Title: Special Service Areas:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Organization entered into an agreement with the City of Chicago, whereby the city had approved Special Service Area Number 32 (SSA #32) and Number 69 (SSA #69), to provide special services in addition to those services provided by the city. Greater Auburn Gresham Development Corporation has been appointed as “Contractor” under terms of the agreement. The city has authorized the contractor to receive fees for services performed. GAGDC has received from SSA 32 during 2022 $ 104,183 and 2021 $ 224,089 and SSA 69 during 2022 and 2021 $ 139,692 and $ 146,867, which totals $ 243,875 and $ 370,956 respectively for administrative services and sub-contractor fees. The special services authorized in the ordinance included but are not limited to maintenance, beautification activities, new construction, coordinated marketing, promotional activities, parking, transit programs, area strategic planning, business retention, recruitment initiatives, building façade improvements, security services, social services, and other technical assistance activities to promote community and economic development which is commensurate with the services provided by GAGDC.
Title: Basis of Presentation
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The financial statements are presented in conformity with accounting principles generally accepted in the United States. GAGDC is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. These financial statements were prepared consolidated with intercompany balances eliminated.
Title: Unrestricted net assets:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Include resources that are not subject to donor-imposed restrictions plus those resources for which donor-imposed restrictions have been satisfied. Contributions/grants are reported as increases in the appropriate category of net assets. Expenses are reported as decreases in unrestricted net assets. Gains and losses on investments are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor stipulations or by law.
Title: Temporarily restricted net assets:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Are subject to donor-imposed restrictions related to proposes. Satisfaction of temporarily restricted net assets (i.e., when the donor-stipulated purpose has been fulfilled or the stipulated time has elapsed) is reported as a reclassification from temporarily restricted net assets to unrestricted net assets. GAGDC reports contributions/grants with a donor-imposed restriction whose restrictions are met in the same reporting period as unrestricted support in the statements of activities. As of December 31, 2022 and 2021, GAGDC had $ 415,421 and $ 1,065,846 in temporarily restricted net assets, respectively.
Title: Permanently restricted net assets:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Are subject to donor-imposed restrictions that will never lapse, thus requiring that the funds be retained permanently. As of December 31, 2022 and 2021, GAGDC did not have any permanently restricted net assets.
Title: Investment – 839 West 79th Building & Land:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC currently invested $ 17,987,157 in developing and rehabbing a long-vacant building, located in Chicago at 839-845 West 79th Street into a multi-purpose space including a Federally Qualified Health Center (FQHC), pharmacy, bank, restaurants, GAGDC office and other rental spaces. This investment required various notes payable and grants to fund and renovate this building. The property is currently vacant and is being renovated. As of March 4th, 2021 the ownership of the building was transferred to the GAGDC Support Corporation.
Title: Investment – Green Era Sustainability LLC:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC invested $ 300,000 during 2021 in the Green Era sustainability LLC limited Partnership for a 24.3850775% of Ownership and 1 % Sharing of profit or loss thorough GAGDC Investment, LLC. for year ended December 31, 2022 and 2021, this entity suffered an operating loss of $ 3,242 and $ 13,677 respectively. The ending capital account for the year ended December 31, 2022 and 2021 was $ 283,081 and $ 286,323 respectively.
Title: Investment - Green Era 83rd Street NMTC LLC:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC invested $ 2,700,000 during 2021 in the Green Era 83rd Street NMTC, LLC limited Partnership for a 34.9288486% of Ownership and Sharing of profit or loss thorough GAGDC Investment, LLC. for the year ended December 31, 2022 and 2021 this entity suffered an operating loss of $ 186,783 and $ 46,618 respectively. The ending capital account for the year ended December 31, 2022 and 2021 was $ 2,466,599 and $ 2,653,382 respectively.
Title: Use of Estimates:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The preparation of the accompanying financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Title: Cash Equivalents:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC defines cash and cash equivalents as cash on hand, demand deposits and short-term investments with maturities of three months or less when purchased. The carrying amount of cash equivalents approximates fair value. For the statements of cash flows, all investment instruments with original investments instruments with original maturities of three months or less are considered cash equivalents.
Title: Cash and Cash Equivalents:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Funds are presented as restricted (temporarily or permanently) and Unrestricted. GAGDC has multiple bank accounts at various banks. As of December 31, 2022 and 2021, GAGDC had $ 415,421 and $ 1,065,846 in temporarily restricted net assets, respectively.
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Property and equipment are stated at cost when purchased, or reasonable fair market value as of the date of donations less accumulated depreciation. During 2022 and 2021 fully depreciated assets were removed in the prior year, respectfully from the books and records of the organization. Depreciation is calculated using straight-line methods over the estimated economic lives of the assets as follows:
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Property Estimated Life
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Computers 3 years
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Office furniture 5 years
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Vehicles 5 years
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Leasehold improvements 5 years
Title: Operating Lease:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC currently leases it facility under a month-to-month lease agreement, with a monthly rental of $ 3,200.
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The agreed terms require GAGDC to pay maintenance, utilities, and insurance expenses.
Title: Property, Equipment and Depreciation:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Depreciation expense for the years ended December 31, 2022 was $ 12,415, and 2021 was $ 4,457.
Title: Income Tax Status:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
Title: Contributions:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC recognizes contributions as revenue when received. All contributions from individuals, foundations and corporations and government grants are available for unrestricted use unless specifically restricted by the donor. Unrestricted revenue represents resources over which the Board of Directors has discretionary control, and which are used by GAGDC to conduct its operations in accordance with bylaws and rules. Unrestricted revenue is recognized when received. All contributions that are restricted by the donor are reported as an increase in either temporarily or permanently restricted net assets. When a temporary restricted expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.
Title: Functional Allocation of Expenses:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The costs of providing program services and other activities have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.
Title: Investment short-term:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
From time-to-time GAGDC acquires various properties for renovation, training, and future sale to the public.
Title: Investment short-term:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
During December 2020, a home purchased for renovation and future sale. The home is located at 8123 South Wood Street, Chicago, Illinois, in the amount of $ 61,462. A mortgage acquired for purchasing and remodeling the house from The Chicago Community Loan Fund, the loan amount was $ 165,551. Renovations totaled $ 146,676 for a total cost of $ 208,138. This house sold on January 15, 2021, in the amount of $ 230,000, all related loans was paid at the time of closing.
Title: Notes Payable:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC entered various notes to acquire the building located at 839 West 79th Street, Chicago, IL. This building is currently being renovated, anchored by a full-service health center, housed the GAGDC offices and include other commercial rental spaces to become the Auburn Gresham Healthy Lifestyle Hub. For income tax purposes, this is treated as a disregarded entity and results of operations will be included in the GAGDC tax return. GAGDC is the only member of the L.L.C. This investment required various notes payable executed for the purchased of the building. Additional funding will be needed for complete development of this property.
Title: The Chicago Loan Fund
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
The Chicago Loan Fund in the amount of $ 165,551, this loan was paid on January 15, 2021.
Title: The Chicago Loan Fund
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
When the 8123 South Wood Street, home was sold. A loan in the amount of $ 110,912, the loan paid on January 15, 2021. At a rate of 5% per annum. September 1, 2022 GAGDC received a loan approval to purchase and renovate a home located at 7727 S Stewart street, in the amount of $ 180,000 which included a $76,182 in construction holdback, as of December 2022, the outstanding loan balance was $ 110,912.
Title: Subsequent Events:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
GAGDC has evaluated subsequent events through October 19, 2023 and October 25, 2022, the date of the issuance of the financial statements was available for issuance and has determined that there were no subsequent events to recognized in these financial statements.
Title: Notes Payable Vehicle
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
A vehicle was purchased and financed for 72 months at a rate of 4.29%. The monthly payment is $ 608.34. During 2021 5 payments were made. Breakdown of the payments were Interest $ 671 and Principal in the amount of $ 2,369.
Title: JPMorgan Chase Bank:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Construction and permanent loan fully collateralized, leasehold mortgage loan which will draw up to $ 3,300,000 with no payments during 2021 with a fixed interest rate of 4.70% per annum. Payments will be interest-only through March 10, 2023, principal, and interest monthly payments of $ 6,665 beginning April 10, 2023, through maturity on March 4, 2028.
Title: CNMC SUB-CDE 182, LLC:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Chase New Markets Corporation, two loans in the original amounts of $ 2,448,950 and $ 1,051,050, fully collateralized, fixed interest rate of 1.00% per annum, interest-only annual payments through December 31, 2028, annual principal, and remaining interest payments through December 31, 2055. Total Due to Chase New Markets Corporation as of December 31, 2022 and 2021 is $ 3,500,000 and $ 549,557 respectively.
Title: CDF Suballocatee XL, LLC.
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Three loans fully collateralized, construction loans.
Title: Loan 1
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Draws up to $ 4,000,000 with no payments during 2022 and 2021, fixed interest rate of 1.00% per annum, interest-only annual payments through December 31, 2028. Annual principal and remaining interest payments through December 31, 2055. Mandatory repayment of principal of $ 2,900,100 due on March 4, 2028.
Title: Loan 2
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Draws up to $ 3,696,700 with no payments during 2022 and 2021, fixed interest rate of 1.00% per annum, interest-only annual payments through December 31, 2028. Annual principal and remaining interest payments through December 31, 2055.
Title: Loan 3
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Draws up to $ 3,083,300 with no payments during 2022 and 2021, fixed interest rate of 1.00% per annum, interest-only annual payments through December 31, 2028. Annual principal and remaining interest payments through December 31, 2055.
Title: Loan 3
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
Total Due to CDF Suballocatee XL, LLC as of December 31, 2022 and 2021 is $ 10,l78,000 and $ 7,685,474 respectively.
Title: Concentration of Revenue and Support:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
During the year ending December 31, 2022, and 2021, two grantors accounted for 32% and 42% of the
Title: Concentration of Revenue and Support:
Accounting Policies: Accrual basis of accounting
De Minimis Rate Used: Y
Rate Explanation: The auditee used the de minimis cost rate
revenue and support, respectively.