Last Three Years Audit Statements

ACTS COMMUNITY DEVELOPMENT CORPORATION AND AFFILIATE
FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
(With Summarized Totals for the Year Ended December 31, 2013)
RitzHalman
CPAs
TABLE OF CONTENTS
Independent Auditors Report ..................................................................................................... 1-2
Balance Sheet ............................................................................................................................. 3
Statement of Activities ................................................................................................................ 4
Statement of Cash Flows ............................................................................................................ 5
Notes to the Financial Statements .............................................................................................. 6-15
Supplementary Schedules ..................................................................................................... 16
Schedule of Balance Sheet Consolidation ......................................................................... 17

Schedule of Activities - ACTS Community Development Corporation ............................... 18
Schedule of Unrestricted Functional Revenue and Expenses - ACTS Community
Development Corporation ............................................................................................... 19
Schedule of Activities - ACTS Lending, Inc ........................................................................ 20
CPAs
Independent Auditors Report
Board of Directors
ACTS Community Development Corporation and Affiliate
We have audited the accompanying financial statements of ACTS Community Development Corporation
and Affiliate (a nonprofit organization) which comprise the balance sheet as of December 31, 2014, and
the related statements of activities and cash flows for the year then ended, and the related notes to the
financial statements.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditors judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entitys
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness
of the entitys internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of ACTS Community Development Corporation and Affiliate as of December 31, 2014,
and the changes in their net assets and their cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Ritz Holmon LLP

Serving businesses, nonprofits, individuols ond trusts.
Two Plaza East, Suite 550 t. 414.271.1451

3B0 East l<ilbourn Avenue 414.271.7464
Milwaukee, W153202 ritzholman.com
Member of the American Institute of Certified Public Accountants, Wisconsin Institute of Certi[ied Public Accountants
Board of Directors
Report on Summarized Comparative Information
We have previously audited ACTS Community Development Corporation and Affiliates 2013 financial
statements, and we expressed an unmodified audit opinion on those audited financial statements in our
report dated July 30, 2014. In our opinion, the summarized comparative information presented herein as
of and for the year ended December 31, 2013 is consistent, in all material respects, with the audited
financial statements from which it has been derived.
Other Matter(s)
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The supplementary schedules are presented for purposes of additional analysis and are not a required
part of the basic financial statements. Such information is the responsibility of management and was
derived from and relates directly to the underlying accounting and other records used to prepare the basic
financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling
such information directly to the underlying accounting and other records used to prepare the basic
financial statements or to the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion,
the information is fairly stated in all material respects in relation to the basic financial statements as a
whole.
RITZ HOLMAN LLP

Certified Public Accountants
Milwaukee, Wisconsin
September 1, 2015
-2-
BALANCE SHEET
DECEMBER 31, 2014
(With Summarized Totals for December 31, 2013)
ASSETS
2014 2013
CURRENT ASSETS
Cash $ 627,377 $ 492,117
Accounts and Grants Receivable 194,294 163,096
Current Portion of Loans Receivable 4,877 29,286
Prepaid Expenses 19,696 35,582
Total Current Assets $ 846,244 $ 720,081
FIXED ASSETS
Equipment $ 42,9O3 $ 42,9O3
Accumulated Depreciation (30,406) (21,335)
Net Fixed Assets $ 12,497 $ 21,568
LONG-TERM ASSETS
Loans Receivable $ 271,500 $ 104,543
Less: Current Portion of Loans Receivable (4,877) (29,286)
Less: Allowance for Loan Losses (16,240) (6,407)
Total Long-Term Assets $ 250,383 $ 68,850
OTHER ASSETS
Website $ 3,500
Accumulated Amortization (175)
Net Other Assets $ 3,325
TOTAL ASSETS $ 1,112,449 $ 810,499
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts Payable $ 4,106 $ 6,632
Accrued Payroll 92,443 56,444
Line of Credit 42,674
Deferred Contract Revenue 17 500
Rehab Escrows Liability 228,704 35 307
Community Projects Payable 30,994 10 536
Code Compliance Payable 11,795 11 430
Earnest Money Payable 88,250 15 060
Total Current Liabilities $ 498,966 $ 152 909
Total Liabilities $ 498,966 $ 152 909
NET ASSETS
Unrestricted $ 475,904 $ 294,742
Temporarily Restricted 137,579 362,848
Total Net Assets $ 613,483 $ 657,590
TOTAL LIABILITIES AND NET ASSETS $ 1,112,449 $ 810,499
The accompanying notes are an integral part of these financial statements.
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STATEMENT OF ACTIVITIES
(With Summarized Totals for the Year Ended December 31,2013)
Temporarily 2014 2013

Unrestricted Restricted Total Total
REVENUE
Individual Contributions $ 77,521 $ --- $ 77,521 $ 19 413
Corporate Contributions 54,775 25,818 80,593 254 600
Foundation Grants 388,915 11,376 400,291 292 700
Church Contributions 4,030 4,030 2 831
In-Kind Revenue 55,330 55,330 209 230
Government Grants 193,795 193,795 74 581
Counseling Fees 115,101 115,101 29 102
Real Estate Commissions 216,740 216,740 142,767
Real Estate Brokerage 92,785 92,785 35,331
Construction Management Fees 97,211 97,211 7,700
Non-Ordinary Services --- 1,200
Closing Revenue 107,292 107,292 37,853
Investment Income 5,849 5,849 6,610
Other Revenue 354 354
Net Assets Released From Restriction 262,463 (262,463) ---
Total Revenue $ 1,672,161 $ (225,269) $ 1,446,892 $ 1,113,918
EXPENSES
Program Services
Neighborhood Housing Programs $ 535,535 $ --- $ 535,535 $ 519,325
Homebuyer Counseling Program 439,034 439,034 247,171
Vacant Home Sales Program 236,149 236,149 103,298
ACTS Lending, Inc. 17,285 17,285 76
Management and General 177,076 177,076 219,999
Fund-Raising 85,920 85,920
Total Expenses $ 1,490,999 $ --- $ 1,490,999 $ 1,089,869
CHANGE IN NET ASSETS $ 181,162 $ (225,269) $ (44,107) $ 24,049
Net Assets, Beginning of Year 294,742 362,848 657,590 633,541
NET ASSETS, END OF YEAR $ 475,904 $ 137,579 $ 613,483 $ 657,590
-4-
STATEMENT OF CASH FLOWS
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets (44,107) $ 24,049
Adjustments to Reconcile Change in Net Assets to
Net Cash Provided by Operating Activities
Depreciation and Amortization 9,246 9,035
Adjustment to Loan Loss Reserve 9,833 (4,696)
(Increase) Decrease in Accounts and Grants Receivable (31,198) (70,812)
(Increase) Decrease in Prepaid Expenses 15,886 (27,296)
(Increase) Decrease in Loans Receivable (166,957) 26,849
Increase (Decrease) in Accounts Payable (2,526) 5,243
Increase (Decrease) in Accrued Payroll 35,999 12,815
Increase (Decrease) in Deferred Contract Revenue (17,500) 15,000
Increase (Decrease) in Rehab Escrows Liability 193,396 13,760
Increase (Decrease) in Community Projects 20,459 (8,256)
Increase (Decrease) in Code Compliance Payable 365 1,260
Increase (Decrease) in Earnest Money Payable 73,190 6,050
Net Cash Provided by Operating Activities $ 96,086 $ 3,001
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Fixed Assets $ --- $ (4,635)
Purchase of Other Assets (3,500) ---
Net Cash Used by Investing Activities $ (3,500) $ (4,635)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Line of Credit $ 45,000 $ ---
Payments on Line of Credit (2,326) ---
Net Cash Provided by Financing Activities $ 42,674 $ ---
Net Increase (Decrease) in Cash and Cash Equivalents $ 135,260 $ (1,634)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 492,117 493,751
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 627,377 $ 492,117
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NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2014

DECEMBER 31, 2014
NOTE A - Summary of Significant Accounting Policies
Organization
ACTS Community Development Corporations (ACTS Housings) mission is to promote
affordable homeownership that fosters a low-income familys ability to be self-empowered,
thereby reducing community blight, neighborhood deterioration, and poverty.
ACTS Housing provides three main services:

1. Homebuyer Counseling: One-on-one, HUD approved homebuyer counseling for
individuals interested in purchasing a home for owner-occupancy.
2. Neighborhood Real Estate: As licensed Realtors, ACTS represents families in the
purchase of homes for owner-occupancy.
3. Rehab Management: Professional rehab staff represents families during
coordination and execution of rehab plans, with a focus on the reclamation of
vandalized foreclosures
ACTS Lending, Inc. provides mortgage capital to assist families with financing for the repairs
needed to reclaim vacant, vandalized, homes in Milwaukees inner-city.
Combined Financial Statements

The combined financial statements include the accounts of ACTS Community Development
Corporation and the affiliate organization ACTS Lending, Inc. All significant inter-company
transactions and accounts are eliminated. Each entity maintains a separate set of
accounting records.
Accounting Method
The financial statements of the Organization have been prepared on the accrual basis of
accounting.
Cash and Cash Equivalents

For purposes of the statement of cash flows, cash and cash equivalents include all highly
liquid debt instruments with original maturities of three months or less.
Fixed Assets
Fixed Assets are recorded at cost. Depreciation is provided over the estimated useful lives
of the assets using the straight-line method. The Organization capitalizes all fixed assets
greater than $500.
Accounts Receivable
Accounts receivable are stated at unpaid balances, less an allowance for doubtful accounts.
The Organization provides for losses on accounts receivable using the allowance method.
The allowance is based on experience, third-party contracts, and other circumstances, which
may affect the ability of customers to meet their obligations. Receivables are considered
impaired if full principal payments are not received in accordance with the contractual terms.
It is the Organizations policy to charge off uncollectible accounts receivable when
management determines the receivables will not be collected. Management believes all
receivables will be collected in accordance with the terms of the agreements. Thus, no
allowance for uncollectible accounts is necessary at year end other than the allowance for
loan losses included in Note E.
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DECEMBER 31, 2014
NOTE A- Summary of Significant Accounting Policies (continued)
Loans Receivable
Loans Receivable are stated at unpaid balances, reduced by allowances for loan losses.
Interest income and late fees on loans are accrued when earned. Loans are made to
individual homeowners. Rehab loans are usually initiated within three months of closing
when additional repairs are needed to repair distressed properties. The loans payable to
ACTS Housing are generally $3,000 loans at 0% interest paid monthly over 3-5 years. Three
larger rehab loans were issued prior to 2014 at a 7% fixed interest rate payable over a 15-
year term. All loans are secured by each property. A $15 late fee is charged when a
payment is not made by the 15th of the month. This fee is added to the end of the payment
schedule.
A loan is placed on non-accrual status when it is specifically determined to be impaired and

when, in the opinion of management, there is an indication that the borrower may be unable
to make payments as they become due. Interest income generally is not recognized on
impaired loans. Interest payments received on such loans are applied as a reduction of the
loan principal balance.
The allowances for loan losses are maintained at a level which, in managements judgment,
is adequate to absorb credit losses inherent in the loan portfolio, in consideration of the
nature of the portfolio, credit concentrations, trends in historical loss experience, specific
impaired loans, and economic conditions. Allowances for impaired loans are generally
determined after considering collateral values. An increase to the allowance is reduced by
loan charge-offs, net of recoveries.
Basis of Presentation
The Organization reports 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. Assets of the restricted classes are created only by
donor-imposed restrictions.
At December 31,2014, the Organization had $129,810 of purpose-restricted net assets,

$2,369 of time-restricted net assets, and $5,400 of time- and purpose-restricted net assets.
Contributions
All contributions are considered available for the ACTS general programs unless specifically
restricted by the donor. Amounts received that are designated for future periods or restricted
by the donor are reported as temporarily or permanently restricted support and increase the
respective class of net assets. Contributions received with temporary restrictions that are
met in the same reporting period are reported as unrestricted support and increase
unrestricted net assets. When a restriction expires, temporarily restricted net assets are
reclassified to unrestricted net assets and reported in the Statement of Activities as net
assets released from restrictions. Investment income that is limited to specific uses by donor
restrictions is reported as increases in unrestricted net assets if the restrictions are met in the
same reporting period as the income is recognized.
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DECEMBER 31, 2014
NOTE A - Summary of Significant Accounting Policies (continued)
Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Reclassifications
Certain amounts in the prior-year financial statements have been reclassified for
comparative purposes to conform to the presentation in the current-year financial
statements.
NOTE B - Comparative Financial Information
The financial information shown for 2013 in the accompanying financial statements is
included to provide a basis for comparison with 2014 and presents summarized totals only.
The comparative information is summarized by total only, not by net asset class. Such
information does not include sufficient detail to constitute a presentation in conformity to
generally accepted accounting principles. Accordingly, such information should be read in
conjunction with the Organizations financial statements for the year ended December 31,
2013 from which the summarized information was derived.
NOTE C - Concentration of Risk
The Organization maintains its cash balances at two financial institutions. Accounts at each
institution are insured by the Federal Deposit Insurance Corporation up to $250,000. At
December 31, 2014, the Organizations uninsured cash balances totaled $387,071,
NOTE D - Accounts and Grants Receivable
Accounts and Grants Receivable consists of the following as of December 31, 2014:
Source Amount
Greater Milwaukee Foundation $ 50,000

State of Wisconsin - Housing
Cost Reduction Initiative Homebuyer 53,910
City of Milwaukee 43,951
Workforce Development, Inc. 3,591
GE Foundation 8,200
ANON Charitable Trust 15,000
Program Service Fees 14,200
Other Contributions Receivables 5,442
Total Accounts and Grants Receivable $194.294
Accounts and Grants Receivable amounts are expected to be collected during 2015.
-9-
DECEMBER 31, 2014
NOTE E - Net Loans Receivable
ACTS Housing works with the City of Milwaukee, Milwaukee Habitat for Humanity, Sherman
Park Neighborhood Investment Cooperative, Walnut Way Conservation Corporation, Zilber
Neighborhood Initiative sites, and local lenders to provide home rehab loans for
homeowners. Net Loans Receivable includes loans administered by ACTS Housing which
are payable to Milwaukee Habitat for Humanity, Sherman Park Neighborhood Investment
Cooperative, and Walnut Way Conservation Corporation. Past due amounts include any
payments that are over 15 days late. These amounts are added to the end of each loans
payment schedule. Net Loans Receivable consists of the following at December 31, 2014:
Source Amount
Delayed Loan Funds $ 4,266

Harambee Loan Funds 11,500
Major Rehab Loan Funds 39,761
Non-Ordinary Loan Funds 42,035
Targeted Neighborhood Loan Funds 104,082
Washington Park Loan Funds 69,856
Total Gross Loans Receivable $271,500

Less: Allowance for Loan Losses (16,240)
Net Loans Receivable 25~5~260
Maturities of ACTS Loans Receivable are as follows:
Year Endinq December 31, Amount

Past Due $ 1,266
2015 3,611
2016 4,915
2017 10,892
2018 20,293
2019 59,607
Thereafter 1.70,916
Total
-10-
DECEMBER 31, 2014
NOTE E - Net Loans Receivable (continued)
Allowance for Loan Losses
The Organization considers that the determination of the allowance for loan losses involves a
higher degree of judgment and complexity than its other significant accounting policies. The
balance in the allowance for loan losses is determined based on managements review and
evaluation of the loan portfolio in relation to past loss experience, the size and composition of
the portfolio, current economic events and conditions, and other pertinent factors, including
managements assumptions as to future delinquencies, recoveries and losses. All of these
factors may be susceptible to significant change. To the extent actual outcomes differ from
managements estimates, additional provisions for loan losses may be required that would
adversely impact earnings in future periods. ACTS Lending, Inc.s management frequently
reviews the loan portfolio to assign and maintain the loan loss reserves based upon the
grade of the credit. The loan loss reserve percentage allocations are established annually.
The allowance for loan losses has a minimum balance of $5,000. Loans receivable are
presented net of a loan loss allowance of $16,240 at December 31, 2014.
Loss
Whenever any portion of a loan is deemed uncollectible, in part or in whole, a partial or full
charge-off will be made against the Allowance for Loan Losses based on a conservative
estimate of the realizable liquidation value. A loan that is impaired and foreclosure or loss of
the asset is imminent must be charged off unless there are realistic expectations that the
borrower can bring the account current or a realistic restructure can be negotiated.
Management keeps current on information throughout the year that would classify a loan
asset as a loss.
Credit Quality Indicators
The key to ACTS Housings credit risk management is its loan originating system. Staff
recommends decisions on loans based primarily on a thorough analysis of each borrowers
financial capacity in conjunction with collateral values and the inherent credit risk specific to
the transaction. Approvals are made by an independent Executive Committee, whose
members are the officers of ACTS Lending, Inc.s Board of Directors. Loans are monitored
monthly by the Executive Director and a third-party accountant, and at least 4 times per year
by the Lending Advisory Board, Finance Committee and Board of Directors.
Allowances are recognized for all loans based on the category of loan grade assigned to
each loan as outlined below. Once graded, loan losses are reserved at the following
percentages:
Loan Loss Reserve

Loan Grade Percentage Allocation/Maintenance
Grade 4 5%
Grade 5 15%
Grade 6 37%
-11 -
DECEMBER 31, 2014
Loans are not to carry a lower reserve, but based on the specific circumstances of a
particular loan, it may carry higher reserves. Loan loss reserve percentages are reviewed
and established annually.
Grade 4 - Acceptable
These loans are generally acceptable asset quality. Primary source of loan repayment is
acceptable and verified. Acceptable credit/credit verifications or pathway to improved credit,
but borrowers financial condition evidence slightly above average risk; requires slightly
above normal supervision and attention from Banker. The source of increased risk has been
identified, can be effectively managed/corrected, and the increased risk is not significant to
warrant a more severe rating.
Grade 5 - Watch
Loan coverage is somewhat erratic, future coverage is uncertain and liquidity is strained.
Indicators of potential deterioration of repayment sources have resulted in uncertainty or
unknown factors concerning the status of the credit. Risk Rating of Watch is considered
transitory in nature. When the factors causing the uncertainty have been clearly defined, a
risk rating should be assigned commensurate with the risk characteristics and circumstances
that exist. Quarterly memorandums regarding action plans for managing the risk of the
credit must be developed for credits in this category.
Grade 6 - Substandard
While probability of loss is high (account is past due over 90 days), there are existing factors
that may strengthen the asset. A substandard asset is inadequately protected by the current
sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so
classified must have a well-defined weakness or weaknesses that jeopardize the liquidation
of the debt. They are characterized by the distinct possibility that the Organization will
sustain some loss if the deficiencies are not corrected.
As of December 31, 2014, Allowance for Loan Losses consists of the following:
Loan Reserve Allowance

Loan Grade Receivable Percenta.qe Amount
Grade 4 $247,639 5% $12,382

Grade 5 22,595 15% 3,390
Grade 6 1,266 37% 468
Total
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DECEMBER 31, 2014
Impaired Loans
Impaired loans are defined as underwater loans to low and mid income level individuals and
families whose loan payments are significantly late. Impaired loans are written off when
foreclosure is probable. When a loan is determined to be impaired, an allowance account for
37% of the loan is recognized. A $15 late fee is charged when a payment is not made by the
15th of the month. This fee is added to the end of the payment schedule. The impaired
loans below are not interest bearing and included in grade 6 loans. Average Recorded
Investment is defined as the average of the loan balances as of December 31, 2014 and
2013.
As of December 31, 2014, the Organization had the following impaired loans:
Average
Loan Unpaid Allowance Recorded
Loan Type Receivable Principal Amount Investment
Non-Ordinary $1,301 $1,046 $387 $1,211

Targeted Neighborhood 235 220 81 525
Total
NOTE F - Lines of Credit
ACTS Housing has a non-interest-bearing $50,000 line of credit. The maturity has been
extended to December 31, 2015. At December 31, 2014, the line of credit had a balance of
$42,674.
ACTS Housing has a $50,000 line of credit with a fixed interest rate of 4%. The line of
credit matures on December 29, 2015. At December 31,2014, the line of credit had a
balance of $0.
-13-
DECEMBER 31, 2014
NOTE G - Temporarily Restricted Net Assets
Temporarily Restricted Net Assets consists of the following at December 31, 2014:
Source Amount
Wells Fargo Foundation $ 17,385

LISC 10,000
Zilber Foundation 45,000
Greater Milwaukee Foundation 50,000
Faye McBreath Foundation 10,000
Consultant Fees 2,043
Lending activities 1,275
Other grants 1,876
Temporarily Restricted Net Assets $137,579
NOTE H - Intercompany Elimination
ACTS Community Development Corporation ("CDC") incurs expenses related to ACTS

Lending, Inc. which are then reimbursed by ACTS Lending, Inc. ("Lending") to ACTS CDC.
All intercompany revenues, expenses, payables, and receivables have been eliminated from
the Combined balance sheet and Combined Statement of Activities.
Eliminations included the following:
Amounts payable from CDC to Lending $ 1,275

Grants paid from CDC to Lending 208,763
NOTEI- In-Kind Donations
The Organization received various donations as in-kind for the year ended December 31,
2014. The items and values of these in-kind donations are as follows:
Description Amount
Gift cards and tickets $ 2,530

Occupancy 52 800
Total 5~
Income and expense related to these services have been included in the accompanying
-14-
DECEMBER 31, 2014
NOTE J - Income Taxes
The Organization is exempt from income tax under Section 501(c)(3) of the Internal Revenue
Code and is classified as other than a private foundation. The Affiliate is a solely owned
Corporation and therefore the Internal Revenue Service considers it to be a disregarded
entity for tax purposes. All Affiliate activity is included under ACTS Community Development
Corporation for tax purposes. Management has reviewed all tax positions recognized in
previously filed tax returns and those expected to be taken in future tax returns. As of
December 31, 2014, the Organization and Affiliate had no amounts related to unrecognized
income tax benefits and no amounts related to accrued interest and penalties. The
Organization does not anticipate any significant changes to unrecognized income tax
benefits over the next year.
NOTE K - Subsequent Events
The Organization has evaluated events and transactions occurring after December 31, 2014
through September 1,2015, the date the financial statements are available to be issued, for
possible adjustments to the financial statements or disclosures. The Organization has
determined that the following subsequent event needs to be disclosed:
On February 13, 2015, ACTS Lending, Inc. obtained a $250,000 line of credit with a fixed
interest rate of 2%. The line of credit matures on February 13, 2016 with an option to renew
annually for a total period of six years.
-15-
SUPPLEMENTARY SCHEDULES
DECEMBER 31, 2014
-16-
SCHEDULE OF BALANCE SHEET CONSOLIDATION
DECEMBER 31, 2014
ASSETS
ACTS Community ACTS 2014 2O 13

Development Lending, lnc, Eliminations Total Total
CURRENT ASSETS
Cash 580,855 46,522 $ --- $ 627,377 $ 492,117
Accounts and Grants Receivable 194,294 1,275 (1,275) 194,294 163,096
Current Portion of Loans Receivable 4,877 --- 4,877 29,286
Prepaid Expenses 19,696 ...... 19,696 35,582
Total Current Assets 794,845 52,674 $ (1,275) $ 846,244 $ 720,081
FIXED ASSETS
Equipment $ 42,903 $ --- $ --- $ 42,903 $ 42,903
Accumulated Depreciation (30,406) ...... (30,406) (21,335)
Net Fixed Assets $ 12,497 $ --- $ --- $ 12,497 $ 21,568
LONG-TERM ASSETS
Loans Receivable 271,500 $ $ 271,500 $ 104,543
Less: Current Portion of Loans Receivable (4,877) (4,877) (29,286)
Less: Allowance for Loan Losses (16,240) (16,240) (6,407)
Total Long-Term Assets $ 250,383 $ $ 250,383 $ 68,850
OTHER ASSETS
Website $ 3,500 $ 3,500 $ ---
Accumulated Amortization (175) (175) ---
$ 3,325 $ --- $ --- $ 3,325 $ ---
TOTALASSETS $ 810,667 $ 303,057 $ (1,275) $ 1,112,449 $ 810,499
CURRENT LIABILITIES
Accounts Payable $ 5,381 $ --- $ (1,275) $ 4,106 $ 6,632
Accrued Payroll 92,443 ...... 92,443 56,444
Line of Credit 42,674 ...... 42,674 ---
Deferred Contract Revenue ......... 17,500
Rehab Escrows Liability 228,704 ...... 228,704 35,307
Community Projects Payable 22,210 8,784 --- 30,994 10,536
Code Compliance Payable 11,795 ...... 11,795 11,430
Earnest Money Payable 88,250 ...... 88,250 15,060
Total Current Liabilities $ 491,457 $ 8,784 $ (1,275) $ 498,966 $ 152,909
Total Liabilities $ 491,457 $ 8,784 $ (1,275) $ 498,966 $ 152,909
NET ASSETS
Unrestricted $ 229,906 $ 245,998 $ --- $ 475,904 $ 294,742
Temporarily Restricted 89,304 48,275 --- 137,579 362,848
Total Net Assets $ 319,210 $ 294,273 $ --- $ 613,483 $ 657,590
TOTAL LIABILITIES AND NET ASSETS $ 810,667 $ 303,057 $ (1~275) $ 1,112,449 $ 810~499
-17-
ACTS COMMUNITY DEVELOPMENT CORPORATION
SCHEDULE OF ACTIVITIES

REVENUE
Individual Contributions $ 76,521 $ --- $ 76,521 19,413
Corporate Contributions 73,050 7,543 80,593 254,600
Foundation Grants 388,915 11,376 400,291 292,700
Church Contributions 4,030 --- 4,030 2,831
In-Kind Revenue 55,330 --- 55,330 209,230
Government Grants 193,795 --- 193,795 74,581
Counseling Fees 115,101 --- 115,101 29,102
Real Estate Commissions 216,740 --- 216,740 142,767
Real Estate Brokerage 92,785 --- 92,785 35,331
Construction Management Fees 97,211 --- 97,211 7,700
Non-Ordinary Services 1,200
Closing Revenue 107,292 --- 107,292 37,853
Investment Income 1,267 --- 1,267 5,064
Other Revenue 353 --- 353
Total Revenue $ 1,664,853 $ (223,544) $ 1,441,309 $ 1,112,372
EXPENSES
Program Services
Homebuyer Counseling Program 439,034 --- 439,034 247,171
Vacant Home Sales Program 444,912 --- 444,912 199,040
Management and General 177,076 --- 177,076 219,999
Fundraising 85,920 --- 85,920
Total Expenses $ 1,682,477 $ --- $ 1,682,477 $ 1,185,535
CHANGE IN NET ASSETS $ (17,624) $ (223,544) $ (241,168) $ (73,163)
-18-
SCHEDULE OF UNRESTRICTED FUNCTIONAL REVENUE AND EXPENSES
Neighborhood Homebuyer Vacant Management

Housing Counseling Home Sales and 2014 2013
Programs Program Program General Fund-Raising Total Total
REVENUE
individual Contributions $ --- $ --- $ --- $ --- $ 76,521 $ 76,521 $ 19,413
Corporate Contributions ...... 2,216 --- 70,834 73,050 169,402
Foundation Grants --- 73,191 ...... 315,724 388,915 169,300
Church Contributions ............ 4,030 4,030 2,831
In-Kind Revenue 43,200 ...... 12,130 --- 55,330 209,230
Government Grants --- 189,145 4,650 ...... 193,795 74,581
Counseling Fees 649 113,934 500 18 --- 115,101 29,102
Real Estate Commissions 216,155 --- 585 ...... 216,740 142,767
Real Estate Brokerage 92,639 --- 146 ...... 92,785 35,331
Construction Management Fees 750 --- 96,461 ...... 97,211 7,700
Non-Ordinary Services .................. 1,200
Closing Revenue 46,809 166 61 --- 60,256 107,292 37,853
Investment Income ...... 865 402 --- 1,267 5,064
Other Revenue ......... (20) 373 353 ---
Net Assets Released From Restriction ............ 242,463 242 463 ---
Total Revenue $ 400,202 $ 376,436 $ 105,484 $ 12,530 $ 770,201 $ 1,664,853 $ 903 774
EXPENSES
Salaries and Wages $ 388,350 $ 99,602 $ 148,419 $ 48,305 $ 65,376 $ 750,052 $ 543,526
Employee Benefits 30,735 12,969 11,841 4,433 --- 59,978 42,374
Payroll Taxes 24,849 5,793 6,510 13,781 1,884 52,817 43,307
Professional Fees ...... 3,119 24,220 --- 27,339 188,462
Grant Disbursements --- 303,200 52,894 10,666 --- 366,760 72,583
Office Supplies 1,415 93 383 3,992 80 5,963 4,956
Telephone 2,247 --- 692 1,896 --- 4,835 4,829
Postage 74 49 78 912 20 1,133 935
Printing 1,427 151 175 593 812 3,158 4,256
Technology 5,661 1,306 2,329 16,770 390 26,456 14,269
Marketing 398 --- 294 262 12,791 13,745 28,020
Occupancy 32,400 5,400 5,400 9,600 --- 52,800 34,800
Cleaning and Maintenance 250 65 265 8,239 --- 8,819 ---
Depreciation and Amortization ......... 9,246 --- 9,246 9,035
Travel --- 1,020 16 548 545 2,129 ---
Conferences, Conventions and Meetings 37 130 159 4,534 3,604 8,464 3,812
Insurance ......... 6,167 --- 6,167 4,428
Membership Dues 466 --- 208 1,973 296 2,943 2,129
Staff Development --- 3,969 1,496 222 --- 5,687 10,057
Volunteer Event Expense .................. 744
Real Estate Fees 3,048 ...... 1,385 --- 4,433 5,547
Non-Capital Equipment Purchases 1,553 797 5,944 4,327 --- 12,621 8,915
Closing Expenses 40,381 --- 30 ...... 40,411 41,287
Bad Debt Expense ...... (5,561) ...... (5,561) 15,219
Lending Donation ...... 208,763 ...... 208,763 95,742
Other Expense 2,244 4,490 1,458 5,005 122 13,319 6,303
Total Expenses $ 535,535 $ 439,034 $ 444,912 $ 177,076 $ 85,920 $ 1,682,477 $ 1,185,535
CHANGEIN NETASSETS $ .... {135,333) $ (62,598) $ (339,428) $ (164,546) $ 684,281 ~ (17,624) $ (281,761}
ACTS LENDING, INC.

REVENUE
Individual Contributions $ 2,275 $ --- $ 2,275
Corporate Contributions 189,213 18,275 207,488 95,742
Loan Interest Income 4,583 --- 4,583 1,546
Total Revenue $ 216,071 $ (1,725) $ 214,346 $ 97,288
EXPENSES
Program Services
Lending Service Fees $ --- $ --- $ --- $ 76
Office Supplies 280 --- 280 ---
Bad Debt Expense 16,850 --- 16,850 ---
Other Expense 155 --- 155 ---
Total Program Services $ 17,285 $ --- $ 17,285 $ 76
Total Expenses $ 17,285 $ --- $ 17,285 $ 76
CHANGEIN NETASSETS $ 198,786 $ (1,725) $ 197,061 $ 97,212
Net Assets, Beginning of Year 47,212 50,000 97,212 ---
- 20 -
COMBINED FINANCIAL STATEMENTS
CPAs
TABLE OF CONTENTS
Independent Auditors Report ..................................................................................................... 1-2
Combined Balance Sheet ........................................................................................................... 3
Combined Statement of Activities ............................................................................................... 4
Combined Statement of Cash Flows .......................................................................................... 5
Notes to the Combined Financial Statements ............................................................................ 6-16
Supplementary Schedules ..................................................................................................... 17
Schedule of Balance Sheet Consolidation ......................................................................... 18

Schedule of Activities Consolidation .................................................................................. 19
Schedule of Activities - ACTS Community Development Corporation ............................... 20
Schedule of Unrestricted Functional Revenue and Expenses - ACTS Community
Development Corporation ............................................................................................... 21
Schedule of Activities - ACTS Lending, Inc ........................................................................ 22
RftzHolma
CPAs
Independent Auditors Report
Board of Directors
We have audited the accompanying combined financial statements of ACTS Community Development
Corporation and Affiliate (a nonprofit organization) which comprise the combined balance sheet as of
December 31,2015, and the related combined statements of activities and cash flows for the year then
ended, and the related notes to the combined financial statements.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these combined financial
statements in accordance with accounting principles generally accepted in the United States of America;
this includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of combined financial statements that are free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
ur responsibility is to express an opinion on these combined financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the combined financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the combined financial statements. The procedures selected depend on the auditors judgment, including
the assessment of the risks of material misstatement of the combined financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entitys preparation and fair presentation of the combined financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion
on the effectiveness of the entitys internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the combined financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the combined financial statements referred to above present fairly, in all material respects,
the financial position of ACTS Community Development Corporation and Affiliate as of December 31,
2015, and the changes in their net assets and their cash flows for the year then ended in accordance with
accounting principles generally accepted in the United States of America.
Ritz Holman LLP

Serving businesses, nonprofits, individuals and trusts.
330 E. Kilbourn Ave., Suite 5S0 t. 414,27].145]

Milwaukee, W153202 f. 414,271.7464
ritzholman.com
Member of the American Institute o[ Certified Public Accountants, Wisconsin Institute of Certified Public Accountants
Board of Directors
Report on Summarized Comparative Information
We have previously audited ACTS Community Development Corporation and Affiliates 2014 combined
financial statements, and we expressed an unmodified audit opinion on those audited combined financial
statements in our report dated September 1, 2015. In our opinion, the summarized comparative
information presented herein as of and for the year ended December 31, 2014 is consistent, in all
material respects, with the audited combined financial statements from which it has been derived.
Other Matter(s)
Our audit was conducted for the purpose of forming an opinion on the combined financial statements as a
whole. The supplementary schedules are presented for purposes of additional analysis and are not a
required part of the basic combined financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic combined financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic combined financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic combined financial statements or to the basic combined
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the basic combined financial statements as a whole.
RITZ HOLMAN LLP

Certified Public Accountants
Milwaukee, Wisconsin
May 2, 2016
COMBINED BALANCE SHEET
DECEMBER 31, 2015
ASSETS
2015 2014
CURRENT ASSETS
Cash $ 1,026,364 $ 627,377
Accounts and Grants Receivable 127,606 194,294
Pledges Receivable 100,000
Current Portion of Loans Receivable 103,140 4,877
Prepaid Expenses 11,768 19,696
Total Current Assets $ 1,368,878 $ 846,244
FIXED ASSETS
Equipment $ 41,816 $ 38,268
Accumulated Depreciation (33,142) (27,574)
Net Fixed Assets $ 8,674 $ 10,694
LONG-TERM ASSETS
Loans Receivable $ 483,647 $ 271,500
Less: Current Portion of Loans Receivable (103,140) (4,877)
Less: Allowance for Loan Losses (24,672) (16,240)
Total Long-Term Assets $ 355,835 $ 250,383
INTANGIBLE ASSETS
Website and Software $ 14,057 $ 8,135
Accumulated Amortization (6,794) (3,007)
Net Intangible Assets $ 7,263 $ 5,128
TOTAL ASSETS $ 1,740,650 $ 1,112,449
CURRENT LIABILITIES
Accounts Payable $ 10,725 $ 4,106
Accrued Payroll 61,702 92,443
Lines of Credit 136,483 42,674
Deferred Contract Revenue 15,000 ---
Escrow Liabilities 136,223 228,704
Community Projects Payable 10,248 30,994
Code Compliance Payable --- 1!,795
Earnest Money Payable 63,950 88,250
Current Portion of Note Payable 10,000 ---
Total Current Liabilities $ 444,331 $ 498,966
LONG-TERM LIABILITIES
Note Payable $ 50,000 $ ---
Less: Current Portion of Note Payable (lO,OOO) ---
Total Long-term Liabilities $ 4O,O00 $ ---
Total Liabilities $ 484,331 $ 498,966
NETASSETS
Unrestricted $ 979,730 $ 475,904
Temporarily Restricted 276,589 137,579
Total Net Assets $ 1,256,319 $ 613,483
TOTAL LIABILITIES AND NET ASSETS $ 1,740,650 $ 1,112,449
-3-
COMBINED STATEMENT OF ACTIVITIES

REVENUE
Individual Contributions $ 74,586 $ 2,000 $ 76,586 $ 77 521
Corporate Contributions 66,650 --- 66,650 8O 593
Foundation Grants 657,505 253,989 911,494 4O0 291
Church Contributions 1,750 --- 1,750 4 O30
In-Kind Revenue 20,346 --- 20,346 55 330
Government Grants 192,833 --- 192,833 193 795
Counseling Fees 105,090 --- 105,090 115 101
Real Estate Commissions 215,418 --- 215,418 216 740
Real Estate Brokerage 85,081 --- 85,081 92 785
Construction Management Fees 152,107 --- 152,107 97 2!1
Non-Ordinary Services 14,800 --- 14,800
ACTS Developer Fees 1,950 --- 1,950
Closing Revenue 67,908 --- 67,908 107,292
Investment Income 5,263 --- 5,263 5,849
Other Revenue 168 --- 168 354
Total Revenue $ 1,778,434 $ 139,010 $ 1,917,444 $ 1,446,892
EXPENSES
Program Services
Homebuyer Counseling Program 326,006 326,006 439,034
Vacant Home Sales Program 206,751 206,751 236,149
ACTS Lending, Inc. 17,431 !7,431 17,285
Management and General 171,508 171,508 177,076
Fundraising 74,945 74,945 85,920
Total Expenses $ 1,274,608 $ --- $ 1,274,608 $ 1,490,999
CHANGE IN NET ASSETS $ 503,826 $ 139,010 $ 642,836 $ (44,107)
NET ASSETS, END OF YEAR $ 979,730 $ 276,589 $ 1,256,319 $ 613,483
-4-
COMBINED STATEMENT OF CASH FLOWS
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets 642,836 (44,107)
Adjustments to Reconcile Change in Net Assets to
Net Cash Provided by Operating Activities
Depreciation and Amortization 9,355 9,246
Adjustment to Loan Loss Reserve 8,432 9,833
(Increase) Decrease in Accounts and Grants Receivable 66,688 (31,198)
(Increase) Decrease in Pledges Receivable (100,000)
(Increase) Decrease in Prepaid Expenses 7,928 15,886
(Increase) Decrease in Loans Receivable (212,147) (166,957)
Increase (Decrease) in Accounts Payable 6,619 (2,526)
Increase (Decrease) in Accrued Payroll (30,741) 35,999
Increase (Decrease) in Deferred Contract Revenue 15,000 (17,500)
Increase (Decrease) in Rehab Escrows Liability (92,480) 193,396
Increase (Decrease) in Community Projects (20,746) 20,459
Increase (Decrease) in Code Compliance Payable (11,795) 365
Increase (Decrease) in Earnest Money Payable (24,300) 73,190
Net Cash Provided by Operating Activities $ 264,649 $ 96,086
CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of Fixed Assets $ (3,548
Purchase of Intangible Assets (5,922 (3,500)
Net Cash Used by Investing Activities $ (9,470 $ (3,50O)
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Lines of Credit 100,000 $ 45,000
Payments on Lines of Credit (6,192 (2,326)
Proceeds from Note Payable 50,000
Net Cash Provided by Financing Activities $ 143,808 $ 42,674
Net Increase in Cash and Cash Equivalents $ 398,987 $ 135,260
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 627,377 492,117
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 1,026,364 $ 627,377
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Interest Paid $ 342 $

NOTES TO THE COMBINED FINANCIAL STATEMENTS
DECEMBER 31, 2015

DECEMBER 31, 2015
NOTE G - Net Loans Receivable
Net loans receivable consists of the following at December 31,2015:
Source Amount
Harambee Loan Funds $ 4 700

Major Rehab Loan Funds 36 888
Non-Ordinary Loan Funds 37 770
Standard Interest Loan Funds 165 505
Targeted Neighborhood Loan Funds 115 470
Washington Park Loan Funds 66 983
Zilber Neighborhood Loan Funds 56 331
Total Gross Loans Receivable $483 647
Less: Allowance for Loan Losses ~24,672)
Net Loans Receivable $458=975
Maturities of ACTS loans receivable are as follows:
Year Endin.q December 31, Amount
2016 $103,140
20!7 99,394
2018 95,012
2019 90,304
2020 57,931
ThereaEer 37,866
Total ~647
Allowance for Loan Losses
The Organization considers that the determination of the allowance for loan losses involves a
higher degree of judgment and complexity than its other significant accounting policies. The
balance in the allowance for loan losses is determined based on managements review and
evaluation of the loan portfolio in relation to past loss experience, the size and composition of
the portfolio, current economic events and conditions, and other pertinent factors, including
managements assumptions as to future delinquencies, recoveries and losses. Al! of these
factors may be susceptible to significant change. To the extent actual outcomes differ from
managements estimates, additional provisions for loan losses may be required that would
adversely impact earnings in future periods. ACTS Lending, Inc.s management frequently
reviews the loan portfolio to assign and maintain the loan loss reserves based upon the
grade of the credit. The loan loss reserve percentage allocations are established annually.
The allowance for loan losses has a minimum balance of $5,000. Loans receivable are
presented net of a loan loss allowance of $24,672 at December 31, 2015.
-11 -
DECEMBER 31, 2015
NOTE G - Net Loans Receivable (continued)
Loss
Whenever any portion of a loan is deemed uncollectible, in part or in whole, a partial or full
charge-off will be made against the allowance for loan losses based on a conservative
estimate of the realizable liquidation value. A loan that is impaired and foreclosure or loss of
the asset is imminent must be charged off unless there are realistic expectations that the
borrower can bring the account current or a realistic restructure can be negotiated.
Management keeps current on information throughout the year that would classify a loan
asset as a loss.
Credit Quality Indicators
The key to ACTS Housings credit risk management is its loan originating system. Staff
recommends decisions on loans based primarily on a thorough analysis of each borrowers
financial capacity in conjunction with collateral values and the inherent credit risk specific to
the transaction. Approvals are made by an independent executive committee, whose
members are the President and Treasurer of the ACTS Lending, Inc.s Board of Directors,
and the Chair of the ACTS Lending, Inc.s Advisory Board. Loans are monitored monthly by
the Executive Director and a third-party accountant, and at least 4 times per year by the
Lending Advisory Board, Finance Committee and Board of Directors.
Allowances are recognized for all loans based on the category of loan grade assigned to
each loan as outlined below. Once graded, loan losses are reserved at the following
percentages:
Loan Loss Reserve

Loan Grade Percentaqe Allocation/Maintenance
Grade 4 5%
Grade 5 15%
Grade 6 37%
Loans are not to carry a lower reserve, but based on the specific circumstances of a
particular loan, it may carry higher reserves. Loan loss reserve percentages are reviewed
and established annually.
Grade 4 - Acceptable
These loans are generally acceptable asset quality. Primary source of loan repayment is
acceptable and verified. Acceptable credit/credit verifications or pathway to improved credit,
but borrowers financial condition evidence slightly above average risk; requires slightly
above normal supervision and attention from management. The source of increased risk
has been identified, can be effectively managed/corrected, and the increased risk is not
significant to warrant a more severe rating.
-12-
DECEMBER 31, 2015
NOTE G - NetLoans Receivable (continued)
Grade 5 - Watch
Loan coverage is somewhat erratic, future coverage is uncertain and liquidity is strained.
Indicators of potential deterioration of repayment sources have resulted in uncertainty or
unknown factors concerning the status of the credit. Risk Rating of Watch is considered
transitory in nature. When the factors causing the uncertainty have been clearly defined, a
risk rating should be assigned commensurate with the risk characteristics and circumstances
that exist. Quarterly memorandums regarding action plans for managing the risk of the
credit must be developed for credits in this category.
Grade 6 - Substandard
While probability of loss is high (account is past due over 90 days), there are existing factors
that may strengthen the asset. A substandard asset is inadequately protected by the current
sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so
classified must have a well-defined weakness or weaknesses that jeopardize the liquidation
of the debt. They are characterized by the distinct possibility that the Organization will
suslain some loss if the deficiencies are not corrected.
As of December 31, 2015, allowance for loan losses consists of the following:
Loan Reserve Allowance

Loan Grade Receivable Percentage Amount
Grade 4 $478,752 5% $23,938

Grade 5 4,895 15% 734
Grade 6 --- 37% ---
Total $483,647 2,$2~ 672
Impaired Loans
Impaired loans are defined as underwater loans to low and mid income level individuals and
families whose loan payments are significantly late. Impaired loans are written off when
foreclosure is probable. When a loan is determined to be impaired, an allowance account for
37% of the loan is recognized. A $15 late fee is charged when a payment is not made by the
15th of the month. This fee is added to the end of the payment schedule. The impaired
loans below are not interest bearing ahd included in grade 6 loans. Average Recorded
Investment is defined as the average of the loan balances as of December 31, 2015 and
2014.
As of December 31, 2015, the Organization had no impaired or Grade 6 loans.
-13-
DECEMBER 31, 2015
NOTE H - Lines of Credit
ACTS Housing has a non-interest-bearing $50,000 line of credit from an individual. The
maturity has been extended to December 31,2016. At December 31, 2015, the line of
credit had a balance of $36,483.
ACTS Lending, Inc. has a $250,000 line of credit from a financial institution, with an annual
fixed interest rate of 2%. In February of 2016, ACTS Lending, Inc. renewed the line of
credit. The line of credit matures on February 13, 2017 with an option to renew annually for
a total period of six years. At December 31, 2015, the line of credit had a balance of
$100,000.
NOTE I - Note Payable
ACTS Lending, Inc. has a non-interest-bearing $50,000 note payable from an individual,
with a maturity date of November 4, 2020. A principal payment of $10,000 is due annually.
At December 31, 2015, the note payable had a balance of $50,000.
Future minimum payments as of December 31, 2015 are as follows:
Year Amount
2016 $10,000
2017 10,000
2018 10,000
2019 10,000
2020 10~000
Total 5,1~0~000
NOTE J - Temporarily Restricted Net Assets
Temporarily restricted net assets consists of the following at December 31,2015:
Source Amount
Associated Bank $ 50,000

Chase Bank 9,077
Faye McBeath Foundation 10,000
Forest County Potawatomi Foundation 12,800
Greater Milwaukee Foundation 78,575
LlSC 10,000
Zilber Family Foundation 100,000
Other Grants 6,137
Temporarily Restricted Net Assets $276,589
-!4-
DECEMBER 31, 2015
NOTE K- Intercompany Eliminations
ACTS Community Development Corporation ("CDC") incurs expenses related to ACTS

Lending, Inc. which are then reimbursed by ACTS Lending, Inc. ("Lending") to ACTS CDC.
All intercompany revenues, expenses, payables, and receivables have been eliminated from
the combined balance sheet and combined statement of activities.
Eliminations included the following:
Amounts payable from Lending to CDC $ 9,539

Grants paid from CDC to Lending 122,007
Payroll reimbursement from Lending to CDC 35,160
NOTE L- In-Kind Revenue
The Organization received various donations as in-kind for the year ended December 31,
20! 5. The items and values of these in-kind donations are as follows:
Description Amount
Gift cards and tickets $ 2,346

Occupancy 18000
Total 25_~. 346..
Income and expense related to these services have been included in the accompanying
NOTE M - Operating Leases
The Organization leases office spaces from three organizations in Milwaukee, Wisconsin.
The Organization paid lease payments of $12,000 and received in-kind occupancy of
$18,000 for the year ended December 31, 2015.
On January 7, 2016, the Organization signed two lease agreements for space with two
organizations for $1,750 monthly and $250 monthly, respectively. Both lease agreements
end on June 30, 2016.
Future minimum lease payments as of December 31, 2015 are as follows:
Year Amount
2016 ~
Total ~
-15-
DECEMBER 31, 2015
NOTE N - Income Taxes
The Organization is exempt from income tax under Section 501(c)(3) of the Internal Revenue
Code and is classified as other than a private foundation. The Affiliate is a solely owned
Corporation and therefore the Internal Revenue Service considers it to be a disregarded entity
for tax purposes. All Affiliate activity is included under ACTS Community Development
Corporation for tax purposes. Management has reviewed all tax positions recognized in
previously filed tax returns and those expected to be taken in future tax returns. As of
December 31,2015, the Organization and Affiliate had no amounts related to unrecognized
income tax benefits and no amounts related to accrued interest and penalties. The
Organization does not anticipate any significant changes to unrecognized income tax benefits
over the next year. The Organization and Affiliate are currently not under audit by any federal
or state taxing authority and are no longer subject to tax examinations by the U.S. federal
jurisdiction for years prior to 2012 and the state jurisdiction for years prior to 2011.
NOTE O - Subsequent Events
The Organization has evaluated events and transactions occurring after December 31, 2015
through May 2, 2016, the date the financial statements are available to be issued, for
possible adjustments to the financial statements or disclosures. The Organization has
determined that the following subsequent events need to be disclosed:
On January 7, 2016, the Organization signed two lease agreements for space with two
organizations for $1,750 monthly and $250 monthly, respectively. Both lease agreements
end on June 30, 2016.
On February 13, 2016, ACTS Lending, Inc. renewed the $250,000 line of credit with a
financial institution with a fixed interest rate of 2%. The line of credit matures on February 13,
2017 with an option to renew annually for a total period of six years.
-16-
SUPPLEMENTARY SCHEDULES
DECEMBER 31, 2015
-17=
SCHEDULE OF BALANCE SHEET CONSOLIDATION
DECEMBER 31, 2015
ASSETS
ACTS Community ACTS 2015 2014

Development Lending, Inc. Eliminations Total Total
CURRENT ASSETS
Cash 927,024 $ 99,340 $ --- $ 1,026,364 $ 627,377
Accounts and Grants Receivable 137,145 --- (9,539) 127,606 194,294
Pledges Receivable 100,000 ...... 100,000 ---
Current Portion of Loans Receivable --- 103,140 --- 103,140 4,877
Prepaid Expenses 11,768 ...... 11,768 19,696
Total Current Assets 1,175,937 $ 202,480 $ (9,539) $ 1,368,878 $ 846,244
FIXED ASSETS
Equipment $ 41,816 $ --- $ --- $ 41,816 $ 32,346
Accumulated Depreciation (33,142) ...... (33,142) (27,574)
Net Fixed Assets $ 8,674 $ --- $ --- $ 8,674 $ 4,772
LONG-TERM ASSETS
Loans Receivable --- $ 483,647 $ --- $ 483,647 $ 271,500
Less: Current Portion of Loans Receivable --- (103,140) --- (103,140) (4,877)
Less: Allowance for Loan Losses --- (24,672) --- : (24,672) (16,240)
Total Long-Term Assets --- $ 355,835 $ --- $ 355,835 $ 250,383
INTANGIBLE ASSETS
Website and Software $ 12,020 $ 2,037 $ --- $ 14,057 $ !4,057
Accumulated Amortization (6,709) (85) --- (6,794) (3,007)
Net Intangible Assets $ 5,311 $ 1,952 $ --- $ 7,263 $ 11,050
TOTALASSETS $ 1,189,922 $ 560,267 $ (9,539) $ 1,740,650 $ 1,112,449
CURRENT LIABILITIES
Accounts Payable $ 8,688 $ 11,576 $ (9,539) $ 10,725 $ 4,106
Accrued Payroll 61,702 ...... 61,702 92,443
Lines of Credit 36,483 100,000 --- 136,483 42,674
Deferred Contract Revenue !5,000 ...... 15,000 ---
Escrows Liabilities 122,130 14,093 --- 136,223 228,704
Community Projects Payable 5,060 5,188 --- 10,248 30,994
Code Compliance Payable ......... 11,795
Earnest Money Payable 63,950 ...... 63,950 88,250
Current Portion of Note Payable 10,000 --- 10,000 ---
Total Current Liabilities $ 313,013 $ !40,857 $ (9,639) $ 444,331 $ 498,966
LONG-TERM LIABILITIES
Note Payable $ 50,000 $ --- $ 50,000 $ ---
Less: Current Portion of Note Payable (10,000) --- (10,000) ---
Total Long-term Liabilities $ 40,000 $ --- $ 40,O00 $
Total Liabilities $ 313,013 $ 180,857 $ (9,539) $ 484,331 $ 498,966
NET ASSETS
U n restricted $ 610,320 $ 369,410 $ --- $ 979,730 $ 475,904
Temporarily Restricted 266,589 10,000 --- 276,589 137,579
Total Net Assets $ 876,909 $ 379,410 $ --- $ 1,256,319 $ 613,483
TOTAL LIABILITIES AND NET ASSETS $ 1,189,922 $ 560,267 $ (9,539) ~ 1,740,650 $ 1,112,449
-18-
SCHEDULE OF ACTIVITIES CONSOLIDATION
ACTS Community ACTS 2015 2014

Development Lending, Inc. Eliminations Total Total
REVENUE
Individual Contributions $ 76,586 $ --- $ --- $ 76,586 $ 77,521
Corporate Contributions 60,650 128,007 (122,007) 66,650 80,593
Foundation Grants 911,494 ...... 911,494 400,291
Church Contributions 1,750 ...... 1,750 4,030
In-Kind Revenue 20,346 --- 20,346 55,330
Government Grants 192,833 ...... 192,833 193,795
Counseling Fees 103,053 2,037 --- 105,090
Real Estate Commissions 215,418 ...... 215,418 216,740
Real Estate Brokerage 85,081 ...... 85,081 92,785
Construction Management Fees 152,107 ...... 152,107 97,211
Non-Ordinary Services 11,795 3,005 --- 14,800
ACTS Developer Fees 1,950 ...... 1,950
Closing Revenue 67,908 ...... 67,908 107,292
Staffing Revenue 35,160 --- (35,160) ---
Investment Income 614 4,649 --- 5,263 5,849
Other Revenue 138 30 --- 168 354
Total Revenue $ 1,936,883 $ 137,728 $ (157,167) $ 1,917,444 $ 1,446,892
EXPENSES
Program Services
Neighborhood Housing Programs $ 477,967 $ --- $ --- $ 477,967 $ 535,535
Homebuyer Counseling Program 326,006 ...... 326,006 439,034
Vacant Home Sales Program 328,758 --- (122,007) 206,751 236,149
ACTS Lending, Inc. --- 52,591 (35,160) 17,431 17,285
Management and General 171,508 ...... 171,508 177,076
Fundraising 74,945 ...... 74,945 85,920
Total Expenses $ 1,379,184 $ 52,591 $ (157,167) $ 1,274,608 $ 1,490,999
CHANGE IN NET ASSETS $ 557,699 $ 85,137 $ --- $ 642,836 $ (44,107)
Net Assets, Beginning of Year 319,210 294,273 --- 613,483 657,590
NET ASSETS, END OF YEAR $ 876,909 $ 379,410 $ --- $ 1,256,319 $ 613,483
-19-

REVENUE
Individual Contributions $ 74,586 $ 2,000 $ 76,586 $ 76,521
Corporate Contributions 60,650 --- 60,650 80,593
Foundation Grants 657,505 253,989 911,494 400,291
Church Contributions 1,750 --- 1,750 4,030
In-Kind Revenue 20,346 --- 20,346 55,330
Government Grants 192,833 --- 192,833 193,795
Counseling Fees 103,053 --- 103,053 115,101
Real Estate Commissions 215,418 --- 215,418 216,740
Real Estate Brokerage 85,081 --- 85,081 92,785
Construction Management Fees 152,107 --- 152,107 97,211
Non-Ordinary Services 11,795 --- 11,795 ---
ACTS Develope~" Fees 1,950 --- 1,950 ---
Closing Revenue 67,908 --- 67,908 107,292
Staffing Revenue 35,160 --- 35,160 ---
Investment Income 614 --- 614 1,267
Other Revenue 138 --- 138 354
Net Assets Released From Restriction 78,704 (78,704) ......
Total Revenue $ 1,759,598 $ 177,285 $ 1,936,883 $ 1,441,310
EXPENSES
Program Services
Homebuyer Counseling Program 326,006 --- 326,006 439,034
Vacant Home Sales Program 328,758 --- 328,758 444,912
Management and General 171,508 --- 171,508 177,076
Fundraising 74,945 --- 74,945 85,920
Total Expenses $ 1,379,184 $ --- $ 1,379,184 $ 1,682,477
CHANGE IN NET ASSETS $ 380,414 $ 177,285 $ 557;699 $ (241,167)
- 20 -
SCHEDULE OF UNRESTRICTED FUNCTIONAL REVENUE AND EXPENSES
Neighborhood Homebuyer Vacant Management

Housing Counseling Home Sales and 2015 2014
Programs Program Program General Fundraising Total Total
REVENUE
Individual Contributions $ --- $ --- $ -- $ --- $ 74,586 $ 74,586 $ 76,521
Corporate Contributions ......... 60,650 60,650 73,050
Foundation Grants 177,693 14,853 73,445 152,549 238,965 657,505 388,915
Church Contributions ........... 1,750 1,750 4,030
In-Kind Revenue 13,800 ..... 6,546 --- 20,346 55,330
Government Grants 25,000 162,667 5,166 ...... 192,833 193,795
Counseling Fees --- 103,053 ......... 103,053 115,101
Real Estate Commissions 215,418 ............ 215,418 216,740
Real Estate Brokerage 54,219 --- 30,862 ...... 85,081 92,785
Construction Management Fees ...... 152,107 ..... 152,107 97,211
Non-Ordinary Services ........ 11,795 --- 11,795 ---
ACTS Developer Fees .... 1,950 ...... 1,950 ---
Closing Revenue 67,878 ...... 30 --- 67,908 107,292
Staffing Revenue ....... 35,160 --- 35,160 ---
Investment Income 120 ..... 494 --- 614 1,267
Other Revenue 64 49 --- 25 --- 138 354
Net Assets Released From Restriction ........... 78,704 78,704 242,463
Total Revenue $ 554,192 $ 280,622 $ 263,530 $ 206,599 $ 454,655 $ 1,759,598 $ 1,664,854
EXPENSES
Salaries and Wages $ 389,798 $ 105,682 $ 159,450 $ 23,863 $ 62,971 $ 741,764 $ 750,052
Employee Benefits 18,958 7,913 19,754 5,729 1,670 54,024 59,978
Payroll Taxes 25,882 7,685 7,981 25,132 3,407 70,087 52,817
Professional Fees 4,328 295 8,409 36,930 759 50,721 33,590
Grant Disbursements --- 189,788 2,000 ..... 191,788 366,760
Office Supplies 141 (13) 122 3,874 93 4,217 5,963
Telephone 4,075 --- 1,279 1,403 183 6,940 4,835
Postage 24 3 3 1,266 197 1,493 1,133
P rinting 181 29 240 5,004 1,119 6,573 3,158
Technology 8,341 2,970 3,452 11,252 904 26,919 26,456
Marketing 154 31 --- 928 931 2,044 13,745
Occupancy 13,800 ...... 16,200 --- 30,000 52,800
Cleaning and Maintenance 165 284 624 855 70 1,998 8,819
Depreciation and Amortization ......... 9,270 --- 9,270 9,246
Travel 7 1,100 1 1,643 4 2,755 2,129
Conferences, Conventions and Meetings 28 41 17 9,497 1,724 11,307 8,464
Insurance ......... 6,894 -- 6,894 6,167
Membership Dues 351 260 --- 2,859 229 3,699 2,943
Staff Development --- 364 --- 1,000 --- 1,364 5,687
Real Estate Fees 3,4!3 1,056 -- 836 -- 5,305 4,433
Non-Capital Equipment Purchases 830 713 1,434 2,497 460 5,934 12,621
Closing Expenses 4,561 6,942 --- 1,147 --- 12,650 40,411
Bad Debt Expense ................ (5,561 )
Donations to ACTS Lending, inc. - ..... 122,007 ...... 122,007 208,763
Donated Goods 1,500 ...... 846 --- 2,346 --
Other Expense 1,430 863 1,985 2,583 224 7,085 7,068
Total Expenses $ 477,967 $ 326,006 $ 328,758 $ 171,508 $ 74,945 $ 1,379,184 $ 1,682,477
CHANGE IN NET ASSETS $ 76,225 $ (45,384) $ (65,228) $ 35,091 $ 379,710 _$ 380,414 $ (17,623)
ACTS LENDING, INCo

REVENUE
Individual Contributions $ --- $ --- $ --- $ 2,275
Corporate Contributions 128,007 --- 128,007 207,488
Program Service Fees 5,042 --- 5,042 ---
Loan Interest Income 4,649 --- 4,649 4,583
Other Revenue 30 --- 30 ---
Net Assets Released From Restriction 38,275 (38,275) ......
Total Revenue $ 176,003 $ (38,275) $ 137,728 $ 214,346
EXPENSES
Program Services
Salaries and Wages $ 35,160 $ --- $ 35,160 $ ---
Office Supplies ......... 280
Information Technology 965 --- 965 ---
Depreciation Expense 85 --- 85 ---
Interest Expense 342 --- 342 ---
Bad Debt Expense 14,204 --- 14,204 16,850
Other Expense 1,835 --- 1,835 155
Total Expenses $ 52,591 $ --- $ 52,591 $ 17,285
CHANGE IN NET ASSETS $ 123,412 $ (38,275) $ 85,137 $ 197,061
- 22 -

Last Three Years Audit Statements

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Last Three Years Audit Statements

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ACTS COMMUNITY DEVELOPMENT CORPORATION AND AFFILIATE

FOR THE YEAR ENDED DECEMBER 31, 2014

Independent Auditors Report ..................................................................................................... 1-2

Balance Sheet ............................................................................................................................. 3

Statement of Activities ................................................................................................................ 4

Statement of Cash Flows ............................................................................................................ 5

Notes to the Financial Statements .............................................................................................. 6-15

Supplementary Schedules ..................................................................................................... 16

Schedule of Balance Sheet Consolidation ......................................................................... 17

Independent Auditors Report

Managements Responsibility for the Financial Statements

Ritz Holmon LLP

Two Plaza East, Suite 550 t. 414.271.1451

Report on Summarized Comparative Information

RITZ HOLMAN LLP

TOTAL ASSETS $ 1,112,449 $ 810,499

LIABILITIES AND NET ASSETS

TOTAL LIABILITIES AND NET ASSETS $ 1,112,449 $ 810,499

The accompanying notes are an integral part of these financial statements.

Temporarily 2014 2013

CHANGE IN NET ASSETS $ 181,162 $ (225,269) $ (44,107) $ 24,049

Net Assets, Beginning of Year 294,742 362,848 657,590 633,541

NET ASSETS, END OF YEAR $ 475,904 $ 137,579 $ 613,483 $ 657,590

The accompanying notes are an integral part of these financial statements.

Net Cash Provided by Operating Activities $ 96,086 $ 3,001

CASH FLOWS FROM INVESTING ACTIVITIES

Net Cash Used by Investing Activities $ (3,500) $ (4,635)

CASH FLOWS FROM FINANCING ACTIVITIES

Net Cash Provided by Financing Activities $ 42,674 $ ---

Net Increase (Decrease) in Cash and Cash Equivalents $ 135,260 $ (1,634)

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 492,117 493,751

CASH AND CASH EQUIVALENTS AT END OF YEAR $ 627,377 $ 492,117

The accompanying notes are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS

DECEMBER 31, 2014

NOTE A - Summary of Significant Accounting Policies

ACTS Housing provides three main services:

Combined Financial Statements

Cash and Cash Equivalents

NOTE A- Summary of Significant Accounting Policies (continued)

A loan is placed on non-accrual status when it is specifically determined to be impaired and

At December 31,2014, the Organization had $129,810 of purpose-restricted net assets,

NOTE A - Summary of Significant Accounting Policies (continued)

NOTE B - Comparative Financial Information

NOTE C - Concentration of Risk

NOTE D - Accounts and Grants Receivable

Greater Milwaukee Foundation $ 50,000

Total Accounts and Grants Receivable $194.294

NOTE E - Net Loans Receivable

Delayed Loan Funds $ 4,266

Total Gross Loans Receivable $271,500

Net Loans Receivable 25~5~260

Maturities of ACTS Loans Receivable are as follows:

Year Endinq December 31, Amount

NOTE E - Net Loans Receivable (continued)

Allowance for Loan Losses

Credit Quality Indicators

Loan Loss Reserve

NOTE E - Net Loans Receivable (continued)

Loan Reserve Allowance

Grade 4 $247,639 5% $12,382

NOTE E - Net Loans Receivable (continued)

Non-Ordinary $1,301 $1,046 $387 $1,211

NOTE F - Lines of Credit