Juvenile Protective Association

“The investment objective of JPA for unrestricted funds is to generate a reasonable rate of return at a relatively low level of risk, seeking to preserve at a minimum the real (inflation-adjusted) value of the fund over time. The total rates of return sought to be generated should be greater than those of benchmarks selected by the Finance Committee from time to time, while avoiding undue risk and generating sufficient liquidity to help fund operations. The objective of investing restricted program funds shall be preservation of principal, liquidity timed to spending needs and reasonable current income, subject to grant restrictions.”

“The Association is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and applicable state law. Accordingly, no provision for such taxes has been recognized in these financial statements. Accounting standards on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the Association may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. Examples of tax positions include the tax-exempt status of the Association and various positions related to the potential sources of unrelated business income tax (UBIT). The tax benefits recognized in the financial statements from any such position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. The Association has reviewed the tax positions for the open tax years (current and prior three tax years) and has concluded that no provision for income tax is required in the financial statements. There were no unrecognized tax benefits identified or recorded as liabilities during the period covered by these financial statements. Forms 990 are filed by the Association and are subject to examination by the Internal Revenue Service (IRS) up to three years from the extended due date of each return. Forms 990 filed by the Association are generally no longer subject to examination for the years 2010 and prior.”