2019-02-18T13:04:11-06:00 2018-06-30 KPMG LLP 60 South Street Boston MA 02111 990 2017-07-01 042921507 NORTH AMERICAN FAMILY INSTITUTE INC % HILDEGARDE PARIS NORT 9785380286 90 MAPLE STREET Suite UNIT 2 STONEHAM MA 02180 PAMELA ROCHA TREASURER/CFO 9788824878 2019-02-15 true JACOB k JOHNSON P01763226 6179881000 2019-02-15 167.68.102.5 04502320190495000000 2019-02-18 P 7764BB07B2E38A1E77F9B37B3FA4EC8FB8A329EC 312FA2736B9E4A89DBAAD0AC879D6B749DE8B5F7 2017 2019-02-21 02:37:17Z DR YITZHAK BAKAL 90 MAPLE STREET UNIT 2 STONEHAM MA 02180 9978955 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. 13 11 169 11 0 0 143540 145850 10132772 9750098 56203 75272 2421 1177 10334936 9972397 0 0 0 0 7695001 6896604 0 0 0 4025387 3763322 11720388 10659926 -1385452 -687529 6647517 6358644 3573418 3929960 3074099 2428684 X TO CREATE COMMUNITY ENVIRONMENTS BASED UPON PRINCIPLES OF DIGNITY AND RESPECT THAT HELP CHILDREN, ADULTS, AND FAMILIES TO GROW AND CHANGE IN ORDER TO BETTER THEIR LIVES. true true 3613138 3839801 BEHAVIORAL HEALTH SERVICES: THE NORTH AMERICAN FAMILY INSTITUTE OFFERS A CONTINUUM OF SERVICES FROM PREVENTION, THERAPEUTIC FOSTER CARE, AND EVIDENCE BASED TREATMENT PROGRAMS FOR ADJUDICATED DELINQUENTS AND YOUTH REFERRED FROM CHILD WELFARE AND MENTAL HEALTH AGENCIES. THERAPEUTIC TREATMENT AND FAMILY ENGAGEMENT ARE PRIORITIES IN THESE PROGRAMS. NAFI'S ADOLESCENT PROGRAMS ALSO FOCUS ON EDUCATION, SUBSTANCE ABUSE AND VOCATIONAL/EMPLOYMENT OPPORTUNITIES. 1320477 1582527 EVIDENCE BASED SERVICES: THE NORTH AMERICAN FAMILY INSTITUTE OFFERS EVIDENCE BASED PREVENTION SERVICES FOR ADJUDICATED DELINQUENTS THAT INCLUDE FAMILY SUPPORT, COMMUNITY CONNECTIONS AND EDUCATIONAL RESOURCES. NAFI ALSO OPERATED A RESIDENTIAL SHORT-TERM SHELTER PROGRAM, CLOSED JULY 2017, THAT FOCUSED ON SAFETY FOR OUR CLIENTS, ASSESSMENT FOR FUTURE PLACEMENT AND INTEGRATION BACK INTO PUBLIC SCHOOL. 773612 299468 COMMUNITY BUILDING SERVICES: NORTH AMERICAN FAMILY INSTITUTE OFFERS ALTERNATIVE SERVICES TO BOTH YOUTH AND SENIORS BASED ON PEER EMPOWERMENT, GROUP WORK, ACCOUNTABILITY AND RECOGNITION FOR POSITIVE CHANGE. (SEE SCHEDULE O) 236921 4029479 5944148 true true false false false false false false false false true false false true false true false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true 50 0 true 169 true false false false false false false false false false false X 13 11 false false false false false false false true true false true true true true true true true true true true false CA MA NY X X HILDEGARDE PARIS 9788824878 90 MAPLE STREET UNIT 2 STONEHAM MA 02180 HOWARD RICH CHAIRMAN OF THE BOARD 0.69 0.46 X X 0 0 0 DR BARBARA VINICK CLERK/DIRECTOR 0.23 0.46 X X 0 0 0 ROGER MARCORELLE DIRECTOR 0.69 0.46 X X 0 0 0 HILDEGARDE PARIS CHIEF OPERATING OFFICER 40.0 0.1 X X 215602 0 22654 KELLY MADDEN ASST CLERK/CHIEF ADMIN OFFICER 40.0 0.4 X X 113160 0 3082 PAMELA ROCHA TREASURER/CHIEF FIN OFFICER 40.0 2.0 X X 119730 0 14438 BARNET WEINSTEIN DIRECTOR 0.23 0.46 X 0 0 0 DR NANCY GROSSMAN DIRECTOR 0.38 0.75 X 0 0 0 DR WILLIAM MADAUS DIRECTOR 0.23 0.0 X 0 0 0 JAMES ZAFRIS DIRECTOR 0.69 0.46 X 0 0 0 MARGARET N ZUSKY DIRECTOR 0.23 0.0 X 0 0 0 MATTHEW SAGAL DIRECTOR 0.23 0.46 X 0 0 0 JACKIE ROSARIO DIRECTOR 0.23 0.46 X 0 0 0 KATHERINE TURNER DIRECTOR 0.23 0.46 X 0 0 0 DR YITZHAK BAKAL PRESIDENT 38.0 0.0 X 265982 0 18115 DR JAMES ISENBERG DIRECTOR OF MARKETING 40.0 0.0 X 185611 0 20319 DR PAUL DANN EXECUTIVE DIRECTOR 0.0 40.0 X 168612 0 19330 STEVEN HAHN EXECUTIVE DIRECTOR 0.0 40.0 X 156857 0 14263 DR CHUCK MYERS EXECUTIVE DIRECTOR 0.0 40.0 X 137897 0 15675 LYNN BISHOP EXECUTIVE DIRECTOR 0.0 40.0 X 151138 0 17643 PETER CAREY REGIONAL DIRECTOR 40.0 0.0 X 105127 0 9075 1619716 0 154594 11 false true false JMK SYSTEMS SOLUTIONS INC 20 BROADWAY AVENUE IPSWICH MA 01938 INFO TECHNOLOGY 217117 THE ULTIMATE SOFTWARE GROUP INC PO BOX 930953 ATLANTA GA 31193 DATA PROCESSING 281600 SAVANNAH FAMILY INSTITUTE INC PO BOX 30381 SAVANNAH GA 31410 CONSULTANT 201715 CERIDIAN PO BOX 10989 NEWARK NJ 07193 DATA PROCESSING 267337 NETSMART TECHNOLOGIES INC PO BOX 823519 PHILADELPHIA PA 19182 INFO TECHNOLOGY 192229 6 145850 2500 145850 FEES/CONTRACTS FROM GOVERNMENT AGENCIES 624100 9750098 9750098 9750098 67907 67907 0 0 0 0 0 13923 6558 7365 7365 7365 0 0 0 0 0 0 0 0 0 MISCELLANEOUS 624100 1177 1177 1177 9972397 9751275 75272 0 0 0 0 889513 889513 0 4335841 2868847 1466994 0 1268426 581669 686757 402824 221160 181664 21500 21500 0 26141 6744 19397 183300 183300 0 0 0 523608 114459 409149 15842 13941 1901 54640 27117 27523 251743 2204 249539 0 486630 352351 134279 263162 189350 73812 0 117402 6690 110712 72227 72037 190 0 323835 202648 121187 70240 50992 19248 PROVIDER STIPENDS 638852 638852 CONSUMABLES 243731 243731 LICENSE/FEES/SUBSCRIPTIONS 225788 212739 13049 TELECOMMUNICATIONS 128888 89078 39810 115793 49539 66254 10659926 5944148 4715778 0 X 0 0 2027199 2273479 0 0 1198209 851708 0 0 0 0 383578 326053 0 0 130790 211306 7413341 5536074 2018349 1877267 449485 491599 0 0 0 0 0 0 439907 327232 6647517 6358644 1822404 2405583 0 0 28155 15733 0 0 0 0 0 0 1665863 1508644 0 0 56996 0 3573418 3929960 X 2977201 2323017 96898 105667 0 0 3074099 2428684 6647517 6358644 -687529 42114 X false true X true false X 148509 331907 196168 143540 145850 965974 21449688 21246660 21403266 10132772 9750098 83982484 0 0 0 21598197 21578567 21599434 10276312 9895948 84948458 55125 151133 117224 85835 105233 514550 0 55125 151133 117224 85835 105233 514550 84433908 31704 64344 69423 59668 67907 293046 0 31704 64344 69423 59668 67907 293046 0 822 -6719 3725 2421 1177 1426 21630723 21636192 21672582 10338401 9965032 85242930 0.99050 0.99680 0.00344 0.00270 X 259753 259753 1664473 1057421 607052 3687819 3049470 638349 1339402 1015708 323694 461894 413475 48419 1877267 DUE FROM AFFILIATES 177089 SECURITY DEPOSITS 96660 OTHER ASSETS 53483 327232 0 0 X 10014761 42114 250 42364 9972397 9972397 10660176 250 250 10659926 10659926 FIN 48 PART X 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. X X X false false false false false false false false false HILDEGARDE PARIS CHIEF OPERATING OFFICER 214354 0 1248 0 0 0 16054 0 6600 0 238256 0 0 0 DR YITZHAK BAKAL PRESIDENT 262141 0 3841 0 0 0 10934 0 7181 0 284097 0 0 0 DR JAMES ISENBERG DIRECTOR OF MARKETING 185611 0 0 0 0 0 13499 0 6820 0 205930 0 0 0 DR PAUL DANN EXECUTIVE DIRECTOR 167873 0 739 0 0 0 12477 0 6853 0 187942 0 0 0 STEVEN HAHN EXECUTIVE DIRECTOR 156857 0 0 0 0 0 11654 0 2609 0 171120 0 0 0 DR CHUCK MYERS EXECUTIVE DIRECTOR 135687 0 2210 0 0 0 8293 0 7382 0 153572 0 0 0 LYNN BISHOP EXECUTIVE DIRECTOR 149185 0 1953 0 0 0 8608 0 9035 0 168781 0 0 0 NEW PROGRAM SERVICES PART III, LINE 2 HOMECARE CHOICES WAS IMPLEMENTED BY NAFI TO OFFER A NEW LEVEL OF QUALITY IN PERSONAL HOME CARE SERVICES ON CAPE COD AND THE ISLANDS. HOMECARE CHOICES OFFERS A UNIQUE, CUSTOMIZED AND CLIENT-FOCUSED EXPERIENCE TO SENIORS SEEKING TO REMAIN HAPPILY AND SAFELY AT HOME, ON THEIR OWN TERMS. CEASED PROGRAM SERVICES PART III, LINE 3 LOUDOUN COUNTY YOUTH SHELTER WAS A RESIDENTIAL SHORT-TERM SHELTER PROGRAM THAT FOCUSED ON SAFETY FOR OUR CLIENTS, ASSESSMENTS FOR FUTURE PLACEMENT AND INTEGRATION BACK TO KINSHIP AND PUBLIC SCHOOL. AVERAGE STAY WAS 45 DAYS AND NAFI WORKED WITH FAMILY, COMMUNITY AND SCHOOLS TO HELP WITH REINTEGRATION. THIS PROGRAM WAS OPERATED THROUGH JULY 2017 AND THEN AWARDED TO A NEW PROVIDER. PART III, LINE 4C (CONT.) YOUTH LINK IS AN INNOVATIVE PREVENTION INITIATIVE THAT OFFERS A SYSTEM OF SKILLS AND STRATEGIES THAT ARE COMBINED TO BUILD LASTING TRUST AND POSITIVE RELATIONSHIPS BETWEEN YOUTH AND THE COMMUNITY OF ADULTS IN THEIR LIVES. YOUTH LINK SERVICES ENGAGE YOUTH AND COMMUNITIES IN POSITIVE SOCIAL CHANGE TO REDUCE VIOLENCE AND GANG INVOLVEMENT BY CREATING SUSTAINABLE POSITIVE RELATIONSHIPS AMONG TEENS AND ADULTS, REPLACING ANIMOSITY AND DISTRUST WITH MUTUAL RESPECT AND UNDERSTANDING. HOMECARE CHOICES WAS IMPLEMENTED BY NAFI DURING FISCAL YEAR 2017 TO OFFER A NEW LEVEL OF QUALITY IN PERSONAL HOME CARE SERVICES ON CAPE COD AND THE ISLANDS. HOMECARE CHOICES OFFERS A UNIQUE, CUSTOMIZED AND CLIENT-FOCUSED EXPERIENCE TO SENIORS SEEKING TO REMAIN HAPPILY AND SAFELY AT HOME, ON THEIR OWN TERMS. OTHER PROGRAM SERVICES PART III, LINE 4D OTHER PROGRAMS CONSIST OF INTERCOMPANY TRANSACTIONS WITH FOUR SUBSIDIARY CORPORATIONS AND CONTRIBUTION REVENUE. FORM 990 REVIEW PROCESS PART VI, LINE 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, LINE 12C IN ADDITION TO SUBMISSION OF SIGNED BOARD MEMBER ANNUAL STATEMENT AFFIRMING RECEIPT OF THE CONFLICT OF INTEREST POLICY, THAT THEY HAVE READAND 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, LINE 15 THE PROCESS FOR DETERMINING THE COMPENSATION OF NAFI TOP MANAGEMENT OFFICIALS, INCLUDING THE CEO, ALL OFFICERS, AND KEY EMPLOYEES, MEETS THE THREE REQUIREMENTS OF THE REBUTTABLE PRESUMPTION PROVISIONS UNDER TREAS. REG. 53.4958-6. THE COMPENSATION ARRANGEMENT IS APPROVED IN ADVANCE BY THE ORGANIZATION'S BOARD OF DIRECTORS WHO ARE INDEPENDENT OF MANAGEMENT AND FREE OF ANY CONFLICTS OF INTEREST THAT WOULD INTERFERE WITH THEIR EXERCISE OF INDEPENDENT JUDGMENT. PRIOR TO MAKING ANY COMPENSATION DECISIONS, NAFI CONDUCTS PERIODIC ANALYSIS OF LIKE POSITIONS AT COMPARABLE HUMAN SERVICE ORGANIZATIONS. THE CEO COMPLETES EVALUATION SUMMARIES OF ALL EXECUTIVE DIRECTORS WHICH ARE REVIEWED, DISCUSSED AND APPROVED AT AN EXECUTIVE SESSION OF THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS ALSO COMPLETES AN EVALUATION SUMMARY FOR THE CEO AND FOLLOWS THE SAME REVIEW AND APPROVAL PROCESS. ONCE COMPENSATION IS DETERMINED,IT IS ADEQUATELY DOCUMENTED BY THE CEO AND BOARD OF DIRECTORS. PUBLIC DISCLOSURE PART VI, LINE 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. NFI MASSACHUSETTS INC 300 ROSEWOOD DRIVE SUITE 101 DANVERS MA 01923 237378470 SOCIAL SVCS MA 501(C)(3) 10 NAFI true NFI NORTH INC 40 PARK LANE CONTOOCOOK NH 03229 043161042 SOCIAL SVCS NH 501(C)(3) 10 NAFI true NFI VERMONT INC 30 AIRPORT ROAD SOUTH BURLINGTON VT 05403 030304434 SOCIAL SVCS VT 501(C)(3) 10 NAFI true NAFI CONNECTICUT INC 20 BATTERSON PARK ROAD STE 301 FARMINGTON CT 06032 900059160 SOCIAL SVCS CT 501(C)(3) 10 NAFI true THE CAPTIVE ADVANTAGE LLC PO BOX 52108 BOSTON MA 02205 264681578 CAPTIVE CELL DE NAFI 71138 -95277 false 0 true 0.13330 false false false false false true false false false true false true false false true true true false false NFI VERMONT INC l 834917 % OF REVENUE NFI VERMONT INC j 3830 ACTUAL EXPENSE NFI VERMONT INC q 8571 ACTUAL EXPENSE NFI MASSACHUSETTS INC l 1389915 % OF REVENUE NFI MASSACHUSETTS INC j 6542 ACTUAL EXPENSE NFI MASSACHUSETTS INC q 12131 ACTUAL EXPENSE NFI NORTH INC l 1036040 % OF REVENUE NFI NORTH INC j 46882 ACTUAL EXPENSE NFI NORTH INC q 235027 ACTUAL EXPENSE NAFI CONNECTICUT INC l 1214111 % OF REVENUE NAFI CONNECTICUT INC j 181399 ACTUAL EXPENSE NAFI CONNECTICUT INC p 113100 ACTUAL EXPENSE NAFI CONNECTICUT INC q 34640 ACTUAL EXPENSE RELATED PARTY TRANSACTIONS NFI VERMONT, INC. NAFI CHARGES AN AFFILIATE, NFI VERMONT, INC. (NFIV), AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $834,917 FOR THE YEAR ENDED JUNE 30, 2018, AND HAVE BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS. IN ADDITION, NFIV PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $3,830 FOR THE YEAR AND HAS BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS. COST REIMBURSEMENT UNDERPAYMENTS HAVE RESULTED IN A BALANCE DUE TO NAFI IN THE AMOUNT OF $8,571. THIS AMOUNT HAS BEEN REPORTED AS DUE TO AFFILIATE IN THE AUDITED FINANCIAL STATEMENTS AND IS EXPECTED TO BE PAID WITHIN ONE YEAR. NFI MASSACHUSETTS, INC. NAFI CHARGES AN AFFILIATE, NFI MASSACHUSETTS, INC. (NFI), AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $1,389,915 FOR THE YEAR ENDED JUNE 30, 2018 AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES IN THE AUDITED FINANCIAL STATEMENTS. IN ADDITION, NFI PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $6,542 FOR THE YEAR AND HAS BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS. COST REIMBURSEMENT UNDERPAYMENTS HAVE RESULTED IN A BALANCE DUE TO NAFI IN THE AMOUNT OF $12,131. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AND DUE TO AFFILIATE IN THE AUDITED FINANCIAL STATEMENTS AND IS EXPECTED TO BE PAID WITHIN ONE YEAR. NFI NORTH, INC. NAFI CHARGES AN AFFILIATE, NFI NORTH, INC. (NFIN), AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $1,036,040 FOR THE YEAR ENDED JUNE 30, 2018, AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES EXPENSES IN THE AUDITED FINANCIAL STATEMENTS. IN ADDITION, NFIN PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $46,882 FOR THE YEAR AND HAS BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS. COST REIMBURSEMENT UNDERPAYMENTS HAVE RESULTED IN A BALANCE DUE TO NAFI IN THE AMOUNT OF $235,027. THIS AMOUNT HAS BEEN REPORTED AS DUE TO AFFILIATE IN THE AUDITED FINANCIAL STATEMENTS AND $6,743 IS EXPECTED TO BE PAID WITHIN ONE YEAR. NAFI CONNECTICUT, INC. NAFI CHARGES AN AFFILIATE, NAFI CONNECTICUT, INC. (NAFICT), AN ADMINISTRATIVE MANAGEMENT FEE FOR SUPPORTING SERVICE COSTS THAT NAFI INCURS ON BEHALF OF THE SUBSIDIARIES. THESE ALLOCATED COSTS AMOUNTED TO $1,214,111 FOR THE YEAR ENDED JUNE 30, 2018 AND HAVE BEEN INCLUDED IN SUPPORTING SERVICES EXPENSES IN THE AUDITED FINANCIAL STATEMENTS. IN ADDITION, NAFICT PAYS NAFI A PROPERTY CHARGE FOR USAGE OF CERTAIN FIXED ASSETS OF NAFI. THIS CHARGE WAS $181,399 FOR THE YEAR AND HAS BEEN INCLUDED IN THE AUDITED FINANCIAL STATEMENTS. COST REIMBURSEMENT OVERPAYMENTS HAVE RESULTED IN A BALANCE DUE FROM NAFI IN THE AMOUNT OF $113,100. THIS AMOUNT HAS BEEN REPORTED AS DUE FROM AFFILIATE IN THE AUDITED FINANCIAL STATEMENTS AND IS EXPECTED TO BE PAID WITHIN ONE YEAR. NAFI AND ITS SUBSIDIARY 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 CHIEF OPERATING OFFICER AND THE EXECUTIVE DIRECTOR OF THE BORROWING AFFILIATED CORPORATION. FOR THE YEAR ENDED JUNE 30, 2018, NAFICT PROVIDED SUPPORT TO ITS AFFILIATES THROUGH USE OF CERTAIN CASH RESERVES WITH AN INTEREST FEE, BASED ON PRIME RATE LESS .50%. THE AMOUNT OF RELATED INTEREST INCOME RECORDED IN THE AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 2018 WAS NOT SIGNIFICANT.