Vision and Mission Statements 5

Message from the Director 7

Message from the Chief Financial Officer 9

Executive Summary and Highlights 11

Organizational Profile 13

Program Discussion and Analysis 17

Financial Discussion and Analysis 29

Reports from the Auditors 35

Financial Statements 48

Notes to the Financial Statements 52

Appendices 61

Management Officials and Advisory Board Members 75

Implement a new direction for community development initiatives, by using limited public resources to invest in and build the capacity of the private sector to address the community development financing needs of distressed communities and disadvantaged populations. This will:

• unleash large amounts of private capital;
• take full advantage of private sector human talent, energy and creativity;
• revitalize neighborhoods;
• encourage and promote entrepreneurs;
• restore healthy private market activity in distressed communities; and
• empower local residents.

Promote economic revitalization and community development through investment in and assistance to community development financial institutions (CDFIs) and through encouraging insured depository institutions to increase lending, financial services and technical assistance within distressed communities and to invest in CDFIs.

The institutions we support make a difference in communities all across the country. Our funds are used to leverage substantial private sector dollars into these communities and create replicable models for poverty alleviation through economic growth. Investment in businesses, housing, commercial real estate, human development, and urban activities that promote long-term economic and social viability are critical to our well being as a country. As a result of the Fund’s investments in institutions serving the underserved, we make economic independence a reality for many more people.

The Fund faced many challenges as it established itself, developing policy and programs with limited staff. Through the end of fiscal year 1997, the Fund has made 79 awards totaling over $75 million to CDFIs across the country, and 92 awards totaling $30 million to banks and thrifts for their efforts in providing creative loans, financial assistance and investments in distressed communities. In January 1997, the Fund managed the first Presidential Awards for Excellence in Microenterprise Development.

As the Fund has evolved so has its staff. In November 1997, Paul Gentille joined our staff as our Deputy Director for Management and CFO. Paul has had a long career in the Federal Government and brings much experience to his role. Our counsel, Maurice Jones, has recently become Deputy Director for Policy and Programs.

In January 1998, I joined the Fund as its second Director. I have a long-term commitment to community development and our basic operating premise — that small amounts of federal dollars can stimulate significant private sector investment in poor communities. We are currently building our team and organizational structure, and plan to have a full staff on board by the end of the fiscal year. Working with our two Deputy Directors will be a cadre of professionals, able to implement our programs prudently and think creatively, as we move forward to further our mission.

The CDFI industry faces many challenges as it grows and strives to increase its impact. I believe the Fund will facilitate that growth through training and technical assistance initiatives beginning later this year. We will also study the impact of the Fund’s investments and engage the community development field through a variety of outreach and communications efforts.

I look forward to building our staff, growing our programs, and ensuring the taxpayer’s investment in the Fund catalyzes significant economic activity in distressed communities.

Ellen W. Lazar
Director

As CFO and a part of a newly appointed management team, I am very pleased to present the fiscal years 1997, 1996 and 1995 audited financial statements for the Community Development Financial Institutions Fund.

These statements, representing the Fund's first efforts to prepare stand-alone financial statements, were audited by KPMG Peat Marwick LLP, and their audit resulted in an unqualified opinion for the Fund. What appeared impossible a few months ago, became a reality through the tireless efforts of a small, but extremely dedicated staff. To them I give a special thank you!

This opinion, along with the auditor's recommendations, now establishes a benchmark for the Fund's financial management and awards administration and monitoring. With a vision towards working better and costing less, the Fund's financial and program personnel will work together in partnership to further strengthen the Fund's management accountability and controls. Together we will ensure the integrity of information, make decisions, and measure performance to achieve desirable outcomes and real cost effectiveness.

We are firmly committed to excellence in all aspects of financial management and awards administration and monitoring. With the addition of new staff, we will focus on attaining a new level of efficiency and quality in the Fund's awards management, with emphasis on quality and customer service. Communicating with applicants and award recipients through the Internet and a CDFI Fund web site will be a priority during fiscal year 1998. We will also strive to have readily available reliable information on the Fund's financial condition, operations and awards programs as well as the performance and costs of these activities. Using a results-oriented management approach, we will enhance our strategic planning process, establish performance measures focused on "outcomes," and link performance information to resource requirements through annual performance plans.

Faced with the many challenges associated with a new and growing organization, our new management team is promoting a forward thinking approach to meet our future challenges and commitments. We are promoting a strong partnership between the Fund's program and management staffs, recognizing that our customers and employees are the most important resources for planning and decision-making processes inherent in carrying out our mission. At the end of each day, our commitment to the sound stewardship of the Fund's financial resources will remain our highest priority.

Paul R. Gentille
Deputy Director for Management
and Chief Financial Officer

The Community Development Financial Institutions (CDFI) Fund is working to expand access to credit and financial services in poor urban, rural and Native American communities, where one of the biggest obstacles to economic development is a lack of access to mainstream sources of private sector capital. Access to capital is an essential ingredient for creating and retaining jobs, developing affordable housing, revitalizing neighborhoods, and building local economies.

The CDFI Fund represents a new direction for community development initiatives by leveraging limited public resources to invest in and build the capacity of private sector institutions to finance community development needs in distressed communities.

In only two years, the CDFI Fund has made a significant contribution to increasing access to private sector capital, effectively promoting partnerships between community based financial institutions, banks and other private sector players, and leveraging scarce Federal resources into private dollars for credit starved communities.

Currently operating three programs - the CDFI Program, the Bank Enterprise Award (BEA) Program, and the Microenterprise Program - the Fund is helping to create jobs, rebuild neighborhoods, and restore hope in communities across the nation.

• The CDFI Fund awarded 54 insured depository institutions a total of $16.5 million in grants in the 1997 round of the BEA Program.
• On January 30, 1997 President Clinton presented the inaugural Presidential Awards for Excellence in Microenterprise Development, recognizing programs that have provided opportunities to people who lack access to traditional credit sources, such as women, minorities and low-income Americans.

The Community Development Financial Institutions (CDFI) Fund was authorized as part of the Riegle Community Development and Regulatory Improvement Act of 1994. In July of 1995, CDFI Fund, a wholly owned government corporation, was placed within the Department of the Treasury.

The offices of the CDFI Fund are located in Washington, D.C., where major policies and programs are developed and implemented in accordance with applicable laws and regulations. The Fund executive structure consists of a Director, Deputy Director for Policy and Programs, Deputy Director for Management/Chief Financial Officer, Legal Counsel and External Affairs Officer.

The Office of Management includes the functions of Awards Administration and Monitoring, Financial Management and Administrative Services. The Office of Policy and Programs includes the CDFI Program, BEA Program, Technical Assistance, Training and Other Programs, and Policy and Research.

The CDFI Fund Advisory Board consists of 15 members. Membership includes the Secretary or designee of the Departments of Agriculture, Commerce, Housing and Urban Development, Interior, and Treasury; the Administrator or designee of the Small Business Administration; and nine private citizens, appointed by the President.

Funding Summary

Of the amounts appropriated to the Fund, not more than $5,550,000 may be used by the Fund in each fiscal year to pay the administrative costs and expenses of the Fund.

BETHEX FEDERAL
CREDIT UNION
Bronx, New York

Ms. Lamont has a home-based business—"Full Potential"—designing and manufacturing high-fashion hats. Over the past eighteen months Ms. Lamont has seen a significant increase in business culminating in a contract with the national clothing retailer, J. Crew. In 1997, Ms. Lamont approached Bethex for a $15,000 working capital loan to purchase supplies to meet the obligations of the contract with J. Crew. After only three years of operations, she had proven to be a successful self-made entrepreneur, but now needed help to meet her contractual obligations and for the business to reach its next level of growth. Ms. Lamont enrolled in an entrepreneurial training class and subsequently applied for a loan with Bethex. Bethex was impressed with the thoroughness of Ms. Lamont’s business plan, her well organized business records and excellent credit history. As a result, the loan was granted.

One of the short term marketing goals outlined in the business plan was to show her merchandise, in-person, at a major retail store—what is known as a "trunk show." In October, 1997 that goal was realized through a trunk show at Bloomingdales in New York City. Without the success of the J. Crew contract, which was able to be honored through the loan from Bethex, an invitation to that show would not likely have happened. Ms. Lamont now has four seasonal employees in her burgeoning millinery operation.

The South Bronx is one of the country’s most distressed communities. Despite the area’s troubles, Bethex Federal Credit Union has been a steady and constant source of credit, and more importantly of hope, for hundreds of low-income families. Founded in 1970 by welfare recipients, Bethex serves these low-income residents who have generally lacked access to conventional banking services. Over time, Bethex has grown from a institution that provided only the most basic financial services: savings accounts, very small loans and selling money orders, into a full-service financial institution now making business loans of up to $15,000.

The South Bronx contains some of the highest concentrations of poverty in the New York City metropolitan area, as well as the country. The typical family income is approximately one-third of the median family income for the New York City area. Bethex’ service area and its membership is heavily (approximately 60%) Hispanic, primarily of Puerto Rican and Dominican background. African Americans comprise about 40% of its membership. For residents of the South Bronx, the general absence of conventional financial services has been filled, in part, by other sources of "credit" with extraordinary interest rates, including pawn shops and loan sharks.

Bethex received a $100,000 grant from the CDFI Fund to expand its financial services and increase its business lending. Since the Fund’s investment, Bethex has been able to granting more loans, larger loans and accept more risk in its lending. Over the past 18 months Bethex’ membership has grown from 1,270 to 3,000, and its assets have increased from $1.6 million to $3 million. The increase in membership is a result of the expansion of financial services—Bethex now offers ATM cards, direct deposit and checking accounts.

In addition, over the last year, Bethex has launched a "School Banking" program. This program encourages savings among the youth of the community and is an important tool for teaching money management skills. Once common in New York City public schools, this program has not been as frequently utilized in recent years. Currently, Bethex has 550 "school accounts" from third, fourth and fifth graders at two public schools located in the Bronx.

Joy Cousminer, Treasurer/
Manager of Bethex, notes that receiving the award from the CDFI Fund "has made us famous." Since Bethex received their award many commercial banks and thrifts have made non-member deposits and have offered a variety of technical support to the credit union.

ACCION TEXAS
San Antonio, Texas

Andrew Fuentes was too ill to return to his construction job and his family’s money was dwindling. At his wife’s suggestion, he made a table and set of chairs for their empty kitchen out of some old wood. This project, which had a unique, hand hewn look, made Andrew realize his creative potential. Soon afterward, he was selling his "blue fence" furniture to friends and began making furniture full-time. Andrew approached several local banks for a loan, but was turned down because of his credit history. By the time he heard about ACCION Texas, Andrew was too discouraged to apply for a loan. Andrew’s wife encouraged him. "Let’s try it!" she said. But Andrew declined fearing his request would be rejected. Eventually, he applied for and received a loan from ACCION Texas. He used the $3,000 loan to buy more inventory. He filled his shop with furniture and his sales doubled. "Without ACCION," Andrew stated, "we never could have made it."

The decision to launch ACCION Texas was based on a 1993 market study carried out by ACCION International of San Antonio’s Westside micro- and small business sector. The survey of 120 microentrepreneurs included owners of small restaurants and grocery stores, plumbers, electricians, painters, seamstresses, jewelry-makers, house cleaners, home day-care providers, and flea market vendors. These icroentrepreneurs expressed a need for credit, but were unable to access traditional financing. ACCION Texas was created to give these entrepreneurs access to financing and to other business support services. Of the San Antonio Westside micro-business owners surveyed, 83% had never tried to obtain a bank loan and only 2% had used a bank loan to finance their businesses. Many believed that they could not offer sufficient collateral, business history, or income to secure a loan. Of the 80% who said that their businesses were not operating to their potential, 77% cited "lack of capital" as the primary constraint. Approximately 70% of ACCION Texas’ borrowers are Mexican-American and have businesses located in San Antonio’s low-income neighborhoods. ACCION Texas offers microloans from $500 to $25,000—with an average loan size of $3,100—and technical assistance to borrowers.

A $500,000 grant from the CDFI Fund is assisting this CDFI in its efforts to expand service to more than 1,500 borrowers through loans totaling over $3.8 million over a five year period. The grant will also enable ACCION Texas to strengthen its organizational performance.

Since 1994, ACCION Texas has made 817 loans to 331 business owners totaling more than $2.5 million. A study of ACCION Texas’ borrowers found that the 25 clients who had received at least four loans from the program had experienced a 49-percent average increase in the dollar value of the their business assets from $7,971 to $11,870. Their monthly business profits increased an average of 55-percent and their take-home incomes increased 16%.

With a $1 million grant from the CDFI Fund, the Santa Cruz Community Credit Union has opened a new branch office serving the low-income population of Watsonville, California. Eleven percent of the total population and twenty-one percent of the children live below the poverty line in Watsonville. The opening of this new branch has extended needed financial services into the Watsonville community, a major agricultural area whose population is approximately 60% Hispanic. Prior to the opening of the new branch, Watsonville residents had limited access to the full-range of financial services now offered by Santa Cruz Community Credit Union.

Of note are two loans that have been made in Watsonville to address the critical needs of the community’s at-risk youth. Santa Cruz Community Credit Union provided a $160,000 loan to the Santa Cruz Community Counseling Center (the Community Center) enabling it to secure a counseling facility located right in downtown Watsonville. Prior to the Watsonville location, the Counseling Center’s nearest facility was approximately 15 miles away. The Counseling Center’s new Watsonville facility has provided greater accessibility to needed counseling services for the youth and families of Watsonville and now has a greater presence in the community.

Since its inception in 1977, Santa Cruz Community Credit Union has achieved a remarkable track record as a full-service community development financial institution. It has attracted over 6,300 members and has increased its assets to $28 million.

Santa Cruz Community Credit Union offers its members a wide variety of services (savings, checking, credit cards, ATMs, telephone banking) and a range of lending products (consumer loans, real estate loans and business loans). A special lending focus is agricultural loans to support farm operations that employ environmentally sensitive practices such as integrated pest management techniques or sustainable organic growing practices.

A $1 million grant from the CDFI Fund has provided the Santa Cruz Community Credit Union with the capital it needed to implement its plans for a significant expansion – the new branch office in Watsonville.

Santa Cruz Community Credit Union has become a pre-eminent credit union in providing small business loans. To date, it has lent over $37 million to small businesses, cooperatives, and nonprofit service providers – generally entities that could not otherwise access loans from traditional sources. It has provided approximately $4 million in small business and nonprofit loans annually, and over 220 such loans are currently on its books. Over 70% of these loans have been made to minorities and women.

Self-Help’s ability to leverage the CDFI Fund investment is noteworthy. The $3 million was used, in part, to leverage the purchase of affordable single-family mortgage loans from a North Carolina commercial bank. During the last year, this type of transaction was duplicated seven times with three banks, BB&T, Centura Bank, and First Union. Additional capital for these transactions was borrowed from the Federal Home Loan Bank of Atlanta, including $33 million in 1997 alone. Another $11 million was borrowed from banks through incentives from the BEA Program. The purchases of these mortgage pools have so far totaled $103 million and include 1,820 underlying mortgages. The average income of the homebuyers in these mortgage pools is 60% of the area median family income. (More than 55% of these homeowners live in rural areas, and 29% are minority.) Further, the capital the banks gain from the sale of mortgages is being used to make additional home purchase loans to lower-income families. With Self-Help’s demonstrated success, the CDFI is now in a position to open doors to the national capital markets to accelerate the flow of dollars available for achieving home ownership for North Carolina’s low-wealth families.

The increase in Self-Help’s asset base has also allowed for a 30% increase, over 1996 levels, in its small businesses and community facilities lending. A few loans that added particular community building value include: a loan to an African American property owner in Pittsboro to build a facility that is leased to a church-sponsored daycare center; a $250,000 loan to build a facility for a new charter school in Kingston; and a loan to an entrepreneur to finance a manufacturing business that converts recycled wood waste (from area mills) into fiber board that in turn is used in the production of doors purchased by building suppliers.

Self-Help, launched in 1980, aggregates resources and forges partnerships with the public and private sectors and advocates for community development issues. Self Help’s two financing entities, Self-Help Credit Union and Self-Help Ventures Fund, provide access to credit for North Carolina’s distressed communities and low-wealth families. Self-Help Ventures Fund provides loans to emerging small businesses, provides management assistance to its commercial borrowers, and helps expand housing opportunities and community facilities. Self-Help’s steady growth and increased demand has allowed the this CDFI to open five regional offices in the state. Self-Help’s partnerships engages it in increasingly sophisticated transactions and leveraging strategies. Self-Help’s work is having significant impact in transforming conventional loan underwriting standards and, in particular, in creating increased opportunities for home ownership among the state’s lower income families.

The CDFI Fund’s $3 million grant was channeled to Self-Help Ventures Fund and helped to boost its equity capital and assisted it in expanding its secondary market initiatives. Beginning with Wachovia Bank, Self-Help has pioneered a means to create a continual flow of capital to provide mortgages for low-income homebuyers. Self-Help has expanded its asset base from $94 million in September 1996 to $140 million at the close of 1997.

Republic National Bank of New York (Republic), which was awarded $519,659 in the first round of the Bank Enterprise Award (BEA) Program, is an avid proponent of investing in distressed communities and the community development financial institutions (CDFIs) which serve them. Republic has used all of its award to leverage an additional $5 million in economic development and small business lending in low- and moderate-income communities. In this way, its BEA award will be leveraged nearly 10 times over in the form of new lending. The award dollars have been used to create the Special Economic Development Fund which provides below market rates and create a loan loss reserve for loans Republic will make to non-profit economic development organizations over the next few years. Two examples are:

• A $2 million loan was made to the Local Initiatives Support Corporation (LISC)(a certified CDFI and a 1996 CDFI Program awardee), a financial and technical services intermediary focused on real estate development and operations which serves low-income communities throughout the nation. This loan, with a below market rate of 3% over 5 years, could not have been done without the Bank Enterprise Award.

• Republic is also lending $120,000 to Leviticus 25:23 Alternative Fund, Inc. (a certified CDFI and a 1997 CDFI Program awardee), which makes loans for affordable housing, community facilities and small businesses in New York, New Jersey and Connecticut. The $120,000, which is being made at 0% for 1 to 2 years, will be used to expand educational space at qualified child care facilities throughout New York City.

Republic National Bank of New York is a full service bank, which is based in and serves New York and South Florida.

Republic was awarded $519,659 under the BEA Program for providing loans and operating grants totaling $5,196,592 to 21 community development organizations. The institutions assisted by Republic range in size, products and service areas: the Local Initiatives Support Corporation, mentioned above, has a national service area; the Enterprise Foundation (a certified CDFI and a 1997 CDFI Program awardee), based in Columbia, Maryland, which provides loans and technical assistance to nonprofit developers of affordable housing serving distressed areas of 16 cities across the nation; and Bethex Federal Credit Union (a certified CDFI and a 1996 CDFI Program awardee), a full-service credit union serving the low-income residents of the South Bronx, New York.

In addition to significantly increasing its lending activity in eligible distressed neighborhoods—activity that qualified it for an award of $1,585,510 under the first round of the Bank Enterprise Award (BEA) Program in 1996—the Bank of America (B of A) Community Development Bank, together with Bank of America, F.S.B., has invested its entire combined Bank Enterprise Award back into the community. $1.1 million of the award money has been used to establish the Bank of America Leadership Academy, a nine-month program that provides training for senior management of community development organizations. The B of A Leadership Academy is funded jointly by Bank of America Community Development Bank, Bank of America, F.S.B., and the Local Initiatives Support Corporation (a certified CDFI and a 1996 CDFI Program awardee); and is conducted by the Development Training Institute. The B of A Leadership Academy is funded for three nine-month programs. Each session trains 35 executive directors or senior staff of community-based development organizations that are at least five years old and have completed at least three projects.

An additional 20 percent of the combined awards will go to the Low Income Housing Fund, a certified CDFI and a 1996 CDFI Program awardee which provides loans for very low-income housing development across the country.

The Bank of America Community Development Bank is based in Walnut Creek, California and has a service area that includes the entire State of California. The bank provides a range of lending products, including multi-family housing, commercial real estate, and business loans.

The B of A Community Development Bank was awarded $1,585,510 in the 1996 funding round for increasing its multi-family housing, commercial real estate and business loans in distressed communities across California. The Bank made nearly $25 million in loans in targeted neighborhoods meeting the BEA Program’s distress criteria, including $9.5 million in commercial real estate loans, $13.2 million in multifamily loans, and $2.2 million in business loans. The Bank projects that these loans will generate more than 185 units of affordable housing and 300 jobs. The Bank’s increased multifamily lending activity has helped provide a vital source of affordable housing for low-income families in targeted neighborhoods in San Francisco, Modesto, and Los Angeles, including the projects described below:

• a $2.6 million construction loan to support the acquisition and rehabilitation of a deteriorated residential hotel in San Francisco’s Tenderloin neighborhood into 58 units of quality affordable housing for formerly homeless individuals; and

• a $6.8 million loan to support construction of a new 79-unit apartment building located in Downtown Los Angeles. The building serves households earning less than 60% of Los Angeles County’s median income.

The CDFI Fund's financial statements included in this annual report represent the first stand alone statements prepared by the Fund since its inception in FY 1995. Prior to this report, financial information for the CDFI Fund had been included as part of the Department of the Treasury's annual Accountability Report for FY 1996.

Since the beginning of the Fund, accounting services and financial statement preparation have been performed outside of the Fund in other Treasury offices. Until mid FY 1997, these services were performed by the Financial Management Division in the Departmental Offices. For the last half of FY 1997, accounting services and financial statement preparation were contracted to the Bureau of the Public Debt-Franchise Services.

With these first audited financial statements and stand-alone annual report, the CDFI Fund, a wholly owned government corporation, is not only complying with its enabling legislation, but also conforming to the spirit of the CFO Act of 1990 and the Government Performance and Results Act (GPRA) of 1993. In addition, in the first quarter of FY 1998, a Deputy Director for Management/Chief Financial Officer was appointed for the CDFI Fund and a process begun to establish an internal Fund financial management structure and staff.

During FY 1997, the CDFI Fund did not have a formal FMFIA program in place to evaluate, continuously monitor and improve the effectiveness of management controls associated with the Fund’s programs. Consequently, the Fund’s internal control process during this period lacked adequate individual program and operating level self-assessment to provide reasonable assurance that its systems of management, accounting, and administrative control, taken as a whole, achieved FMFIA and FFMIA objectives.

A formal FMFIA program enables management to make an assertion that:

• obligations and costs comply with applicable laws;
• assets are safeguarded against waste, fraud, abuse, and mismanagement;
• revenues and expenditures applicable to the CDFI Fund operations are properly recorded and accounted for so that accounting, financial, and statistical reports may be prepared, and accountability of the assets may be maintained; and
• programs are efficiently and effectively carried out in accordance with applicable laws and management policies.

As a first step towards the preparation of a CDFI Fund Annual Report and audited financial statements for FY 1997, the Fund management initiated an FMFIA review subsequent to September 30, 1997. As a result of this review, which did not include any transaction testing, the following material weaknesses were identified. Currently corrective action plans are being developed with target dates for completion in the first half of FY 1998.

1. Title and Description: (CDFI 97-01) No formal FMFIA Program in place.

CDFI did not have a formal FMFIA program in place during FY 1997 to evaluate, continuously monitor and improve the effectiveness of management controls associated with CDFI’s programs. Therefore, all of the Fund's internal control processes lacked adequate individual program and operating level self-assessment.

Status and Accomplishments: Subsequent to September 30, 1997, the CDFI Fund management initiated an FMFIA review to assess its internal controls. This review identified seven material weaknesses and three instances of administrative systems’ non-conformance. During the first half of FY 1998, the Fund will establish a formal management control process and designate the Deputy Director for Management/CFO as the Fund’s Management Control Officer.

2. Title and Description: (CDFI 97-02) CFO and Controller positions and functions not established.

The CDFI Fund did not hire a Chief Financial Officer (CFO) until after September 30, 1997. Since a CFO’s duties would normally include overseeing all aspects of the Fund’s administrative, accounting, reporting, management controls, budgetary, portfolio monitoring, and compliance with laws and regulations, these areas were not receiving sufficient management attention during FY 1997. In addition, the Fund lacked a controller (financial manager) to oversee the day-to-day accounting functions, as well as the accounting activities performed for the Fund by the Bureau of the Public Debt. The lack of a CFO and Controller potentially impairs the Fund’s management ability to make sound financial decisions and to monitor the Fund’s financial and performance activities.

Status and Accomplishments: A Deputy Director for Management/Chief Financial Officer was appointed in November, 1997. A staff accountant was hired in January, 1998. Additional financial positions are being developed and hiring will continue through the first half of FY 1998.

3. Title and Description: (CDFI 97-03) Awards Administration and Monitoring Positions and functions not established.

The duties of an awards officer normally include serving as the principal procedural authority, advisor and implementer of awards management policies. Key to such a function is the development and coordination of the Fund's awards management program, including the dissemination of procedural and technical advice, guidance and interpretation on CDFI award management activities and requirements, maintenance of award files, as well as sufficient monitoring of the pre- and post-award operations of the Fund. The lack of an awards manager impairs the Fund’s ability to carry out the above activities and to monitor CDFI’s program performance and compliance activities.

Status and Accomplishments: Policies and procedures for an awards administration and monitoring function are being developed in the first half of FY 1998. An Awards Officer reported for duty in January, 1998.

4. Title and Description: (CDFI 97-04) Post Award Monitoring Procedures not established and implemented.

• Develop written, formal, ongoing monitoring procedures and forms and place them into operation.
• Continue with the design and development of a portfolio monitoring database system.
• Determine the audit guidelines for the CDFI awardees to follow.

• Track the receipt of all required reporting activities for all CDFI awardees since the inception of the Fund.

1. Title and Description: (CDFI 97-05) No formal review of monthly financial statements and accounting records or completion of supporting reconciliations.

Monthly trial balances and other reports such as spending transaction reports, budget and obligation reports were not routinely reviewed and reconciled to source documentation such as invoices and purchase orders. Where reviews were performed, documentation of the review procedures was not evident. There was no formalized administrative funds control policy or process. Lack of a formalized review of monthly financial statements and other financial reports impairs the Fund’s management ability to effectively and adequately monitor the CDFI Fund’s financial activities.

Status and Accomplishments: During the first half of FY 1998, the Fund will establish a formal process for preparing and distributing monthly financial statements. The Deputy Director for Management/CFO will establish and implement Fund policies and procedures for the administrative control of funds. Monthly financial statements will be reviewed and any issues acted upon in a timely manner.

2. Title and Description: (CDFI 97-06) Inadequate Delineation of Organizational Responsibilities.

• Reevaluate all existing position descriptions;
• Establish performance criteria and standards for each Fund position
• Implement a performance appraisal process; and
• Establish an awards system for employee performance.

1. Title and Description: (CDFI 97-07) Program Award Files not completed.

The CDFI Fund management is responsible for the fair presentation of information contained in the principal financial statements, in conformity with the accounting hierarchy described in Note 1, Summary of Significant Accounting Policies, which constitutes an "other comprehensive basis of accounting." Management is also responsible for the fair presentation of the Fund’s performance measures in accordance with Office of Management and Budget requirements. The quality of the Fund’s internal control structure rests with management, as well as the responsibility for identification and compliance with pertinent laws and regulations.

The financial statements, included as part of this total package, present the financial position and results of operations of the Community Development Financial Institutions Fund for the years ended September 30, 1997, 1996 and 1995 pursuant to the requirements of the Government Management Reform Act of 1994. While the financial statements have been prepared from records in accordance with the formats prescribed by the Office of Management and Budget Bulletin No. 94-01, "Form and Content of Agency Financial Statements," the statements are different from the financial reports used to monitor and control budgetary resources that are prepared from the same records and are subsequently presented in Federal budget documents. Therefore, readers are advised that direct comparisons are not possible between figures found in this report and similar financial concepts found in the fiscal year 1997, 1996 and 1995 Budget of the United States Government. Additionally, the financial statements should be reviewed with the realization that they are for a sovereign entity (the United States Government), that liabilities not covered by budgetary resources reported in the financial statements cannot be liquidated without the enactment of an appropriation, and that the payment of all liabilities other than for contracts can be abrogated by the sovereign entity.

III-3

These financial statements have been prepared to report the financial position, results of operations and cash flows of the Community Development Financial Institutions (CDFI) Fund. The U.S. Department of the Treasury’s (the Treasury) Bureau of the Public Debt-Franchise Services provides administrative accounting services to the CDFI Fund. These financial statements summarize the administrative accounting records maintained by the Bureau of the Public Debt-Franchise Services in its Federal Financial System (FFS) and are presented in accordance with the form and content for entity financial statements specified by the Office of Management and Budget (OMB) in OMB Bulletin 94-01 and the CDFI Fund’s accounting policies which are summarized in this note. A Statement of Budgetary Resources and Actual Expenses is not included in the principal statements. Treasury organizations received a waiver from the OMB for this requirement.

The CDFI Fund was created as a bipartisan initiative in the Riegle Community Development and Regulatory Improvement Act of 1994 (Public Law No. 103-325). The CDFI Fund was originally created to be a separate, independent wholly owned government corporation subject to the audit and reporting requirements of the Government Corporation Control Act (31 U.S.C. 9105 and 9106). However, the CDFI Fund was placed in the Treasury (Chapter X of title I, Public Law No. 104-19) and began operations as of July 27, 1995.

The CDFI Fund operates various programs aimed to expand the availability of credit, investment capital, financial, and other services in distressed urban, rural, and Native American communities. The Fund is intended to help create a national network of financial institutions dedicated to community development that leverages private resources (financial and human) to address community development needs.

The CDFI Program uses limited public resources to invest in private, for-profit and non-profit financial institutions. This investment helps build the capacity of local CDFIs by leveraging large amounts of private capital and builds on private-sector talent, creativity, and leadership. CDFI program awards may take the form of grants, direct loans, equity investments or technical assistance to eligible financial institutions.

The Bank Enterprise Awards (BEA) Program provides incentives to insured depository institutions (banks and thrifts) to invest in CDFIs and to increase their lending and financial services in distressed communities. Program participants are selected based on projected achievements. The awards are given only after the activities have been implemented successfully, to ensure that only completed activities are recognized and that the Fund’s limited dollars are effectively leveraged with private capital.

These programs are funded under the following two appropriations:

• 20 Y/Y 1881, annual two-year appropriation for CDFI Fund operations; and
• 20 X 4088, no-year appropriation for tracking financing account transactions.

The CDFI Fund has developed the Presidential Awards for Excellence in Microenterprise Development under the authority of a 1995 Presidential Memorandum to the Secretary of the Treasury. This Microenterprise initiative is designed to help improve the quality of organizations that provide financing and services to the nation’s smallest businesses. These non-monetary awards are designed to provide recognition and share lessons learned from outstanding programs in the field of microenterprise development.

The CDFI Fund’s financial statements are accounted for in accordance with the following hierarchy which constitutes an other comprehensive basis of accounting other than generally accepted accounting principles:

• Individual standards agreed to by the Director of OMB, the Controller General, and the Secretary of the Treasury and published by OMB and the General Accounting Office.
• Form and Content requirements included in OMB Bulletin No. 94-01, dated November 16, 1993 and applicable requirements from 97-01 dated October 16, 1996;
• Accounting principles and standards published by the Department of the Treasury accounting policy and procedures manuals which are prevalent practices; and
• Accounting principles published by other Federal and private sector authoritative standard setting bodies and authoritative sources.

The Fund reports on an accrual basis and a budgetary basis. Under the accrual basis, revenues are recognized when earned and expenses are recognized when a liability is incurred, without regard to receipt or payment of cash.

The CDFI Fund receives the majority of its funding through appropriations from the U.S. Congress. The Fund receives both annual and no-year appropriations that may be used, within statutory limits, for operating expenditures. A portion of the appropriation may be used for the cost of direct loans and the administrative expenses to carry out the direct loan program.

Additional revenues are obtained from interest received on direct loans to the public and on uninvested funds in the direct loan financing account with the Treasury.

Appropriations are recognized as revenues to the extent expenditures covered by budgetary resources are incurred. Subsidy interest revenue is recognized and interest differential amortized, when interest paid is greater than interest received as a result of the CDFI Fund providing direct loans to the public.

The CDFI Fund does not maintain cash in commercial bank accounts. Cash receipts and disbursements are processed by the U.S. Department of the Treasury. Fund Balances with Treasury are comprised primarily of appropriated and credit reform funds (financing and program accounts), which are available to pay current liabilities and finance authorized grant awards and other credit reform commitments.

Payments in advance of the receipt of goods and services are recorded as prepaid charges at the time of prepayment and recognized as expenses when the related goods and services are received.

In certain instances, the CDFI Fund provides assistance by purchasing non-voting, equity investments in for-profit CDFI Program awardees. The CDFI Fund is restricted from owning more than 50 percent of the equity of an awardee and can not control its operations. Investments are initially recorded at cost, and adjusted to market value based on reported market prices or other relevant financial information available for the investees at each year end. At September 30, 1997, cost and market values are the same due to the short duration the investments have been held by the CDFI Fund.

In certain instances, the CDFI Fund provides assistance by direct loans to CDFI Program awardees. Direct loans are accounted for on a present value basis as required by the Statement of Federal Financial Accounting Standard (SSFAS) No.2 . The use of the present value accounting method is consistent with the intent of the Federal Credit Reform Act of 1990. Loans are reported as receivables when disbursed, reduced by an allowance equal to the present value of the subsidy cost associated with the loans. Subsidy costs include the present value of the interest rate differential between the loan and the Treasury borrowing rates, the estimated delinquencies and defaults net of estimated recoveries, the offset from fees, and other estimated cash flows.

Interest income is accrued at the contractual rate on the outstanding credit program receivable principal balances.

Office space in the building in which the CDFI Fund administrative offices are located is leased through the General Services Administration. GSA charges the Fund rent that approximates the commercial rental for similar properties.

Equipment purchased, transferred or donated with a cost greater than or equal to $50,000 per unit and a useful life of two years or more is capitalized at cost and depreciated. However, at September 30, 1997, the Fund has no capitalizable equipment or other property. Other equipment is expensed when purchased. Normal repairs and maintenance are charged to expense as incurred.

Liabilities represent the amount of monies or other resources that are likely to be paid by the CDFI Fund as a result of a transaction or event that has already occurred. Liabilities for which an appropriation has not yet been enacted are classified as unfunded liabilities.

Debt represents borrowings payable to the Treasury resulting from loans from the Treasury to fund direct loans made by the CDFI Program. These borrowings are accounted for in the financing account (20 X 4088), which is required to make annual principal payments to the Treasury based on the collections of loans receivable.

The CDFI Fund financing account (20 X 4088) records interest payable to the Treasury for related borrowings. The CDFI Fund is required to make annual interest payments to the Treasury.

Annual leave and compensatory leave is accrued as a liability when earned, and the accrual is reduced as leave is taken. The balance in this accrued liability account is computed using current pay rates. Sick leave and other types of non-vested leave are expensed as the leave is taken.

CDFI Fund employees participate in the Civil Service Retirement System (CSRS) or Federal Employees’ Retirement System (FERS). The FERS was established by the enactment of Public Law 99-335. Pursuant to this law, most employees hired after December 31, 1983, are automatically covered by FERS and Social Security. Employees hired prior to January 1, 1984, elected to join either FERS and Social Security or remain in CSRS.

All employees are eligible to contribute to the Thrift Savings Plan (TSP). For those employees participating in the FERS, a TSP account is automatically established, and the CDFI Fund makes a mandatory 1 percent contribution to this account. In addition, the Fund makes matching contributions, ranging from 1 to 4 percent, for FERS eligible employees who contribute to their TSP account. Matching contributions are not made to the TSP accounts established by CSRS employees.

FERS employees and certain CSRS reinstatement employees are eligible to participate in the Social Security program for retirement. In these instances, the Fund remits the employer’s share of the required contribution. For Fund employees participating in CSRS, the Fund makes matching contributions to CSRS equal to 7 percent of base pay.

The Fund does not report information pertaining to the retirement plans covering its employees in its financial statements. Reporting amounts such as plan assets, accumulated plan benefits, or unfunded liabilities, if any, is the responsibility of the Office of Personnel Management. However, as a result of Statements of Federal Financial Accounting Standard (SSFAS) No. 5, which is effective for fiscal year 1997, the CDFI Fund is required to report the full cost of providing pension benefits to include the cost financed by the Office of Personnel Management (OPM). For 1997, the CDFI Fund paid $94,901 for retirement benefits, which approximated the full cost of these benefits.

Similar to Federal Retirement plans, OPM, rather than the CDFI Fund, reports the liability of future payments to retired employees who participate in the Federal Employees Health Benefits Program (FEHBP) and Federal Employees Group Life Insurance (FEGLI) Program. As a result of SSFAS No. 5, the CDFI Fund is required to report the full cost of providing other retirement benefits (ORB). Currently the CDFI Fund does not contribute funds to cover the cost of providing health benefits and life insurance to its retirees (see Note 7).

SSFAS No. 5 also requires the CDFI Fund to recognize an expense and liability for other post employment benefits (OPEB), which include all types of benefits provided to former or inactive (but not retired) employees, their beneficiaries, and covered dependents. The CDFI Fund recognizes an expense and liability for OPEB when a future outflow or other sacrifice of resources is probable and measurable on the basis of events occurring on or before the end of the fiscal year. At September 30, 1997, the CDFI Fund had no liability for OPEB.

CDFI program grant expense is recognized and awards payable are recorded when the CDFI Fund is made aware, in writing, of the awardee’s matching funds commitment and an executed agreement is signed. BEA grant expense is recognized and awards payable are recorded at the end of the assessment period in which the awardees demonstrate completion of qualified activities.

The CDFI Fund, as a government corporation, is not subject to federal, state, or local income taxes and, accordingly, no provision for income tax is recorded.

The CDFI Fund may be a party in various administrative proceedings, legal actions, and claims brought by or against it. The Fund’s management and legal counsel are unaware of any contingencies that would materially affect the CDFI’s financial position or results of operations.

The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates.

Fund balances with Treasury as of September 30, 1997, 1996 and 1995, consists of the following:

The CDFI Fund operates the CDFI Program to facilitate the flow of capital into distressed communities. The CDFI Program invests in a variety of forms, including equity loans, grants, deposits and credit union shares, depending on market needs and the ability of individual local CDFIs to raise matching funds in comparable form.

Direct loan obligations and the resulting direct loans are governed by the Federal Credit Reform Act of 1990. The Act provides that the present value of the subsidy costs (i.e. interest rate differentials, interest subsidies, estimated delinquencies and defaults, fee offsets and other cash flows) associated with direct loans be recognized as a cost in the year the direct or guaranteed loan is disbursed. An analysis of fiscal year 1997 credit program receivables and the nature and amounts of the subsidy and administrative costs associated with the direct loans is provided below.

Credit Program Receivables as of September 30, 1997, are as follows:

The subsidy cost allowance was not re-estimated as of September 30, 1997, because less than 90% of loans in the 96 Cohort have been disbursed as of September 30, 1997. No modifications occurred during fiscal year 1997.

The CDFI Fund did not provide direct loans in fiscal years 1996 and 1995. Management estimated approximately 7 percent of total administrative expenses related to the cost of administrating direct loans. Loan commitments and related subsidies as of September 30, 1997 were $4,260,000 and $2,025,181, respectively.

Debt as of September 30, 1997, is as follows:

The CDFI Fund did not borrow funds from the Treasury in fiscal years 1996 and 1995.

Net Position as of September 30, 1997, 1996 and 1995 is as follows:

The components of net position are as follows:

Unexpended Appropriations: This amount includes the portion of the CDFI Fund’s appropriations represented by undelivered orders and unobligated balances. Undelivered orders do not include loan obligation balances, as loans are funded primarily from borrowings from the Treasury, but do include $2,025,181 related to the subsidy portion of loans that have been obligated but not disbursed. Once the loans are disbursed, the subsidy portion will be expensed. Unobligated balances include both available and unavailable amounts.

Invested Capital: This amount includes $5,996,900 of equity investments in local CDFIs. The CDFI Program purchases non-voting equity investments in for-profit awardees. The investments are transferable and may be converted to voting stock upon transfer.

Future Funding Requirements: This amount reflects liabilities reported in the Statements of Financial Position which are not covered by available budgetary resources.

The CDFI Fund leases office space from the General Services Administration in the Homer Building located in Washington DC at 601 13th Street, NW. The lease will terminate January 8, 2002. Future payments due for operating leases on buildings and office space as of September 30, 1997 are as follows:

Rent expense for 1997 totaled $445,000. CDFI Fund did not incur operating lease expense in fiscal years 1996 and 1995.

Other revenue and financing sources as of September 30, 1997 are as follows:

Post Retirement Benefits are imputed from three basic sources; pension expense, health insurance expense, and life insurance expense. The total cost of providing pension benefits as provided by OPM was covered by amounts contributed by the CDFI Fund and its employees. Therefore, there was no additional pension expense or imputed financing source in the CDFI Fund’s financial statements for fiscal year 1997. The fiscal year 1997 FEHBP cost factor per employee enrolled in the FEHBP is $2,493 which is provided by OPM on a per employee basis because the benefits do not depend on future salary levels of individual employees. The FEHBP ORB amount totaling $27,423 is included as an expense and imputed financing source in the CDFI Fund’s financial statements for fiscal year 1997. The fiscal year 1997 FEGLI cost factor for employees enrolled in the FEGLI program is 0.02 percent of their basic pay. The FEGLI ORB amount totaling $125 is included as an expense and imputed financing source in the CDFI Fund’s financial statements for fiscal year 1997. Reporting post retirement benefits was not required in fiscal years 1996 and 1995.

Operating expenses by object classification for the periods ended September 30, 1997, 1996 and 1995 are as follows:

*Other Services include management support and contractual services, training, repairs and maintenance,

and leasehold improvements.

As of September 30, 1997, CDFI has committed to awarding $37,332,825 in grants. These grant awards are in the approval process and have not yet been disbursed.

Non-operating changes consist of increases and decreases in the components of net position that are not reported in the operating statement. The following table identifies the components of the non-operating changes for the periods ended September 30, 1997, 1996 and 1995:

The following list of 196 organizations have been certified by the Fund as Community Development Financial Institutions (CDFIs).

Certification as a CDFI means that an organization meets the CDFI eligibility requirements. The current CDFI eligibility requirements as set forth in the CDFI Program regulations at 12 CFR Section 1805.200 and are more fully described at 12 CFR Section 1805.701(b). These requirements relate to an organization'’ having a primary mission of promoting community development, predominantly serving and maintaining accountability to eligible target markets, being a financing entity, providing development services and not being a government entity. Certification does not constitute an opinion by the Fund as to the effectiveness or financial viability of the certified organization.

Alaska Growth Capital BIDCO, Inc.
201 Arctic Slope Avenue
Suite 100
Anchorage, AK 99518

Tinaa Corporation
320 West Willoughby Avenue Suite 300
Juneau, AK 99801

Demopolis Federal Credit Union
Post Office Box 727
Demopolis, AL 36732

Federation of Greene County Employees' Federal Credit Union
Post Office Box 543
Eutaw, AL 35462

Prichard Federal Credit Union
Post Office Box 10576
Prichard, AL 36610

Stillman Community Development Federal Credit Union
Post Office Box 3148
Tuscaloosa, AL 35403

Southern Development Bancorporation
605 Main Street
Arkadelphia, AR 71923

College Station Community Federal Credit Union
Post Office Box 599
College Station, AR 72053

Hopi Credit Association
Post Office Box 1259
Keams Canyon, AZ 86034

PPEP Microbusiness and Housing Development Corporation
802 E. 46th Street
Tucson, AZ 85713

First American Credit Union
Post Office Box 1169
Window Rock, AZ 86515

The Clearinghouse CDFI
23861 El Toro Road
Suite 207
Lake Forest, CA 92630

Community Thrift & Loan
5444 East Olympic Boulevard
Los Angeles, CA 90022

FAME Assistance Corporation (d.b.a. FAME Renaissance)
2270 South Harvard Boulevard
Los Angeles, CA 90018

NHS Neighborhood Lending Services
3111 South Flower Street
Los Angeles, CA 90007

South Central People's Federal Credit Union
3001 West Vernon Avenue
Los Angeles, CA 90008

Community Bank of the Bay
492 Ninth Street, Suite 260
Oakland, CA 94607

Rural Community Assistance Corporation
2125 19th Street, Suite 203
Sacramento, CA 95818

ACCION San Diego
1250 6th Avenue, Suite 1000
San Diego, CA 92101-4313

Mission Area Federal Credit Union
2940 16th Street, Suite 305
San Francisco, CA 94103

Northeast Community Federal Credit Union
19 Walter U. Lum Place
San Francisco, CA 94108

Northern California Community Loan Fund
383 Rhode Island Street
San Francisco, CA 94103

The Low Income Housing Fund
74 New Montgomery Street, Suite 250
San Francisco, CA 94105

Lenders for Community Development
111 West Saint John Street, Suite 230
San Jose, CA 95113

Santa Cruz Community Credit Union
512 Front Street
Santa Cruz, CA 95060

Colorado Enterprise Fund (formerly Greater Denver Local Development Corporation)
1888 Sherman Street
Suite 530
Denver, CO 80201-2135

Saguache County Credit Union
Highway 17
Post Office Building
PO Box 337D
Moffat, CO 81143

Connecticut Housing Investment Fund, Inc.
121 Tremont Street
Hartford, CT 06105

Cooperative Fund of New England
Post Office Box 412
Hartford, CT 06141-0412

Housing Development Fund of Lower Fairfield County, Inc.
300 Main Street
Stamford, CT 06901

Need Action Federal Action Credit Union
106 Grove Street
Waterbury, CT 06710

FINCA USA, Inc.
1101 14^th Street, NW
11^th Floor
Washington, DC 20005

Housing Assistance Council
1025 Vermont Avenue, NW, Suite 606
Washington, DC 20005

Unitarian Universalist Affordable Housing Corporation
2201 P Street, NW
Washington, DC 20037

Washington Area Community Investment Fund
2201 P Street, NW
Washington, DC 20037

First State Community Loan Fund
300 Delaware Avenue
Suite 219
Wilmington, DE 19801

Intrust USA, Ltd.
Three Mill Road, Suite 105
Wilmington, DE 19806

Lee County Employment & Economic Development Corporation
2121 West First Street
Fort Myers, FL 33902-2285

BAC Funding Corporation
6600 NW 27th Avenue
Miami, FL 33147

Florida Community Loan Fund, Inc.
Post Office Box 22332
St. Petersburg, FL 33742

Tampa Bay Community Reinvestment Corporation
1111 N. Westshore Boulevard, Suite 103
Tampa, FL 33607

Mutual Federal Savings Bank
205 Auburn Avenue, NE
Atlanta, GA 30335-5301

Savannah Community Development Corporation
31 W. Congress Street
Suite 100
Savannah, GA 31401

Unified Singers Federal Credit Union
517 Campbell Street
Thomasville, GA 31799

ACCION Chicago
3811 West 26th Street
2nd Floor
Chicago, IL 60623

Austin/West Garfield Federal Credit Union
4909 W. Division Street
Suite 100
Chicago, IL 60651

CANDO's Citywide Development Corporation
343 S. Dearborn Street
Suite 910
Chicago, IL 60604-3808

Chicago Community Loan Fund
343 S. Dearborn, Suite 1001
Chicago, IL 60604

Community Investment Corporation
222 S. Riverside Plaza
Suite 2200
Chicago, IL 60606

Illinois Facilities Fund
300 West Adams Street
Chicago, IL 60606

Israel Methcomm Federal Credit Union
7620 South Cottage Grove
Chicago, IL 60619

National Community Investment Fund
1950 East 71st Street
Chicago, IL 60649-2096

National Equity Fund, Inc.
547 West Jackson Boulevard
Chicago, IL 60661

Neighborhood Housing Services of Chicago, Inc.
747 North May Street
Chicago, IL 60622

Nonprofit Financial Center
111 West Washington Street Suite 1221
Chicago, IL 60602

NorthSide Community Federal Credit Union
4138 N. Sheridan Road
Chicago, IL 60613

Partners for Community Investment
2929 South Wabash Avenue Suite 200
Chicago, IL 60616

Sable Bancshares, Inc.
1111 South Homan Avenue
Chicago, IL 60624

The Shorebank Corporation
7054 South Jeffrey Boulevard
Chicago, IL 60649-2096

The South Shore Bank of Chicago
71^st & Jeffery Boulevard
Chicago, IL 60649-2096

Neighborhood and Family Investment Fund
16333 South Halsted
Harvey, IL 60426

Eastside Community Fund, Inc.
26 North Arsenal Avenue
Indianapolis, IN 46201

Indianapolis Neighborhood Housing Partnership
3550 North Washington Boulevard
Indianapolis, IN 46205-3719

Near Eastside Community Federal Credit Union
2230 East 10th Street
Indianapolis, IN 46201-2006

Douglass Bancorp, Inc.
1314 North 5th Street
Kansas City, KS 66101

Communities United Credit Union
1755 North Hillside
Wichita, KS 67214

Central Appalachia Peoples Federal Credit Union
1835 Big Hill Road
P.O. Box 504
Berea, KY 40403

Federation of Appalachian Housing Enterprises
1835 Big Hill Road, Drawer B
Berea, KY 40403

Community Ventures Corporation
1450 North Broadway
Lexington, KY 40505

Kentucky Highlands Investment Corporation
Post Office Box 1738
London, KY 40743-1738

Louisville Development Bancorp, Inc.
2901 West Broadway
Louisville, KY 40251

Mountain Economic Development Fund, Inc.
201 South Main Street
Winchester, KY 40391

Gulf Coast Business and Industrial Development Corporation
8752 Quarters Lake Road
Baton Rouge, LA 70809

Coastal Enterprises, Inc.
Water Street
Post Office Box 268
Wiscasset, ME 04578

Baltimore Regional Community Development Corporation
601 N. Howard Street
Baltimore, MD 21201

Development Credit Fund, Inc.
2530 N. Charles Street
Suite 200
Baltimore, MD 21218

Enterprise Social Investment Corporation
10227 Wincopin Circle
Columbia, MD 21044

The Enterprise Foundation
10227 Wincopin Circle
Columbia, MD 21044

McAuley Institute
8300 Colesville Road
Suite 310
Silver Spring, MD 20910

Boston Bank of Commerce
133 Federal Street
Boston, MA 02110

Working Capital
99 Bishop Allen Drive
Cambridge, MA 02139

Jobs for Fall River, Inc.
One Government Center
Fall River, MA 02722

Western Massachusetts Enterprise Fund
308 Main Street, Suite 2-B
Greenfield, MA 01301

Boston Community Capital (formerly BCLF, Inc.)
30 Germania Street
Jamaica Plain, MA 02130

Boston Community Loan Fund, Inc.
30 Germania Street
Jamaica Plain, MA 02130

D. Edward Wells Federal Credit Union
864 State Street
Springfield, MA 01109

Institute for Community Economics
57 School Street
Springfield, MA 01105-1331

Neighborhoods, Inc. of Battle Creek
47 North Washington Avenue
Battle Creek, MI 49017

Community Capital Development Corporation
711 North Saginaw Street Suite 123
Flint, MI 48503

Michigan Housing Trust Fund
5829 Executive Drive
Lansing, MI 48911

Anoka County Capital Fund
299 Coon Rapids Boulevard, Suite 12
Coon Rapids, MN 55433

Northeast Ventures Corporation
802 Alworth Building
302 West Superior Street
Duluth, MN 55802

Northland Foundation
Providence Building
332 West Superior Street
Suite 600
Duluth, MN 55802

Central Minnesota Initiative Fund
70 Southeast First Avenue
Little Falls, MN 56345

Minneapolis Consortium of Community Developers
1808 Riverside Avenue
Suite 206
Minneapolis, MN 55454

Northcountry Cooperative Development Fund
1219 University Avenue, SE
Minneapolis, MN 55414

Southside Neighborhood Housing Services of Minneapolis, Inc.
3137 Chicago Avenue South
Minneapolis, MN 55407

Wendell Phillips Community Development Federal Credit Union
1014 East Franklin Avenue South
Minneapolis, MN 55404

Northeast Entrepreneur Fund, Inc.
Olcott Plaza
820 Ninth Street North
Suite 140
Virginia, MN 55792

Delta Foundation, Inc.
819 Main Street
Greenville, MS 38707

Enterprise Corporation of the Delta
308 East Pearl Street
4th Floor
Jackson, MS 39201

Jackson/Hinds Minority Capital Fund, Inc.
207 W. Amite Street, Suite 401
Jackson, MS 39201

Quitman County Federal Credit Union
201 Humphrey Street
Post Office Box 277
Marks, MS 38646

East Mississippi Development Corporation
910 Highway 19 North
Meridian, MS 39307

Rehabilitation Loan Corporation
6285 Paseo Boulevard
Kansas City, MO 64110

Montana Community Development Corporation
(formerly Montana Western Region Economic Development Group)
127 North Higgins Avenue, Suite 301
Missoula, MT 59802

Omaha 100, Incorporated
2424 Cuming Street
Omaha, NE 68131-1600

New Hampshire Community Loan Fund, Inc.
79 South State Street
Post Office Box 800
Concord, NH 03302-0800

Camden Community Credit Union
423 Market Street
Camden, NJ 08102

Cooperative Business Assistance Corporation
433 Market Street, Suite 201
Camden, NJ 08102

New Community Development Loan Corporation
233 West Market Street
Newark, NJ 07103

New Community Federal Credit Union
233 West Market Street
Newark, NJ 07103

New Jersey Community Loan Fund
One West State Street
Post Office Box 1655
Trenton, NJ 08607

ACCION New Mexico
320 Gold Street Southwest, Suite 400
Albuquerque, NM 87102

New Mexico Community Development Loan Fund
Post Office Box 705
Albuquerque, NM 87103

Capital District Community Loan Fund
340 First Street
Albany, NY 12206

BHA Residents Community Development Federal Credit Union
35 Exchange Street
Post Office Box 1906
Binghamton, NY 13902

Bethex Federal Credit Union
20 East 179th Street, Basement
Bronx, NY 10453

Credit Incorporated
370 East 149th Street
Bronx, NY 10455

ACCION New York
235 Havemeyer Street
2^nd Floor
Brooklyn, NY 11211

Brooklyn Ecumenical Federal Credit Union
541 Atlantic Avenue
Brooklyn, NY 11217

Central Brooklyn Federal Credit Union
1205 Fulton Street
Brooklyn, NY 11216

Community Capital Bank
111 Livingston Street
Brooklyn, NY 11201

North/East Brooklyn Community Capital Corporation
116 Williams Avenue
Brooklyn, NY 11207

Alternatives Federal Credit Union
301 West State Street
Ithaca, NY 14850

Greater Jamaica Local Development Company, Inc.
90-04 161st Street
Jamaica, NY 11432

Central Harlem Local Development Corporation
131 West 138^th Street
New York, NY 10030

Corporation for Supportive Housing
342 Madison Avenue
Suite 505
New York, NY 10173

Grow America Fund, Inc.
317 Madison Avenue
Suite 1500
New York, NY 10017

Homesteaders Federal Credit Union
40 Prince Street
New York, NY 10012

Local Initiatives Support Corporation
733 Third Avenue
New York, NY 10017

Lower East Side People's Federal Credit Union
37 Avenue B
New York, NY 10009

National Federation of Community Development Credit Unions
120 Wall Street, 10th Floor
New York, NY 10005-3902

Neighborhood Housing Services of New York City, Inc.
121 West 27^th Street, 4^th Floor
New York, NY 10001

Neighborhood Trust Federal Credit Union
656 West 181^st Street
Suite 1A
New York, NY 10033

Nonprofit Facilities Fund
70 W. 36th Street - 11th Floor
New York, NY 10018-8007

Renaissance Economic Development Corporation
180 Eldridge Street
New York, NY 10002

Seedco
915 Broadway, Suite 1703
New York, NY 10010

The Parodneck Foundation, Inc.
121 Sixth Avenue, Suite 501
New York, NY 10013

Union Settlement Federal Credit Union
237 East 104th Street
New York, NY 10029

Washington Heights and Inwood Development Corporation
57 Wadsworth Avenue
New York, NY 10033

Women's Venture Fund, Inc.
34 East 70 Street
New York, NY 10021

Adirondack Economic Development Corporation
Trudeau Road
Post Office Box 747
Saranac Lake, NY 12983

Syracuse Neighborhood Housing Services, Inc.
1723 South Salina Street
Syracuse, NY 13205

Leviticus 25:23 Alternative Fund, Inc.
928 McLean Avenue
Yonkers, NY 10704-4103

Tri County Credit Union
Post Office Box 754
Ahoski, NC 27910

School Workers Federal Credit Union
431 Beatties Ford Road
Post Office Box 16285
Charlotte, NC 28297

Self-Help Credit Union
301 West Main Street
Durham, NC 27702-3619

Self-Help Ventures Fund
301 West Main Street
Durham, NC 27702-3619

Chowan Credit Union
Post Office Box 627
Edenton, NC 27932

College Heights Credit Union
1503 Murchison Road
Fayetteville, NC 28301

Gateway Community Development Credit Union
314 S. Garnett Street
Henderson, NC 27536

Rowan-Iredell Area Credit Union
1300 W. Bank Street
Salisbury, NC 28144

St. Luke Credit Union
302 Granville Street
Post Office Box 548
Windsor, NC 27983

Micro-Enterprise Loan Program of Winston-Salem Forsyth County, Inc.
1001 S. Marshall Street
Suite 32
Winston-Salem, NC 27101

Victory-Masonic Mutual Credit Union
1225 E. Fifth Street
Winston-Salem, NC 27102-0232

Enterprise Community Fund
550 South Arlington Street
Akron, OH 44306

Appalachian Development Federal Credit Union
900 East State Street, Suite 101
Athens, OH 45701

Faith Community United Credit Union, Inc.
3550 E. 93rd Street
Cleveland, OH 441051644

ShoreBank, Cleveland
540 East 105^th Street
Cleveland, OH 44108

The Columbus Growth Fund, Inc.
941 Chatham Lane
Suite 207
Columbus, OH 43221

Enterprise Development Corporation
9030 Hocking Hills Drive
The Plains, OH 45780

Toledo Urban Federal Credit Union
Post Office Box 351295
Toledo, OH 43635

Rural Enterprises, Inc.
Post Office Box 1335
Durant, OK 74702

Neighborhood Housing Services of Oklahoma City, Inc.
2915 N. Classen Boulevard, Suite 320
Post Office Box 60327
Oklahoma City, OK 73146-0327

Tulsa Economic Development Corporation
907 South Detroit, Suite 1001
Sun Oil Building
Tulsa, OK 74120

Albina Community Bancorp
1130 N.E. Alberta
Portland, OR 97211

Aliquippa Regional Credit Union
392 Franklin Avenue
Aliquippa, PA 15001

Delaware Valley Community Reinvestment Fund, Inc.
924 Cherry Street
Philadelphia, PA 191072405

National Community Capital Association (formerly National Association of Community Development Loan Funds)
924 Cherry Street
Philadelphia, PA 19107

Philadelphia Neighborhood Housing Services, Inc.
511 N. Broad Street - 4th Floor
Philadelphia, PA 19123

United Bank of Philadelphia
714 Market Street
Philadelphia, PA 19106

Community Loan Fund of Southwestern Pennsylvania, Inc.
48 South 14th Street
Pittsburgh, PA 15203

Washington County Council on Economic Development
703 Couthouse Square
Washington, PA 15301

Corporacion Para El Desarrollo Econqmico, Urbano Y Vivienda E Industrial De Catano, Inc.
Post Office Box 630577
Catano, PR 00963

Northeast South Dakota Energy Conservation Corporation
414 Third Avenue East
Sisseton, SD 57262-1598

Chattanooga Neighborhood Enterprise
535 Chestnut Street, Suite 100
Chattanooga, TN 37402-4098

East Austin Community Federal Credit Union
1704 East 12th Street
Austin, TX 78702

Greater Brownsville Community Development Corporation
1150 E. Adams - Second Floor
Brownsville, TX 78520

Neighborhood Housing Services of Dimmit County, Inc.
301 Pena Street
Carrizo Springs, TX 78834

Southern Dallas Development Corporation
1402 Corinth Street
Suite 1150, LB135
Dallas, TX 75215

ACCION El Paso
7744 North Loop Road
El Paso, TX 79915

Greater Houston Small Business Equity Fund, Inc.
401 Studewoord, Suite 200
Houston, TX 77007

ACCION Texas, Inc.
109 N. San Saba
San Antonio, TX 78205

Rural Development and Finance Corporation
(formerly National Rural Development and Finance Corporation)
711 Navarro Street, Suite 350
San Antonio, TX 78205-1721

San Antonio Business Development Fund, Inc.
4011 San Pedro, Suite 201
San Antonio, TX 78212

Weslaco Catholic Federal Credit Union
302 W. Llano Grande
Weslaco, TX 78596

Salt Lake Neighborhood Housing Services
622 West 500 North
Salt Lake City, UT 84116

Ethiopian Community Development Council, Inc.
1038 South Highland Street
Arlington, VA 22204

Richmond Neighborhood Housing Services, Inc.
128 West Brookland Park Boulevard
Richmond, VA 23222

Virginia Community Development Loan Fund
1624 Hull Street
Richmond, VA 23224

Vermont Development Credit Union
95 North Avenue
Burlington, VT 05401

Vermont Community Loan Fund, Inc.
7 Court Street (05602)
Post Office Box 827
Montpelier, VT 05601

Cascadia Revolving Fund
119 First Avenue South
Suite 100
Seattle, WA 98104

Martin Luther King Economic Development Corporation
2821 North 4th Street
Suite 208
Milwaukee, WI 53212

Racine Development Group
4701 Washington Avenue, Suite 215
Racine, WI 53406

Appendix C
Glossary of Budget and
Accounting Terms and Definitions

Director Ellen Lazar

Deputy Director for Management/CFO Paul Gentille

Deputy Director for Policy and Programs Maurice Jones