Connecticut Hospital Association Incorporated

PART X, LINE 2:

“Below is an excerpt from footnote 2 of the consolidated audited financial statements for the connecticut hospital association, incorporated and affiliates. The organization follows fasb asc 740, income taxes. Under the asset and liability method of fasb asc 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under fasb asc 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Dns files a consolidated income tax return with chais, chime and chimenet. The provision for income tax expense has been allocated to the individual entities as if the corporations each filed a standalone tax return. The organization accounts for uncertain tax positions in accordance with provisions of fasb asc 740 that prescribe a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return. Fasb asc 740 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Fasb asc 740 permits the recognition of tax positions that meet a "more likely than not" threshold, based on the technical merits of the position. The organization's policy is to recognize interest and penalties related to income taxes as a component of interest expense and the provision for income taxes, respectively. As of april 30, 2024 and 2023, the organization did not record any penalties or interest associated with unrecognized tax benefits. All tax years of the organization from 2021 forward are open and subject to examination by the internal revenue service, however, there are currently no examinations pending or in progress.”