The Southampton Fresh Air Home

“Schedule d, part v, line 4 - the southampton fresh air home strives to maintain an endowment of three years' operating expenses. The board of directors recognizes that fundraising appeals and events can fluctuate significantly with the national and local economic environment. The home's endowment ensures the optimal operation of programs despite occasional revenue shortfalls. The home strives to cover operating expenses via fund raising activities, donations and camp tuitions. However, in event of a revenue shortfall, dividend and interest income income from the endowment may be used for operations at the discretion of the board of directors. In particular, earnings from the endowment may be used to ensure the continuation of the home's "need blind" admissions policy, providing additional funds when needed. The endowment may also provide seed money for new camp programs, which, if proven successful, can be funded by outside sources in the future. At times, the endowment provides short-term loans to the operating fund, in anticipation of fundraising event revenue. Finally, the endowment provides up to twenty percent of the funds required for large capital projects deemed necessary to maintain and improve the facility. From time to time the home is the recipient of bequests from donors. When the bequest is unrestricted as to use by the donor, the home designates the funds to be placed in a strategic capital expenditure fund, which is kept separate from all other board designated funds. The board designates the money held in this fund to be utilized for capital projects that are strategially important to the home. Investment strategy with respect to this fund will be determined by the board,and will generally mirror asset allocation of the other restricted funds, unless capital projects are imminent, in which case the assets will be kept in and/or moved to a cash or money market account.”

“Accounting standards require that management evaluate the accounting for uncertainty in tax positions. Companies are required to recognize in their financial statements the impact of a tax position if the position is more likely than not of being sustained on audit. The position ascertained inherently requires judgement and estimates by management. For the year ended august 31, 2021 the home does not believe that they have any material uncertain tax positions that would require them to measure and reflect the potential lack of sustainability of a position on audit in their financial statments. Management will continue to evaluate their tax positions to determine if measurement and recognition in the presentation of financial statements is required. The home believes it is no longer subject to examination for years prior to 2018.”

“Financial aid awards 119,425.”

“Financial aid awards 119,425.”

“Schedule d, part xi and part xii, line 4b - "grants and other assistance to individuals in the us" $119,425 is not included as an expense in the audited financial statements, but is treated as a offset to program fees in operating revenue.”