Form

990

Return of Organization Exempt From Income Tax

Under section 501(c), 527, or 4947( a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

OMB No 1545-0047

2004
Open to Publfe

Department of the Treasury

tnspecttort ^ The organization may have to use a copy of this return to satisfy state reporting requirements Internal Revenue Service 10 - 01, 2004 , and ending 0 9 - 3 0 , 20 0 5 A For the 2004 calendar year , or tax year beginning
B F1 u u u u u Check if applicable Address change Name change Initial return Final return Amended return Application pending Please C Name of organization D Employer identification number

use IRS
label or print or

EAST CAROLINA DEVELOPMENT CO,

Number and street (or P 0 box if mail is not delivered to street address)

INC
Room/suite

56-2044953
E Telephone number

see Specific Instrucbons.

2 312 HODGES ROAD

City or town, state or country, and ZIP + 4

(252)523-7700
F Accounting method: u Other (specify) ^ u Cash N Accrual

KI NSTON ,

NC 2 8 5 0 4
H (a) H(b)

Section 501(cx3) organizations and 4947(ax1) nonexempt chartable Inuits nwst attach a completed Schedule A (Font 990 or 990-EZ).

H and I are not applicable to section 527 organizations I s th is a group re t um f or a "I is t as 7 i If 'Yes,' enter number of affiliates Are all affiliates included' (If 'No,' attach a list See instructions ) Is this a separate return filed by an organization cov ered by a group ruling? Group Exemptio n Number ^ ^ u Y. u No u Y es No

G Website.

^ (check only one) ^ 501(c) ( 3 ) -4 (insert no) u 4947(a)(1) or u 527

H(c) H(d)

J Organization type K Check here

^ u if the organization's gross receipts are normally not more than $25,000 The I M

u Yes

No

organization need not file a return with the IRS, but if the organization received a Form 990 Package in the mail, it should file a return without financial data L Gross receipts Add lines 6b, 8b, 9b, and 10b to line 12 Some states require a complete return . ^ 2 92 , 4 54

Check ^ N if the organization is not required

Part 1
1

Revenue . Expenses . and Chanaes in Net Assets or Fund

to attach Sch . B (Form 990, 990-EZ, or 990-PF) Balances (See Daae 18 of the instructions.) la

a Direct public support

Contributions , gifts, grants , and similar amounts received: . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .

b Indirect public support . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . c Government contributions ( grants) . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

1b 1c
1d 2 3 4 5

noncash $ ) . . . . . . . . . . . . . . d Total (add lines 1a through 1c) (cash $ . . . . . . . . . . . . . Program service revenue including government fees and contracts (from Part VII , line 93) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Membership dues and assessments . . Interest on savings and temporary cash investments . . . . . . . . . Dividends and interest from securities 6a Gross rents . .. .. . . . . . . . . . . . . . . . . . . b Less : rental expenses . . . . . . . . . . . . . . . . . 4 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6a . . . . . . . 6b

2 92 , 3 3 8
116

) LJ 'y CH ^^ Oe

c Net rental income or (ID 7 Other investment Incom 8a Gross amount from salU hc^ 0 than inventory . . . p ^ex ns A 2 .. . . . b Less, cost or other bas c Gain or ( loss) (attach s GgilIER A) 4Jin -?)) d Net gain or ( loss) (com 9 Special events and actt ies R of a Gross revenue ( not including $ contributions reported on line 1a) . . . . . . . . . . . . .

) (A) Securities ( B) Other 8a 8b

6c

. . . . . . . . . . . .

8c . . . . . . . . . . . . . . . . is from gaming , check here ^ u . . . 9a 9b . . . . . . . .

8d

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b Less direct expenses other than fundraising expenses . . . . . . . . . c Net income or (loss ) from special events ( subtract line 9b from line 9a) 10a Gross sales of inventory, less returns and allowances . . . . . . . . . . . . . . . . . .

. . . 10a

9c

b Less : cost of goods sold

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10b
10c 11 12 13 14 15 16 17 18 579

. . . . . . . . . . . c Gross profit or (loss ) from sales of inventory (attach schedule) (subtract line 10b from line 10a ) line 103 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Other revenue (from Part VII , ....... ................. 12 Total revenue ( add lines 1d , 2, 3, 4, 5 , 6c, 7, 8d , 9c, 1Oc, and 11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E 13 Program services (from line 44 , column (B)) x p 14 Management and general (from line 44 , column (C)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . in 15 Fundraising (from line 44 , column ( D)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s 16 Payments to affiliates (attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . s 17 Total expenses (add lines 16 and 44, column (A)) N 18 Excess or (deficit ) for the year ( subtract line 17 from line 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

292,454

559 , 077 20 , 568

, 64 5

(287,191

A 19 s 20
1 S
EEA

. . . . . . . . . . . . . . . . . . . . . Net assets or fund balances at beginning of year (from line 73 , column (A)) Other changes in net assets or fund balances (attach explanation) . . . . . . . . . . . . . . . . . . . . . . . . . .
Net assets or fund balance s at end of year (combine lines 18, 19, and 20) . . .

19 20
21

730,164 442,973 Form 990 (2004) TVA

21

For Privacy Act and Paperwork Reduction Act Notice , see the separate instructions.

Porm990 (2004) EAST CAROLINA DEVELOPMENT CO,

art kF Statement of Functional Expenses

INC

56-2044953

Paget

All organizations must complete column (A) Columns ( B), (C), and (D) are required for section 501(c )(3) and (4) organizations and section 4947 ( a)(1) nonexempt chantable trusts but optional for others ( See page 22 of the instructions )

Do not include amounts reported on line 22 23 24 25 6b, 8b, 9b, 1 Ob, or 16 of Part I. Grants and allocations ( attach schedule) noncash $ (cash $ Specific assistance to individuals ( attach schedule) . . . . Benefits paid to or for members ( attach schedule) . . . . . Compensation of officers , directors , etc. . . . . . . . . . .

(A ) Total

(B) Program services

(C) Management and general

(D) Fundraising

22 23 24 25

26
27 28 29 30

Other salaries and wages .................

Pension plan contributions . . . . . . . . . . . . . . . . Other employee benefits . . . . . . . . . . . . . . . . . Payroll taxes . .. . . . . . . . . . . . . . . . . . . . . Professional fundraising fees . . . . . . . . . . . . .. .

26
27 28 29 30

187,800

187,800

31 32
33 34 35 36 37 38

Accounting fees ..................... Legal fees ........................

Supplies . .. . . . Telephone . . . . . Postage and shipping Occupancy . . .. . . . . . . . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31 32
33 34 35 36 37 38

6 , 9 81 2,299 1, 982
6, 100

6 , 9 81 2,299 425 1, 5 5 7
6 , 10 0

3 , 689

3 , 689

Equipment rental and maintenance . . . . . . . . . . . . Printing and publications . . . . . . . . . . . . . . . . .

39
40

Travel . .........................
Conferences , conventions , and meetings . . . . . . . . .

39
40

2, 779
127

2,779
127

41
42
43

Interest ..........................
Depreciation , depletion , etc (attach schedule) . . . . . . .
Other expenses not covered above ( item i ze ) a BANK FEES

41
42 43a 43b

58, 016
829

5 8 , 016
829

b c d e
44

BAD DEBT INSURANCE/BONDING MARKETING MISC

Total hmcUonal expenses (add lines 22 through 43) Organizations

43c
43d

43e
44

305,088 1,841 898 1,216 579,645

305,088 1,841 898 1,216 1 559,077 20,568 1

completing cdurs (B}(D), carry these totals to lines 13-15

Joint Costs . Check

^ u if you are following SOP 98-2. . . . .. . ^ u Yes E] No Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? , (ii) the amount allocated to Program services $ "Yes," enter (i) the aggregate amount of these joint costs $ If and (iv) the amount allocated to Fundraising $ NO the amount allocated to Management and general $ Statement of Program Service Accomplishments (See page 25 of the instructions ) Part Ili:

What is the organization ' s primary exempt purpose? ^ EXPAND SMALL BUSINESSES
All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number of clients served , publications issued , etc. Discuss achievements that are not measurable . (Section 501 ( c)(3) and (4) organizations and 4947( a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.)

Program Service
Expenses (Required for 501(c)(3) and
(4) orgs , and 4947(a)(1)

trusts , but optional for others

SEE STATEMENT NO 1

(Grants and allocations $ b

559,077

(Grants and allocations $

(Grants and allocations $

(Grants and allocations $

(Grants and allocations $ e Other program services (attach schedule) f Total of Program Service Expenses (should equal line 44, column (B), Program services) EEA . . 559 , 077 Form 990(2004)

Form990(2004) EAST CAROLINA DEVELOPMENT CO, Balance Sheets ( See oaae 25 of the instructions.) Pali IV
Note : column should be for end-of-year amounts only.

INC
(A) Beginning of year

56-2044953
(B) End of year

Page3

Where required, attached schedules and amounts within the description

45
46

Cash - non-interest-bearing

..........................
. . . . . . . .. . . . . . . . . . . . . 47a 47b 48a 48b 45 , 692

993,531

45
46

1,464,216

Savings and temporary cash investments

47 a Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . b Less: allowance for doubtful accounts 48 a Pledges receivable . . . . . . . . . . . . . . b Less- allowance for doubtful accounts 49 Grants receivable . . . . . . . . . . . . . 50 Receivables from officers, directors, trustees, A . . . . . . . . . . .

22 , 566

47c

4 5 , 6 92

48c 49 50

. . . . . .. . .. . . . . . . . . . and key employees

(attach schedule) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 a Other notes and loans receivable (attach

s
s
e t s 52 53 54

schedule) .......................
b Less: allowance for doubtful accounts ........

51a
51 b

4, 148, 066
398,582 3,706, 158 51c
52 53 54

3,749,484

Inventories for sale or use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . Prepaid expenses and deferred charges securities (attach schedule) . . . . . .. . . ^ u Cost u FMV Investments -

55 a Investments - land, buildings, and

equipment. basis ...................

b Less: accumulated depreciation (attach

55a 55b

50,880

schedule) . .. .. . . . . . . . . . . . . . . . . . .
56

50 , 880
. . . . . . . . . .

55c
56

50 , 880

Investments - other (attach schedule) . . . . . . . . . . . . . . . . . .. 57a 57 a Land, buildings, and equipment: basis b Less: accumulated depreciation (attach

58
59 L a b 60 61 62 63

schedule ) . . . . .. . . . . . . . . . . . . . . . . . Other assets (describe ^ SEE STMT 3

57b ) 4,773,135 93 , 60 9

57c
58

1, 013 5 , 311, 2 8 5 136,096

Total assets (add lines 45 through 58) (must equal line 74) . . . . . . . . . . . . . . . . . . . . Accounts payable and accrued expenses Grants payable . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . Deferred revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans from officers, directors, trustees, and key employees (attach

59 60
61 62

schedule) . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . .
t e . . . . . . . . . . . . . . . . . . 64 a Tax-exempt bond liabilities (attach schedule) . . . . . . . . . . . . . . b Mortgages and other notes payable (attach schedule) ) 65 Other liabilities (describe ^ SEE STMT 4 66 Total liabilities (add lines 60 through 65) 67 through 69 and lines 73 and 74. . . . . . .. . .. . .. . . . . 3 , 94 9 , 3 62

63
64a 64b 65 4,725,782

s Organizations that follow SFAS 117, check here J F u d

B a a n c e s

4 , 0 4 2 , 9 71

66

4,861,878

and complete lines

67
68 69

Unrestricted ..................................
Temporarily restricted .............................. . . . . . . . . . . . .. . . Permanently restricted
^ u and

6 8 2, 6 6 4
47,500

67
68 69

388,707
60,700

Organizations that do not follow SFAS 117, check here complete lines 70 through 74. 70 71 72 73

Capital stock, trust principal, or current funds . . . . . .. . . . . . . . . . . . . . . . . . . . . . Paid-in or capital surplus, or land, building, and equipment fund . . . . . . . Retained earnings, endowment, accumulated income, or other funds Total net assets or fund balances (add lines 67 through 69 or lines

70 71 72

70 through 72; 73 . . . . . . . . . . 7 3 0 , 16 4 column (A) must equal line 19, column ( B) must equal line 21) 74 4 , 7 7 3 , 13 5 Total liabilities and net assets / fund balances (add lines 66 and 73) 74 Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's

449 , 407

5,311,28S

programs and accomplishments.

EEA

Form990 ( 2004) EAST CAROLINA DEVELOPMENT CO,

Reconciliation of Revenue per Audited Financial Statements with Revenue per Return (See page 27 of the instructions)
a b Total revenue, gains, and other support

INC

56-2044953
Reconciliation of Expenses per Auditea Financial Statements with Expenses per Return ..... ^ a 579,645

Pdrt IY-^

Total expenses and losses per

per audited financial statements

line 12, Form 990-

... ^

292,454
b

audited financial statements

on line 17, Form 990-

Amounts included on line a but not on

Amounts included on line a but not

(1) Net unrealized gains

on investments . . $ (2) Donated services and use of facilities . $ (3) Recoveries of prior year grants . . . . $ (4) Other (specify):

(1) Donated services

and use of facilities . $ (2) Prior year adjustments reported on line 20, Form 990 . . . . . . $ (3) Losses reported on line 20, Form 990 . $

(4) Other (specify). Add amounts on lines (1) through (4) c

d

. ^

b c 292,454 c
d

$
Add amounts on lines (1) through (4) . ^ b

Line a minus line b

......... ^

Line a minus line b

......... ^

579,645

Amounts included on line 12, Form 990 but not on line a: (1) Investment expenses not included on line 6b, Form 990 . . . . $

Amounts included on line 17, Form 990 but not on line a: (1) Investment expenses not included on line 6b, Form 990 . . . . $ _

(2) Other (specify).

(2) Other (specify):

$
e Add amounts on lines (1) and (2) . . . ^ Total revenue per line 12, Form 990 d e

S_ Add amounts on lines (1) and ( 2)

2 9 2, 4 5 4 (line c plus lined) .

. . . ^ .

Total expenses per line 17, Form 990

(line c plus lined) .

Part V

^ e 579,645 List of Officers . Directors . Tru stees . and Kev EmDlovees (List each one even if not compensated. see oaae 27 of ^ e
(B) Title and average hours per week devoted to position (C) Compensation not paid, ewer m 6. (D) Contributions to employee benefit plans & deferred com pensation (E) Expense account and other allowances

the instructions.)
(A) Name and address

STEPHEN LAROQUE 2312 HODGES ROAD KINSTON, NC RICKY LANIER 806 W VERNON AVE KINSTON NC SUSAN EATMAN 2264 SPRINGWOOD LN KINSTON NC WALTER LAROQUE 1501 SURRY ST KINSTON, NC JOHN MELLING 1800 PEPPERCORN DR NEW BERN NC MARK POPE 827 HARDEE RD

EXECUTIVE DIR 40 CHAIRMAN 5 VICE CHAIRMAN 5 SEC/TREASURER 5 MEMBER 1 MEMBER 3

187,800 0 0 0 0 0

0 0 0 0 0 0

0 0 0 0 0 0

75

Did any officer , director , trustee , or key employee receive aggregate compensation of more than $ 100,000 from your organization and all related organizations , of which more than $10 , 000 was provided by the related organizations ? If "Yes," attach schedule - see page 28 of the instructions. EEA

Yes

No

Form 990(2004)

Form990(2004) EAST CAROLINA DEVELOPMENT CO,

VI
76

INC

56-2044953
Yes
. . . . . 76

Pages
No
X

Other Information (See page 28 of the instructions .) 77 78a 78b 79 80a

Did the organization engage in any activity not previously reported to the IRS? If 'Yes,' attach a detailed description of each activity

. . . . . . . . . . . 77 Were any changes made in the organizing or governing documents but not reported to the IRS? If "Yes," attach a conformed copy of the changes. 78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b If "Yes," has it filed a tax return on Form 990-T for this year? 79 Was there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement 80a Is the organization related (other than by association with a statewide or nationwide organization) through common . . . . . . . . membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organization? b If "Yes," enter the name of the organization ^ and check whether it is 81a b 82a exempt or nonexempt

X X X X

81a . . . . . . . . . Enter direct and indirect political expenditures. See line 81 instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Did the organization file Form 1120-POL for this year? Did the organization receive donated services or the use of materials, equipment, or facilities at no charge . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . or at substantially less than fair rental value?

81b

X X

82a

If "Yes," you may indicate the value of these items here. Do not include this amount 82b . . . . . . . as revenue in Part I or as an expense in Part II. (See instructions in Part III.) for returns and exemption applications'? 83a Did the organization comply with the public inspection requirements . . . . b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? . . . . . . . . . . . . . . 84a Did the organization solicit any contributions or gifts that were not tax deductible? b If "Yes," did the organization include with every solicitation an express statement that such contributions . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . . . . . . or gifts were not tax deductible? b 85

. . . . . . . . . . . . . . . . . . . .

83a 83b 84a 84b 85a 85b

X X X

. . . . . . . . . . . . . 501 (c)(4), (5), or (6) organizations. a Were substantially all dues nondeductible by members? . . . . . . . . . . . . . . . . . . . b Did the organization make only in-house lobbying expenditures of $2,000 or less? If "Yes" was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year. .. . . . . . . . . . . . . . . . 85c c Dues, assessments, and similar amounts from members d Section 162(e) lobbying and political expenditures . . . . . . . . . . . . . . . . . . . . . 85d . . . . . . . . . . 85e e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices If 9 h . . . . . . . . . 85f Taxable amount of lobbying and political expenditures (line 85d less 85e) . . . . . . . . . . . . . . . . . tax on the amount on line 85f9 Does the organization elect to pay the section 6033(e) to add the amount on line 85f to its If section 6033(e)(1)(A) dues notices were sent, does the organization agree reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? . . . . . . . . . . . 86a 86b 87a 87b

85h

. 501 (c)(7) orgs Enter a Initiation fees and capital contributions included on line 12 . . . . . . . . . . b Gross receipts , included on line 12, for public use of club facilities . . . . . . . 87 501 (c)(12) orgs . Enter a Gross income from members or shareholders b Gross income from other sources . ( Do not net amounts due or paid to other sources against amounts due or received from them) . . . . . .. . .. . . . . . . 86 88

At any time during the year , did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301.7701- 2 and 301 .7701-3? If "Yes," complete Part IX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89a 501 (c)(3) organizations Enter Amount of tax imposed on the organization during the year under: ; section 4955 ^ _ section 4912 ^ section 4911 ^ organization engage in any section 4958 excess benefit transaction b 501(c)(3) and 501 (c)(4) orgs Did the during the year or did it become aware of an excess benefit transaction from a prior year? If "Yes," attach a statement explaining each transaction . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . Enter . Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912 , 4955 , and 4958 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . d Enter . Amount of tax on line 89c , above , reimbursed by the organization . . . . . . . . . . . . . . . . . . . . . . 90a List the states with which a copy of this return is filed ^ . . . . . 90b b Number of employees employed in the pay period that includes March 12, 2004 ( See instructions .) c ^ ^

88

89b

91
92

The books are in care of ^ STEPHEN LAROQUE Located at ^ 2312 HODGES ROAD, KINSTON,

NC

Telephone no ^ 2 5 2 - 5 2 3 - 7 7 0 0 ZIP+4 ^ 28504

^ . . . . . . . . . . . . . . . . . ^ 192 Form 990(2004)

Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041 - Check here and enter the amount of tax-exempt interest received or accrued during the tax year EEA

Form990 (2004) EAST CAROLINA DEVELOPMENT CO, INC Analysis of Income - Producing Activities ( See page 33 of the instructions.) VI[
Note: Enter gross amounts unless otherwise indicat ed. 93 Program service revenue : a b c d e f 9 94 95 96 97 a b 98 99 100 101 102 103 b c d e 104 105 . . . . . , Subtotal (add columns (B), (D), and (E)) Total (add line 104, columns ( B), (D), and (E)) . . . . . .. . . . . . . . . . . . . . . . . . . . . . ^ Medicare/Medicaid payments . . . . . . . . . . . . Fees and contracts from government agencies . . . Membership dues and assessments . . . . . . . . Interest on savings and temporary cash investments
Unrelated bu siness income

56-2044953

Page6

Excluded by sectio n 512, 513, or 514

(A)

(B )
Amount

(C)
Exclusion code

(D)
Amount

Business code

(E) Related or exempt function income

INTEREST/FEES ON RLF INTEREST/FEES ON RBEG HOUSING SALES

289,272 3,066

Dividends and interest from securities . . . . . . . .

Net rental income or (loss) from real estate: . . . . . . . . . . . . . debt-financed property . . . . . . . . . . . . not debt-financed property Net rental income or (loss) from personal property

Other investment income . . . . . . . . . . . . . . Gain or (loss) from sales of assets other than inventory
. , . . . . Net income or (loss) from special events . . . . Gross profit or (loss) from sales of inventory Other revenue: a

292,338
292,338

Note : Line 105 plus line 1d, Part I, should equal the amount on line 12, Part I.

Part VIII
Line No. 7

Relationship of Activities to the Accomplishment of Exempt Purposes (See page 34 of the instructions.)
Explain how each activity for which income is reported in column ( E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes).

93A 93B 93C

MINISTRATION OF THE REVOLVING LOAN FUND ALLOWS SMALL BUSINESSES 0 EXPAND IN THE REGION AME AS ABOVE FOR RBEG GRANT LOANS J AME AS ABOVE

I Part tlx 1

Information Reaaraina Taxable Sunslalarles ana ulsreaaraea tntltles (See nacre 34 of the instructions.)
B Percentage of ownershi p interest (C ) Nature of activities (D ) Total Income (E ) End-of-year t

(A) Name, address, and EIN of corporation, partnershi p, or disre garded enti

N/A

Part X
(a) (b)

Information Reaardino Transfers Associated with Pers ona l Benefit Contracts (See Dane 34 of the instructions.)

Did the organization , during the year, receive any funds, directly or indirectly, to pay pr Did the organization, during the year, pay premiums, directly or lndi
Under penalties of perjury, I declare that I have examined this return, including and belief, i s true, correct , and complete Dejacauoo f preparer (other than

Note : If "Yes" to (b), file Form 8870 and Form 4720 (see instructions)

Please Sign Here

Prepa

signature ofd car $"`rE1VWF9V

Type or punt name anQ title

Paid

signer ures

Preparer's Use only

Firm's name (or yours ifself-employed )

rr " dY1VAWGI /!IU VJOHNSON,

10

address, and ZIP + 4

CPA 104 W GORDON STREET

KI NS TON NC

SCHEDULE A (Form 990 or 990-EZ)

Organization Exempt Under Section 501(c)(3)

(Except Private Foundation) and Section 501(e), 501(f), 501(k), 501(n), or Section 4947(a)(1) Nonexempt Charitable Trust Supplementary Information --(See separate instructions.)
^ MUST be com pleted by the abo ve organizations and attached to their Form 990 or 990-EZ

OMB No 1545-0047

2004

Department of the Treasury Int e rn al Revenue Service Name of the organization

Employeridenhfication comber

EAST CAROLINA DEVELOPMENT CO,

Part 1

INC

56-2044953

Compensation of the Five Highest Paid Employees Other Than Officers, Directors , and Trustees (See oaae 1 of the instructions. List each one If there are none. enter "None.")
(b) Title and average hours per week devoted to position (c) Compensation (d) Contributions to employee benefit plans & deferred comp ensation (e) Expense account and other allowances

(a) Name and address of each employee paid more than $50,000

None

Total number of other employees paid over $50,000 . . . . . . . . . . . . . . . . . . .

^
..

.............................................................
i (b) Type of service (c) Compensation

Part 11

Compensation of the Five High est Paid IndeDendent Contractors for Professional Services
t., o Noyo

(a) Name and address of each independent contractor paid more than $50,000

STEPHEN LAROQUE 2312 HODGES ROAD, KINSTON, NC 28504 EXECUTIVE DIRECTOR 187,800

Total number of others receiving over $50 , 000 for . . . . . . . . professio nal services ..

^
EEA Sche rie A (Form 990 or 990-EZ) 2004

For Paperwork Reducbon Act Notice, see the mshuchons for Form 990 and Form 990-EZ

Form

4562

Depreciation and Amortization

(Including information on Listed Property)
^ See separate instructions . ^ Attach to your tax return.
Business or activity to which this form relates

OMB No. 1545-0172

2004
Attachment Sequence No. 67 IdenWrig number

Depart(nent of the Treasury Internal Revenue Service Name(s) shown on return

PROGRAM SERVICES EAST CAROLINA DEVELOPMENT CO, IN Election To Expense Certain Property Under Section 179 Fart 1
1 2 3 4 5 Note : If you have any listed property, complete Part V before you complete Part I. Maximum amount See page 2 of the instructions for a higher limit for certain businesses . . Total cost of section 179 property placed in service (see page 2 of the instructions) . . . . . . . . . . Threshold cost of section 179 property before reduction in limitation . . . . . . Reduction in limitation Subtract line 3 from line 2. If zero or less, enter -0limitation for tax year Subtract line 4 from line 1. If zero or less, enter -0-. If married Dollar
filing separately, see page 2 of the instructions (a) Description of property (b) Cost (business use only) (C) Elected cost

56-2044953

. . . .

. . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . .

1 2 3 4
5

6
7 8 9 10 11 12 13 7 Listed property. Enter the amount from line 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . Total elected cost of section 179 property. Add amounts in column (c), lines 6 and 7 Tentative deduction Enter the smaller of line 5 or line 8 . . . . .. . .. . .. . . . . . . . . . . . . . Carryover of disallowed deduction from line 13 of your 2003 Form 4562 . . . . . . . . . . . . . . . . . Business income limitation. Enter the smaller of business income (not less than zero) or line 5 (see instructions) Section 179 expense deduction. Add lines 9 and 10, but do not enter more than line 11 Carryover of disallowed deduction to 2005. Add lines 9 and 10, less line 12 . ^ 13

8 9 10 11 12

Note : Do not use Part II or Part III below for listed property. Instead, use Part V Part 1 Special Deduction Allowance and Other Depreciation ( Do not include listed property) 14 Special depreciation allowance for qualified property (other than listed property) placed in service during the tax year (see page 3 of the instructions) . . . . . . . . . . . . . . . . . . . Property subject to section 168(f)(1) election (see page 4 of the instructions ) 16 Other depreciation (including ACRS) (see page 4 of the instructions) MACRS Depreciation ( Do not include listed property.) (See page 4 of the Part III Section A . . 17 MACRS deductions for assets placed in service in tax years beginning before 2003 15 18 . . . . . . . . . . . . . . . . . . instructions.) 14 15 16

. . . . . . . . 17 If you are electing under section 168(i)(4) to group any assets placed in service during the tax year into one or more general asset accounts, check here . . . . . . . . . . . . . . . . . . . . ^ n Section B - Assets Placed in Service Durina 2004 Tax Year Usina the General Deareciation System
(a) Classification of property Month and year placed in service C Basis for depreciation (businesslnvestment use only-see instructions) (d ) Recovery period (e)Convention (f) Method (g)Depreciation deduction

19a

3-year property

b 5-year property c 7-year property d e f 10-year property 15-year property 20-year property 25 yrs. 27.5 yrs. 27.5 yrs 39 yrs. MM MM MM S/L S/L S/L S/L

g 25-year property h Residential rental i property Nonresidential real property 20a Class life

MM S/L Section C - Assets Placed in Servi ce During 2003 Tax Year Using the Alternative Depreciation System S/L 12 yrs. 40 yrs. MM S/L S/L 21 22

b 12-year c 40-year

(t'an tV summary (See page 6 of the instructions) 21 Listed property Enter amount from line 28 . . . . .. . . . . . . . .. . . . . . . . . . . . . . . . . 22 Total . Add amounts from line 12, lines 14 through 17, lines 19 and 20 in column (g), and line 21. Enter here and on the appropriate lines of your return. Partnerships and S corporations - see instr For assets shown above and placed in service during the current year, enter the portion of the basis attributable to section 263A costs For Paperwork Reduction Act Notice , see separate instructions. 23 23 EEA

Form 4562 (2004) ^^N

* Item was disposed

of during current year.
Name(s) as shown on return

Depreciation Detail Listing

MANAGEMENT & GENERAL 1 social INC
Cost Salvage Business percentage Section 179 Depreciation Basis Life Method Rate Current depr Accumulated Depreciation Prior expense

2004tGE VEtry 56-2044953

Bonus depreciation

For your records only

EAST CAROLINA DEVELOPMENT CO,
No Description Date

AMT Current

1 2

ORGANIZATION EXPENSE 19970630 MACHINERY & EQUIPMENT 19980630

1,550 4,351

100.0 100.0

1,55 5 4,351 5

0 0

1,08 3,04

Totals

5,901

5,901

4,131
ST ADJ:

2004-

Federal Statements
EAST CAROLINA DEVELOPMENT COMPANY, INC. 56-2044953

Statement I Form 990, Part III, Line a Statement of Program Service Accomplishments

Program
Grants & Service

Description
Farmers Home Administration (FMHA) -

Allocations

Expenses

the authority assists borrowers in obtaining FMHA guaranty loans for businesses in rural areas of eastern NC
16 businesses directly benefited $ $ 559,077

559,077

Statement 2 Form 990, Part IV, Line 57 Land, Buildings, and Equipment

Accumulated
Asset Basis Depreciation

Book
Value

Machinery & Equipment Land Total

$ $ $

12,342 50,880 63,222

12,342 0 12,342

$ $ $

50,880 50,880

Statement 3
Form 990, Part IV, Line 58 Other Assets Ending Net Tangible Assets $ $ -

Statement 4 Form 990, Part IV, Line 65 Other Liabilities

Note Payable

(FHMA)

$ $

Ending 4,725,782 4,725,782

Statement 5 Schedule A, Part III, Line 2

Transactions with Trustees, Directors, etc. Stephen LaRoque, Executive Director, received payments for contracted services in the amount of $187,000.