1. AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDING JUNE 30, 2010 3CORE (A Nonprofit Corporation)

2. Findings Unqualified Opinion Internal Controls strong No instance of noncompliance 3CORE was determined to be a low-risk auditee There were no findings or questioned costs

3. Assets ($000) Current Assets$225 Restricted cash1,718 Loan reserves 244 Land 42 Loans3,187 Fixed Assets$25 Endowment$24 Total Assets$5,463 2010 Statement of Financial Position (Balance Sheet)

4. Liabilities and Net Assets Current Liabilities $151 DIT 650 Notes payable 2,176 Other 99 Total liabilities$3,076 Net Assets Unrestricted$235 Restricted2,152 Total NA$2,387 Total L/NA$5,463 Balance Sheet

5. Statement of Activities (Income Statement) Unrestricted Revenues$953,771 Less: Expenses Program Services(897,329) Management (46,161) Changes in Net Assets $10,281

6. Functional Expenses Wage and Fringe$453,17448% Contract Labor 274,74129% Interest 45,561 5% Rent 34,098 4% Supplies 17,201 2% Other operating costs 118,71512% Total$943,490100%

7. Trends Revenues flat (+ 5% over 2008) Loan losses dropping ( 2.1%,.8%, zero) Lending cautious (+2.9% over 2008) Loan Reserves up (2008 zero => $244,000—2010)

8. Financial Goals Increase loan loss reserves to 15% of portfolio Reduce interest expense Reduce use of subordinated debt Manage risk Lower break even costs

9. More information Visit our website at 3COREEDC.ORG Hit Library tab Review audited financial statements from 2006- 2010