Asian Neighborhood Design Inc

“Form 990 is prepared by an outside tax professional. The form is then reviewed bythe organization's management, a member of the board of directors, and the executivedirector. This group of individuals then discusses the contents of the return withthe outside tax professional. After a full review, the final version of the tax return is provided to all members of the organization's voting body. A representative of management authorizes the final form 990 which is then e-filed with the internal revenue service.”

“Members of the board of directors review all potential conflicts of interest atleast annually. All personnel and board members are required to disclose (inwriting) potential conflicts and any related party affiliations. Loans between theorganization and members of management and the board are strictly prohibited. Theorganization seeks full transparency on all relationships. Any potential conflicts (in fact or appearance) are discussed openly and resolved in accordance with the organization's policies and procedures.”

“Members of the board of directors review the compensation of all high-level personnel periodically in accordance with irs rules and regulations. Efforts are made to secure compensation data from industry sources in order to determine competitiveness and appropriateness of salaries. Every effort is made to ensure that the process is thorough and transparent in accordance with irs guidelines and the organization's policies and procedures.”

“Compensation of other high-level personnel and key employees is reviewed periodically by members of management. Efforts are made to secure compensation data from industry sources in order to determine competitiveness and appropriateness of salaries and all related benefits. All decisions are then documented in personnel files.”

“All of the organization's governing documents, financial statements and other legalfilings are maintained in a secure environment and held available for inspection bytax authorities and the general public. Tax returns are posted annually towww.guidestar.org (where they are available for viewing as electronic copies) and are also available for a physical inspection at the organization's office in san francisco, california.”

“Net Assets (Deficit) Without Donor Restrictions-----------------------------------------------Net assets (deficit) without donor restrictions of ($2,039,218) at December 31, 2020 reflects the cumulative retained deficits since the organizations inception, offset by noncash allocated losses from A.N.D. ownership interests in certain investments which are accounted for under the equity method of accounting. Accordingly, the underlying assets, liabilities, and equity positions (partners capital) of these partnership investments are not consolidated in this tax return or the combined financial statements.Operating Income-Financial Statements-------------------------------------A.N.D. reflected net deficit from its operating activities totaling ($314,981) for the year ended December 31, 2018. This amount (representing the operational results of the organization) is reported as a decrease in net assets before unrealized losses on the tax returns and, separately, on the Combined Statements of Activities and Changes in Net Assets.Deficit of Investments in Partnership Interests-----------------------------------------------A.N.D. is a limited partner in three outside partnerships over which it does not have significant management or operational control: Minna Park Housing Partners and Connecticut Street Court Partners. Accordingly, the equity method of accounting is utilized. These affiliates are low-income housing partnerships. As is typical with these organizations, they operate with negative net income for many years due to the tax-related policies and subsidies.The Deficit of Investments in Partnership Interests amounted to $4,357,981 at December 31, 2018. If reflected as an asset, the Deficit of Investments in Partnership Interests would be shown as a negative investment in the noncurrent section on the Combined Statements of Financial Position. The organization has opted not to show its net investment position as a negative asset. Instead, the negative asset is shown as a positive component of A.N.D.s net assets. Previously, this item was reflected as a long-term liability, but management felt that such reporting inaccurately represented the organizations liabilities.The negative position in the partnership interests is based on book value allocations of unrealized net losses from the partnerships. In reality, the fair value of A.N.D.s ownership interests would be positive, essentially eliminating entirely the negative value of the combined investment position. The fair value of A.N.D.s equity position in these limited partnerships is not readily available. Such an endeavor would require assessments of the market values of the underlying real estate properties by qualified appraisers at substantial cost to the ownership parties.Because the properties are located in San Francisco, the underlying real estate properties owned by the three partnerships are most likely far in excess of the net book value of the real estate as reflected in the books of the partnerships. Management believes its equity positions in the fair values of these assets, if such measurement were possible, would result in a positive (not negative) equity position in the partnership investments.”