2012 Annual Report

Annual Report

2012

Masonic Home of Missouri

Board of Directors

John W. Hess, Honorary Chairman/GM

David L. Ramsey, PresidentJon B. Broyles, Vice PresidentDavid W. Haywood, Secretary

C. Brent Stewart, TreasurerDale M. Bryan

Barry V. CundiffSteven D. Duncan

Jeffrey D. LeeH. Lee Stallings

Thomas L. TrumanCharlie Wiegert

William E. Zimmerman

Executive Director Keith Neese

Director of Outreach Programs

Barbara Ramsey

Director of FinanceJodi Blake

EditorRhonda Stone Lightfoot

Masonic Home of Missouri6033 Masonic Drive, Ste A

Columbia, MO 65202(573) 814-4663(800) 434-9804

Contents

Masonic Home of MissouriAnnual ReportPage 1

2 Report of the President David L. Ramsey, Board of Directors

3 A Year of Change Keith Neese, Executive Director

Missouri Outreach Programs Barbara Ramsey, Director of Outreach Programs

Financial Report 2012 Jodi Blake, Director of Finance

5

9

11 Independent Auditors’ Report Williams Keepers, LLC

32 Supplementary Information

4 Organizational Chart - Masonic Home of Missouri Keith Neese, Executive Director

8 Assistance by Region Barbara Ramsey, Director of Outreach Programs

12 Fiscal Year 2012 Financial Statements

17 Notes to the Financial Statements

This past year has been a year of change and new

beginnings. As we entered into our first year without a “bricks and mortar” facility, your Masonic Home con-

tinued to provide for those in need of services though our nationally recognized Outreach Services pro-grams. Your donations, through the President’s Year End Appeal, along with donations and earnings from estates and trusts enabled us to fulfill our mission “To assist eligible adults and children in need by practicing the principles of Freemasonry.”

Outreach ProgramsThe Outreach Programs were more clearly defined and expanded to include two new programs during this past year. The programs and a brief description follows.

1. Short-Term Financial Assistance Program - provides short term financial relief such as help with dental needs and eyeglasses to eligible Missouri Master Masons, their wives/widows and female members of the Order of the Eastern Star.

2. Long -Term Financial Assistance Program - provides financial assistance for longer periods for such things as assisted living care to eligible Missouri Master Masons, their wives/widows and female mem-bers of the Order of the Eastern Star.

3. Children’s Financial Assistance Program - pro-vides financial assistance for the medical care needs of legal dependents of Missouri Master Masons or female members of the Order of the Eastern Star.

4. Creating-A-Partnership Program (CAP) - is a matching funds program through which the Masonic Home of Missouri partners with the local Lodge/Chapter to assist children with needs in their commu-nities.

Report of the PresidentDavid L. RamseyPresident, Board of Directors

5. Social Services Program - helps individuals locate needed services throughout the state. Provides lodges with directories of the various services avail-able in their district.

6. Widow’s Program - developed to bring Ma-sonic Widows, the local Masonic Home Representa-tives and the Masonic Home of Missouri together to recognize and assist our Masonic Widows when needed. The Masonic Home of Missouri hosts lun-cheons throughout the state to inform and educate the widows of the available MHM programs

7. Masonic Family Cares - This program con-nects lodges and chapters with members of the fra-ternity that don’t necessarily need financial assistance but might need a helping hand around the house or just a friendly face to visit and check on them.

8. Financial Counseling - our newest program, it works in conjunction with the Financial Assistance Programs to help our members learn life skills, such as budgeting and debt management.

Annual Audit & Financial ConditionI am pleased to report that the Masonic Home of Mis-souri’s audit for the year ending June 30, 2012 was cer-tified by an Independent Auditor and that they found the Masonic Home of Missouri to be in compliance with generally accepted accounting principles with no deficiencies that required corrective action. The com-plete audit is appended to and incorporated as a part of this report.

The state of the economy and low interest rates con-tinue to have an effect on the earnings of the organi-zation’s investments. However, your Masonic Home of Missouri staff continues to look for ways to provide our services in a cost effective manner. That attention to detail along with the sale of the Kansas City facility and a generous, unrestricted donation, allowed your Masonic Home of Missouri to end the year with posi-tive margins.

Masonic Home of Missouri Annual Report Page 2

This is the first Annual Report of the Masonic Home of Missouri. So much good is accomplished through the programs of the Masonic Home and we wanted to

share that with you. I hope you find this Report useful, and it enables you to famil-iarize yourself with the Mission of the Masonic Home of Missouri, the Programs, the Staff, the Board, the financial status, and the effectiveness of the operation of the Home.

The Masonic Home Fiscal Year of July 1, 2011 through June 30, 2012 was a year of significant change and transi-tion. During the past several years, the Masonic Home of Missouri Board of Directors discussed and planned for the sale of the Kansas City Assisted Living Facility, which occurred just prior to the beginning of this fiscal year. The sale of the facility created both anticipated and unanticipated change.

Because the facility was sold, rather than closed, the residents were able to make a choice to remain at the facility under the new ownership or make a move to a different facility. The new owners had to make staffing changes, but they attempted to retain staff as demonstrated when the Director of Nursing was appointed Administrator of the facility. The Home anticipated that the new owner would not be able to retain all staff; therefore, a reserve was established to cover unemployment compensation benefits. In addition to staffing changes at the facility, the Cor-porate Office reduced staffing as well. The Human Resource Manager’s position was eliminated, due to an overall reduction in full-time staff, thereby no longer warranting a full-time employee. The Accounting Department re-structured from four to three positions and absorbed the human resource function.

Although the staffing changes noted above were anticipated due to the sale, there have been additional Corporate Office staffing and restructuring changes that were not anticipated. The Home had already moved away from lodge presentations and was attempting to move toward amplifying the role of the Masonic Home Representatives in each lodge. This change in focus along with unexpected staffing changes allowed the Home to reduce the number of staff in this area as well. The department was redefined as management recognized the true purpose to be that of Program Communication. Therefore, the Outreach Department absorbed this function with one staff person communicating the Home’s message, working in conjunction with the Masonic Home Representatives to educate the membership about the eight Outreach Programs of the Masonic Home of Missouri. The Home also filled the vacant Donor Relations Specialist position and reassigned that function to the accounting department, due to the nature of the tasks. This reorganization has allowed the Home to streamline from four to two managers, one to direct the efforts of the programs to carry out the Mission of the Home and the other to manage the fiduciary oversight of the Home.

The 2012 Fiscal Year also brought with it great opportunity. The Board of Directors recognized the need to re-define and build upon the Outreach Programs. The Outreach Program is no longer one program, and the Home provides far more than just financial assistance. The Outreach Program now consists of eight distinct programs; four financial and four non-financial. New this year to the financial programs was a redefinition of the adult finan-cial assistance programs, acknowledging that some individuals need long-term assistance, while others may only need short-term assistance. New this year to the non-financial programs was the addition of two new programs: the Masonic Family Cares Program and the Financial Counseling Program. Since the inception of the Outreach Program in 1991, the Masonic Home has continued to build on the original vision of the program that the Masonic Home of Missouri is not located in a specific city, it is right there in your community… We Are Where You Are. The partnership between Masons, Eastern Star members and the Masonic Home allows us to help each other and make a difference in our communities throughout the State.

A Year of ChangeKeith NeeseExecutive Director


Masonic Home of Missouri Organizational Chart

Masonic Home Board of Directors

Keith NeeseExecutive Director

Barbara RamseyDirector of

Outreach ProgramsJodi Blake

Director of Finance

Lara DieringerAccountant

Dana MorgenthalerOutreach Financial

Assistance Caseworker

Julie WieckenDonor Relations

Specialist

Alex RadmanAccounts Payable

Debbie SummersOutreach Financial

Assistance Caseworker

Tisha WoodardSocial Services &

Creating-A-PartnershipCaseworker

Carly DibbenFinancial Counseling

Caseworker

Rhonda Stone LightfootMembership Relations

Coordinator

Chantana IrvinMasonic Family Cares &

Widows Program Coordinator

John HendricksonBuilding Services

Engineer

Fran HaverichPart-Time

SwitchboardOperator

Jacque BallewPart-Time

SwitchboardOperator

As of 06/30/2012



Financial Assistance Programs

The Masonic Home of Missouri provided $1,269,430.28 in direct financial assistance to 156 Missouri Master Ma-sons, their wives, widows, female members of the Order of the Eastern Star, and children. An additional $79,276.01 of direct assistance was provided through the Creating-A-Partnership Program. The total assistance provided in Fiscal Year 2012 was $1,348,706.29 through the Outreach Programs.

Long-Term Financial Assistance ProgramThe Long-Term Financial Assistance program provides financial assistance for primarily elderly Missouri Masons, their wives, widows and female members of the Order of the Eastern Star. This assistance can help each month for someone living in a facility, such as an assisted living facility or independent living facility, or for someone liv-ing in their home or apartment. In the Masonic Home’s Fiscal Year 2012, the Home provided monthly financial assistance to 74 clients living in facilities throughout the state of Missouri and 6 clients in facilities in other states. The monthly assistance to clients in facilities totaled $944,031.94. The Home also provided monthly assistance to enable 14 clients to remain in their homes, totaling $111,788.00. Without this monthly assistance, these clients would not have been able to remain in their homes or facilities. They would not have been able to receive the level of care they needed, and may have been forced to prematurely move to an unnecessary level of care.

In addition to providing monthly assistance, the Home can provide clients assistance through one-time payments. Clients can receive multiple one-time payment assistance and/or monthly assistance. For example, a client might receive monthly assistance to remain in his home to pay for things such as utilities and medication. That same client could also receive assistance for a one-time payment to help pay an unexpected medical bill. The Masonic Home assisted 37 Long-Term Assistance clients with one-time payments totaling $82,909.30. Many of these cli-ents also received monthly financial assistance.

Short-Term Financial Assistance ProgramThe Short-Term Financial Assistance program provides monthly financial assistance primarily to younger Mis-souri Masons, their wives, widows and female members of the Order of the Eastern Star. This program recognizes that members of the fraternity may need assistance during unexpected hardships, such as an unexpected medical problem. Typically, Short-Term Assistance lasts 6 months or less, and qualified applicants may receive monthly as-sistance, one-time payments, or a combination of monthly and one-time payment assistance. In Fiscal Year 2012, the Masonic Home assisted 7 clients in their homes with monthly assistance totaling $31,172.00. In addition, the Home assisted 35 clients with one-time payments totaling $95,268.44. Four of the short-term assistance clients received both monthly assistance and one-time payments.

Children’s Outreach ProgramThe Children’s Outreach Program provides financial assistance to legal dependents of Missouri master Masons or Missouri female members of the Order of the Eastern Star. The Home provided assistance to 9 children totaling $4,260.60. This assistance helped parents purchase medication for their children, pay for medical bills, and pro-vide for necessary dental work.

Missouri Outreach ProgramsBarbara RamseyDirector of Outreach Programs


Creating-A-Partnership ProgramThe Creating-A-Partnership Program (CAP) is a matching funds program that creates a partnership between the Masonic Home and the Lodges/Chapters to assist children in their communities. The Masonic Home and 56 Lodges partnered together to provide $72,473.83 to children in need throughout the state, and the Home part-nered with 5 Chapters to provide $6,802.18. Through this partnership, Lodges and Chapters made a difference in the lives of over 2,593 children statewide. This year the CAP program was expanded to allow for a partnership to fund projects, in addition to assistance for an individual child or children. Several Lodges took part in this new aspect of the program, and 16 projects were approved. During the 2012 Fiscal Year, 19 Lodges/Chapters partici-pated in the CAP program for the first time, and 19 additional Lodges/Chapters have participated in the program 4 years or longer. This program makes a difference in the life of a child that would otherwise go without the things that so many of us take for granted, like a warm winter coat or food to eat during the weekend. Since the program began 9 years ago, over 25,400 children have directly benefited from the partnership created between the Home and the local Lodges and Chapters.

Non-Financial Programs

Social Services ProgramThe Masonic Home of Missouri helps individuals locate services throughout the state. When Missouri Masons, their wives, widows, and female members of the Order of the Eastern Star apply for help through the Financial As-sistance Programs, the staff completes an application with the client. In addition to determining financial need, the caseworker helps the client identify additional assistance available through other organizations and agencies. This information is also available to those individuals that do not require financial assistance, but may need help locat-ing services. The Masonic Home maintains a list of agencies and resources specific to each Masonic District state-wide, and this information is provided to the membership bi-annually and will soon be provided on the website.


Widows ProgramFor years, the Masonic Home has sent out condolence cards to families when a Missouri Mason passes away. In Fiscal Year 2012, the Masonic Home sent out 569 condolence cards to grieving families. If the Home is able to identify a Masonic widow, then a letter is sent to the Widow with her deceased husband’s Masonic information. Should she ever need assistance through the Financial Assistance programs, this card contains all the Masonic information a caseworker would need to verify membership requirements. The Masonic Home began working with lodges to share the list of widows. The Masonic Home provides a copy to the lodge and the lodges help the Home update the list.

The Masonic Home wanted to further connect the Masonic Widows to the Home and the Lodge, so the Home began to host Widows Luncheons to present a pin to the widows. These were so successful that the Home will be expanding the luncheons in the coming year, making them more inclusive of all Masonic ladies. The Masonic Home mailed out over 2,000 pins to widows who had yet to receive one, and would like the widows to wear them to the Ladies’ Luncheons and Teas that we will be hosting in the future. The Masonic Home will use the Luncheons and Teas to communicate to the wives, widows, and Order of the Eastern Star ladies about the wonderful Programs the Home offers. This will also provide an opportunity for the Masonic Home Representative to stay in touch with his Lodge’s Masonic widows.

Masonic Family Cares ProgramThe Masonic Family Cares Program was introduced as a formal program at the beginning of Fiscal Year 2012. The Masonic Home recognized that we could help facilitate connections between lodges, chapters, youth organizations and the Masonic brothers and sisters in their communities. Sometimes the Masonic Home receives requests from Masons or Order of the Eastern Star members, but the assistance needed is really a helping hand from the local Lodge or Chapter. The Masonic Home can act as a liaison between the member and the Lodge or Chapter, get-ting the two connected. Many Lodges and Chapters already provide this helping hand to their widows or elderly members, and the Masonic Home would like to help share those stories. We can all learn from each other, as we work toward making a difference in each other’s lives. Financial Counseling ProgramOver the years, it became evident that sometimes financial education is needed in conjunction with financial as-sistance. It is anticipated that many of the Financial Assistance clients will be referred to the Financial Counseling Program to help our members learn skills, such as budgeting and debt management. The Financial Counseling Program can also assist members and widows planning to make major changes to their lifestyles, such as moving to an assisted living facility, by helping to look at income, assets, and possible additional sources of income.

The Outreach Programs have been redefined and expanded to build on the importance of helping people in com-munities throughout the state. In addition, the Programs were expanded to strengthen each other. The first official Masonic Family Cares Program request in Fiscal Year 2012 came from a Masonic Widow attending a luncheon. She was referred to the Financial Assistance programs to determine if she had a financial need, and she was re-ferred to the Masonic Family Cares Program. The eight Outreach Programs work in conjunction with each other to meet the needs of Masonic and Eastern Star members. The Masonic Home of Missouri exists in every commu-nity that participates in any one of the eight Outreach Programs.

Masonic Home of MissouriMonetary Assistance by Region

FY2012

KeyRegions

ABCDEF

$258,932.23

$38,808.66

$53,532.97

$224,902.28

$287,771.12

$300,679.06$59,748.41

$45,055.55Out of State

$1,269,430.28 Total Assistance *

*(does not include Creating-A-Partnership Program)


The following are the audited financial statements of the Masonic Home of Missouri and the related disclosures. The financial statements are audited annually by Williams-Keepers, LLC located in Columbia, MO. They are

published each year in the Grand Lodge of Missouri Annual Proceedings and are made available upon request by contacting the Masonic Home of Missouri, 6033 Masonic Drive, Suite A, Columbia, MO 65202 or 800-434-9804. In addition, the IRS Form 990, which is prepared based on these statements, is available on www.guidestar.org or by contacting the Masonic Home. New this year, we will be publishing the Form 990 on our website at www.mohome.org. The Masonic Home has received a clean audit report, meaning that the financial statements are free of material misstatements and are presented in conformity with Generally Accepted Accounting Principles (GAAP). No adjustments to the records of the Masonic Home were recommended by the auditors during their audit.

The financial position of the Home is a positive one. Our financial position has improved slightly since 2011 to just more than $115 million in net assets. Investments comprise approximately 90% of these assets and over half of those investments are restricted, which means that access is either not allowed or is limited. Thirty-one percent of the Home’s investment assets are permanently restricted (i.e. endowments), which means that the Home can-not use any portion of those funds and relies only on income generated to fund operations. An additional 15% of the Home’s investments are temporarily restricted per board policy and would require a catastrophic need to allow access to the funds. Another 7% of the total investments is temporarily restricted based on donor requests. During Fiscal Year 2012 investment income made up almost 73% of operating revenues, while donations totaled almost 27%. This level of investment income, unfortunately, cannot be expected to continue. Due to low interest rates, investment income is expected to drop dramatically over the next couple of years as many of our bonds will mature and be replaced with lower yielding securities. The Home’s balance sheet is a healthy one, but the income earned is critical in order to continue to help fund the Home’s charitable work.

Maintaining the ability to provide assistance to the membership does not end with keeping large investment port-folios that will draw income. It requires the support of donors to help increase revenues, staff to keep expenses to a minimum, a board dedicated to helping their brothers and sisters in need, and program staff to carry out the mission of the Home. The Home is blessed to have all of these. The Truman Club is a group of donors that are dedicated to the success of the Masonic Home of Missouri, allowing the Home to continue to provide services well into the future. Due to contributions from estates and trusts, donor support increased by over 40% during 2012, contributing to an increase in overall operating revenues of 26%. The staff of the Masonic Home is dedicated to increase revenues and reduce expenses where possible. Overall operating expenses increased by almost 10%, administrative expenses accounted for 1.30% of the change, while an increase in direct assistance accounted for 8.65% of the increase. In addition, 73% of overall expenses were program-related expenses. The program staff, with the approval of the board, provided an additional 26% of direct assistance during 2012! This increase is in actual dollars provided to clients.

Each year, when we file our IRS Form 990, we disclose the past five years of revenue and calculate a percentage that is considered “public support”. This is called the “Public Support Test”. The IRS requires that non-profit 501(c)(3) organizations complete this test and prefers that the organization receives at least 33 1/3% of its income over that five-year period from donations, excluding unusually large gifts, in order to maintain its Public Charity status. If an organization falls below this threshold for two consecutive years, the IRS allows the organization to attempt to qualify by submitting a written explanation to the IRS illustrating why the organization should be defined as a Public Charity, rather than a Private Foundation. It is in the best interest of the Masonic Home, and its clients to be classified as a Public Charity, as classification as a Private Foundation comes with additional reporting require-


Financial Report 2012Jodi BlakeDirector of Finance

ments and tax implications. For several years, the Masonic Home has ended each year with 30% to 40% of its rev-enue considered public support. This is due to the large percentage of investment income and the comparatively low percentage of donations. As donations have decreased over the past several years, investment income has become increasingly necessary to allow the programs of the Masonic Home to function; however, this is one more example that shows that we cannot carry out our mission without donor support.

Through an increase in investment income, donor support and keeping a conscious eye on expenses, the Home ended the year positively and was able to provide over $300,000 more assistance during 2012 than 2011. This was made possible by all those involved in supporting the Masonic Home of Missouri. Please accept a heartfelt “Thank you” for all that you do.


Masonic Home of MissouriPage 27 Annual Report

Masonic Home of MissouriWe are where you are.

2012 Annual Report

Documents

Transcript of 2012 Annual Report