2012-05-15T10:13:14-05:00 2011-12-31 KETEL THORSTENSON LLP PO BOX 3140 RAPID CITY SD 577093140 990 2011-01-01 460358693 BLACK HILLS CHILDREN'S RANCH INC BLAC 6053481608 1644 CONCOURSE DRIVE RAPID CITY SD 57703 LACA OSSENFORT 6053481608 2012-05-03 true JEAN SMITH CPA 6053425630 2012-05-15 2011 2016-02-24 21:20:13Z PIONEER CREDIT COUNSELING TODD OSSENFORT PRESIDENT 1644 CONCOURSE DRIVE RAPID CITY SD 57703 2981538 false X WWW.PIONEERCREDIT.COM X 1980 SD TO EDUCATE AND COUNSEL CONSUMERS IN A BROAD RANGE OF FINANCIAL LIFE SKILLS, BUDGETING, RETIREMENT, HOUSING AND CREDIT, PRE-BANKRUPTCY COUNSELING, POST-BANKRUPTCY EDUCATION OR DEBT ISSUES THROUGH FACE TO FACE COUNSELING SESSIONS, TELEPHONE SESSIONS, AND BY CONDUCTING WORKSHOPS AND SEMINARS IN CONJUNCTION WITH THE CURRICULUM OF THE "SIMPLIFIED GUIDE TO FINANCIAL LIFE SKILLS." BY EDUCATING AND PROVIDING THE MUCH NEEDED TOOLS TO CONSUMERS, WE HAVE BENEFITED HUNDREDS OF THOUSANDS OF INDIVIDUALS AND FAMILIES THROUGHOUT THE UNITED STATES. MANY OF THESE INDIVIDUALS AND FAMILIES ARE NOW ON TRACK IN THE MANAGEMENT OF THEIR "FINANCIAL LIFE SKILLS." 6 5 86 0 1000 3987162 2965918 6424 11401 3326 3219 3996912 2981538 1047 1500 0 2128700 1736577 0 0 1858146 1262065 3987893 3000142 9019 -18604 1761894 1763108 342180 369106 1419714 1394002 X TO EDUCATE AND COUNSEL CONSUMERS IN A BROAD RANGE OF FINANCIAL LIFE SKILLS, BUDGETING, RETIREMENT, HOUSING AND CREDIT, PRE-BANKRUPTCY COUNSELING, POST-BANKRUPTCY EDUCATION OR DEBT ISSUES THROUGH FACE TO FACE COUNSELING SESSIONS, TELEPHONE SESSIONS, AND BY CONDUCTING WORKSHOPS AND SEMINARS IN CONJUNCTION WITH THE CURRICULUM OF THE "SIMPLIFIED GUIDE TO FINANCIAL LIFE SKILLS." BY EDUCATING AND PROVIDING THE MUCH NEEDED TOOLS TO CONSUMERS, WE HAVE BENEFITED HUNDREDS OF THOUSANDS OF INDIVIDUALS AND FAMILIES THROUGHOUT THE UNITED STATES. MANY OF THESE INDIVIDUALS AND FAMILIES ARE NOW ON TRACK IN THE MANAGEMENT OF THEIR "FINANCIAL LIFE SKILLS." false false 2364491 1500 2965918 DEBT COUNSELING PROGRAM: THE ORGANIZATION OFFERS SEVERAL OPTIONS TO CONSUMERS SEEKING HELP IN FINANCIAL EDUCATION, BUDGETING AND DEBT MANAGEMENT. A CONSUMER WILL INITIALLY VISIT WITH ONE OF OUR CERTIFIED CREDIT COUNSELORS (CERTIFIED THROUGH THE GUIDELINES OF THE ASSOCIATION OF INDEPENDENT CONSUMER CREDIT COUNSELING AGENCIES - AICCCA) TO DISCUSS THE GOALS OF THE CONSUMER. IF THE CONSUMER IS PRIMARILY SEEKING ASSISTANCE IN ESTABLISHING A MONTHLY BUDGET OR REVIEWING THEIR FINANCIAL SITUATION, THIS WILL BE DONE AT NO CHARGE TO THE CONSUMER AND CAN BE COMPLETED WITHIN AN HOUR OR TWO, WHETHER FACE TO FACE OR BY PHONE, DEPENDING ON THE CONSUMER'S FINANCIAL SITUATION. ON A DAILY BASIS, WE ALSO PROVIDE CONSUMERS WITH HOUSING COUNSELING (AT NO COST), PRE-BANKRUPTCY COUNSELING AND POST-BANKRUPTCY EDUCATION. THERE ARE SOME INSTANCES IN WHICH AFTER THEIR INITIAL CONSULTATION, THE CONSUMER DETERMINES WHETHER OR NOT THEY WOULD LIKE OR NEED FURTHER ASSISTANCE IN REDUCING PAYMENTS TO UNSECURED CREDITORS OR DUE TO THEIR BUDGET NOT BEING WITHIN THEIR MEANS. THEN THE CERTIFIED CREDIT COUNSELOR WILL HELP THEM ESTABLISH A NEW PAYMENT THROUGH OUR "DEBT MANAGEMENT PROGRAM." WE PROVIDE A WIDE RANGE OF INFORMATION THROUGH OUR STATE OF THE ART WEBSITE 24/7, WHICH HAS ACCOUNT INFORMATION FOR THOSE THAT HAVE ENROLLED IN OUR DEBT MANAGEMENT PROGRAM, IN ADDITION TO BEING AVAILABLE BY PHONE MONDAY-FRIDAY, 6AM TO 8PM MST, AND SATURDAY, 8AM TO 5PM MST. THE ORGANIZATION IS ALSO A REGISTERED AGENCY THROUGH BUREAU VERITAS CERTIFICATION AND OPERATES A QUALITY MANAGEMENT SYSTEM IN COMPLIANCE WITH THE REQUIREMENTS OF THE INTERNATIONAL STANDARDS ORGANIZATION 9001-2008 AND THE AICCCA "CODE OF PRACTICE," AS WELL AS A PARTICIPANT OF THE BETTER BUSINESS BUREAU CARE PROGRAM. THE ORGANIZATION HAS HAD OVER 203,000 ISSUES OF OUR "PIONEER PRESS" DISBURSED TO CONSUMERS IN THE YEAR 2011. THE PIONEER PRESS IS A BI-MONTHLY FINANCIAL NEWSLETTER, WHICH FEATURES 4 MAIN ARTICLES AND THEN FOCUSES ON THE FOLLOWING AREAS FOR NEW INFORMATION IN EVERY ISSUE: BUDGET BOOSTERS, PENNY PINCHERS CLUB, AND SCAM ALERTS. THE PUBLICATION BEGAN IN NOVEMBER OF 2004 AND HAS BEEN CONTINUED THEREAFTER. WE HAVE BEEN DISTRIBUTING AN AVERAGE OF 33,875 EACH ISSUE. FOR A FREE COPY, PLEASE CONTACT US DIRECTLY. THE ORGANIZATION HAS HAD OVER 87,000 COUNSELING SESSIONS IN THE YEAR OF 2011 ALONE, WITH AN ESTIMATED 251 OF THOSE CONSUMERS DETERMINING THEIR NEEDS TO ENROLL IN OUR "DEBT MANAGEMENT PROGRAM." MANY OF OUR COUNSELING AND EDUCATIONAL SESSIONS ARE PROVIDED AT NO CHARGE TO THE PUBLIC. THE ORGANIZATION COUNSELS ANYONE THAT IS IN NEED OF OUR EDUCATION PROGRAMS AND SERVICES, REGARDLESS OF THEIR ABILITY TO PAY. WE HAD APPROXIMATELY 18% OF ALL CONSUMERS ENROLLED ON THE DEBT MANAGEMENT PROGRAM GRADUATE ON A MONTHLY BASIS IN 2011. THIS COMES OUT TO AN ESTIMATED NUMBER OF 316 CONSUMERS THAT PAID OFF THEIR DEBT THROUGH OUR DEBT MANAGEMENT PROGRAM IN 2011. IN THE YEAR 2011, THE NUMBER OF ENROLLEES FOR THE "SIMPLIFIED GUIDE TO FINANCIAL LIFE SKILLS" EXCEEDED 6,000. THIS WORKBOOK COVERS BASIC MONEY MANAGEMENT AND FINANCIAL LIFE SKILLS. THE CHAPTERS ARE AS FOLLOWS: PRETEST (THIS HELPS MEASURE THE FINANCIAL LITERACY OF EACH INDIVIDUAL) 1 IDENTIFYING DEBT WARNING SIGNS, 2 SETTING UP A FAMILY BUDGET, 3 TIPS FOR MAKING A BUDGET, 4 SHOPPING GUIDE/BUDGET HELP, 5 MONEY MANAGEMENT HELP, 6 CONQUERING YOUR FINANCIAL STRESS, 7 TIPS FOR DEALING WITH YOUR CREDITORS AND PLANNING, PREPARING AND MANAGING YOUR FINANCIAL FUTURE. IT ALSO INCLUDES A FINAL TEST (SUBMITTED TO US FOR GRADING AND RECORDING THE MEASUREMENT OF THEIR SUCCESS) AND A GLOSSARY/APPENDIX (THIS INCLUDES TERMS WHICH APPEAR ON CREDITOR STATEMENTS AND CREDIT REPORTS TO ENHANCE THE CONSUMER'S FINANCIAL LITERACY). THOSE COMPLETING THE COURSE WITH A PASSING GRADE ON THE FINAL TEST, GRADUATED AND RECEIVED A "GRADUATION CERTIFICATE." WE ALSO CONDUCT FREE MONTHLY SEMINARS IN A PUBLIC SETTING HELD AT OUR OFFICES. WE INVITE ALL CONSUMERS THAT HAVE COME IN CONTACT WITH OUR ORGANIZATION, AS WELL AS POST ANOUNCEMENTS TO THE GENERAL PUBLIC IN COOPERATION WITH THE CORNERSTONE RESCUE MISSION IN RAPID CITY, SD, PRAIRIE WINDS CASINO IN PINE RIDGE, SD AND LAKOTA FUND IN KYLE, SD ON THE PINE RIDGE INDIAN RESERVATION. IN THE YEAR 2011, OUR AVERAGE CONSUMER HAD A TOTAL OF 9,636 OF UNSECURED DEBT, WHICH THEY ENROLLED ON OUR "DEBT MANAGEMENT PROGRAM." THE AVERAGE PAYMENT RECEIVED FROM THOSE SAME CONSUMERS, FOR THE BENEFIT OF THEIR UNSECURED CREDITORS, WAS 355, WHICH COMES FROM THEIR AVERAGE MONTHLY HOUSEHOLD INCOME OF 2,657 OR 31,884 ANNUALLY. WE ESTIMATE THAT THE AVERAGE REDUCTION IN INTEREST RATES TO THOSE CONSUMERS ENROLLING ON THE DEBT MANAGEMENT PROGRAM AND BASED ON DATA AS OF 3/31/12, IS ABOUT 11.9%. THE CONSUMER'S INITIAL INTEREST RATE PRIOR TO THE DEBT MANAGEMENT PROGRAM IS AN AVERAGE OF 20%. OUR SUCCESS STORIES AND TESTIMONIALS FROM CONSUMERS ARE OVERWHELMING. JUST ONE QUOTE FROM THE LAST YEAR: M. JENKINS - "WONDERFUL ORGANIZATION CANNOT THANK YOU ENOUGH FOR YOUR OUTSTANDING ASSISTANCE." 2364491 true false false false false false false false true false true false false false false true true false false false false false false false false false false false false true false false false false false true true true false false false false false false false false false false true 10 0 86 true false false false false false false false false false false X 6 5 true false false false false false false true true false false true true true true false true true true false X MICHAEL SOLANO TREASURER 6053481608 1644 CONCOURSE DR RAPID CITY SD 57703 TODD OSSENFORT 45.00 X X 119058 0 3545 MICHAEL ZARLE 2.00 X 0 0 0 LEON WIKLE 1.00 X 0 0 0 PAULO NACCARATI 1.00 X 0 0 0 ALAN MAAS 1.00 X 0 0 0 SONYA MAAS 1.00 X 0 0 0 LACA OSSENFORT 45.00 X 165502 0 48 MICHAEL SOLANO 45.00 X 80403 0 48 ANNIE EDWARDS 50.00 X 65517 0 3524 430480 7165 2 false true false LIQUID COMPANIES LLC PO BOX 9729 RAPID CITY SD 57709 SOFTWARE DEVEL 110970 WELLMARK 1601 W MADISON SIOUX FALLS SD 57104 HEALTH INSUR 109038 VENABLE LLP PO BOX 62727 BALTIMORE MD 21264 LEGAL SERVICES 104134 3 1000 1000 DEBT COUNSELING FEES 624100 2674986 2674986 FAIR SHARE - CREDITORS 624100 168066 168066 GRANTS - CREDITORS 624100 122566 122566 HOUSING COUNSELING FEES 624100 300 300 2965918 11401 11401 MISCELLANEOUS 624100 3219 3219 3219 2981538 2969137 11401 1500 1500 437645 350116 87529 1061744 849395 212349 121830 104889 16941 115358 92286 23072 232959 232959 14683 13949 734 35981 35439 542 131972 131972 257403 241123 16280 37800 35520 2280 272367 254848 17519 34891 33542 1349 28091 28091 7611 7611 116233 110421 5812 27942 12173 15769 CLIENT EDUCATION 39675 39675 DUES AND SUBSCRIPTIONS 19692 18707 985 CREDIT REPORTS 3234 3234 BUSINESS PROMOTION 1531 1531 3000142 2364491 635651 0 101740 95667 796514 816801 63460 42062 61184 40861 1029169 365128 661215 664041 77781 70676 33000 1761894 1763108 93695 180918 84437 58111 164048 130077 342180 369106 X 1419714 1394002 1419714 1394002 1761894 1763108 X -18604 -7108 X false true true X false X 1000 1000 2860701 3194333 4086546 3882522 2969137 16993239 2860701 3194333 4086546 3882522 2970137 16994239 421140 304142 193538 90499 57045 1066364 421140 304142 193538 90499 57045 1066364 15927875 21569 11219 13434 16360 11401 73983 21569 11219 13434 16360 11401 73983 2882270 3205552 4099980 3898882 2981538 17068222 0.93320 0.90590 0.00000 X false false false false false false true false false false 280090 127636 152454 749079 237492 511587 664041 2981538 3000142 -18604 -7106 -2 -7108 -25712 2974432 -7106 -7106 2981538 2981538 3000144 3000144 -2 -2 3000142 ESCROW LIABILITY ARRANGEMENT EXPLANATION SCHEDULE D, PAGE 2, PART IV, LINE 2B UNDER THE ORGANIZATION'S DEBT MANAGEMENT PROGRAM, CLIENTS REMIT PAYMENT TO THEIR ESCROW ACCOUNT. THIS PAYMENT IS THEN REMITTED TO THE CLIENT'S VARIOUS CREDITORS. LIABILITY UNDER FIN 48 FOOTNOTE SCHEDULE D, PAGE 3, PART X ACCOUNTING STANDARDS PRESCRIBE A RECOGNITION THRESHOLD OF MORE LIKELY THAN NOT, AND A MEASUREMENT ATTRIBUTE FOR ALL TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN, IN ORDER FOR THOSE TAX POSITIONS TO BE RECOGNIZED IN THE FINANCIAL STATEMENTS. AT DECEMBER 31, 2011, THE ORGANIZATION BELIEVES THAT THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS OR LIABILITIES, OR INTEREST AND PENALTIES ASSOCIATED WITH UNCERTAIN TAX POSITIONS. IN ACCORDANCE WITH THE APPLICABLE STATUE OF LIMITATIONS, THE ORGANIZATION'S TAX RETURNS COULD BE AUDITED BY THE INTERNAL REVENUE SERVICE FOR THE YEAR ENDED DECEMBER 31, 2008 TO 2011. RECONCILIATION OF CHANGES - OTHER SCHEDULE D, PAGE 4, PART XI, LINE 8 ROUNDING -2 EXPENSE AMOUNTS INCLUDED ON RETURN - OTHER SCHEDULE D, PAGE 4, PART XIII, LINE 4B ROUNDING -2 X X X false false false false false false false false false LACA OSSENFORT 165502 15 33 165550 SJD HOLDINGS SEE BELOW 149706 LEASE OF BUILDING false OZCORP HOLDINGS SEE BELOW 24960 LEASE OF BUILDING false DJS HOLDINGS LLC SEE BELOW 1061 GIFT CERTIFICATES false MAXIE EDWARDS FAMILY MEMBER 33605 COMPENSATION false DANIELLE OSSENFORT FAMILY MEMBER 25291 COMPENSATION false MARILYN BEATON FAMILY MEMBER 16435 COMPENSATION false REBECCA LANCASTER FAMILY MEMBER 29766 COMPENSATION false JACOB OSSENFORT FAMILY MEMBER 21324 COMPENSATION false ADDITIONAL INFORMATION SCHEDULE L PART V PART IV LINES 1 AND 2 TODD OSSENFORT COO AND BOARD PRESIDENT AND LACA OSSENFORT ADMINISTRATOR AND BOARD SECRETARY OWN SJD HOLDINGS LLC OZCORP HOLDINGS LLC AND DJS HOLDINGS LLC SJD HOLDINGS LLC AND OZCORP HOLDINGS LLC LEASE FACILITIES TO THE ORGANIZATION THE LEASE AGREEMENTS ARE APPROVED BY THE BOARD OF DIRECTORS TODD OSSENFORT ABSTAINS FROM THE VOTE AND LACA OSSENFORT IS NOT A VOTING MEMBER OF THE BOARD OF DIRECTORS AND ARE CONSIDERED TO BE IN THE NORMAL COURSE OF BUSINESS DUE DILIGENCE IS PERFORMED ON AREA COMPARISONS FOR COST PER SQUARE FOOT OF SIMILAR PROPERTY ORGANIZATION'S MISSION FORM 990 - ORGANIZATION'S MISSION TO EDUCATE AND COUNSEL CONSUMERS IN A BROAD RANGE OF FINANCIAL LIFE SKILLS, BUDGETING, RETIREMENT, HOUSING AND CREDIT, PRE-BANKRUPTCY COUNSELING, POST-BANKRUPTCY EDUCATION OR DEBT ISSUES THROUGH FACE TO FACE COUNSELING SESSIONS, TELEPHONE SESSIONS, AND BY CONDUCTING WORKSHOPS AND SEMINARS IN CONJUNCTION WITH THE CURRICULUM OF THE "SIMPLIFIED GUIDE TO FINANCIAL LIFE SKILLS." BY EDUCATING AND PROVIDING THE MUCH NEEDED TOOLS TO CONSUMERS, WE HAVE BENEFITED HUNDREDS OF THOUSANDS OF INDIVIDUALS AND FAMILIES THROUGHOUT THE UNITED STATES. MANY OF THESE INDIVIDUALS AND FAMILIES ARE NOW ON TRACK IN THE MANAGEMENT OF THEIR "FINANCIAL LIFE SKILLS." FIRST ACCOMPLISHMENT DESCRIPTION FORM 990, PAGE 2, PART III, LINE 4A COST), PRE-BANKRUPTCY COUNSELING AND POST-BANKRUPTCY EDUCATION. THERE ARE SOME INSTANCES IN WHICH AFTER THEIR INITIAL CONSULTATION, THE CONSUMER DETERMINES WHETHER OR NOT THEY WOULD LIKE OR NEED FURTHER ASSISTANCE IN REDUCING PAYMENTS TO UNSECURED CREDITORS OR DUE TO THEIR BUDGET NOT BEING WITHIN THEIR MEANS. THEN THE CERTIFIED CREDIT COUNSELOR WILL HELP THEM ESTABLISH A NEW PAYMENT THROUGH OUR "DEBT MANAGEMENT PROGRAM." WE PROVIDE A WIDE RANGE OF INFORMATION THROUGH OUR STATE OF THE ART WEBSITE 24/7, WHICH HAS ACCOUNT INFORMATION FOR THOSE THAT HAVE ENROLLED IN OUR DEBT MANAGEMENT PROGRAM, IN ADDITION TO BEING AVAILABLE BY PHONE MONDAY-FRIDAY, 6AM TO 8PM MST, AND SATURDAY, 8AM TO 5PM MST. THE ORGANIZATION IS ALSO A REGISTERED AGENCY THROUGH BUREAU VERITAS CERTIFICATION AND OPERATES A QUALITY MANAGEMENT SYSTEM IN COMPLIANCE WITH THE REQUIREMENTS OF THE INTERNATIONAL STANDARDS ORGANIZATION 9001-2008 AND THE AICCCA "CODE OF PRACTICE," AS WELL AS A PARTICIPANT OF THE BETTER BUSINESS BUREAU CARE PROGRAM. THE ORGANIZATION HAS HAD OVER 203,000 ISSUES OF OUR "PIONEER PRESS" DISBURSED TO CONSUMERS IN THE YEAR 2011. THE PIONEER PRESS IS A BI-MONTHLY FINANCIAL NEWSLETTER, WHICH FEATURES 4 MAIN ARTICLES AND THEN FOCUSES ON THE FOLLOWING AREAS FOR NEW INFORMATION IN EVERY ISSUE: BUDGET BOOSTERS, PENNY PINCHERS CLUB, AND SCAM ALERTS. THE PUBLICATION BEGAN IN NOVEMBER OF 2004 AND HAS BEEN CONTINUED THEREAFTER. WE HAVE BEEN DISTRIBUTING AN AVERAGE OF 33,875 EACH ISSUE. FOR A FREE COPY, PLEASE CONTACT US DIRECTLY. THE ORGANIZATION HAS HAD OVER 87,000 COUNSELING SESSIONS IN THE YEAR OF 2011 ALONE, WITH AN ESTIMATED 251 OF THOSE CONSUMERS DETERMINING THEIR NEEDS TO ENROLL IN OUR "DEBT MANAGEMENT PROGRAM." MANY OF OUR COUNSELING AND EDUCATIONAL SESSIONS ARE PROVIDED AT NO CHARGE TO THE PUBLIC. THE ORGANIZATION COUNSELS ANYONE THAT IS IN NEED OF OUR EDUCATION PROGRAMS AND SERVICES, REGARDLESS OF THEIR ABILITY TO PAY. WE HAD APPROXIMATELY 18% OF ALL CONSUMERS ENROLLED ON THE DEBT MANAGEMENT PROGRAM GRADUATE ON A MONTHLY BASIS IN 2011. THIS COMES OUT TO AN ESTIMATED NUMBER OF 316 CONSUMERS THAT PAID OFF THEIR DEBT THROUGH OUR DEBT MANAGEMENT PROGRAM IN 2011. IN THE YEAR 2011, THE NUMBER OF ENROLLEES FOR THE "SIMPLIFIED GUIDE TO FINANCIAL LIFE SKILLS" EXCEEDED 6,000. THIS WORKBOOK COVERS BASIC MONEY MANAGEMENT AND FINANCIAL LIFE SKILLS. THE CHAPTERS ARE AS FOLLOWS: PRETEST (THIS HELPS MEASURE THE FINANCIAL LITERACY OF EACH INDIVIDUAL) 1 IDENTIFYING DEBT WARNING SIGNS, 2 SETTING UP A FAMILY BUDGET, 3 TIPS FOR MAKING A BUDGET, 4 SHOPPING GUIDE/BUDGET HELP, 5 MONEY MANAGEMENT HELP, 6 CONQUERING YOUR FINANCIAL STRESS, 7 TIPS FOR DEALING WITH YOUR CREDITORS AND PLANNING, PREPARING AND MANAGING YOUR FINANCIAL FUTURE. IT ALSO INCLUDES A FINAL TEST (SUBMITTED TO US FOR GRADING AND RECORDING THE MEASUREMENT OF THEIR SUCCESS) AND A GLOSSARY/APPENDIX (THIS INCLUDES TERMS WHICH APPEAR ON CREDITOR STATEMENTS AND CREDIT REPORTS TO ENHANCE THE CONSUMER'S FINANCIAL LITERACY). THOSE COMPLETING THE COURSE WITH A PASSING GRADE ON THE FINAL TEST, GRADUATED AND RECEIVED A "GRADUATION CERTIFICATE." WE ALSO CONDUCT FREE MONTHLY SEMINARS IN A PUBLIC SETTING HELD AT OUR OFFICES. WE INVITE ALL CONSUMERS THAT HAVE COME IN CONTACT WITH OUR ORGANIZATION, AS WELL AS POST ANOUNCEMENTS TO THE GENERAL PUBLIC IN COOPERATION WITH THE CORNERSTONE RESCUE MISSION IN RAPID CITY, SD, PRAIRIE WINDS CASINO IN PINE RIDGE, SD AND LAKOTA FUND IN KYLE, SD ON THE PINE RIDGE INDIAN RESERVATION. IN THE YEAR 2011, OUR AVERAGE CONSUMER HAD A TOTAL OF 9,636 OF UNSECURED DEBT, WHICH THEY ENROLLED ON OUR "DEBT MANAGEMENT PROGRAM." THE AVERAGE PAYMENT RECEIVED FROM THOSE SAME CONSUMERS, FOR THE BENEFIT OF THEIR UNSECURED CREDITORS, WAS 355, WHICH COMES FROM THEIR AVERAGE MONTHLY HOUSEHOLD INCOME OF 2,657 OR 31,884 ANNUALLY. WE ESTIMATE THAT THE AVERAGE REDUCTION IN INTEREST RATES TO THOSE CONSUMERS ENROLLING ON THE DEBT MANAGEMENT PROGRAM AND BASED ON DATA AS OF 3/31/12, IS ABOUT 11.9%. THE CONSUMER'S INITIAL INTEREST RATE PRIOR TO THE DEBT MANAGEMENT PROGRAM IS AN AVERAGE OF 20%. OUR SUCCESS STORIES AND TESTIMONIALS FROM CONSUMERS ARE OVERWHELMING. JUST ONE QUOTE FROM THE LAST YEAR: M. JENKINS - "WONDERFUL ORGANIZATION CANNOT THANK YOU ENOUGH FOR YOUR OUTSTANDING ASSISTANCE." RELATED PARTY INFORMATION AMONG OFFICERS FORM 990, PAGE 6, PART VI, LINE 2 TODD OSSENFORT LACA OSSENFORT PRES/COO SEC/ADMINIST FAMILY RELATIONSHIP ALAN MAAS SONYA MAAS DIRECTOR DIRECTOR FAMILY RELATIONSHIP TODD OSSENFORT LACA OSSENFORT PRES/COO SEC/ADMINIST BUSINESS RELATIONSHIP LACA OSSENFORT ANNIE EDWARDS SEC/ADMINST VP/DIRECTOR FAMILY RELATIONSHIP ORGANIZATION'S PROCESS USED TO REVIEW FORM 990 FORM 990, PAGE 6, PART VI, LINE 11B THE FORM 990 WAS PREPARED BY AN INDEPENDENT CPA AND EMAILED IN DRAFT FORM TO ALL MEMBERS OF THE GOVERNING BODY, THE ADMINISTRATOR, AND THE CFO FOR THEIR REVIEW AND CONCURRENCE PRIOR TO FILING WITH THE IRS. ENFORCEMENT OF CONFLICTS POLICY FORM 990, PAGE 6, PART VI, LINE 12C THE ORGANIZATION CONTINUALLY MONITORS PROPOSED OR ONGOING TRANSACTIONS FOR CONFLICTS OF INTEREST AS TRANSACTIONS OCCUR. THE CONFLICT OF INTEREST POLICY INCLUDES ALL TRUSTEES, OFFICERS, AGENTS, EMPLOYEES, AND INDEPENDENT CONTRACTORS OF THE ORGANIZATION, AND THE CHAIRMAN OF THE BOARD IS RESPONSIBLE FOR DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS. THESE INDIVIDUALS ARE ALSO REQUIRED TO IMMEDIATELY DISCLOSE ANY REAL OR APPARANT CONFLICT OF INTEREST THAT THEY DISCOVER OR THAT IS BROUGHT TO THEIR ATTENTION IN CONNECTION WITH THE ORGANIZATION'S ACTIVITIES. IN ADDITION, AN ANNUAL DISCLOSURE STATEMENT IS CIRCULATED TO ALL BOARD MEMBERS, OFFICERS, AND CERTAIN IDENTIFIED AGENTS AND EMPLOYEES TO ASSIST THEM IN CONSIDERING SUCH DISCLOSURES. WHEN SUCH A CONFLICT IS DISCOVERED,IT IS NOTED IN THE RECORD OF THE MINUTES OF THE BOARD OF DIRECTORS. THOSE INVOLVED IN THE CONFLICT ARE PRECLUDED FROM PARTICIPATING IN DISCUSSIONS OR DELIBERATIONS WITH RESPECT TO THE SUBJECT OF THE CONFLICT, USING PERSONAL INFLUENCE TO AFFECT DELIBERATIONS, MAKING MOTIONS, VOTING, EXECUTING AGREEMENTS, OR TAKING SIMILAR ACTIONS ON BEHALF OF THE ORGANIZATION WHERE THE CONFLICT OF INTEREST MIGHT PERTAIN BY LAW, AGREEMENT, OR OTHERWISE. COMPENSATION PROCESS FOR TOP OFFICIAL FORM 990, PAGE 6, PART VI, LINE 15A THE GOVERNING BODY APPROVES ANNUAL COMPENSATION FOR TOP MANAGEMENT OFFICIALS, OFFICERS, AND KEY EMPLOYEES. SPREADSHEETS ARE PREPARED FOR REVIEW THAT INCLUDE CURRENT WAGES, AS WELL AS COMPARISONS WITH THE SOUTH DAKOTA OCCUPATIONAL WAGE PUBLICATION AND THE ABBOTT LANGER ASSOCIATION SURVEYS. THE TOP MANAGEMENT OFFICIAL IS THE ADMINISTRATOR. THIS INDIVIDUAL IS EXCLUDED FROM BOARD SALARY DISCUSSIONS. COMPENSATION PROCESS FOR OFFICERS FORM 990, PAGE 6, PART VI, LINE 15B SEE FORM 990, PART VI, LINE 15A -- ALL OFFICERS AND KEY EMPLOYEES FOLLOW THE PROCESS UTILIZED FOR DETERMINING COMPENSATION OF THE TOP MANAGEMENT OFFICIAL AS DESCRIBED ABOVE. THE PROCESS IS CONDUCTED ANNUALLY AND INCLUDES THE COO, CFO, AND THE VICE PRESIDENT OF COUNSELING. THESE INDIVIDUALS ARE EXCLUDED FROM BOARD SALARY DISCUSSIONS. GOVERNING DOCUMENTS DISCLOSURE EXPLANATION FORM 990, PAGE 6, PART VI, LINE 19 THE ORGANIZATION DOES NOT MAKE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC, AS NO SUCH REQUESTS HAVE HISTORICALLY BEEN RECEIVED. OTHER CHANGES IN NET ASSETS EXPLANATION FORM 990, PART XI, LINE 5 UNREALIZED LOSS ON INVESTMENTS