Business Development Finance Corporation

“Tucson loan committee, phoenix loan committee and on-call loan committee have delegated authority to approve loans up to $2,000,000 on behalf of the board of directors, the board then ratifies the approvals. The executive committee functions as the board of directors between meetings of the board of directors for matters not previously delegated to any committee, but is subject at all times to the direction and control of the board of directors. The functions of the executive committee are to review non-routine employment and personnel matters and compensation; and ratify loan commitee approvals of loans betweem $1,000,000 and $2,000,000 or approve loans greater than $2,000,000 if not being presented to the entire board.”

“The organization changed its name to arizona capital source during the year. No other significant changes to the bylaws were made as a result.”

“The organization has members. Members are responsible for actively supporting economic development.”

“The members elect the board of directors of the corporation.”

“Certain decisions of the governing body are subject to approval by members. At annual meetings, the members elect the board of directors, pass upon reports for the previous fiscal year, and transact such other business as may come before the members.”

“The form 990 will be provided electronically to the board for review and ratified at the next board meeting.”

“There is an annual disclosure policy, adopted june 27, 2007; implementation commenced.”

“Periodically acs contracts its legal counsel to hire an independent firm to complete a compensation study for the position of president. The board of directors executive committee reviews the study and contemporaneous minutes are kept of the deliberation and decision regarding the compensation package of the president. The president reviews current market data to determine compensation for all other employees.”

“The organization's governing documents, conflict of interest policy, and financial statements are available upon request to the public.”

“Arizona capital source (acs) is a private nonprofit corporation which was organized in july 1979 for the purpose of promoting and assisting the growth and development of the arizona economy, including small businesses. These goals are achieved through the use of the sba (united states small business administration) 504 and community advantage 7(a) loan programs, as well as other programs and projects. Acs coordinates its activities and works with the city of tucson (city) and other local governments to achieve its stated purposes. Acs has also assisted the city with the purchase, construction, and financing of various properties leased by the city.”

“Professional fees: program service expenses 259,408. Management and general expenses 28,823. Fundraising expenses 0. Total expenses 288,231. Consultant and management fees: program service expenses 106,723. Management and general expenses 0. Fundraising expenses 0. Total expenses 106,723.”

“There has been no change in the oversight process for the audit of the financial statements or the selection process for the independent auditor.”