Providence Public Library

“Collections whether purchased or contributed are not capitalized by the library. The library also does not capitalize repairs or improvements to inexhaustible collections. All purchases of collection items and repairs or improvements to inexhaustible collections are recorded as decreases in unrestricted net assets in the year in which the items are acquired, or as temporarily restricted net assets, if the assets used to purchase the items were restricted by donors.”

“For purposes of the footnote below, the library refers to providence public library, the foundation refers to the related organization providence public library foundation, and the support corporation refers to the related organization providence public library support corporation, referenced in sch r, part ii. The library, foundation and support corporation are public charities exempt from income tax in accordance with section 501(c)(3) of the internal revenue code. However, income from certain activities not directly related to the organization's exempt purpose may be subject to taxation as unrelated business income if income from those activities meets certain levels. Management has determined that those income levels were not met for the year ended june 30, 2019. Management believes that the library and the foundation both operate in a manner consistent with their tax-exempt status at both the state and federal level. The library, foundation, and support corporation annually file irs form 990 - return of organization exempt from income tax, reporting various information that the irs uses to monitor the activities of tax-exempt entities. These tax returns are subject to review by the taxing authorities, generally for a period of three years after they were filed. The library, foundation and supporting corporation currently have no tax examinations in progress.”