The First Ten Years at the Illinois Facilities Fund - IFF

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A Ten YearFinancialHistory of theIFF
1991 1992AssetsCash $ 2,475,000Grants Receivable 1,853,000Loans Receivable 2,946,000Other Assets 111,000Total Assets $ 7,385,000LiabilitiesDeferred Revenue $ 1,819,000Loans Payable 120,000Other Liabilities 53,000Total Liabilities $ 1,992,000Net Assets $ 5,393,000ExpensesFire Alarm Program $ 469,000Other Expenses 309,000Total Expenses $ 778,000Change in Net Assets $ 170,000This was the IFF’s first audit after receivingtax-exempt status.IFF loan funds are segregated on the balancesheet. Repaid principal is returned to the loanfunds; interest is recorded as operating revenue.The roots of the IFF reach back to the 1979 energycrisis, but IFF operations as a separate corporationbegan in 1988. In 1990, when tax exemptstatus was received, the assets and liabilitiesof the Chicago Community Trust loan programswere moved to the IFF. Cash from Trust grantsand loans receivable show a strong balancesheet in the first year.In 1991, the accounting format categorizedfuture grant commitments as deferred liabilities.This number includes grant commitmentsfrom the Trust and the Illinois Department ofChildren and Family Services, which made agrant towards the initial administrativecosts of the Child Care Program.Loans payable reflects the IFF’s firstProgram Related Investment, from the HarrisFoundation, made in 1990 for $120,000.AssetsCash $ 3,511,623Grants Receivable 1,411,879Loans Receivable 3,731,020Cash for Construction 15,509,798Construction in Progress 232,006Other Assets 550,944Total Assets $ 24,947,270LiabilitiesDeferred Revenue $ 3,783,095Loans Payable 858,000Bonds Payable 12,730,000Other Liabilities 1,467,713Total Liabilities $ 18,838,808Net Assets $ 6,108,462ExpensesProfessional Fees $ 193,393Other Expenses 590,718Total Expenses $ 784,111Change in Net Assets $715,462The IFF received a Program-Related Investmentfrom the MacArthur Foundation.Both assets and liabilities jumped significantlywhen the IFF borrowed $12.7 million to buildchild care centers. Assets are high at year-endbecause funds were borrowed in November;draws began the following year. Additionalfunds were contributed and borrowed to supportthis program, which eventually brought $22million into seven new child care centers infive cities. The program was a partnership withthe State, which agreed to repay constructiondebt after new buildings were open. The IFFraised funds to cover the cost of interest duringconstruction, creating an incentive to movequickly, so the IFF could obtain the savings.An increase in size and sophistication isreflected in an increase in fees to legal and otherconsultants.Five staff operated the IFF; two were dedicatedsolely to the Child Care Program. Revenues were$876,000 in 1992, of which $402,000 camefrom interest income.The City of Chicago contracted with the IFF tobring child care centers into compliance withnew fire safety regulations related to alarmsystems. Funds were used for IFF staff and tocover the costs of contractors and fire alarmsystems. More than half of operating expenseswere related to the Fire Alarm program.176177
Page 1 and 2: ADifferentKind ofLenderThe First Te
Page 3 and 4: There’ssomethingabouta building..
Page 5 and 6: invested toward a big problem, with
Page 7 and 8: What morecan we do forthe nonprofit
Page 9 and 10: make a venture capitalist smile. Th
Page 11 and 12: analysis of the program or services
Page 13 and 14: Illinois Facilities Fund Loans Clos
Page 23 and 24: The bricks were laid andthe mortar
Page 25 and 26: create public-private partnerships,
Page 27 and 28: Learning processBuilding the child
Page 29 and 30: We are bringing new sourcesof finan
Page 31 and 32: After numerous discussions at the b
Page 33 and 34: It was a remarkable process because
Page 35 and 36: The IFF will become thepreeminent f
Page 37 and 38: Paint-bucket chairsAcross the hall
Page 39 and 40: Agencies served by Real Estate Serv
Page 41 and 42: When I came to the oldfacility I al
Page 43 and 44: organization, the IFF staff also tu
Page 45 and 46: fine idea, but Chicago’s building
Page 47 and 48: 7APermanentinstitutionThe mood is a
Page 49: notes Mark Pinsky of the National C
Page 53 and 54: 1995 1996AssetsCash $ 3,271,271Gran
Page 55 and 56: 1999 2000 ProjectedAssetsCash $ 10,
Page 57 and 58: Board member Jeanette Bitter andJim
Page 59 and 60: IFF staff member Kristine Westerber
Page 61 and 62: Former BoardFormer StaffJudy BlockJ

The First Ten Years at the Illinois Facilities Fund - IFF

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