Purnell School

“The school's endowment fund was created by its board of trustees to help secure its future by establishing a base of financial security and providing a flow of investment income to compliment annual fundraising. The fund includes both donor restricted funds and funds designated by the board of trustees to function as endowments. Funds designated by the board of trustees are treated as unrestricted net assets.”

“The school is a not-for-profit corporation as described in section 501(c)(3) of the internal revenue code (the "code") and, therefore, is exempt from federal income taxes on income that is related to its tax-exempt purposes pursuant to section 501(a) of the code. The school is also exempt under title 15 of the state of new jersey corporations and associations not for profit act. Accordingly, no provision for federal or state income taxes has been presented in the accompanying financial statements. The school follows the provisions of fasb asc, income taxes. The standard prescribes a minimum recognition threshold and measurement methodology that a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition as they relate to those tax positions. The school does not expect a significant increase or decrease to the total amounts of unrecognized tax positions during the fiscal period ended june 30, 2020. However, the school is subject to regular audit by tax authorities, including a review of its nonprofit status, which the school believes would be upheld upon examination. The school believes that it has appropriate support for the positions taken on its tax returns. Nonetheless, the amounts ultimately paid, if any, upon resolution of the issues raised by the taxing authorities may differ materially from the amounts accrued for each period. The school files income tax returns in the united states federal jurisdiction. These returns are subject to examination by these authorities within certain statutory periods from the latest filing date.”