Found inside – Page 293(iv) CCRC ENTRANCE FEES CCRC contracts may involve an up-front payment on the ... accounted for as deferred revenue when received and amortized into income ... Found inside – Page 208When additional fees have been paid for unit upgrades , there is provision for amortizing the additional charges and refunding ... The statutory language is unclear as to exactly how the refund will be calculated ( “ . . . charges shall amortize at the same rate as the entrance fee " ) . ... actual costs to change its records , plus document reproduction costs , on transfer fees charged by a CCRC equity project . Found inside – Page 39Consumers should contact the CCRCs of rights reserved. ... Erickson MA 2000 MA Carleton-Willard Village U D D D D U Initial entrance fee is amortized at 1% ... Found inside – Page 176Interest Expense and Depreciation and Amortization In calculating total costs ... He explained that entrance fees and monthly service fees are used to cover ... Found inside – Page 178It is important to realize that CCRCs can be structured as a self - insurance group that also offers institutional LTC to ... as follows : entrance fees imply a later return of some portion , while endowment fees imply complete amortization during ... Found inside – Page 340Some contracts provide that entrance fees will be refunded only when and if the contract holder's unit is resold to a new ... The amortization of each resident's nonrefundable fees should not exceed the amount available to the CCRC under ... Found inside – Page 13Fee - For - Service Contract ( Type C ) : Requires an entrance fee but does not include any discounted health care or assisted living services . ... require assisted living or nursing care pay the regular per diem rate paid by those admitted from outside the CCRC . ... depreciation , amortization , income taxes , partnership expenses , capital expenditures , and reserves above normal repair and maintenance . Found inside – Page 5-51However, many facilities have a declining refund schedule amortized at one percent or ... Where the contract language clearly vests the entrance fee in the ... Found inside – Page 19pects to complete its review by fall of this year thereby decreasing the CCRC's liability for and to report on its findings soon after ... Developments S & P views as favorable and • CCRC providers have developed different warranting further review are : entrance fee refund plans and ... of solely at the date of move - in , to to the first contract type employed , known as compute deferred revenue amortization . "This Seventh Edition is filled with authoritative advice on the financial reporting, accounting, and control situations unique to not-for-profit organizations. Found insideThe method(s) of amortization for refundable advance fees and deferred revenue ... amount in the balance sheet is based upon the CCRC's expected refunds, ... Found insideNote that all entrance fee communities amortize the entrance fee, ... Overall, in response to current market conditions, CCRC business models are evolving ... Found inside – Page 213Briefly , the statement recommends thatThe estimated amount of refundable advance fees that is expected to be ... The portion of the advance fee that is refundable to the resident on death or withdrawal only on the condition that a new entrance fee ... The amortized amount should not exceed the amount actually available to the CCRC under state regulations , contract provisions , or management policy . Found insideThey typically have an entrance fee program that is amortized at a rate of 2 percent a month so, up to a certain point, ... Most CCRCs are set up so that a declining percentage of the entry fee is refunded if an individual leaves or dies within a ... Found inside – Page 20If you would like to learn more about a representative sample of CCRCs, ... how long the entrance fee should be amortized is about five and one—half years. Found inside – Page 499the contract ; 2 ) the financial condition of the CCRC may be considered to be in balance at a given date if its resources ... fees and the current amortization of non - refundable entrance fees is not less than the current non - actuarial expense . Found inside – Page 36Unique accounting issues pertaining to CCRCs include: refundable fees, ... for some or all of a resident's advance fee (also called an entrance fee) to be ... Found inside – Page 311The financial condition of the CCRC may be considered to be in balance at a given date if its resources at that date are not ... fees and the current amortization of nonrefundable entry fees is not less than the current non - actuarial expense . Found inside – Page 21Unique accounting issues pertaining to CCRCs include : refundable fees , fees repayable to residents from reoccupancy proceeds ... for some or all of a resident's advance fee ( also called an entrance fee ) to be refunded if the resident dies or withdraws from the CCRC . ... to decrease , the portion that becomes nonrefundable should be reclassified to deferred revenue and amortized into income . Found inside – Page 313CCRC contracts may involve an up-front payment on the part of the resident (”advance fee” or ”entrance fee”), part of which may be refundable, and a monthly ... Found inside – Page 253Some newer facilities now offer fully refundable entrance fees. ... CCRCs average about $1000 per month for one-bedroom apartments and $1150 for two-bedroom ... Found inside – Page 51The entrance fee was designed to guarantee the resident health care for life . Many of the CCRCs developed during this time experienced financial difficulties as the actuarial basis and inflationary ... taxexempt bonds generally offer the lowest interest rate , longest amortization period , and smallest equity contribution . Found inside – Page 179Actuaries preparing CCRC statements are subject to Actuarial Standards of Practice prescribed by the American Academy of Actuaries . ... The deferred revenue should be amortized to income over future periods based on the estimated lives of the residents or the ... The portion of the advance fee that is refundable to the resident on death or withdrawal only on the condition that a new entrance fee is ... Found inside – Page 272Table 12–4. continued 2010 2009 Current portion of deferred entrance fees ... funds $1,619,235 $1,459,383 Many CCRCs also may have specialized units to ... Found inside – Page 424PAYING FOR CCRC There are three basic payment models for CCRC facilities : Entrance fee plus monthly fees . ... 1 A popular formula for a pro rata refund of the entrance fee offers a declining refund schedule amortized at 1 percent or 2 ... Found inside – Page 319contracts and the CCRC's refund policy The method(s) of amortization for ... and proceeds from nonrefundable entrance fees that are used to finance the ... Found insideTo understand the concepts of entrance fees and their amortization and ... Let's assume that a resident enters the CCRC at the beginning of the year and ... Found inside – Page 456At a certain time , the total amount will reach a steady state because the entry fees for new residents will offset the amortization of the entry fees of original residents . Indeed , the relationship suggests that the unamortized entry fees in a CCRC ... Found inside – Page 456... recognized for contract acquisition costs capitalized in accordance with FASB ASC 340-40-251 related to a CCRC entrance fee contract should be amortized ... Found inside – Page 246A second type of declining refund plan requires a higher entrance fee , which is 75 percent refundable should a resident ... coupled with a higher monthly fee ; or a lower monthly fee coupled with a moderate entrance fee that is amortized over a five ... The expense of CCRC living puts it out of reach for many Americans . THIS IS THE NEWLY REVISED SECOND EDITION TO THE BEST SELLING BOOK ON RETIREMENT COMMUNITIES Are you or a loved on considering a retirement community, but are confused about the various alternatives? Found inside – Page 44The amount to AAHA ( American Association of Homes for the Agof amortization cach year is related to the resident's life ... Medical Services One of the ironic aspects of the CCRC systems of amortizing entrance fees , when the entire balance ... Found inside – Page 43Another emerging concept is that of the refundable entrance fee for continuing care facilities . ... those who leave the facility within the first few years of residence , in which case the entrance fee is amortized to the facility owner at the rate of one to two percent per month of residence , and ... Moreover , only about half of existing CCRCs refund any portion of the entrance fee upon the death of the resident . Found inside – Page 395These statutes often further provide for certain specified refunds of preoccupancy deposits , entrance fees , and possibly of monthly ... it is not in New Jersey and New York , thus requiring all CCRCs to meet the national standard set for tax - exempt facilities ( see 19.3 ) . ... of the cost of care , payable on resale of the unit , except that nonprofits may use a 60 - month entrance fee amortization schedule . Found inside – Page 9Prior to 1994 , ment communities ( CCRCs ) , and condo or lenders favored senior housing properties co - op CCRCs . ... are lending to active adult commit more money to the market . lenders ( 82 percent ) say they are currently projects and entrance - fee CCRCs . ... VNAA believes that such a drastic measure is necessary given the ue ratios , and amortization and repayment recent alarming reports of ... Found inside – Page 37The amortization of this deferred revenue is discussed in section (iv) below. ... Most contracts provide that at least some portion of the entrance fee will ... Found inside – Page 37The decline may be based on an amortization schedule linked to average or weighted ( preferably ) potential life expectancy The ... 021 While an entrance fee has been customary , several CCRCs that opened over the last several years ... Found inside – Page 326TABLE 6 SOP - GAAP FOR A CCRC WHICH CONDITIONS ENTRANCE FEE REFUNDS ON REOCCUPANCY ... for future services and should be accounted for as deferred revenue and amortized to income over the estimated years of ... Found inside – Page 82Those communities that do not refund the majority of the entrance fee usually amortize the entrance fees over a defined ... As expected , the CCRC or life - care community does not meet the needs of many seniors because of their inability to ... Found inside – Page 255Some fees , usually those at Type A facilities , are considered below - market loans to the CCRC and are subject to a tax on the imputed interest . ( The IRS ... On the other hand , a substantial portion of nonrefundable entrance fees is tax - deductible as a prepayment for future health care . ... Fees should be amortized over the resident's lifetime , and only a portion recognized as income in any year . Found inside – Page 10CCRC ( continuing care retirement community ] entry fee plus recurring monthly fees is designed to advance - fund the ... expectancies to amortize entrance fees into the community's income stream , and the lack of distinction made between ... Found inside – Page 213Briefly , the statement recommends that , The estimated amount of refundable advance fees that is expected to be ... The portion of the advance fee that is refundable to the resident on death or withdrawal only on the condition that a new entrance fee ... The amortized amount should not exceed the amount actually available to the CCRC under state regulations , contract provisions , or management policy ... Found inside – Page 187There is To understand the concepts of entrance fees and their also income earned on the deposits that is recognized as amortization and deferred revenue ... Found inside – Page 311The financial condition of the CCRC may be considered to be in balance at a given date if its resources at that date are not ... fees and the current amortization of nonrefundable entry fees is not less than the current non - actuarial expense . Found inside – Page 177... interest expenses and depreciation and amortization because the evidence ... the entrance fees or monthly service fees are allocated to specific costs ... Found inside – Page 324For a CCRC entrance fee contract, FinREC believes that the amortization of related contract acquisition costs capitalized in accordance with FASB ASC ... Found inside – Page 135profile of existing and proposed CCRCs and other organizations that could be viewed as competitors in the service area , detailing the ... Other features now offered by CCRCs are refundable advance or entrance fees — with the amount refunded negotiated in ... A debt service amortization schedule ; • A description of the obligor , including members of the board of directors and management team , and ... Found inside – Page 207Briefly , the statement recommends thatThe estimated amount of refundable advance fees that is expected to be ... The portion of the advance fee that is refundable to the resident on death or withdrawal only on the condition that a new entrance fee ... The amortized amount should not exceed the amount actually available to the CCRC under state regulations , contract provisions , or management policy . Found inside – Page 165revenues ( i.e. , earned entrance fees ) from the The debt - service ... held funds only when earmarked to amortize deferred revenue from entrance for ... Found inside – Page 23With lifecare facilities , a new resident pays a large entrance fee , ranging from $ 5,000 to $ 500,000 , plus a monthly ... 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