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â€˜10-â€™11 the year in review
Mother moved to Cedar Ridge 15 years ago. We were encouraged by the promise that she could have care at Cedar Community as long as she needed it. After 11 wonderful years, we began to notice a change … and she needed more care. We knew Mom’s finances were low and they ran out while she was in your assisted living. Eventually she had to move to (skilled memory loss care). Through all this, Mom was treated so lovingly. When we visited, she always had a smile, her hair was done … she was dressed appropriately. She was always treated with love and patience; she never lost her dignity thanks to all of you.
Thank you for keeping your promise.
The family of Helen J.
TABLE OF CONTENTS
Meet Our Board Members..........................03 – 04 Our Beliefs..................................................05 – 06 2010 Accomplisments.................................07 – 08
Message From Foundation President..........13 – 14
But all who listen to me will live in peace, untroubled by fear of harm.
Message From CFO....................................15 – 16
Message From CEO....................................09 – 10 Message From Board President...................11 – 12
Financials....................................................17 – 18
We Are Cedar Community..........................19 – 20
MEET OUR BOARD MEMBERS
Benevolent Corporation Cedar Community Officers Dale Pauls, President Gary Draeger, Vice President James Wesson, Treasurer Joan Adler, Secretary Board of Directors Robert Fremder Rev. Kathryn Kuhn Jim Riehle John Smithers Heidi Thomas Jayne Wick
Cedar Community Foundation Officers Dale Kent, President Richard Eschner, Vice-President Robert Fremder, Treasurer Richard Mehring, Secretary Board of Directors Joe Carlson Andrew Gonring Prudence Pick Hway Steve Jaberg Dale Pauls Jim Podewils Jeff Reigle Mike Schilling John Smithers Heidi Thomas Carl Ziegler Doug Ziegler
And this same God who takes care of me will supply all your needs from his glorious riches, which have been given to us in Christ Jesus.
Our mission: Cedar Community is a faith-based organization dedicated to creating relationships, services and environments that enhance the lives of individuals we serve. Our philosophy: We believe that all individuals should have the opportunity to live out their lives with purpose. Our vision: In accordance with our values, Cedar Community will offer a compelling array of services in response to the needs of the community. Our values: Cedar Community will meet the needs of those we serve holding ourselves to the following values: · Excellence in operations and ministries · Ethical and moral standards · Fiscal responsibility · Stewardship of resources · Wellness and wholistic care · Visionary leadership · Christian foundation · Organizational friendliness · Respect for the individual
For I know the plans I have for you,” says the Lord. “They are plans for good and not for disaster, to give you a future and a hope.
Summary of accomplishments by residents, volunteers and staff of Cedar Community 2010 · Substantial increase in occupancy at Cedar Bay Assisted Living in Elkhart Lake. · Created a “Green Team” consisting of residents studying environmental conservation at Cedar Community. · Began “Dime A Day,” a staff fundraising campaign which motivated over 150 staff members to give at least ‘a dime a day’ to Cedar Community Foundation’s ‘Partners In Caring®’ drive and/or the Washington County United Way. · Increased use of our Cedar Valley Center by adding a variety of new educational programs and events. · Launched the new ‘Sandwich Generation’ website to provide support and resources to caregivers. · Added photovoltaic solar panels at our Cedar Ridge campus. The majority of the 160 solar panels’ cost was covered by Wisconsin Energy and Focus on Energy grants. · Cedar Community volunteers set a new high mark by providing more than 35,700 volunteer hours! · Cedar Lake Health and Rehabilitation Center experienced a 6.6 percent increase in new admissions. Cedar Crossings subacute experienced a 23.4 percent increase in new admissions.
· Through the joint efforts of the Cedar Community Corporate and Cedar Community Foundation Board of Directors a basic master site plan was created for future development of its new Cedar Run campus just south of Cedar Ridge. · Enough 2010 Annual Benefit Gala funds were raised to renovate the newly named ‘Sunrise’ Courtyard located off the southern area of Friendship House. submitted by: Steve Jaberg, CEO
No, despite all these things, overwhelming victory is ours through Christ, who loved us.
· The Cedar Community Director of Ministry, Rev. Susan Kolb, created a ‘blog’ from the main page of www. cedarcommunity.org for spiritual messages and matters.
MESSAGE FROM CEO
Cedar Community’s 2010-11 fiscal year ended June 30, 2011. The consolidated balance sheet (corporate and foundation) of our annual WIPFLI Audit shows an increase in total net assets of approximately $2.8 million dollars over the previous fiscal year. While total operations created a $942,000 corporate loss, it was actually quite an improvement over a $1.7 million loss the previous year. Donations and interest income offset our operational losses. Cash flows remain positive and strong. Cedar Community, led by its Board of Directors and administrative team, continues to monitor the affects of inadequate Medicare and Medicaid reimbursements. This year, our Medicaid losses alone to the Cedar Lake Health and Rehabilitation Center amount to approximately $2.3 million dollars. As a not-for-profit, church-affiliated 501(c) 3 organization, we are constantly challenged to provide the highest level of quality health care to people of all socioeconomic backgrounds. While our Philanthropy Department, along with our corporate and foundation boards, does a wonderful job encouraging donors to support our mission and ministry, I believe in my heart the best fundraising occurs thanks to our ‘caring staff!’ It is the dedication and skills of our nurses, certified nursing assistants, social workers, activity staff, therapy staff, pharmacy staff, dietary staff, housekeeping staff, custodial staff, and others make all the difference. Based on their work, residents and their families want to ‘give back’ and donate. This support is vital to not-for-profit health care organizations. I am ever grateful to our staff and donors! As you review our Annual Report, please know our work and successes are the result of several factors: Commitment to our Mission. “Cedar Community is a faith-based organization dedicated to creating relationships, services and environments that enhance the lives of individuals we serve.”
Striving to literally be ‘The World’s Friendliest Organization!’ Creating relationships always begins by simply saying, “Hello,” and saying it to everyone we meet. YES it can be that simple! All Cedar Community residents, staff and volunteers are committed to greeting all and creating a caring community as we seek to lead the world by example! Adopting and applying a corporate Rolling Strategic Plan. The Board has created a concise and significant corporate strategic plan that is reviewed and altered every four months. This incredibly innovative and flexible approach allows Cedar Community to respond quickly to community needs and opportunities. Living the Not-for-Profit Difference. While fiscally responsible, Cedar Community uses its resources to enhance quality of life for its residents, not investors! Providing Purposeful Living for all Cedar Community residents through creative activities, education and social interactions which bring meaning and personal fulfillment. Spiritual Connectedness. Through ministerial professionals and volunteers, Cedar Community trains and uses the skills of Abiders, Stephen Ministers and Cedar Chaplains to reach out to the spiritual needs of all associated with Cedar Community. We look beyond 2011, not with fear or trepidation, but rather with anticipation and enthusiasm. We will continue to reach out to even more people needing our services; we plan on growing our organization and its mission, and we intend to develop competitive advantages through innovation! I believe Cedar Community faces a bright future … “And we know that in all things God works for the good of those who love him, who have been called according to his purpose.” (Romans 8:28)
And we know that in all things God works for the good of those who love him, who have been called according to his purpose. Romans 8:28
MESSAGE FROM BOARD PRESIDENT
I recently had the opportunity to attend, on behalf of the Cedar Community Board of Directors, the national conference of LeadingAge. This organization, formerly known as AAHSA (American Association of Homes and Services for the Aging), held its 50th anniversary celebration this October in Washington D.C. LeadingAge began in 1961 when 99 men and women met at Arden House on the shores of the Hudson River. Fifty years later, that original meeting has created an association of not-for-profit senior health care and retirement communities that has members throughout the United States and influences national policy and encourages innovative programming for seniors. What was especially remarkable is that for the first time ever LeadingAge held its national conference with its international counterpart IAHSA (International Association of Homes and Services for the Aging). Over 1000 senior health care professionals from 43 nations joined 7,000 U.S. professionals sharing news, research and educational sessions focused on senior health care and retirement housing matters such as: Resident-centered Design; Alzheimer’s Disease updates; Board Governance; Enhancing Marketing Plans; Sustaining a Culture of Safety; Regulatory Barriers in the Nursing Home; Intergenerational Collaborations; and much, much more. As the Cedar Community Board President and a former Senior Health Care Center administrator, I attended educational sessions with a focus on board governance, strategic planning and regulations. In addition to attending educational sessions, I had the opportunity to speak with several other members of Boards of Directors of organizations similar to Cedar Community. This informative experience only helped reinforce my feeling that Cedar Community is a special organization. We have a dedicated board of directors who provides a strong vision of what Cedar Community could be in the future as well as a true sense of corporate mission and a respect for fiduciary over sight.
Also, the board’s policies and procedures assure adherence to legal and ethical operations of the organization. The CEO and his administrative team continue to provide excellent leadership and bring new and innovative ideas to each of our campuses. All of our employees are exemplary in their skills, dedications, insights and enthusiasm, but most of all their loving concern for our residents. Cedar Community reached a new level of excellence as an organization in 2011. We faced challenges successfully; we took advantage of opportunities; we laid out plans for the future; and we advanced our mission and ministry. The Board of Directors looks forward to a pursuit of sustainability in the future but also a pursuit of strategic positioning that will continue to maintain Cedar Community as a premier senior health care and retirement community.
“I am leaving you with a gift – peace of mind and heart. And the peace I give is a gift the world cannot give. So don’t be troubled or afraid. John 14:27
MESSAGE FROM FOUNDATION PRESIDENT
As I was driving onto the campus at Cedar Community this fall, I noticed a few residents helping with the lawn work. I thought people moved to Cedar Community so they didn’t have to do that type of work anymore! I’m constantly reminded, however, how generous Cedar Community residents, staff members and community members are both financially and in volunteering of their time. Last fiscal year volunteers logged in 36,576 hours. That’s almost 18 full-time equivalent staff members, representing more than $768,000 in savings to the organization. Financially speaking, the Cedar Community Foundation received $1.2 million in gifts this past fiscal year. This includes an estate gift of $700,000. Estate, or Legacy League gifts, continue to be a fundraising priority as they account for an average 55 percent of the gifts received by the Foundation annually. Legacy League gifts also have helped the Foundation build its assets to over $11 million while distributing $600,000 annually in Cedar Community support. The Cedar Community Foundation board members take their responsibility of fiscal stewardship over the Foundation’s assets very seriously. The past year we maintained a conservative investment strategy with a blended risk of 50-50 between stocks and bonds. We believe this is something our donors would prefer.
... But those who trust in the Lord will find new strength ...
The turbulent economic outlook will continue to present fundraising challenges, but the generosity within our Cedar Community and beyond is a reflection of the quality and compassionate care we give each and every resident we serve. Thank you for believing in the work we do.
MESSAGE FROM CFO
As we enter the second decade of the 21st century, Cedar Community finds itself in a strong financial position. As you have read in CEO Steve Jaberg’s report, Cedar Community’s financial picture has improved rather significantly from 2010. While there continues to be challenges, such as reimbursement from the Medicare and Medicaid programs, the overall financial picture looks bright. On the balance sheet side of the equation, while Cedar Community has just over $29 million in debt, we also have over $32 million in cash and investments. Total net assets for the period ended June 30, 2011 is $42.4 million. Two of the financial ratios used by the banking industry to evaluate Cedar Community, both of which are covenants for the Cedar Community bonds, are the Debt Service Coverage Ratio (DSCR) and the ‘Days Cash on Hand.’ Cedar Community’s minimum requirement for the DSCR is 1.15. The current DSCR for is just over 3.2 compared to a DSCR of 2.3 for 2010. This increase from 2010 to 2011 reflects an even stronger capacity to cover both interest and principal payments on our debt. The minimum requirement for the ‘Days Cash on Hand’ is 100 days. Cedar Community is currently at 215 days cash on hand, up from 150 days the year before, another indication of our strong financial capacity. As we continue to move forward we expect continued challenges but we continually search for solutions to ensure Cedar Community will be around for years to come providing the best care possible as that is part of our promise to the community.
For the wages of sin is death, but the free gift of God is eternal life through Christ Jesus our Lord. Romans 6:23
Thank you to all our staff, residents, volunteers, family members, donors and board of directors for a successful year.
Cedar Community Foundation Assets (as of June 30, 2011)
Gift Annuities $284,618
Nurturing a Vision $3,734,847
Permanently Restricted Funds $112,180
PIC Campaigns (invested in land) $1,703,404 PIC Campaigns $6,436,522
Total Assets = $12,394,291
Temporarily Restricted $122,720
Benevolent Corporation Cedar Community Revenue Breakdown Retreat/Education 1%
Supplies and Services 22%
Assisted Living 17%
Benevolent Corporation Cedar Community Expense Breakdown
Independent Living 13%
Health & Rehabilitation 51%
Wages and Benefits 60%
Benevolent Corporation Cedar Community Year Ended June 30, 2011 vs. June 30, 2010 Revenue Health & Rehab Assisted Living Independent Living Ancillaries Retreat/Education Donations Applied to Operations Total Revenue
2011 $21.46 $7.35 $5.45 $7.79 $0.34
2010 $20.36 $6.70 $5.49 $7.60 $0.29
(in millions) Expense 2011 Wages & Benefits $26.19 Utilities $1.54 Non Labor $9.61 Fixed $6.07 Total Expense $43.41 Operating Loss ($.94) Non Operating Income $1.47 Interest Rate Swap Value Change .69 Net Income $1.22 Debt Service Coverage Ratio 3.08
2010 $25.67 $1.48 $9.09 $6.02 $42.26 ($1.75) $1.54 -.98 ($1.19) 2.67
WE ARE CEDAR COMMUNITY
Cedar Lake Health and Rehabilitation Center Quality long-term and skilled nursing care Cedar Crossings Subacute Care Short-stay, rehabiliatative and recuperative care Cedar Crossings Subacute Care at Pleasant Valley Short-stay, rehabiliatative and recuperative care
Cedar Community Foundation Providing support to help carry out Cedar Community’s mission Cedar Haven Rehabilitation Services Outpatient physical, occupational, speech and massage therapy for adults
Friendship House Assisted Living Specialized assisted living for those with memory loss
“Come to me, all you who are weary and burdened, and I will give you rest. Take my yoke upon you and learn from me, for I am gentle and humble in heart, and you will find rest for your souls.
Cedar Lake Village Homes Independent, single family homes for active retirees
Cedar Community Home Health and Hospice Home-based medical services throughout Washington, Ozaukee and Sheboygan Counties Cedar Community Supportive Care Non-medical assistance with daily living, errands and chores for those at home Cedar Bay Assisted Living Apartment living for older adults who require some assistance
Cedar Landing at Elkhart Lake Independent, side-by-side homes for active retirees Cedar Ridge Apartments Apartment living for independent, active retirees
Cedar Valley Center and Spa Pastoral country setting for retreats, meetings, reunions, special events and spa services Ye Olde School/Heritage House Joining the generations through education and living history Independence Store Affordable variety of durable medical equipment to help maintain independence
5595 County Road Z West Bend, WI 53095 262.306.2100 cedarcommunity.org
Cedar Communities 2011 Annual Report