Cedar Crest Foundation Inc.

“The principal of the fund is held in perpetuity. The income, as specified by the donor, should be used for purposes of benevolent care for residents.”

“The corporations are exempt from income taxes under internal revenue code section 501(c)(3). Accordingly, there is no provision for federal or state income taxes. The corporations file form 990 (return of organization exempt from income tax) annually. When these returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to health care organizations include such matters as the following: the tax-exempt status of each entity, the continued tax-exempt status of bonds issued and various positions relative to potential sources of unrelated business taxable income (ubit). Ubit is reported on form 990t, as appropriate. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions are not offest or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest an dpenalties that would be payable to the taxing authorities upon examination. For the years ended june 30, 2013 and 2012, there were no unrecognized tax benefits identified and recorded as liabilities. Forms 990 filed by the corporations are subject to examination by the internal revenue service (irs) up to three years fronm the extended due date of each return. With few exceptions, the corporations are no longer subject to examinations by the irs for tax years before 2009.”

“Other adjustments: cedar crest income 14,347,068”

“Other adjustments: cedar crest expenses 14,175,503”