Southern Minnesota Initiative Foundation

“The foundation has developed a spending policy which uses up to 5% of its endowment balance annually to support its programs and activities.”

“The foundation is exempt from federal income taxes as a tax-exempt organization described in section 501(c)(3) of the internal revenue code, except for income on certain unrelated business income. At june 30, 2014, there is no material amount of unrelated business income. The foundation is also exempt from state income taxes under applicable minnesota statutes. Effective july 1, 2009, the foundation adopted the provisions of asc 740, income taxes, related to accounting for uncertainty in income taxes (previously fin 48). These provisions clarify the accounting for uncertainty in income taxes recognized in an enterprise's financial statements in accordance with asc 740. The standard prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The standard also provides guidance on derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure and transition. The interpretation requires that the entity recognize in the financial statements the impact of a tax position if that position will more likely than not be sustained on audit, based on the technical merits of the position. In evaluating whether a tax position has met the more-likely-than-not recognition threshold, the entity should presume that the position will be examined by the appropriate taxing authority that has full knowledge of all relevant information. A tax position that meets the more-likely-than-not threshold is measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. Income tax positions must meet a more-likely-than-not recognition threshold at the effective date to be recognized upon the adoption of these provisions and in subsequent periods. The adoption of the asc 740 provisions had no impact on the financial statements. At june 30, 2014 the federal and minnesota tax returns for the foundation are open for examination by taxing authorities for the years 2011 to 2013. At june 30, 2014, the foundation did not record liabilities for uncertain tax positions.”

“Investment fees netted with revenue -170,142.”

“Investment fees netted with revenue 170,142.”