Area Cooperative Educational Services

Part X : FIN48 Footnote

“ACES is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code.For the year ended June 30, 2014, the Organization does not anticipate incurring any interest or penalties on its income tax or information returns. For the year ended June 30, 2013, the Organization did not incur interest or penalties on its income tax or information returns. These amounts, if paid, would be included in interest expense on the accompanying financial statements. The Organizations income tax and information returns are subject to possible examination by taxing authorities. For federal income tax purposes the returns essentially remain open for possible examination for a period of three years following the respective filing dates. As of the date of this report, the returns for the years ended June 30, 2011 through 2014 remain open to possible examination. Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by the organization and recognize a tax liability (or asset) if the organization has taken an uncertain position that more likely than not would not be sustained upon examination by federal or state taxing authorities. Management has analyzed the tax positions taken by the organization, and has concluded that as of June 30, 2014, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements.”