2012-11-13T15:24:28-06:00 2012-06-30 KPMG LLP 60 South Street Boston MA 02111 990 2011-07-01 042921507 NORTH AMERICAN FAMILY INSTITUTE INC % DANIEL NAKAMOTO NORT 9785380286 26 HOWLEY STREET PEABODY MA 01960 DANIEL NAKAMOTO 2012-11-09 6179881000 2011 2016-02-24 21:20:13Z DR YITZHAK BAKAL 26 HOWLEY STREET PEABODY MA 01960 18569956 false 9242 X WWW.NAFI.COM X 1986 MA TO CREATE COMMUNITY ENVIRONMENTS BASED UPON PRINCIPALS OF DIGNITY AND RESPECT THAT HELP CHILDREN, ADULTS AND FAMILIES TO GROW AND CHANGE IN ORDER TO BETTER THEIR LIVES AND THE WORLD AROUND THEM. 9 9 378 9 0 204575 322861 20674993 18215355 13448 -2403 -46281 -139738 20846735 18396075 0 0 0 0 14471020 12507875 0 0 0 7119860 6764503 21590880 19272378 -744145 -876303 11380990 9303073 7356843 6145865 4024147 3157208 X TO CREATE COMMUNITY ENVIRONMENTS BASED UPON PRINCIPALS OF DIGNITY AND RESPECT THAT HELP CHILDREN, ADULTS AND FAMILIES TO GROW AND CHANGE IN ORDER TO BETTER THEIR LIVES AND THE WORLD AROUND THEM. false false 7505191 8078467 JUVENILE JUSTICE SERVICES: THE NORTH AMERICAN FAMILY INSTITUTE OFFERS A CONTINUUM OF SERVICES FOR ADJUDICATED DELINQUENTS FROM EVIDENCE BASED PREVENTION, FAMILY SUPPORT, INDEPENDENT LIVING, SHELTERS, GROUP HOMES, RESIDENTIAL TREATMENT, AND STAFF-SECURE RESIDENTIAL PROGRAMS. EDUCATION IS A PRIORITY FOR YOUTH RECEIVING SERVICES. NAFI OPERATES SEVERAL SCHOOLS IN RESIDENTIAL PROGRAMS AND SUPPORTS STUDENT PARTICIPATION IN PUBLIC SCHOOLS. 6167405 6164647 BEHAVIORAL HEALTH SERVICES: THE NORTH AMERICAN FAMILY INSTITUTE OFFERS A CONTINUUM OF SERVICES FROM PREVENTION, THERAPEUTIC FOSTER CARE, FOSTER CARE, AND RESIDENTIAL TREATMENT PROGRAMS FOR ADJUDICATED DELINQUENTS AND YOUTH REFERRED FROM CHILD WELFARE, MENTAL HEALTH, AND EDUCATIONAL AGENCIES. EDUCATION IS A PRIORITY FOR YOUTH RECEIVING SERVICES. NAFI OPERATES SEVERAL SCHOOLS IN RESIDENTIAL PROGRAMS AND SUPPORTS STUDENT PARTICIPATION IN PUBLIC SCHOOLS. NAFI ALSO OPERATES A RESIDENTIAL AND INDEPENDENT LIVING PROGRAM FOR CHRONICALLY MENTAL ILL ADULTS. 718037 426476 COMMUNITY BUILDING SERVICES: UTILIZING ITS YOUTH AND POLICE INITIATIVE AND YOUTH LINK PROGRAM, NAFI WORKS WITH URBAN COMMUNITIES TO REDUCE VIOLENCE AND GANG INVOLVEMENT BY YOUTH. NAFI ENGAGES YOUTH AND COMMUNITIES IN POSITIVE SOCIAL CHANGE TO CREATE SUSTAINABLE, POSITIVE RELATIONSHIPS AMONG TEENS AND POLICE, REPLACING ANIMOSITY AND DISTRUST WITH MUTUAL RESPECT AND UNDERSTANDING. THIS PROCESS IS DONE IN PARTNERSHIP WITH SCHOOLS, POLICE DEPARTMENTS, CITY AND NEIGHBORHOOD ORGANIZATIONS, BUSINESSES, DEDICATED INDIVIDUAL LEADERS, AND GREAT KIDS. 466032 3545765 14856665 true true false false false false false false false false true false false false true true false true false false true false false false true false false false false true false false false true false false false false true false false false false true true true false false true 86 0 true 378 true false false false false false false false false false false X 9 9 false false false false false false false true true false true true true true true true true true true true true false CA MA NY X X DANIEL NAKAMOTO 9788824858 26 HOWLEY STREET PEABODY MA 01960 X DR NANCY GROSSMAN 0.38 X 0 0 0 DENNIS LEWIS 0.54 X 0 0 0 DR WILLIAM MADAUS 0.23 X 0 0 0 ROGER MARCORELLE 0.54 X 0 0 0 BARNET WEINSTEIN 0.23 X 0 0 0 JAMES ZAFRIS 0.69 X 0 0 0 MARGARET N ZUSKY 0.23 X 0 0 0 HOWARD RICH 0.69 X X 0 0 0 DR BARBARA VINICK 0.23 X X 0 0 0 DR YITZHAK BAKAL 40.0 X 275933 0 7539 DANIEL NAKAMOTO 40.0 X 105491 0 4899 PAMELA BRUCE 40.0 X 102557 0 3683 HILDEGARDE PARIS 16.0 X 156168 0 4823 JAMES ISENBERG 40.0 X 156536 0 4539 STEPHEN HAHN 0.0 X 122470 0 2528 CHARLES MYERS 0.0 X 100387 0 7393 PAUL DANN 0.0 X 120802 0 6732 1140344 0 42136 8 false true false MINDSHIFT TECHNOLOGIES PO BOX 200105 PITTSBURGH PA 15251 INFO TECHNOLOGY 220611 KPMG LLP DEPT 0579 BOX 120001 DALLAS TX 75312 AUDIT 164000 2 128870 193991 45829 322861 FEES/CONTRACTS FROM GOVERNMENT AGENCIES 624100 18215355 18215355 18215355 25693 0 25693 0 0 0 0 0 0 0 0 0 28096 0 -28096 -28096 -28096 0 128870 145785 -145785 -145785 0 0 0 MISCELLANEOUS 624100 6047 6047 6047 18396075 18221402 0 -148188 0 0 0 0 725573 725573 0 0 9324785 7813228 1511557 0 1720956 1338404 382552 736561 572831 163730 0 79007 1530 77477 0 0 0 0 2155370 1735499 419871 8479 8164 315 74839 47688 27151 334173 18526 315647 0 824415 532353 292062 401404 329054 72350 0 73624 16000 57624 134455 133761 694 0 1101957 939722 162235 146577 124027 22550 CONSUMABLES 836394 836394 TELECOMMUNICATIONS 169209 115218 53991 EQUIPMENT 126926 82338 44588 OTHER DIRECT 251832 166086 85746 45842 45842 19272378 14856665 4415713 0 0 0 1348005 1349654 0 0 2249717 1503005 0 3000 0 0 650476 564606 0 0 362223 168921 14201767 8858977 6275844 5342790 403734 302784 0 0 0 0 0 0 90991 68313 11380990 9303073 1970498 2003584 0 0 2396695 1558665 0 0 0 0 0 0 2404084 2242983 0 0 585566 340633 7356843 6145865 X 3906918 3034133 117229 123075 0 0 4024147 3157208 11380990 9303073 X -876303 9364 X false true true X false X false false false 928701 141834 191370 204575 322861 1789341 24911580 25287938 24006305 20674993 18215355 113096171 25840281 25429772 24197675 20879568 18538216 114885512 114885512 26079 6444 461 26402 25693 85079 26079 6444 461 26402 25693 85079 765 18966 3020 8887 6047 37685 25867125 25455182 24201156 20914857 18569956 115008276 0.99893 0.99865 0.00074 0.00105 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 359753 359753 2047950 989356 1058594 10031431 6844117 3187314 1194066 670946 523120 568567 354558 214009 5342790 0 DUE TO AFFILIATES 340633 340633 18396075 19272378 -876303 9364 9364 -866939 19118790 9364 567566 576930 18541860 -145785 -145785 18396075 19985729 567566 145785 713351 19272378 19272378 FIN 48 PART X, LINE 2 NAFI IS AN ORGANIZATION DESCRIBED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC) AND IS GENERALLY EXEMPT FROM INCOME TAXES UNDER IRC SECTION 501(A). NAFI HAS TAKEN NO SIGNIFICANT UNCERTAIN TAX POSITIONS. REVENUE INCLUDED ON RETURN NOT IN FINANCIAL STATEMENTS PART XII, LINE 4B RECLASS OF FUNDRAISING EXPENSES (145,785) EXPENSES INCLUDED IN FINANCIAL STATEMENTS NOT ON RETURN PART XIII, LINE 2D RECLASS OF FUNDRAISING EXPENSES 145,785 Central America and the Caribbean 0 0 Program Services SEE PART V 14888 0 0 0 0 14888 14888 false false false false false false PROGRAM SERVICE ACTIVITY PART I, LINE 3 TRAINING OF SOCIAL SERVICE PERSONNEL CHANGE THE GAME 72250 72250 48707 NY GALA 36620 36620 28314 1 20000 20000 68764 128870 128870 145785 145785 -145785 X X X false false false false false false false false false DR YITZHAK BAKAL 275933 0 0 0 0 0 0 0 7539 0 283472 0 0 0 HILDEGARDE PARIS 155750 0 0 0 418 0 0 0 4823 0 160991 0 0 0 JAMES ISENBERG 154558 0 0 0 1978 0 0 0 4539 0 161075 0 0 0 PAUL DANN PAYROLL ADVANCE X 8000 3000 false false true 3000 X 1 3060 FMV X INSTRUCTIONAL SUPPLIES 2 42769 FMV 0 false true false OTHER PROGRAM SERVICE ACCOMPLISHMENTS PART III, LINE 4D OTHER PROGRAMS CONSIST OF INTERCOMPANY TRANSACTIONS WITH FOUR SUBSIDIARY CORPORATIONS. FORM 990 REVIEW PROCESS PART VI, SECTION B, QUESTION 11B INFORMATION IS GATHERED FROM THE BUSINESS OFFICE/EXECUTIVE DIRECTOR BY THE CHIEF FINANCIAL OFFICER AND USED TO POPULATE THE FORM 990 IN CONJUNCTION WITH INDEPENDENT TAX AUDITORS. ONCE COMPLETED, THE DRAFT FORM IS REVIEWED AND FORWARDED BY THE CFO TO THE NAFI/NFI AUDIT COMMITTEE FOR REVIEW PRIOR TO ITS SUBMISSION. THE AUDIT COMMITTEE HAS BEEN AUTHORIZED TO REVIEW AND APPROVE THE FORM 990 ON BEHALF OF THE BOARD OF DIRECTORS. A FILING COPY OF THE FORM 990 IS PROVIDED TO EACH BOARD MEMBER PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. CONFLICT OF INTEREST PART VI, SECTION B, QUESTION 12C IN ADDITION TO SUBMISSION OF SIGNED BOARD MEMBER ANNUAL STATEMENT AFFIRMING RECEIPT OF THE CONFLICT OF INTEREST POLICY, THAT THEY HAVE READ AND UNDERSTAND THE POLICY, THAT THEY AGREE TO COMPLY WITH THE POLICY AND UNDERSTAND THAT THE CORPORATION IS CHARITABLE AND MUST ENGAGE IN ACTIVITIES WHICH ACCOMPLISH ITS CHARITABLE PURPOSES, BOARD MEMBERS HAVE A DUTY TO DISCLOSE POSSIBLE CONFLICTS OF INTEREST. WHEN SUCH A DISCLOSURE IS MADE, THE BOARD OF DIRECTORS WILL DISCUSS THE ISSUE WITH THE INTERESTED PARTY. THE INTERESTED PARTY WILL THEN LEAVE THE BOARD MEETING WHILE A DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. IF THE BOARD HAS REASONABLE CAUSE TO BELIEVE THAT A DIRECTOR HAS FAILED TO DISCLOSE A POSSIBLE CONFLICT OF INTEREST, THE BOARD WILL AFFORD THAT DIRECTOR AN OPPORTUNITY TO EXPLAIN. THE BOARD WILL CONDUCT FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES. THAT DIRECTOR WILL BE RECUSED FROM THE BOARD MEETING WHILE A DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. IF THE BOARD DETERMINES THAT THE BOARD MEMBER FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. COMPENSATION POLICY PART VI, SECTION B, QUESTION 15 ANNUALLY THE EXECUTIVE DIRECTOR, BOARD OF DIRECTORS AND PARENT ORGANIZATION CEO PARTICIPATE IN AN EVALUATION PROCESS. THE EXECUTIVE DIRECTOR COMPLETES A SELF EVALUATION REFLECTING ON ACCOMPLISHMENTS, AREAS OF GROWTH AND GOALS FOR THE COMING YEAR. THE BOARD OF DIRECTORS ALSO COMPLETES AN EVALUATION SUMMARY FOR THE EXECUTIVE DIRECTOR AS DOES THE CEO OF THE PARENT ORGANIZATION. THIS INFORMATION IS REVIEWED AND DISCUSSED AT AN EXECUTIVE SESSION OF THE BOARD OF DIRECTORS. SALARY CONSIDERATIONS ARE PART OF THIS PROCESS AND INCLUDE APPROVALS BY THE CEO OF THE PARENT ORGANIZATION AND THE BOARD OF DIRECTORS. OTHER KEY EMPLOYEES OF THE ORGANIZATION ARE REVIEWED BY THE EXECUTIVE DIRECTOR USING A SIMILAR PROCESS AND SALARY CONSIDERATIONS ARE A PART OF THE OVERALL BUDGET APPROVED BY THE BOARD OF DIRECTORS. CURRENT MARKET AND FORM 990 OF OTHER COMPARABLE ORGANIZATIONS ARE TOOLS USED TO ESTABLISH COMPENSATION. PUBLIC DISCLOSURE PART VI, SECTION C, QUESTION 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, FINANCIAL STATEMENTS AND FORM 990 ARE AVAILABLE UPON REQUEST. THE FORM 990 IS ALSO POSTED ON THE WEBSITE OF THE MASSACHUSETTS'S ATTORNEY GENERAL AND WWW.GUIDESTAR.ORG. OTHER CHANGES IN NET ASSETS PART XI, LINE 5 UNREALIZED GAIN ON INVESTMENTS 9,364 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DR NANCY GROSSMAN TITLE:DIRECTOR HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ROGER MARCORELLE TITLE:DIRECTOR HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:BARNET WEINSTEIN TITLE:DIRECTOR HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JAMES ZAFRIS TITLE:DIRECTOR HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:HOWARD RICH TITLE:CHAIRMAN OF THE BOARD HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DR BARBARA VINICK TITLE:CLERK & DIRECTOR HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:DANIEL NAKAMOTO TITLE:TREASURER/EXEC DIR ADMIN HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:HILDEGARDE PARIS TITLE:EXECUTIVE DIRECTOR HOURS:24 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:JAMES ISENBERG TITLE:DIRECTOR OF MARKETING HOURS: HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:STEPHEN HAHN TITLE:EXECUTIVE DIRECTOR HOURS:40 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CHARLES MYERS TITLE:EXECUTIVE DIRECTOR HOURS:40 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PAUL DANN TITLE:EXECUTIVE DIRECTOR HOURS:40 NFI MASSACHUSETTS INC 26 HOWLEY STREET PEABODY MA 01960 237378470 SOCIAL SVCS MA 501(C)(3) 9 NAFI true NFI NORTH INC 40 PARK LANE CONTOOCOOK NH 03229 043161042 SOCIAL SVCS NH 501(C)(3) 9 NAFI true NFI VERMONT INC 30 AIRPORT ROAD SOUTH BURLINGTON VT 05403 030304434 SOCIAL SVCS VT 501(C)(3) 9 NAFI true NAFI CONNECTICUT INC 20 BATTERSON PARK RD STE 301 FARMINGTON CT 06032 900059160 SOCIAL SVCS CT 501(C)(3) 9 NAFI true THE CAPTIVE ADVANTAGE LLC PO BOX 52108 BOSTON MA 02205 264681578 CAPTIVE CELL DE NAFI EXCLUDED 106252 82842 false 0 true 0.27400 false false false false true false false false true false true false true true false true true false NFI VERMONT INC P 525901 % OF REVENUE NFI VERMONT INC Q 59064 ACTUAL EXPENSE NFI MASSACHUSETTS INC P 954860 % OF REVENUE NFI MASSACHUSETTS INC M 141590 ACTUAL EXPENSE NFI MASSACHUSETTS INC Q 95432 ACTUAL EXPENSE NFI NORTH INC P 608224 % OF REVENUE NFI NORTH INC I 60308 ACTUAL EXPENSE NAFI CONNECTICUT INC P 1023425 % OF REVENUE NAFI CONNECTICUT INC I 281266 ACTUAL EXPENSE NAFI CONNECTICUT INC Q 125279 ACTUAL EXPENSE RELATED PARTY TRANSACTIONS PART V NFI VERMONT NORTH AMERICAN FAMILY INSTITUTE, INC. (NAFI), AN AFFILIATE, CHARGES AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $525,901 FOR THE YEAR ENDED JUNE 30, 2012, AND HAVE BEEN INCLUDED IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. IN ADDITION, NFIV PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $9,829 FOR THE YEAR ENDED JUNE 30, 2012 AND HAS BEEN INCLUDED IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. COST REIMBURSEMENT OVERPAYMENTS HAVE RESULTED IN A BALANCE DUE FROM NAFI AS OF JUNE 30, 2012 IN THE AMOUNT OF $59,064. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AFFILIATE IN THE ACCOMPANYING STATEMENT OF FINANCIAL POSITION AND THE CURRENT PORTION, $17,995 IS EXPECTED TO BE RECEIVED WITHIN ONE YEAR. NFI MASSACHUSETTS NORTH AMERICAN FAMILY INSTITUTE, INC. (NAFI), AN AFFILIATE, CHARGES AN ADMINISTRATIVE MANAGEMENT FEE AND AN ESTIMATED PROPERTY USAGE FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $1,096,450 FOR THE YEAR ENDED JUNE 30, 2012 AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES IN THE ACCOMPANYING STATEMENT OF ACTIVITIES AND FUNCTIONAL EXPENSES. IN ADDITION, NFI PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $28,957 FOR THE YEAR ENDED JUNE 30, 2012 AND HAS BEEN INCLUDED IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. COST REIMBURSEMENT OVERPAYMENTS HAVE RESULTED IN A BALANCE DUE FROM NAFI AS OF JUNE 30, 2012 IN THE AMOUNT OF $95,432. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AFFILIATE IN THE ACCOMPANYING STATEMENT OF FINANCIAL POSITION AND THE CURRENT PORTION, $13,294 IS EXPECTED TO BE RECEIVED WITHIN ONE YEAR. NFI NORTH NORTH AMERICAN FAMILY INSTITUTE, INC. (NAFI), AN AFFILIATE, CHARGES AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $608,224 FOR THE YEAR ENDED JUNE 30, 2012, AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES EXPENSES IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. IN ADDITION, NFIN PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $60,308 FOR THE YEAR ENDED JUNE 30, 2012, AND HAS BEEN INCLUDED IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. COST REIMBURSEMENT OVERPAYMENTS HAVE RESULTED IN A BALANCE DUE FROM NAFI AS OF JUNE 30, 2012 IN THE AMOUNT OF $60,859. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AFFILIATE IN THE ACCOMPANYING STATEMENT OF FINANCIAL POSITION AND THE CURRENT PORTION, $7,153 IS EXPECTED TO BE RECEIVED WITHIN ONE YEAR. NAFI CONNECTICUT NORTH AMERICAN FAMILY INSTITUTE, INC. (NAFI), AN AFFILIATE, CHARGES AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $1,023,425 FOR THE YEAR ENDED JUNE 30, 2012 AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES EXPENSES IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. NAFICT PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI, IN ADDITION TO PERSONNEL EXPENSES FOR SUPPORTING SERVICE COSTS. THESE CHARGES WERE $281,266 AND $40,528, RESPECTIVELY FOR THE YEAR ENDED JUNE 30, 2012 AND HAVE BEEN INCLUDED IN THE ACCOMPANYING STATEMENTS OF ACTIVITIES AND FUNCTIONAL EXPENSES. COST REIMBURSEMENT OVERPAYMENTS HAVE RESULTED IN A BALANCE DUE FROM NAFI AS OF JUNE 30, 2012 IN THE AMOUNT OF $125,279. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AFFILIATE IN THE ACCOMPANYING STATEMENT OF FINANCIAL POSITION AND THE CURRENT PORTION, $62,096 IS EXPECTED TO BE RECEIVED WITHIN ONE YEAR. NAFI AND AFFILIATED CORPORATIONS MAY PERIODICALLY MAKE SHORT TERM LOANS, NOT TO EXCEED ONE YEAR, TO ITS AFFILIATED CORPORATION, SECURED BY DOCUMENTATION EVIDENCING SUCH INDEBTEDNESS. THE DOCUMENTATION SHALL INCLUDE DATE AND AMOUNT OF THE REQUEST, INTEREST RATE AND OTHER APPROPRIATE TERMS APPROVED BY THE EXECUTIVE DIRECTOR OF ADMINISTRATIVE SERVICES AND THE EXECUTIVE DIRECTOR OF THE BORROWING AFFILIATED CORPORATION. IN FISCAL 2012, NAFICT PROVIDED SUPPORT TO ITS AFFILIATES THROUGH USE OF CERTAIN CASH RESERVES WITH AN INTEREST FEE, BASED ON PRIME RATE LESS 0.50%. THE AMOUNT OF RELATED INTEREST INCOME RECORDED IN THE ACCOMPANYING STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2012 WAS IMMATERIAL.