Bay Cove Human Services Inc.

“Bay cove human services is the representative payee for over 700 clients. Bay cove has been designated by the social security administration (ssa) to receive, hold and distribute social security benefits (ssi) and social security disability benefits (ssdi) to its clients. The system was established to help clients, who cannot help themselves, pay for current and foreseeable needs, such as rent, food, utilities, clothing and general spending. Some clients receive cash or checks directly in their names while others have expenses paid directly to vendors.”

“There are two portions of the endowment, both of which are board-designated. The first portion has a value of $806,254 at june 30, 2014. Once this quasi-endowment reaches $1 million, some of the funds may be transferred out of the endowment to support operations. The second board designated endowment is valued at $465,403 at june 30, 2014. This endowment is to be used to fund the newly implemented legacy bonus program. The legacy bonus payments will be made out of 100% of the return on investment of the funds, net of fees, determined based on the june 30th fund balance each year and will be paid out to the eligible employee participants on a pro-rata basis.”

“Gaap prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. For the year ended june 30, 2014, the agency has determined that it has not taken any tax positions which would result in an uncertainty requiring recognition in the accompanying financial statements. The agency recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. There were no interest or penalties for the year ended june 30, 2014. Generally, the agency's information returns remain open for possible federal income tax examination for three years after the filing date. The agency is not currently under examination by any taxing jurisdiction.”