Garden State Consumer Credit

“In 2024, our law firm conducted a thorough review of our Bylaws, which had not been reassessed in over ten years. This comprehensive evaluation aimed to ensure compliance with current legal standards and alignment with our organizations practices, culminating in approval by the Board of Directors.”

“The form 990 is completed by the company's certified public accountant topel & silver, cpa's, pa. The cfo will provide them the necessary support to complete the form 990. The accountants will also use financial information obtained during their year-end financial audit. Once completed, a draft copy will be sent to the audit committee members, via e-mail, for their review. Approximately, one week will be allotted for this review. Thereafter, a conference call will commence to address any concerns regarding the filing. The public accountant may be on the call, if necessary. If any changes are required they will be made and the form will then be filed with the internal revenue service. The conference call will be documented in the minutes of the audit committee along with any related comments. The full board will be provided with a copy of the form 990 prior to filing.”

“On october 3, 2008 a formal conflict of interest policy was adopted by the board. This policy will be enforced on an annual basis and will require each trustee to disclose any interests that could give rise to a conflict. Also, as part of the company's internal control process, the trustees signed a document that indicates no conflict of interest exists.”

“THE COMPENSATION OF THE COMPANY'S OFFICERS IS PERFORMED BY THE COMPENSATION COMMITTEE OF THE BOARD. THE MEMBERS OF THE COMMITTEE ARE INDEPENDENT AND WILL USE THIRD PARTIES AS WELL AS OTHER FILED FORM 990's TO EVALUATE REASONABLENESS OF OFFICER COMPENSATION. IF A THIRD PARTY IS USED THEY ARE PROVIDED WITH A DETAILED JOB DESCRIPTION IN ORDER TO BEST PRICE THE POSITION. THIS IS DONE ON AN AS-NEEDED BASIS GENERALLY AT THE END OF ANY GIVEN YEAR. IN ADDITION, THE BOARD WILL BE MADE AWARE OF THE COMPENSATION OF THE GENERAL RANK AND FILE EMPLOYEES AND WILL PROVIDE THEIR GUIDANCE ON HOW THAT COMPENSATION SHOULD BE ADJUSTED, IF NECESSARY.”

“The organization does not have these documents immediately available to the public; however, upon request they would and could be provided.”

“Deferred compensation expense = -$27000”

“Economic value Life Ins = -$2068”

“impairment loss on PP&E = -$3506902”

“Contract for Sale of Building in 2024:In 2024, the Organization made the strategic decision to sell our 60,000 square foot corporate headquarters located in Manalapan, New Jersey. This property, held since 2015, is under contract with a scheduled closing in 2025. This decision was primarily driven by the significant success of our work-from-home program, initiated a few years ago, which allowed us to recruit talented employees nationwide, thereby enhancing our capacity to fulfill our mission.By relocating to a smaller, leased space of approximately 7,000 square feet within the same building, we eliminate the responsibilities tied to property ownership and are projected to save approximately $595,000 annually in operational costs. This shift is expected to boost our financial flexibility, which is crucial for addressing future challenges.Impact on Audited Financial Statements in 2024:The upcoming sale triggered the recognition of a non-cash impairment loss of $3,506,902 on our property, plant, and equipment, and right of use assets. This accounting action reflects the anticipated net realizable value being less than the asset's carrying value.Despite the sizable impact of the non-cash impairment loss, our operational net revenue and cash flow remained robust, supporting ongoing liquidity and operational stability. The non-cash impairment loss reduced our net assets from $5,341,215 to $2,153,636.Impact on Form 990 in the Year of Sale:In the Form 990 for the year of sale, a non-cash impairment loss, previously recognized under GAAP in the audited financial statements for the current year, will be reported when the actual sale of the property occurs, in line with IRS rules. Specifically, the carrying amount of the property, plant, and equipment, as well as right of use assets, will be adjusted to account for the non-cash impairment loss. This adjusted book value will then be included in Form 990 at the time the asset is disposed of, ensuring that the reported net book value corresponds to the sale price or the fair market value received for the asset. This method provides a clear record of the loss and its impact on the Organization's financial status in accordance with IRS reporting standards.The general principle for IRS reporting on Form 990 is that non-cash impairment losses are recognized only upon the disposal or sale of an asset, rather than when the impairment first becomes apparent, as in GAAP. This approach focuses on actual transactions and cash flows rather than on accounting estimates and valuations.”