Sigma Kappa Sorority

“The sorority has contracted with a vendor to provide certain financial services for its chapters and corporation boards who are participators with the national housing corporation. The chapters and corporation boards utilize this vendor for their billing, receivables management, disbursement processing, and cash management and the funds are held in accounts in the sorority's name. These funds represent the operating funds of the local chapters and corporation boards of the sorority and are subject to withdrawal at the discretion of the chapters and corporation boards. The sorority maintains an operating checking account through which all disbursements and receipts are processed. Excess funds in the operating account held on behalf of the chapters and corporation boards are transferred to a bank savings account.”

“The sorority is a not-for-profit corporation that is exempt from income taxes under section 501(c)(7) of the united states internal revenue code and similar state laws. The exemption is on all income except unrelated business income. An unrelated trade or business of an exempt organization is any trade or business which is not substantially related to the exercise or performance of its exempt purpose. Income earned from non-members is recognized as unrelated business income to the extent such income is not set aside for charitable and educational purposes. Income that is properly set aside must be used for the qualifying purposes as outlined in the set aside resolution. The outstanding balance of funds set aside as of may 31, 2025 and 2024 was $689,465 and $616,214, respectively. Accounting principles generally accepted in the united states of america require management to evaluate tax positions taken by the sorority and recognize a tax liability if the sorority has taken an uncertain position that more likely than not would not be sustained upon examination by various federal and state taxing authorities. Management has analyzed the tax positions taken by the sorority, and has concluded that as of may 31, 2025 and 2024, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the accompanying financial statements. The sorority has filed its federal and state income tax returns for periods through may 31, 2024 and is subject to routine audits by taxing jurisdictions. However, as of the date the financial statements were available to be issued, there were no audits for any tax periods in progress. These income tax returns are generally open to examination by the relevant taxing authorities for a period of three years from the later of the date the return was filed or its due date (including approved extensions).”

“Cost of goods sold 339,866. Loss on sale of asset 760.”

“Cost of goods sold 339,866. Loss on sale of asset 760.”