SECA Application Help

Our CPA is finalizing our 3 yr. proforma for the SECA application. We
are a start-up with no financial track record. The CPA working with us
has asked me if I have a copy of any existing CDFI loan fund financial
statements or proforma's. He wants to check the chart of accounts he has
established against an existing CDFI.

Can anyone direct us to any internet links where we can look at some
detailed financial statements or proforma's.

Thanks -

Tom Wakely
Praxis Corporation
Austin, Texas



This post transferred from the cdb-l mailing list

If you're looking to create a CDFI bank or credit union, then I suggest you
visit the FDIC.gov or NCUA.gov websites, respectively. You can pull up the
financials for any of the CDFI banks or credit unions, as well as the
traditional financial institutions. Even though they may have a development
mission, they must still fill out the same call reports in the same format
as their mainstream counterparts (although there may be more than usual
noninterest income due to grant funds.)

For loan funds, I have seen them in a number of different formats. You
might want your projections to be similar to that of a bank or credit union,
meaning that net interest margins are still calculated first. Through this
structure, it's a quick way to see how self-sufficient the CDFI truly is
(i.e., able to cover expenses through earned income) and the amount of grant
revenues that will be needed. If it's a nonprofit or for-profit, they
should be structured accordingly. If you really want to be sophisticated,
track the amount of permanently-/temporarily-restricted net assets versus
unrestricted net assets, as that'd give you a idea of how much of a
"safety-net" you have against losses.

There are very few resources for the financials of unregulated CDFIs. I
believe you can download the annual reports for some U.S. ACCION offices at
the accion.org website.

If you'd like, you could forward me today whatever projections you currently
have and I'll take a quick look.

Good luck,
Greg

=====================
Greg Morishige
Shorebank Advisory Services
7054 S. Jeffery
Chicago, IL 60649
773-420-4909
773-753-5880 fax
http://www.shorebankadvisory.com

Shorebank Advisory Services is a consulting firm that works with CDFIs,
banks, nonprofits, and other organizations, helping them revitalize
communities throughout the U.S. and abroad.


-----Original Message-----
From: thomas wakely [mailto:thomaswakely@faith-based.org]
Sent: Friday, March 23, 2001 8:50 AM
To: COMMUNITYDEVELOPMENTBANKING-L@cornell.edu
Subject: SECA Application Help


Our CPA is finalizing our 3 yr. proforma for the SECA application. We
are a start-up with no financial track record. The CPA working with us
has asked me if I have a copy of any existing CDFI loan fund financial
statements or proforma's. He wants to check the chart of accounts he has
established against an existing CDFI.

Can anyone direct us to any internet links where we can look at some
detailed financial statements or proforma's.

Thanks -

Tom Wakely
Praxis Corporation
Austin, Texas



This post transferred from the cdb-l mailing list

Another resource for information about CDFI financials is National Community
Capital's website. www.communitycapital.org. Under the Resources section
you will find documents to download or order. Listed under the Operations &
Financial Management reports are 2 that might be especially helpful:

Financial Management for Community Develoment Loan Funds: Details specific
steps for effective financial management, including financial reporting,
governance, oversight, internal controls, budgeting, and accounting.

New Accounting Rules of Nonprofit CDFIs: A detailed summary of how the
Financial Accounting Standards Board (FASB)'s Statements Nos. 116 and 117
effect CDFIs' accounting procedures, including sample financial statements
using the new treatments. It also provides guidance on the timing of revenue
recognition and the reporting of net assets.

Bridget Wiedeman
National Community Capital Association

JOIN
THE NATIONAL COMMUNITY CAPITAL NETWORK
AND IMPROVE YOUR CDFI'S PERFORMANCE.
HOW?
Download a membership application from our website:
www.communitycapital.org

-----Original Message-----
From: owner-COMMUNITYDEVELOPMENTBANKING-L@cornell.edu
[mailtowner-COMMUNITYDEVELOPMENTBANKING-L@cornell.edu]On Behalf Of
Greg Morishige
Sent: Friday, March 23, 2001 12:49 PM
To: 'thomaswakely@faith-based.org';
COMMUNITYDEVELOPMENTBANKING-L@cornell.edu
Subject: RE: SECA Application Help


If you're looking to create a CDFI bank or credit union, then I suggest you
visit the FDIC.gov or NCUA.gov websites, respectively. You can pull up the
financials for any of the CDFI banks or credit unions, as well as the
traditional financial institutions. Even though they may have a development
mission, they must still fill out the same call reports in the same format
as their mainstream counterparts (although there may be more than usual
noninterest income due to grant funds.)

For loan funds, I have seen them in a number of different formats. You
might want your projections to be similar to that of a bank or credit union,
meaning that net interest margins are still calculated first. Through this
structure, it's a quick way to see how self-sufficient the CDFI truly is
(i.e., able to cover expenses through earned income) and the amount of grant
revenues that will be needed. If it's a nonprofit or for-profit, they
should be structured accordingly. If you really want to be sophisticated,
track the amount of permanently-/temporarily-restricted net assets versus
unrestricted net assets, as that'd give you a idea of how much of a
"safety-net" you have against losses.

There are very few resources for the financials of unregulated CDFIs. I
believe you can download the annual reports for some U.S. ACCION offices at
the accion.org website.

If you'd like, you could forward me today whatever projections you currently
have and I'll take a quick look.

Good luck,
Greg

=====================
Greg Morishige
Shorebank Advisory Services
7054 S. Jeffery
Chicago, IL 60649
773-420-4909
773-753-5880 fax
http://www.shorebankadvisory.com

Shorebank Advisory Services is a consulting firm that works with CDFIs,
banks, nonprofits, and other organizations, helping them revitalize
communities throughout the U.S. and abroad.


-----Original Message-----
From: thomas wakely [mailto:thomaswakely@faith-based.org]
Sent: Friday, March 23, 2001 8:50 AM
To: COMMUNITYDEVELOPMENTBANKING-L@cornell.edu
Subject: SECA Application Help


Our CPA is finalizing our 3 yr. proforma for the SECA application. We
are a start-up with no financial track record. The CPA working with us
has asked me if I have a copy of any existing CDFI loan fund financial
statements or proforma's. He wants to check the chart of accounts he has
established against an existing CDFI.

Can anyone direct us to any internet links where we can look at some
detailed financial statements or proforma's.

Thanks -

Tom Wakely
Praxis Corporation
Austin, Texas



This post transferred from the cdb-l mailing list