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ANNUAL REPORT

•134 years

Seth Vilensky

Lawrence A. Mack

FINANCIAL STATEMENTS

Consolidated statements of activities and changes in net assetsfor the year ended June 30, 2016

REVENUES AND OTHER SUPPORT Home $26,766,864

Foundation 386,466

Housing Corporation 10,007,527

TOTAL REVENUES AND OTHER SUPPORT 37,160,857

EXPENSES Home $30,161,380

Foundation 364,269

Housing Corporation 8,569,443

TOTAL EXPENSES 39,095,092

EXCESS OF EXPENSES OVER REVENUES AND OTHER SUPPORT (1,934,235)

CHANGE IN VALUE OF INTEREST RATE SWAP 44,252

CHANGE IN UNFUNDED PENSION LIABILITY (2,578,304)

CHANGE IN NET ASSETS (4,468,287)

NET ASSETS, BEGINNING OF YEAR 29,945,297

NET ASSETS, END OF YEAR $25,477,010

Our Mission

Guided by Jewish values,

Montefioreprovidesacontinuum

ofqualitycompassionate

healthcareservicestoadultsand

support to families through

individualizedcareinourhomeor

yours,respectforthedignityand

independenceofthoseweserve,a

dedicatedandcaringteamand

innovative programming.

Our Vision

Montefiorewillsetthe

standard for delivering premier

healthcareservicestoadultsin

ourcommunityastheyage.

Montefi ore

congratulates the

2016 NBA Champions

– Cleveland Cavaliers!

Montefioreresidents,family,staffandvolunteerscelebratedtheCavschampionshipwithavictoryparade!Visit our Facebook page "montefi oreseniorliving” to view photos and video.

Dear Friends,

Thankstoexceptionallayandprofessionalcommitment–andinspiringcommunitysupport–weareproudtorecapayearofinnovationandaccomplishment,withaparticularfocusonengagingourresidentsandtheirfamiliesinnewways.Toallweserveintheirvarioushealthcarejourneys, we emphasize, We’ll be by your side every step of the way.

Tobringresidents,families,volunteersandstafftogetherforinteractiveevents,wepremieredFamilyFunNight,heldCasinoNighttowelcometheNewYearandpaintedandenjoyedrefreshmentsatCanvas&WineNight.WhentheCavalierswontheNBAchampionship,Montefiorecelebratedwithitsfirst-evervictoryparade,forwhichwereceivedravereviewsandextensivemediacoverageincludingover60,000“likes”toourparadevideoonFacebook.

Thisyear,theorganizationimprovedoperationsandfinancialperformancethroughincreasesinvolumeinourrehab,long-termcare,assistedlivingandhospiceprograms.Wewereabletoservemoreresidents,patientsandfamilieswhilemanagingtocontrolcostsandachievesignificantfinancialimprovementthenprioryears.Theseimprovementsallowustoreducethegapbetweengovernmentreimbursementsandthecosttoprovidehigh-qualitycare.Agreaterfocusongrowthandfinancialimprovementwillcontinueinthecomingyear.

Inpartnershipwithboardmembers,wecraftednewMissionandVisionstatementsthatmorepreciselyreflectwhoweareandwhatwewanttoachieve.(Seepg.3.)

Inresponsetoastrategicplanpriorityonmemorycare,wecreatedtheMontefioreMemoryCareNetwork,offeringin-homeservicesandsupportalongwithresidentialoptions.MemorycareassistedlivingisofferedatTheWillenskyResidenceatMontefioreandTheDavidandFredaRobinsonResidence,ournew18-suitecommunityatTheWeilsinChagrinFalls.Weinviteyoutovisitourwebsitesforvirtualtoursshowcasingeachcommunity'sbeautifulliving/diningareas,gardensandotheramenities.WewerealsoabletoenhancememorycareservicesthroughagrantfromNOACAforanewvantotransportresidentsandcommunitymemberswithmemoryissues.

Infiscalyear2015/2016,TheMontefioreFoundationhadabanneryearwithincreasesintheannualsustainingcampaignand100%boardparticipationinfundraising.WeconductedourHomeRun5KRun/Walk“fundraiserandfriendraiser”whichenabledustobroadenourreachanddonorbase.October2016marksour25thanniversaryinBeachwoodandacommunity-wideFallHarvestFamilyFestivalisplannedtothankthecommunityforaquarter-centuryofsupport.

Everdedicatedtoenhancingtheemployeeexperience,welaunchedAboveandBeyond,anemployeerecognitionprogramthathasbecomeacentralcomponentofourcorporateculture,andMyMontefiore,aninternetportalforemployeenewsandinformation.

AtMaltzHospiceHouse,nowopenmorethanayear,wehavecaredforover150patientsinthissereneandelegantadditiontoourBeachwoodcampus.ThecommunitycanalsocountontheVinneyHospiceandPalliativeCareteam,intheirownresidenceorinMaltzHospiceHouse,tobringthemcomfortandpeaceofmindatcriticaltimes.

Thishasbeenayearofchangesandchallengesforourorganization–ayearfilledwithopportunity,growthandachievement.Blessedwithdedicatedstaff,boardmembers,donorsandvolunteers,wecontinuetostrivetowardexemplaryprogramsandservicestofulfillourenduringmission.

LawrenceA.Mack SethVilenskyChair,BoardofDirectors President&CEO

32

ASSETS JUNE 30, 2016 2015CURRENT ASSETS Cashandcashequivalents $2,036,994 $1,496,558

Restrictedcash - -

Executiveretirementplan 68,553 154,085

Investments 5,180,817 6,606,924

Accountsreceivable

Residentandthird-partypayor,netofallowancefor uncollectibleaccountsof$389,700atJune30,2016 and $609,000 at June 30, 2015 4,483,792 4,207,157

Pledges,netofallowanceforuncollectibleamounts of $25,000 and $50,000 as of June 30, 2016 and 2015 102,120 153,543

Other 63,122 50,765

Prepaids and Other 345,794 365,322

TOTAL CURRENT ASSETS 12,281,192 13,034,354

ASSETS LIMITED AS TO USE

Investments-fundeddepreciation 4,440,523 4,629,472

Investments under bond indenture 2,651 384

TOTAL ASSETS LIMITED AS TO USE 4,443,174 4,629,856

PROPERTY AND EQUIPMENT Land and land improvements 6,665,893 6,235,959

Building and building improvements 54,355,890 50,643,170

Equipment and furnishings 9,703,387 9,174,710

Vehicles 121,313 72,086

70,846,483 66,125,925

Lessaccumulateddepreciation (32,723,216) (30,294,356)

TOTAL PROPERTY AND EQUIPMENT 38,123,267 35,831,569

OTHER ASSETS Pledgesreceivable,netofcurrentportion 71,839 130,095

Investments 5,373,872 5,310,937

Constructioninprogress 2,500 3,941,503

Loan Fees, net 265,744 186,792

Assets held by others 1,113,250 1,204,013

Softwarecosts,net 80,781 145,461

Deferredfinancingfees,netandother 458,702 492,429

TOTAL OTHER ASSETS 7,366,688 11,411,230

TOTAL ASSETS $62,214,321 $64,907,009

LIABILITIES AND UNRESTRICTED NET ASSETS JUNE 30, 2016 2015CURRENT LIABILITIES Currentportionoflong-termnotespayable-Home $$465,000 $440,000

Currentportionofbondpayable-Housing 586,000 500,000

LineofCredit - 150,000

Accountspayable-trade 1,117,033 2,997,993

Currentportionofcharitablegiftannuityobligations 63,885 63,885

Accrued:

Wages and withholdings 739,040 652,865

Vacation 537,136 570,401

Workers’compensation 343,124 429,694

Other 414,933 453,765

Estimatedthird-partypayorsettlements 836,652 490,561

Residents’personalaccountsanddeposits 417,232 347,443

Deferred revenue 34,651 5,000

Executiveretirementplan 68,553 154,085

TOTAL CURRENT LIABILITIES 5,623,239 7,255,692

NON-CURRENT LIABILITIES Long-termnotepayable,lesscurrentportion-Home 8,365,000 8,830,000

Bondpayable,lesscurrentportion-Housing 14,593,410 12,780,000

Constructionloanpayable - 460,418

Charitablegiftannuityobligations,lesscurrentportion 382,477 396,469

Accruedpensionliability 7,773,185 5,194,881

Interestrateswap - 44,252

TOTAL NON-CURRENT LIABILITIES 31,114,072 27,706,020

TOTAL LIABILITIES 36,737,311 34,961,712

NET ASSETS Unrestricted 14,840,042 18,740,676

TemporarilyRestricted 4,217,878 4,836,172

PermanentlyRestricted 6,419,090 6,368,449

TOTAL NET ASSETS 25,477,010 29,945,297

TOTAL LIABILITIES AND NET ASSETS $62,214,321 $64,907,009

Consolidated Statements of Financial

Position

“Caring about others, running the risk of feeling, and leaving an impact on people, brings happiness.”

Rabbi Harold Kushner

Above & Beyond Excellence AwardIn honor of Montefiore’s 25th anniversary at its Beachwood location, 14 employees were recognized at Montefiore’s 134th Annual Meeting on May 25, 2016 for their 25+ years of dedicated service.

Left to right: Jeanette Motley Reggie MorganCarolyn Parker David BoczarMonna Eason Josie Love Sarah HardmanRobin Harris Ann Marie Miller-BarrettPat RayJackie Pryor Seth Vilensky Montefiore President and CEO

Not pictured:Michele LuckySharon McNealLisa Rowe

54

OfficersLawrence A. Mack** Chair

Ira S. Goffman Vice Chair

Barry J. Miller Vice Chair

Margo Vinney Vice Chair

Bruce E. Cweiber Assistant Vice Chair

David B. Orlean Secretary

Ben Sheridan Assistant Secretary

Idelle K. Wolf Treasurer

Alan B. Blumenthal Assistant Treasurer

Steven S. Willensky* Immediate Past Chair, Housing Corporation Representative

DirectorsSeth Vilensky President & CEO

Alvin M. Barkley*

Larry Apple

Irv Berliner

James L. Chessin**

Carol A. Clark

Jeffrey S. Davis Foundation Board Representative

Melissa M. Davis

Audrey F. Frank**✡ ✡

Jill K. Frankel

Donald Freedheim, PhD**

Zeev Friedman

Steven A. Goldfarb

Suri Goldman

Lois K. Goodman*

Harley I. Gross*

Mary Ann Hexter**

Robert T. Hexter**

Evan S. Hirsch

Andrew W. Hoffmann*

Susan R. Hurwitz*

I. Leonard Kaplan**

Robert B. Leb, MD

Andrew R. Lefkowitz

Robert M. Lustig**

Lisa H. Michel

Hal H. Myers*

Elmer I. Paull*✡ ✡

Scott H. Polster

Elaine H. Rocker**✡ ✡

Laura H. Rocker, MD

Dennis A. Roth**

Susan E. Rubin

Alice R. Sayre**

Donald S. Scherzer*

Harvey A. Siegel*

Naomi G. Singer**

Jeffrey E. Soclof

Cathy W. Stamler

Eric D. Wald

Joyce H. Wald

Lawrence R. Weiss**

Sally H. Wertheim, PhD*

Stanley E. Wertheim**

Darrell A. Young*

Terry Young

Daniel N. Zelman

2015-16

Montefiore Board of

Directors

This beautiful pavilion offers a welcoming alternative for individuals with dementia who need supervision and assistance with activities of daily living. Every detail of this warm and inviting residence has been designed to promote a feeling of security and engagement. Take a virtual tour at theweils.org.

The David and Freda Robinson Residence, A Memory Care Assisted Living Community at The Weils

Montefiore Foundation Board of Directors2015-2016 OFFICERS

Jeffrey S. Davis Chair

Harriet L. Fader Vice Chair

Susan R. Hurwitz Vice Chair

Dennis F. Schwartz Vice Chair

Elaine J. Gilbert Secretary

Robert A. Fuerst Assistant Secretary

Barbara Bellin Janovitz TreasurerHarvey A. Siegel Assistant Treasurer

Andrew W. Hoffmann* Immediate Past Chair

Seth Vilensky President & CEO

Debbie Rothschild Director 2015-2016 DIRECTORS

Brian L. Davis Reuven D. DesslerGerald W. Goldberg*Harley I. Gross*Kenneth G. Hochman*Daniel Z. Jacoby

Alan JaffaLawrence Kadis*Jeffrey L. KorachLawrence A. Mack Montefiore Board Representative

David G. MilletSteven H. NewmanElmer Paull**✡ ✡Elaine Rocker*✡ ✡June E. TaylorMargo VinneyJudy K. WillenskySteven S. WillenskyDarrell A. Young*

Montefiore Executive Team2015-2016

Seth Vilensky President & CEO

Sharon Castro Executive Assistant

Roberta Brofman Vice President, Clinical Services

Michael Felver, M.D. Medical Director

Susan Lieberman Director, Marketing & Public Relations

Evan Lubline Administrator, The Weils and Homecare Services

Debbie Rothschild Director, Foundation

Dan Shamir, M.D. Medical Director

Carol Weiss Vice President, Human Resources & Planning

Mark Weiss Vice President, Administrator & CFO

Montefiore Housing Corporation Board of Directors2015-2016 OFFICERS

Steven S. Willensky Chair

Andrew W. Hoffmann Vice Chair

Ira S. Goffman Treasurer/Secretary

Robert M. Lustig* Immediate Past Chair

Lawrence A. Mack* Montefiore Representative

Seth Vilensky President & CEO

Montefiore and The Weils Leadership Team2015-2016

Neela Chattman Manager, Social Services

Rabbi Joel Chazin Director, Religious Services

Nate Dotson Controller

Patty Duplago Nurse Manager

Monna Eason Nurse Manager

Norma Goodman Manager, Homecare Services

David Granito Director of Nursing, Post-Hospital Services & Programming

Angela Hale Director, Vinney Hospice and Palliative Care

Ari Hyman Assistant Administrator

Stefanie Jarrett Dietitian Manager

Althea Johnson Director, Human Resources

Mary Jane Klarich Nurse Manager, The Weils Assisted Living

Janet Kodrich Director, Centralized Admissions and Hospital & Community Relations

Kristen Morelli Memory Care Program Manager

Lucy Mullins Director, Rehabilitation Services

Jennifer Northup Nurse Manager, The David and Freda Robinson Residence

Marge Roberts-Brown Director, AOD Implementation

Leah Rotenberg Manager, Accounts Receivable

Jack Schoenbeck Director, Facility Operations

Amy Simon Manager, Community Relations & Admissions Services, The Weils

Dave Snacki Director, Dining Services Morrison Community Living

Diane Weiner Manager, Volunteers

* Honorary Director, Past Chair ** Life Director ✡ Of Blessed Memory 76

Montefi ore Partnerships and Affi liations

Alzheimer’s AssociationAssociation of Jewish Aging Services (AJAS)Bryant & Stratton CollegeCase Western Reserve UniversityCuyahoga East Vocational Education Consortium (CEVEC)Cleveland Clinic Cleveland Clinic Connected CareCleveland FoundationCleveland KosherCleveland State UniversityCuyahoga Community CollegeEuclid HospitalHealth Aid of OhioHealth Pro RehabilitationHillcrest HospitalHondros CollegeJewish Federation of ClevelandJohn Carroll UniversityKent State University, Geauga/Twinsburg Nursing Program

LeadingAge LeadingAge Ohio Malone CollegeMorrison Community LivingMt. Sinai Health Care FoundationNational Council of State Nursing BoardsNational Hospice & Palliative Care OrganizationOhio Assisted Living AssociationOhio Council for Home Care and HospiceOhio University Academic OutreachPhilips Lifeline Medical Alert ServiceSouth UniversityUniversity HospitalsUniversity Hospitals Geriatric Resource Nurse ProgramUniversity Hospitals Partners in Lifelong HealthUrsuline CollegeWestern Reserve Area on Aging (WRAA)

Programs and Services

MONTEFIOREPost-Hospital Care216.910.2202

Long-Term Care216.910.2202

Memory Care216.910.2202

Memory CareAssisted Living216.910.2323

Palliative Care Consult Service 216.910.2650

Hospice Services216.910.2650

Maltz Hospice House 216.910.2716

Outpatient Therapy216.910.2701

Wheelchair Clinic216.910.2701

THE WEILSAssisted Living 440.543.4221

Memory CareAssisted Living216.910.2323

Post-Hospital Care 216.910.2202

Outpatient Therapy440.996.0511

COMMUNITY SERVICESHome Healthcare 216.910.2487

Private Care Services216.910.2778

Palliative Care Consult Service216.910.2650

Hospice Services216.910.2650

Home SmartMemory Care216.910.2323216.910.2327