 11960925 0 X WWW.FRIENDSHIP.US X 1987 VA SUPPORTING FRIENDS BY PROVIDING PEACE OF MIND 9 9 57 13 17149 0 119808 120338 0 3763813 128274 135900 900000 7940874 1148082 11960925 27621 124739 0 0 67934 2064086 0 0 0 35595 3382711 131150 5571536 1016932 6389389 6682176 30735129 3732236 21398203 2949940 9336926 X SUPPORTING FRIENDS BY PROVIDING PEACE OF MIND 1 0 124739 7923725 THE CORPORATION COLLECTS GRANTS & CONTRIBUTIONS TO COVER ITS COSTS AND CONTRIBUTIONS TO DISTRIBUTE TO OTHER NONPROFIT ORGANIZATIONS. 4590424 1781515 FRIENDSHIP SALEM TERRACE OPERATED A 79 BED ASSISTED LIVING FACILITY, WITH AN OCCUPANCY RATE OF 92% FOR THE FISCAL YEAR. THE FACILITY HAD CENSUS DAYS OF 72.46 WITH AN ADDITIONAL 7.81 SECOND OCCUPANTS. THE ORGANIZATION MAINTAINS TWENTY FOUR HOUR NURSING STAFF. SERVICES THAT THE STAFF PROVIDE ARE OFFERED IN FOUR DIFFERENT LEVELS. THESE SERVICES INCLUDE ASSISTANCE WITH TAKING MEDICINE, BATHING AND/OR GROOMING, AND 24 HOUR NURSING SUPERVISION. IN ADDITION TO NURSING SERVICES, THE ORGANIZATION ALSO MAINTAINS A DIETARY STAFF IN ORDER TO PROVIDE THREE NUTRITIOUS MEALS. 4590424 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 X 13 0 1 57 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X VALLEY MANAGEMENT CO INC 5402652177 367 HERSHBERGER RD NW ROANOKE VA 24012 X GLEN C COMBS DIRECTOR 1.00 6.00 X X 0 53550 0 EDWIN R FEINOUR DIRECTOR 1.00 4.00 X 0 45600 0 NATHANIEL BISHOP DIRECTOR 1.00 4.00 X 0 43320 0 LUCIAN Y GROVE JR DIRECTOR 1.00 3.00 X 0 45100 0 CYNDA A JOHNSON DIRECTOR 1.00 3.00 X 0 45100 0 ROBERT C LAWSON CHAIRMAN 1.00 4.00 X X 0 56250 0 KATHRYN K OELSCHLAGER VICE-CHAIR 1.00 3.00 X 0 47800 0 ROBERT H SANDEL DIRECTOR 1.00 4.00 X 0 51938 0 JOHN B WILLIAMSON III DIRECTOR 1.00 5.00 X 0 20775 0 JOE HOFF CEO 4.00 36.00 X 0 509775 18335 MICHAEL SHANNON CFO 2.00 38.00 X 0 389942 14076 CINDY MITCHELL BOARD SECRETARY 1.00 39.00 X 0 71431 1286 ANGELA HUGHES VP OF HUMAN RESOURCES AND COMPLIANCE 2.00 38.00 X 0 192351 10429 MARY RODGER DIRECTOR OF ACCOUNTING 2.00 38.00 X 0 174648 16076 STEPHANIE DUNCAN DIRECTOR OF REVENUE CYCLE 2.00 38.00 X 0 131760 10750 TODD LOWE DIRECTOR OF INFORMATION SYSTEMS 2.00 38.00 X 0 128765 15105 ASHLEY JEWELL DIRECTOR OF HUMAN RESOURCES 2.00 38.00 X 0 112257 8546 0 2120362 94603 0 0 1 0 0 120338 120338 ROOM & BOARD 623000 3655391 3655391 MISCELLANEOUS 623000 50437 50437 PT/OT/ST 623000 43850 43850 BEAUTY SHOP 623000 14135 14135 3763813 130287 130287 5613 0 5613 5613 5613 EMPLOYEE RETENTION CREDIT 900099 5941427 5941427 INTERCOMPANY DIVIDEND 900099 1982298 1982298 LAUNDRY SERVICES 812300 17149 17149 7940874 11960925 9705240 17149 2118198 124739 124739 1809675 1535061 274614 15377 14124 1253 106690 97999 8691 132344 113777 18567 5000 5000 2060 2060 90021 90021 7298 437 6861 19121 19121 1857 1402 455 746495 681292 65203 816459 745145 71314 41120 37528 3592 MISCELLANEOUS AND SUPPL 541988 57179 484809 PRE-DEVELOPMENT COSTS 464686 464686 FOOD 165827 165827 TEMP LABOR 160015 160015 320764 301192 19572 5571536 4590424 981112 0 2830899 10153137 18564 19219 3068176 3630912 10488 449034 18319 12430965 650792 92936 11780173 222567 465193 0 4657688 6682176 30735129 88095 438475 3644141 20959728 3732236 21398203 X 2949940 9336926 2949940 9336926 6682176 30735129 6389389 -2403 0 X X 0 1 X 1 0 X 120338 120338 3763813 3763813 3884151 3884151 0 0 0 3884151 130287 130287 130287 130287 17149 17149 5941427 5941427 9973014 9973014 0.38950 0.01310 X PART IV, SECTION A, LINE 1 THE SUPPORTED ORGANIZATIONS ARE ALL DESIGNATED THROUGH COMMON OWNERSHIP AS SUBSIDIARIES OF FRIENDSHIP FOUNDATION. PART IV, SECTION D, LINE 3 THE CORPORATION AND ITS SUPPORTED ORGANIZATIONS SHARE THE SAME BOARD OF DIRECTORS AND THEREFORE THE SAME VOICE IN DECISION-MAKING. PART IV, SECTION E, LINE 2A THE CORPORATION PERFORMS MARKETING SERVICES FOR ITS SUPPORTED NONPROFIT ORGANIZATIONS: FRIENDSHIP HEALTH AND REHAB CENTER, INC., FRIENDSHIP APARTMENT VILLAGE CORP., EASTWOOD ASSISTED LIVING, INC., FRIENDSHIP OUTPATIENT & WELLNESS SERVICES, AND FRIENDSHIP HEATH AND REHAB CENTER SOUTH, INC. PART IV, SECTION E, LINE 2B THE CORPORATION'S ASSUMPTION OF MANAGEMENT FUNCTIONS EASES THE BURDEN OF ADMINISTRATIVE TASKS THE SUPPORTED ORGANIZATIONS WOULD OTHERWISE PERFORM ON THEIR OWN. THIS ALLOWS THE SUPPORTED ORGANIZATIONS TO MORE EASILY FOCUS ON SERVING THEIR PATIENTS AND RESIDENTS. PART IV, SECTION E, LINE 3A THE CORPORATION AND ITS SUPPORTED ORGANIZATIONS SHARE THE SAME BOARD OF DIRECTORS. THE BOARD IS DESIGNATED BY FRIENDSHIP FOUNDATION AND THIS IS PRESCRIBED IN EACH SUPPORTED ORGANIZATION'S BYLAWS. PART IV, SECTION E, LINE 3B THROUGH THE CONTROL AND NOMINATION OF THE CENTRAL BOARD OF DIRECTORS, FRIENDSHIP FOUNDATION IS ABLE TO EXCERCISE SUBSTANTIAL DIRECTION OVER ITS SUPPORTED ORGANIZATIONS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 314382 314382 11303065 359355 10943710 290583 111057 179526 505336 180380 324956 17599 17599 11780173 GOODWILL 3532688 EARNEST DEPOSIT 1125000 4657688 DUE TO/FROM AFFILIATES 4380427 BONDS PAYABLE 16520313 PREPAID RENT 20393 DEFERRED CLOSING COSTS 38595 20959728 X 11969235 -4463 12773 8310 11960925 0 11960925 5582248 2 2 5582246 -10710 -10710 5571536 PART X, LINE 2: FRIENDSHIP FOUNDATION IS A NOT-FOR-PROFIT COMPANY UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND IS NOT GENERALLY SUBJECT TO INCOME TAXES UNDER PRESENT TAX LAWS. FRIENDSHIP FOUNDATION, INC HAS DETERMINED IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF JUNE 30, 2023. PART XI, LINE 2D - OTHER ADJUSTMENTS: BAD DEBT 12,773. PART XI, LINE 4B - OTHER ADJUSTMENTS: PRE DEVLOPMENT COSTS PART XII, LINE 2D - OTHER ADJUSTMENTS: PRE DEVELOPMENT COSTS ROUNDING 2. PART XII, LINE 4B - OTHER ADJUSTMENTS: INVESTMENT EXPENSE 2,063. BAD DEBT -12,773. 1 FINANCIAL ASSISTANCE TO RESIDENTS 75522 THE MARGARET PECK ARTIE FOSTER MEMORIAL FUND 21813 PART I, LINE 2: FRIENDSHIP FOUNDATION DOES NOT ISSUE GRANT FUNDS, BUT CHARITABLE DONATIONS AS LISTED IN PART II. X X X X X X 0 1 0 0 0 1 1 0 0 JOE HOFF CEO 0 372416 0 116732 0 20627 0 7617 0 10718 0 528110 0 0 MICHAEL SHANNON CFO 0 294294 0 79411 0 16237 0 8479 0 5597 0 404018 0 0 ANGELA HUGHES VP OF HUMAN RESOURCES AND COMPLIANCE 0 161077 0 31197 0 77 0 4832 0 5597 0 202780 0 0 MARY RODGER DIRECTOR OF ACCOUNTING 0 166489 0 8082 0 77 0 4510 0 11566 0 190724 0 0 PART I, LINE 4B C. MICHAEL SHANNON RECEIVED $16,323 FOR A NON-QUALIFIED RETIREMENT PROGRAM. JOE HOFF RECEIVED $20,736 FOR A NON-QUALIFIED RETIREMENT PROGRAM. THE PROGRAM IS AN EXECUTIVE INVESTMENT TRUST PLAN FOR HIGHLY COMPENSATED AND MANAGEMENT EMPLOYEES. EACH PRESENT AND FUTURE EMPLOYEE OF THE COMPANY AND ITS SUBSIDIARIES WHOM THE COMMITTEE (THE EMPLOYMENT COMPENSATION COMMITTEE OF THE BOARD) DETERMINES TO BE AN ELIGIBLE EMPLOYEE SHALL BE ELIGIBLE TO RECEIVE AN AWARD UNDER THE PLAN. THE EMPLOYEE MUST BE A FULL-TIME ACTIVE PARTICIPANT TO RECEIVE THE AWARD. PART I, LINE 6 THE INDIVIDUALS RECEIVED VARIABLE COMPENSATION PAYMENTS BASED ON A PERFORMANCE SCORECARD. IN TURN, THE SCORECARD MEASURES ARE BASED ON A NUMBER OF MEASURES IN THE CATEGORIES OF FINANCIAL PERFORMANCE, QUALITY PERFORMANCE, INNOVATION AND GROWTH. FOR THE AFFILIATED CORPORATIONS, JOSEPH HOFF, PRESIDENT AND CEO, RECEIVED $116,732, C. MICHAEL SHANNON, CFO, RECEIVED $79,411, BENJAMIN HIGGINS, DIRECTOR OF HEALTHCARE OPERATIONS, RECEIVED $35,908, CINDY MITCHELL, SECRETARY, RECEIVED $6,005. FORM 990, PART III, LINE 2 FRIENDSHIP FOUNDATION IS THE SOLE MEMBER OF FRIENDSHIP SALEM TERRACE, WHICH IS RECOGNIZED AS A DISREGARDED ENTITY FOR TAX PURPOSES. PROGRAM SERVICE ACTIVITY FROM FRIENDSHIP SALEM TERRACE IS NOW BEING REPORTED ON THE FRIENDSHIP FOUNDATION TAX RETURN AND HAS RESULTED IN SIGNIFICANT PROGRAM SERVICE UNDERTAKINGS THAT WERE NOT LISTED ON THE PRIOR FORM 990. SCHEDULE A HAS BEEN UPDATED ACCORDINGLY. PART V, LINE 2B FRIENDSHIP HEALTH AND REHAB CENTER, INC, EIN 23-7126857 IS THE PAYMASTER FOR TEN RELATED C CORPORATIONS WHICH HAVE EMPLOYEES. THIS CORPORATION PAYS ALL EMPLOYEES AND PREPARES AND FILES ALL REQUIRED FEDERAL PAYROLL RETURNS. EACH CORPORATION AND ITS EMPLOYEES ARE AS FOLLOWS: FRIENDSHIP HEALTH AND REHAB CENTER INC 439 EMPLOYEES FRIENDSHIP APARTMENT VILLAGE CORP 24 EASTWOOD ASSISTED LIVING, INC 77 PROFESSIONAL HEALTH CARE SERVICES, INC 53 FRIENDSHIP PHARMACY, INC 30 VALLEY MANAGEMENT CO, INC 45 LTC SERVICES, INC 34 FRIENDSHIP OUTPATIENT & WELLNESS SERVICES, INC 8 FRIENDSHIP FOUNDATION 1 FRIENDSHIP HEALTH AND REHAB CENTER SOUTH 223 FRIENDSHIP SALEM TERRACE 56 FRIENDSHIP PHYSICIAN CLINIC 6 TOTAL 996 FORM 990, PART VI, SECTION B, LINE 11B AN INDEPENDENT ACCOUNTING FIRM PREPARES THE FORM 990 AND FORWARDS IT TO THE CFO AND CEO FOR REVIEW. THE CFO AND CEO RETURN THE FORM 990 TO THE CPA TO RESOLVE QUESTIONS AND MAKE CHANGES. THE FORM 990 GOES BACK TO THE CFO AND CEO TO ENSURE QUESTIONS AND CHANGES HAVE BEEN MADE. A COPY OF THE FORM 990 IS THEN PROVIDED TO EACH BOARD MEMBER BY THE CFO APPROXIMATELY TWO WEEKS PRIOR TO THE DUE DATE. THEY ARE GIVEN ONE WEEK TO REVIEW AND FORWARD QUESTIONS TO THE CFO. REVIEW QUESTIONS ARE RESOLVED AND THE FORM 990 IS FILED. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY IS INCLUDED IN BOTH THE EMPLOYEE HANDBOOK AND THE CODE OF CONDUCT, WHICH IS ISSUED TO AND DISCUSSED WITH EACH EMPLOYEE AND BOARD MEMBER. AN ANNUAL LETTER AFFIRMING THE POLICY AND ASKING FOR WRITTEN DECLARATIONS OF ANY POTENTIAL CONFLICTS IS SENT TO ALL BOARD MEMEBRS AND APPROXIMATELY 20% OF EMPLOYEES (ALL MANAGERS, BUSINESS OFFICE STAFF, PURCHASING DEPARTMENT STAFF, HUMAN RESOURCES STAFF, ETC). RESPONSES ARE REVIEWED BY THE CORPORATE COMPLIANCE OFFICER, REPORTED TO THE BOARD, AND ACTED UPON AS NEEDED. ALSO, THE CORPORATION IS AWARE OF THE BUSINESS AFFILIATIONS OF OFFICERS AND DIRECTORS AND ENSURES THAT EACH IS AWARE OF THE AFFILIATIONS. WHENEVER DISCUSSIONS OCCUR IN WHICH A CONFLICT EXISTS, THE INDIVIDUAL RECUSES THEMSELF FROM THE PROCEEDINGS SO THE OTHER MEMBERS CAN DISCUSS THE MATTER FREELY. EACH YEAR AT ITS CORPORATE GOVERNANCE COMMITTEE MEETING AND ANNUAL BOARD MEETING A REPORT IS MADE TO THE BOARD OF DIRECTORS DESCRIBING THE BUSINESS AFFILIATIONS AND ANY BUSINESS TRANSACTIONS THAT OCCURRED DURING THE YEAR BETWEEN THE CORPORATION AND THE EXTERNAL BUSINESSES IN WHICH THE DIRECTORS OR OFFICERS ARE INVOLVED. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE BOARD ROUTINELY ENGAGES AN EXTERNAL CONSULTANT TO REVIEW BENCHMARK COMPENSATION DATA FOR THE CEO AND OTHER KEY MANAGEMENT POSITIONS. A NUMBER OF NATIONALLY RECOGNIZED SALARY SURVEYS ARE UTILIZED AS PART OF THIS PROCESS AND THE CONSULTANT'S WRITTEN REPORT IS RECEIVED BY THE COMPENSATION COMMITTEE AND THE FULL BOARD ANNUALLY. THE COMPENSATION COMMITTEE REVIEWS THE COMPENSATION FOR EACH MEMBER OF THIS GROUP UTILIZING THE BENCHMARK DATA AND ANY ADJUSTMENTS IN COMPENSATION ARE RECOMMENDED FROM THE COMPENSATION COMMITTEE TO THE FULL BOARD FOR CONSIDERATION AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 UPON REQUEST, THE COMPANY WILL PROVIDE COPIES OF GOVERNING DOCUMENTS, POLICIES, FINANCIAL STATEMENTS, AND FORM 990S TO PERSONS ASKING FOR THE DOCUMENTS. FORM 990, PART VII THE ORGANIZATION SHARES BOARD MEMBERS AND OFFICERS WITH RELATED ORGANIZATIONS. THE AVERAGE HOURS A WEEK THAT EACH INDIVIDUAL SPENDS WITH EACH ORGANIZATION IS AS FOLLOWS: VALLEY MANAGEMENT CO, INC: EDWIN R. FEINOUR 4.00 GLEN C. COMBS 6.00 ROBERT C. LAWSON 4.00 ROBERT H. SANDEL 4.00 KATHRYN K. OELSCHLAGER 3.00 JOSEPH M. HOFF 2.00 C. MICHAEL SHANNON 2.00 NATHANIEL BISHOP 4.00 JOHN WILLIAMSON 5.00 CYNDA JOHNSON 3.00 LUCIAN GROVE JR. 3.00 PART XII, LINE 2 THE CORPORATION PARTICIPATES IN A CONSOLIDATED AUDIT WITH AFFILIATED COMPANIES REPORTED ON SCHEDULE R. WHEN FINISHED, THE AUDITED STATEMENTS ARE PRESENTED TO THE FINANCE COMMITTEE AND THE BOARD OF DIRECTORS BY THE EXTERNAL AUDITORS. PART XII, LINE 2C THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FRIENDSHIP SALEM TERRACE 367 HERSHBERGER RD NW ROANOKE VA 24012 883268472 ASSISTED LIVING FACILITY VA FRIENDSHIP FOUNDATION FRIENDSHIP HEALTH AND REHAB CENTER INC 367 HERSHBERGER RD NW ROANOKE VA 24012 237126857 LONG TERM NURSING CARE VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP APARTMENT VILLAGE CORP 367 HERSHBERGER RD NW ROANOKE VA 24012 540842686 INDEPENDENT LIVING HOUSING VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 EASTWOOD ASSISTED LIVING INC 367 HERSHBERGER RD NW ROANOKE VA 24012 540738784 ASSISTED LIVING FACILITY VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP OUTPATIENT & WELLNESS SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 260152373 OUTPATIENT THERAPY SERVICES VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP HEALTH AND REHAB CENTER SOUTH 367 HERSHBERGER RD NW ROANOKE VA 24012 454983293 REHAB AND NURSING FACILITY VA 501(C)(3) LINE 11 FRIENDSHIP FOUNDATION 1 FRIENDSHIP PROPERTIES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541262492 LEASING COMPANY VA N/A C 0 PROFESSIONAL HEALTH CARE SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541421581 HOME CARE SERVICES VA N/A C 0 FRIENDSHIP PHARMACY INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461437 PHARMACY SERVICES VA N/A C 0 VALLEY MANAGEMENT COMPANY INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461444 MANAGEMENT VA FRIENDSHIP FOUNDATION C 1.00000 0 LTC SERVICES INC 367 HERSHBERGER RD NW ROANOKE VA 24012 541461441 MAINTENANCE VA N/A C 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 0 0 FRIENDSHIP HEALTH AND REHAB CENTER INC P 64080 CASH FRIENDSHIP APARTMENT VILLAGE CORP L 210141 CASH FRIENDSHIP HEALTH AND REHAB CENTER INC F 1100000 CASH FRIENDSHIP APARTMENT VILLAGE CORP F 882298 CASH