World Music Inc.

“Usage in accordance with donor imposed restrictions.”

“The organization is exempt from income taxes under section 501(c) (3) of the internal revenue code. The organization is required to complete and timely file an annual information return with the internal revenue service and the commonwealth of massachusetts. The organization has either filed or extended the time to file the annual information returns and has neither received nor been notified by any federal or state taxing authorities of any matters that would need to be disclosed in the accompanying financial statements. Income taxes are accounted for in accordance with asc 740, "income taxes". Asc 740 clarifies the accounting for income taxes by prescribing a minimum probability threshold that a tax position must meet before a financial statement benefit is recognized. As of june 30, 2016, the organization had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under asc 740. The organization's practice was and continues to be to recognize interest and penalty expenses related to uncertain tax positions in income tax expense, which were zero for the year ended june 30, 2016. Typically, the organization's three preceding tax years are subject to examination by federal and state taxing authorities. There are no income tax examinations currently in process. The organization evaluates its uncertain tax positions using the provisions of asc 450, "contingencies". Accordingly, a loss contingency is recognized when it is probable that a liability has been incurred as of the date of the financial statements and the amount of the loss can be reasonably estimated. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately sustained for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount recognized.”