E C Scranton Memorial Library

“Trust no. 1: the library is the income beneficiary of a trust (known as trust fund no. 1) created by mary e. Scranton on july 9, 1913. The provisions of the trust agreement require that the trustee is to withhold income should the market value of the trust "principal" fall below 50,000. Funds are to be used for the development and expansion of the library. Trust no. 2: the library created a trust (known as trust fund no. 2) in its name on october 2, 1924. The provisions of the trust agreement state that the income is payable to the library and that by unanimous vote of all corporate members, trust "principal" in excess of 50,000 market value may be withdrawn by the library. Funds are to be used for the development and expansion of the library. Millennium fund: the library board established the millennium fund in 1998 to begin a major fund-raising campaign to increase the funds for library operations. In august, 2000, the millennium fund received a 300,000 grant from broad eaves, inc. Half of the broad eaves grant (150,000) was used for real property acquisition and development and the other half (150,000) was transferred to trust no. 2. All funds related to the millennium fund are considered temporarily restricted until they are used for the development and expansion of the library.”

“The library is exempt from federal income tax under internal revenue service code section 501(c)(3). Income from certain activities not directly related to the library's tax-exempt purpose is subject to taxation as unrelated business income. The library's rental activity could be considered unrelated business activity under certain circumstances. Management believes there is appropriate support for all tax positions taken. There are no uncertain tax positions that are material to the financial statements. The library files form 990 - return of organization exempt from income tax in the u.s. Federal jurisdiction. The library is no longer subject to u.s. Federal inspection for the years before june 30, 2011. The library follows provisions of fasb asc 740-10, "accounting for uncertainty in income taxes", and as a result, the library did not recognize any liability for unrecognized tax benefits.”

“Loss on disposal of asset -3,490 direct fundraising expense -34,615”

“Loss on disposal of assets -3,490 direct fundraising expense -34,615”

“Schedule d; part v: as of the date of the preperation of the tax return, the prior years information related to temporarily and permanently restricted assets was not available.”