Expanded Schools Inc.

“The organization is subject to the provisions of the financial accounting standards board (the "fasb")'s accounting standards codification ("asc") topic 740, income taxes, relating to accounting and reporting for uncertainty in income taxes. Because of the organization's general tax-exempt status, management believes asc topic 740 has not had, and is not expected to have, a material impact on the organization's financial statements.”

“On march 27, 2020, congress enacted the coronavirus aid, relief, and economic security act ("cares act"). The paycheck protection program ("ppp") established by the cares act, implemented by the u.s. Small business administration ("sba"), provides businesses, including certain not-for-profit organizations, with funds to pay payroll and other costs during the coronavirus ("covid-19") outbreak. During fiscal-year 2020, the organization applied for and received ppp funds. Under generally accepted accounting principles in the united states of american, there are two acceptable methods for accounting for the ppp funds received under the cares act. Entities can elect to treat the funds as a loan or as a conditional contribution. During fiscal year 2020, given guidance from the sba at the time of the loan origination, the organization had originally elected to record the ppp funds as a loan under the financial accounting standards board's (the "fasb") accounting standards codification ("asc") 470, debt. At the beginning of fiscal year 2021, with further guidance from the sba on the ppp loan forgiveness program, the organization elected to change its accounting method for the ppp funds from a loan under fasb's asc 470 to a conditional contribution under the fasb's asc 958, not-for-profit entities, subtopic 605. The change in the accounting method resulted in a reclassification of the ppp loan payable at june 30, 2020 to a ppp funds received in advance in the statements of financial position. As the ppp funds were a refundable advance as of june 30, 2020, the change in accounting principle had no effect in the change in net assets or the net assets as of and for the year ended june 30, 2020. The funding is conditional on the organization using the funds during the elected covered period for qualified expenditures while maintaining certain employment levels. Contributions from the agreement are therefore recognized as revenue when qualifying costs are incurred and conditions have been substantially met, as required by the agreement. For the covered period may 1, 2020 through october 15, 2020, the entire grant of $774,185 was used for qualified expenditures on payroll, and thus was recognized as government grants in the statements of activities for the fiscal year 2021. Subsequent to the 2021 year-end, on july 22, 2021, the organization received notification of full forgiveness from the bank facilitating the ppp on behalf of sba. The irs requires a ppp loan without forgiveness within the tax year to be recorded as a loan, which will be reported as revenue in the organization's fiscal 2022 year-end due to the timing difference of forgiveness.”

“Rental expenses of $82,612 netted against revenue per form 990, included in expenses per audited financial statements.”

“Rental expenses of $82,612 netted against revenue per form 990 included in expenses per audited financial statements and loss on uncollectible receivables of $17,418 reported as "other changes in net assets" on form 990 part xi, line 9. Total for schedule d, part xii, line 2d is $100,030.”