Trinity Credit Counseling Inc.

“The organization has a trust bank account. The purpose of this account is to deposit the payments made by the clients and hold them until the client payments are remitted to the creditors. The organization has no interest in these funds except for the portion it receives in terms of fees and fairshare amounts. The organization remits the funds to the creditors weekly. Client payments paid with money orders or cashiers checks are remitted in the next check run. Personal checks and ach receipts are remitted approximately seven days after the deposit to give the items adequate time to clear the bank. The fairshare amounts deducted do not agree to the amounts on the statement of activities as not all amounts are deducted from creditor payments. Some creditors require the organization to bill the fairshare amount versus deducting the amount from the remittances.”

“The organization has adopted accounting rules that prescribe when to recognize, and how to measure the financial statement effects of income tax positions taken, or expected to be taken, on its income tax returns. These rules require management to evaluate the likelihood that, upon examination by relevant taxing jurisdictions, those income tax positions would be sustained. Based on that evaluation, the organization only recognizes the maximum benefit of each income tax position that is more than 50% likely of being sustained. To the extent that all or a portion of the benefits of an income tax position are not recognized, a liability would be recognized for the unrecognized benefits, along with any interest and penalties that would result from disallowance of the position. Should any such penalties and interest be incurred, they would be recognized as operating expenses. Based on its review, management does not believe the organization has taken any material uncertain tax positions, including any position that would place the organization's exempt status in jeopardy as of december 31, 2016. The federal tax returns of the organization for 2013, 2014, and 2015 are subject to examination by taxing authorities, generally for three years after the due date.”