Elemental Music

“The board of directors has the authority to elect new board members.”

“The organization uses an independent accounting firm to prepare the annual form 990 and related schedules. Form 990 is provided to the organizations executive director and treasurer and is reviewed for any obvious errors and omissions.”

“All board members are required disclose any potential conflicts of interest and to review the conflict of interest policy and atest that they are in compliance with said policy.”

“The board of directors review the compensation for the executive director and artistic director annualy. Board approval is required for the annual compensation package for this individual.”

“The governing documents, conflict of interest policy and financial statements are available to the public upon request.”

“For the year ended 6/30/2025 a right of use asset was reported on the part x balance sheet on line 15 in the amount of $645,085 and the corresponding liability is reported on part x line 25 in the amount of $693,256. The organization accounts for operating leases in accordance with asc 842. At lease commencement, a rightofuse (rou) asset and a lease liability are recognized based on the present value of future lease payments, discounted using the organization's incremental borrowing rate or the riskfree rate. Lease expense is recognized on a straightline basis over the lease term. The organization applies the shortterm lease exemption for leases with terms of 12 months or less, recognizing related payments as expense. Rou assets and lease liabilities are presented separately in the statement of financial position.”

“Write-off of capitalized project costs: a prior period adjustment of $81,557 was recorded to write off architectural and consulting fees that had previously been capitalized in connection with a project that was never completed and was scrapped prior to the current fiscal year. This adjustment was necessary to remove costs that no longer met the criteria for capitalization under generally accepted accounting principles. The fixed asset balance of $22,866 reported on line 10a reflects these revisions.”

“The audit is reviewed and approved by qualified individuals designated by the board of directors,”

“During the audit for the fiscal year ended june 30, 2025, the following prior period adjustments were identified and recorded. These adjustments affected the beginning net assets for the year and are reported on form 990, part xi, line 8: 1.write-off of capitalized project costs: a prior period adjustment of $81,557 was recorded to write off architectural and consulting fees that had previously been capitalized in connection with a project that was never completed and was scrapped prior to the current fiscal year. This adjustment was necessary to remove costs that no longer met the criteria for capitalization under generally accepted accounting principles. 2. Additional rent expense: a prior period adjustment of $14,750 was recorded to recognize rent expense that was inadvertently omitted from prior period financial statements. This adjustment ensures that all rental costs incurred are properly reflected in the financial records. 3. Accrued payroll: a prior period adjustment of $14,400 was recorded to accrue payroll expenses that were earned by employees in the prior period but not previously recorded. This adjustment was made to properly match payroll costs to the period in which the related services were performed. 4. Accrual of vacation liability: a prior period adjustment of $12,289 was recorded to accrue vacation liability for employee earned but unused vacation time as of the prior period end. This adjustment was necessary to comply with the accrual basis of accounting and to accurately reflect the organization's liability for compensated absences. The total amount of prior period adjustments reported on form 990, part xi, line 8 is $122,996, representing the sum of the individual adjustments described above. These adjustments were made to correct errors and omissions identified during the audit, ensuring compliance with generally accepted accounting principles (gaap) and accurate reporting of net assets. Each adjustment is reflected in the beginning net assets for the year and is documented in the audit workpapers and supporting schedules”