Americares Foundation Inc.

“FORM 990, SCHEDULE D, PART V, LINE 4 The Americares Foundation endowment is intended to support the general charitable mission of the organization. The Foundation intends that the principal should remain untouched, while the earnings on the endowment's investments shall be used to support various charitable programs. During tax year ending 2015, the foundation appropriated $400,000 (of which $300,000 and $100,000 were withdrawn in 2015 and 2016 respectively) from its endowment for expenditures to support the reconfiguration of its distribution center in stamford, CT. DURING TAX YEAR ENDING 2017, $170,000 WAS WITHDRAWN FROM ITS ENDOWMENT TO SUPPORT THE IMPLEMENTATION OF A NEW ENTERPRISE RESOURCE PLANNING ("ERP") SYSTEM.”

“FORM 990, SCHEDULE D, PART X Americares follows guidance that clarifies the accounting for uncertainty in tax positions taken or expected to be taken in a tax return, including issues relating to financial statement recognition and measurement. This guidance provides that the tax effects from an uncertain tax position can only be recognized in the financial statements if the position is more-likely-than-not to be sustained if the position were to be challenged by a taxing authority. The assessment of the tax position is based solely on the technical merits of the position, without regard to the likelihood that the tax position may be challenged. Americares is exempt from federal income tax under IRC section 501(c)(3), though they are subject to tax on income unrelated to its exempt purpose, unless that income is otherwise excluded by the Code. Americares has processes presently in place to ensure the maintenance of its tax-exempt status; to identify and report unrelated income; to determine its filing and tax obligations in jurisdictions for which it was nexus; and to identify and evaluate other matters that may be considered tax positions. Americares has determined that there are no material uncertain tax positions that require recognition or disclosure in the financial statements.”

“The Americares Foundation, Inc. ("Foundation") files a consolidated audited financial statement with its subsidiary, Americares Free Clinics, Inc ("Clinics"). The reconciliation in Parts XI & XII of Schedule D reconciles back to the Foundation's financial information as presented in the audited financial statements and not to the consolidated numbers (inclusive of clinics). REVENUE ON BOOKS NOT ON RETURN FORM 990, SCHEDULE D, PART XI, LINE 2d Changes in split-interest agreements $53,595 adjusted value of donated property (13,000) --------- Total adjustments for line 2d $40,595 FORM 990, SCHEDULE D, PART XI, LINE 4b Rental Expenses Reclassed to Offset ($183,229) Revenue (as reported in Part VIII) Special Events Reclassed to Offset ($743,731) Revenue (as reported in Part VIII) Cost of Goods Sold Reclassed to Offset ($1,021,260) Revenue (as reported in Part VIII) adjustment due to rounding $1 --------------------------------------------------------- Total Revenue Adjustments for line 4b ($1,948,219)”

“FORM 990, SCHEDULE D, PART XIi, LINE 2d Rental Expenses Reclassed to Offset $183,229 Revenue (as reported in Part VIII) Special Events Reclassed to Offset $743,731 Revenue (as reported in Part VIII) Cost of Goods Sold Reclassed to Offset $1,021,260 Revenue (as reported in Part VIII) adjustment due to rounding ($1) -------------------------------------------------------- Total expense Adjustments for line 2d $1,948,219”