Recreation Association Detroit Division

Schedule O:

“In explanation of the $27,145 in Other Expenses listed on Line 16 within Part I. The figure is composed of two different sums. Event costs ($8,884.57) and State of Michigan tax costs ($18,260.93). To improve the morale of the FBI Detroit Division Employees, the Recreation Association (RA) facilitates numerous events including, but not limited to, the following: - An annual Summer Picnic, hosted typically on a day during May, June, July, or August. - An annual Holiday Party, hosted typically within the month of December. - Other miscellaneous events such as baked goods competitions, cookouts, etc. These events in 2024 resulted in expenses totaling $8,884.57, the vast majority of which was to fund the Summer Picnic. In 2024, the RA paid the following expenditures related to Michigan tax costs: - In 2024, the RA became aware of its obligation to collect and remit sales tax on all items sold from our store. As a result, outstanding unpaid sales tax, late penalties, and interest that were owed to the State of Michigan from October of 2019, the year of the RAs incorporation, to July of 2024 had to be paid ($16,748.39). - The RA had to pay an annual registration fee with the State of Michigan ($20). - The RA had to collect and remit sales tax for 2024 ($1,492.54). These taxes, penalties, interest, and registration fee totaled $18,260.93.”