SNHS is just one of many non-profits that will be exposed for
financial misdeeds, tax avoidance schemes, and possibly fraud.

The West Bank Community Development Corporation, for example, received
a $1.1 million unidentified contribution during the tax year ending
6/30/2000.  In the subsequent year, "loans to related parties" of
$828,959 appeared on the return.

Related parties listed included several for-profit and non-profit
entities as follows:

Neighborhood Commercial Limited Partnership
Neighborhood Ventures Corporation
Neighborhood Ventures Limited Partnership
Parcel B Limited Partnership
Riverbluff Community Development Corporation
Riverside Homes of Minneapolis Limited Partnership
Seven Corners Community Housing Corporation
Seven Corners Housing Limited Partnership
Watchcat Housing Corporation
WBCDC Riverside, Inc.
West Bank Community Housing Corporation

These entities don't even include the for-profit Mutual Management
Company or Brighton Development Corporation who provides "accounting"
services.

The CPA firm who "reviewed" the financial data in December 2000 states
"The West Bank Community Development Corporation and Seven Corners
Community Housing Corporation DID NOT ACCURATELY reflect intercompany
transactions subsequent to the closing for Riverside Homes of
Minneapolis Limited Partnership.  "Reportable conditions involve
matters coming to our attention relating to significant
DEFICIENCIES...."

Interesting note:  I have been studying several Minneapolis non-profit
developer's tax returns and have found a common thread among several
of them - the same accountant.  For now, I won't name him - a bigger
story is forming.

On the subject of taxes:  These city-funded "forgivable loans" are
taxable income to the recipients, I presume, at the time they are
forgiven.   Does the City provide for payment of the taxes too?  Also,
on the City's financial reports/budgets, where do these
loans/gifts/grants show up?

Vicky Heller
Cedar-Riverside and North Oaks

TEMPORARY REMINDER:
1. Don't feed the troll! Ignore obvious flame-bait.
2. If you don't like what's being discussed here, don't complain - change the subject 
(Mpls-specific, of course.)

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