2 0 0 9 A N N U A L R E P O R T S A L T R I V E R F I N A N C I A L S E R V I C E S I N S T I T U T I O N

1 MISSION STATEMENT

Empowering

All Generations

of the Salt River

Pima-Maricopa

Indian Community

through Financial

and Educational

Services Delivered

with Integrity

and Excellence.

MESSAGE FROM THE CHAIRMAN OF THE BOARD

I am pleased to present the 2009 annual report of the Salt River Financial Services Institution. Despite the uncertainties of the nation and the state’s

economies, SRFSI has had another successful year. We have continued to provide opportunities to Community members to refinance their home or

purchase a new home and we have helped Community members obtain necessary financing to start that small business and expand existing businesses.

Because we are well capitalized, we expanded our mortgage portfolio, and have not charged-off any loans, and our delinquencies have been minor. Our

experience as a lender reflects the character and caliber of those to whom we are lending. It is also the result of the attention that is paid by SRFSI to

providing financial education and mentoring for all of our clients. Our program and one-on-one mentoring are unique among financial institutions and

cannot be matched by any bank.

We are grateful to the leadership of the Salt River Pima-Maricopa Indian Community which has allowed us to be in an enviable position, poised to

take advantage of market opportunities. But along with our goal of serving more clients, we also are committed to become more self-sustaining so we

continue to secure more grants and create more funder partnerships. On behalf of the entire board, I am proud to be part of this successful organization.

Barbara Boone Chairman Salt River Financial Services Institution

SRFSI: Building a sustainable Community by serving our families with financial education, business skills and home and business financing.

2 MESSAGE FROM THE EXECUTIVE DIREC TOR

In just three years the Salt River Financial Services Institution (SRFSI) has gained a national reputation for being cutting edge in the world of

Community Development Financial Institutions (CDFIs) and a leader on the Native CDFI scene. This year we are honored to be one of only ten Native

CDFIs to receive a major grant of $869,000 from the Native American CDFI Assistance (NACA) program. The award recognizes our innovation and

excellence in our approach to financial education and loan programs for homes and businesses.

We are very pleased that the Community is responding to our programming. More than 2,000 members attended our financial education classes.

We have worked with 120 Community members for home loans and have consulted with dozens of business owners. Another highlight for us is being

entrusted with a critical mandate: to educate young Community Members about the Minors’ Trust. More than 130 young people attended classes on

financial responsibility and saving & investing for the long term. We also consolidated our programs and staff in one new one stop shop to better serve

our Community Members. We are very proud of our achievements and grateful to the Salt River Pima-Maricopa Indian Community for its continuing

support. We are also thankful for the leadership of our board of directors, the enthusiasm of our partners and the dedication of our professional staff.

Billie N. Spurlin, II Executive Director Salt River Financial Services Institution

SRFSI: Building a sustainable Community by serving our families with financial education, business skills and home and business financing.

H O M E O W N E R S H I P3

Our loan portfolio is healthy and we are expanding our products and our services.

• We hosted 24 workshops on various topics.

• In 2009, we have helped 120 homeowners.

• We have a ZERO default rate on our loans. We attribute this to our education program

and the relationships that we build with our clients.

• We have actively educated and encouraged new homeowners to take advantage of the

$8,000 first time home buyers tax credit.

• We made financing available this year for Canalside III/IV which is the Community’s

first home ownership subdivision.

• Canalside is designed as the first sustainable subdivision in Indian Country.

• It was under design in 2009.

• 91 Forever Homes will be constructed on tribally-owned land.

• Homes will be customized to meet the needs of the Community and provide a new

neighborhood lifestyle for Community members.

Our New Design Center Opens – We Dream in Green.

• Our sustainable showroom is where the magic happens. Clients are exposed to

sustainable building products and learn about a whole-system approach to build-

ing a healthy sustainable home. Samples range from a cut-away ICF wall system to

healthy paints, recycled glass products, flooring and more.

• We work with our clients to help them stay on budget and make decisions that will

produce the home of their dreams. We expect the homes to extend to multiple

generations.

• We work with contractors to educate them about many new sustainable products

so they become familiar with these options. In 2009 we hosted 10 of workshops for

contractors and other vendors.

• We introduced Energy StarTM Program. All homes built after January 2010 will be

Energy StarTM certified.

“ We are trying to educate our clients holistically about how the

environment affects your health and why choosing a green home is

healthier for you and your family.”

– Lisa Deer Home Ownership Services Manager

4

Building / Contracting Partners:

Border Construction Specialties: donated sample Insulated Concrete Form (ICF) wall and windows.

Woodville Cabinetry: donated cabinet display with countertops

Sunstate Sales, Inc.: donated Caroma sink

Modern Flooring: provided bath tile, tile flooring, carpet, donated labor

Ancient Stone by Vasilos: provided glass/concrete table

“ We are trying to reconnect tribal members with traditional

building processes. Through advocacy and education, our

program helps connect sustainability to traditional practices.”

– Mikaela Jones Home Construction Coordinator

Special thanks to our partners who donated goods and services to our new design center.

WATCH FOR: An expansion of our sustainable building initiative with a green mortgage program, more eco-friendly products and continuing education on sustainability.

• SRFSI Green Mortgage Program Offers Cash Incentives to Build Green.

• New Green Home Rating Checklist was introduced in 2009.

• Homeowners who chose to build “green” Forever Homes became eligible for increased

matching funds. Higher “green ratings” make homeowners eligible for more money in

matching funds.

• As of November 2009, 13 clients

(12 new construction housing and one

remodel) are building sustainable,

forever homes.

5

We Refocused Business Services to Provide Mentoring, Technical Support and Opportunities for Community Member Entrepreneurs.

This year Joan Theisen, formerly with the Mille Lacs Band of Ojibwe Indians in Minnesota, joined SRSFI as Business Services Manager. Joan began to change the focus on our business loan programs to better serve our entrepreneurs. During her first year, she created a new

curriculum and expanded services to better meet the needs of new and existing businesses.

SRFSI Business Services offers one-on-one business mentoring sessions.

• We provide individual assistance to help entrepreneurs prepare a personal action plan and guidance for development of executable business plans;

• We acquire licensing and other necessary documents to conduct business on and off the Salt River Pima-Maricopa Indian Community;

• We provide assistance to help our clients complete necessary forms and documents;

and much more.

We provide the technical tools for business success.

• Opened a new classroom equipped with computers where entrepreneurs can take business education classes;

• Scheduled classes now available include Quickbooks, Marketing, Accounting, Entrepreneurship, What to Look for When Leasing Retail Space, How to Contract with the Federal Government, and more. Provide additional one-on-one mentoring on all class topics as needed.

We are making connections that create opportunities

• Work diligently to identify entrepreneurial opportunities for existing and new businesses both on and off the Community;

• Coordinate with other departments and organizations to build awareness of existing Community member-owned businesses;

• Encourage Community members to support existing Community member-owned businesses;

• Identify business opportunities with vendors, contractors and developers and matched those opportunities with Community member businesses.

WATCH FOR: SRFSI will be working closely with Salt River DEVCO and the Community Development Department to provide financial education for landowners who are interested in developing their lands.

WATCH FOR: On the job business development and training program. SRSFI Business Services will evaluate and identify a new business to launch. SRSFI will write the business plan and recruit a Community member who will have a paid position with that business. SRSFI will provide mentoring and startup capital to provide this Community member with the necessary tools to successfully transition into the role of owner and operator of that business.

“ We want to be the complete resource for new and existing

businesses owned and operated by Community members,

providing them with the tools they need to compete and

succeed in today’s business environment. We also are

committed to helping our clients identify and achieve their

own personal business goals so they can realize their dreams

by expanding Community-owned business opportunities

both on and off tribal land.”

– Joan Theisen, Business Services Manager

B U S I N E S S S E R V I C E S

6 S A LT R I V E R U N I V E R S I T y ( S R U )

Acclaimed for its Comprehensive and Innovative Approach, SRU Sets a New Standard for Financial Education for CDFIs.

SRU was founded in June 2007 with a curriculum designed to meet the needs of the

Community and SRFSI loan products. SRU offers nearly 30 courses including the

Money Management Academy, Home Ownership Academy, Business Education and

Youth Financial Education.

Since 2007, SRU has served more than 2,100 members of the Community.

• 941 Community members have attended the Money Management Academy.

• 753 youth have attended the Youth Financial Education program.

• 212 individuals have attended the Home Ownership Academy.

• 210 individuals have attended the Business Services program.

WATCH FOR: SRU is reaching out to the Salt River Elementary School for “Career Day”, teaching the youth about starting their own businesses now and in the future.

“ This year we have had a huge emphasis on youth which is

Council driven. We want to have more influence in the schools

and are developing new programs to take SRU to our kids.”

– Jenny Yazzie

Financial Education Manager

S A LT R I V E R U N I V E R S I T y ( S R U )7

Given a Mandate from the Community to Reach Out to SRPMIC Youth, SRU Added Two New, Youth-Focused Programs.

What: Minors’ Trust Education

The comprehensive curriculum features: Money Matters: Make It Count Money Matters is a teen/young adult curriculum developed by Charles Schwab;

SRSFI has adapted this curriculum to include relevant information to educate

the Community’s Teens and Young Adults as they prepare to take control of their

individual Minor’s Trust accounts.

When: Three sessions were held during 2009. All were given high marks by student

participants.

Classes were offered as a five-hour Saturday session and as evening classes

during the week.

Who: The Minors’ Trust Education program was presented to youth at the Accelerated

Learning Academy, Salt River High School, through the Youth Services

department on the Community and through individual classes.

Y.E.S. Academy

What: Youth Entrepreneurship Summer (Y.E.S.) Academy

The Y.E.S. Academy introduced and motivated Salt River high school youth

to the principles of entrepreneurship, business and sustainability. Presented

as a three-and-a-half day workshop, the Y.E.S. Academy was conducted in

participation with the Arizona State University American Indian Policy

Institute (AIPI) in coordination with ASU Technopolis, a business mentoring

program at ASU. It featured presentations and question and answer sessions

with successful American Indian business people and entrepreneurs.

Professionals from Charles Schwab taught students investment basics.

Student formed teams and developed ideas for innovative products or services

and then created their business plans which they presented. A special thank

you goes out to the Salt River Community Children’s Foundation (SRCCF) for

their grant support of the Y.E.S. Academy!

When: First week of June, 2009

Who: 18 high schools students from the Salt River Pima-Maricopa Indian

Community participated.

8

WOW! Ideas developed by the four teams include:

The New World Culture team, concerned about the major loss of natural plants and intrusion of non-native plants along the riverbed within the Salt River Pima-Maricopa Indian Community as well as along rivers throughout the Southwest, devised a business plan to remove non-native plants and replace them with native plants and trees along the riverbanks.

The Bio-Food Galore team, recognizing that many people do not eat their daily recommended fruits and vegetables and are lacking in nutritional supplements, developed a business plan to bioengineer foods with high amounts of vitamins and nutritional value.

The Desert Pass Restaurant Team plan envisions opening a restaurant at Salt River that would create a sustainable eatery by serving local, native foods and dishes. The food served would come from local farms, which would provide a new market for local farmers and reduce their transportation costs.

The Beasty Art Team decided to open a large art studio at Salt River to help troubled youth by providing a place to make and sell artworks and to

showcase young native performing artists. This studio would be designed to give young artists a chance to express their art in a tribal setting.

On the final day of the Academy, each team presented its business plan to a panelist of four successful business professionals: Andrew Gordon of the Arizona MultiBank; Steve Gundersen of Tallsalt Asset Management; Margaret Rodriguez of Au Authum Ki Inc. and Roger Smith of Salt River Materials Group. The panelists provided the Teams with positive feedback. Each participant was presented with a certificate of completion.

Based on the success of this first Y.E.S. Academy, the Salt River Financial Services Institution plans to sponsor the program again next summer.

9 F I N A N C I A L E D U C AT I O N

Our program: Financial Education – Salt River University ... the key to your financial future.

* BNC = Building Native Communities Curriculum

S A LT R I V E R U N I V E R S I T y ( S R U )

Partners and Departments

Money Management

JuniorUniversity

University Express

Financial Analyst Services

Personal Financial Review

BudgetingReview

Credit Review

Train the Trainer – services for the

facilitators of SRU

Topics range from all areas within the university

Lunch & Learnworkshops

(1 hour)

Informationalworkshops(1-2 hours)

KidsK - 6

Teens7-12

Kids and MoneyMoney Management

Workshops

Beginning – Money Matters

(3 sessions)

Intermediate – BNC - Financial

Skills for Families

(6 sessions)

Home Ownership

Welcome Home

Workshop

Home Ownership Academy

(6-8 weeks)

BusinessServices

So...You Want to Start a Business

Workshop

BusinessDevelopment

Program(4+ sessions)

Vehicle Ownership

Thinking of Buying a Vehicle

Workshop

VehicleBuying 101

Course(3 sessions)

Advanced –BNC - Investing for the Future

(5 sessions)

10 T H A N k y O U T O O U R P A R T N E R S

Partners: Financial Assistance (FA) / Technical Assistance (TA) support:

Salt River Pima-Maricopa Indian Community (SRPMIC)

Tribal Council and Community Support

Treasurer’s Office

Housing Division

Community Development/Economic Development Department (CDD/EDD)

Engineering Construction Services Department (ECS)

Salt River Community Children’s Foundation (SRCCF)

Community Development Financial Institution Fund (CDFI)

Miracle House Foundation

FINRA

Tides Foundation

Arizona Native Asset Coalition (ANAC)

First Nations

Oweesta

National Bank of Arizona

TruWest Credit Union

Community Housing Resources of Arizona (CHRA)

Opportunity Finance Network (OFN)

Bureau of Indian Affairs (BIA)

Indian Health Services (IHS)

We Received More Awards

In 2009, SRFSI was one of just 10 Native CDFIs to be awarded a grant of $869,000 from

the Native American CDFI Assistance (NACA) Program through the U.S. Department of

the Treasury. The award recognized the unique approach of SRFSI in providing an entire

scope of services to members of the Salt River Pima-Maricopa Indian Community from

financial education to loan services.

2010 Board of Directors:

Barbara Boone • Board ChairPatrick D. Dallas • Vice ChairFrances Kauakahi • TreasurerRosa Cruz • Secretary Councilwoman Deana Scabby • Council LiaisonEdward Celaya • Board Member

John Ramirez • Board Member

Jerry Derrick • OGC Liaison (non voting)Stacey Gubser • Board Liaison (non voting) SRPMIC Community DevelopmentLamoni Yazzie • Board Liaison (non voting) SRPMIC Housing DivisionTony Farese • Board Liaison (non voting) SRPMIC Office of the TreasurerMark Graham • Board Liaison (non voting) as Treasury Representative for Mr. Farese

Loan Review Committee

Barbara Boone • Alliance BankMargie Wilson • Choice Mortgage Solutions, Inc.Frances Kauakahi • Board Treasurer

2010 SRFSI Staff:

Billie N. Spurlin, II • Executive Director Donna Cordova • Finance ManagerLisa Deer • Homeownership Services ManagerMikaela Jones • Home Construction CoordinatorElena Tarango • Homeownership Services Specialist Joan Theisen • Business Services ManagerJenny Yazzie • Financial Education ManagerCortasha Begaye • Financial Education Coordinator

8800 East Chaparral

Suite 240

Scottsdale, Arizona 85250

480.850.5460 (phone)

480.850.4320 (fax)

www.srfsi.com

Salt River Pima-MaricopaIndian Community