Expanded Schools Inc.

“The organization is subject to the provisions of the financial accounting standards board's (the "fasb") 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.”

“Rental expenses of $65,609 netted against revenue per form 990, included in expenses per audited 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. 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. The organization elected to account its accounting method for the ppp funds as a conditional contribution under the financial accounting standards board's (the "fasb") accounting standards codification ("asc") 958, not-for-profit entities, subtopic 605. 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 statement of activities for the fiscal year 2021. 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. Due to the timing difference of forgiveness, on form 990, the amount of $774,185 was reported as a loan payable as of june 30, 2021 and recognized as revenue in fiscal year 2022.”

“Rental expenses of $65,609 netted against revenue per form 990 included in expenses per audited financial statements and loss on uncollectible receivables of $8,750 reported as "other changes in net assets" on form 990 part xi, line 9. Total for schedule d, part xii, line 2d is $74,359.”