East Baltimore Development Inc.

“Cps new market financial group, llc performs the review of monthly financial statements and completion of ebdi finance committee and board packages for quarterly meetings. Cps also provided technical assistance and knowledge in completing the annual audit of ebdi. Cps provides management support relating to edr management and reports relating to 929. This includes review weekly leasing activity and work with edr to develop leasing strategies. Reporting to ebdi management on the results of 929 activity. Nicole m. Harrell, cpa, llc performs accounting consulting responsibilities which includes bank reconciliations, supervising of the accounts payable and receivable activity, financial reporting preparation, completion of annual audit and form 990 procedures. Financial activities are reported to the ceo. Cynthia swisher is the owner of cps new market financial group. Ms. Swisher was previously the cfo for ebdi until june 30, 2017. Ebdi paid cps new market financial group $68,685 for the above services during the tax year.”

“The form 990 was prepared by rsm us in consultation with an accounting consultant engaged by ebdi to assist with financial reporting, audit and form 990. The form was then reviewed with the president and chief executive officer as well as the finance/audit committee of the board of directors in may 2019 prior to submission. The finance/audit committee includes senior managers from several foundations and partners with national and local accounting firms. The comments of the review team were incorporated into the final document and emailed to the full board of directors prior to submission.”

“Ebdi has a written conflict of interest policy. Key employees, officers and directors update their disclosure statement annually. Whenever there is reason to believe that an actual or potential conflict of interest exists between ebdi and an interested party, the board of directors shall determine the appropriate organizational response. Where the actual or potential conflict exists, the ceo shall review the matter and take appropriate action as necessary to protect the interests of ebdi. The ceo shall report to the chairman the results of any review and the action proposed to be taken. The chairman, in consultation with the executive committee, shall determine if any further board review or action is required. An interested party who has an actual or potential conflict of interest with respect to a proposed action or transaction with ebdi shall not participate in any way in, or be present during, the deliberations and decision making related to the proposed action or transaction.”

“The compensation of the president and ceo is established by the board of directors and is determined and documented annually based upon comparable compensation data. Bonuses for the previous year are determined based upon achievement of specific organizational goals. The compensation of officers and key employees is established by the president and ceo with approval of the board of directors through the budget process.”

“Organizational documents, the conflict of interest policy, and the financial statements are available to the public, for the same period of disclosure as set forth in section 6104(d), upon written request to the organization. The organization will arrange a mutually convenient time for review at the main office of ebdi at 1731 east chase street, baltimore, maryland.”

“As planned, ebdi funded operations with new markets tax credit loans, which creates a timing difference in the recognition of expenses and corresponding revenue. The revenue was recognized when the loans were retired with existing commitments of tax increment bonds issued by the city of baltimore and the funding of a memorandum of understanding from the annie e. Casey foundation. The planned use of nmtc loans described above resulted in positive net assets for ebdi, and when combined with the negative net assets of 929 after depreciation and interest, resulted in negative net assets for the consolidated entities as of june 30, 2018.”

“The following make up the total other fees for services expenses as set forth on line 11g, part ix: infrastructure contractors $3,290,781 professional services 409,568 engineering services 51,384 other services 14,301 security services 155,199 _________ total part ix, line 11g: $3,921,233 ==========”