Community Lenders Community Development Corporation

“The organization has members. Their fees are considered voluntary, nonreciprocal, and unconditional to the organization and are recorded in the year received.”

“The organization provides the form 990 to the board to review in detail before return was filed.”

“A conflict of interest disclosure statement is distributed annually at a board meeting. The board members sign off on the form (the majority are collected at the meeting). A master list of board members is kept and any outstanding forms are persued until all are collected. The loan committee monitors the forms and requests any board member to abstain if a conflict is noted and this is documents in the minutes.”

“The executive director's process consists of two phases. First, the board president gives the executive director a list of questions to complete (ie. Short-term goals, long-term goals, accomplishments, etc.). The questions are answered and then shared with the executive committee and then the entire board. The board completes the second phase of the review. The compensation is then a reflection of the review, activity generated for the organization, the current economy, and the experience of the board. The executive director does not receive any benefits, this is also weighted into any compensation changes. The organization also reviews similar organizations. Salary changes and bonuses are approved by the board of directors.”

“The organization will provide a summary of the activities and struction of the organization and a conflict of interest statement. The financial statements are available on the organization's website and are included on the annual report in an abbreviated format.”

“The organization has not made any changes to its oversight process or selection process during the tax year.”

“In prior periods, the organization has recognized non-refundable loan fees as income when received from borrowers and direct loan organization costs as expense when paid. Non-refundable loan fee income should be netted against any direct loan origination costs and deferred and amortized over the life of the loan using the effective interest rate method. During the year ended june 30, 2017, the organiztion corrected this error and deferred the net unamortized fee income for the loans outstanding as of june 30, 2017 and 2016.”