French Cultural Center Inc.

“Library collections: the center has approximately 28,000 french items (books, cds, dvds, and periodicals) that are held for educational research and curatorial purposes. These items have not been capitalized as their fair value is not readily determinable. Each of the items is catalogued, preserved, and cared for and activities verifying their existence and assessing their condition are performed continuously. Costs of items added to and proceeds from sale of items in this collection are recognized as decreases or increases in unrestricted net assets. Circulating items have not been capitalized because their estimated useful lives are less than one year. Other property: from time to time, the center has received various gifts and bequests of property (equipment, furnishings, etc.) for use within the center. These have not been reflected in the financial statements.”

“The center is recognized as an organization exempt from federal income taxes under section 501(c)(3) of the internal revenue code (the "code") whereby only unrelated business income, as defined by section 512(a)(1) of the code, is subject to federal income tax. In addition, the center has been determined by the internal revenue service not to be a private foundation within the meaning of section 509(a) of the code. The center recognizes and measures its unrecognized tax positions and assesses the likelihood, based on their technical merit, that tax positions will be sustained upon examination based on the facts, circumstances and information available at the end of each period. The measurement of unrecognized tax positions is adjusted when new information is available, or when an event occurs that requires a change. Interest and penalties associated with unrecognized tax positions, if any, are classified as additional income taxes in the statement of activities. The center did not identify any uncertain tax positions at december 31, 2013 or 2012. The center is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The center's federal exempt organization business income tax returns are subject to examination by the internal revenue service, generally for three years after they were filed.”