Community Foundation of Northern Illinois

“Part iv, line 2b - the community foundation accepts, as custodian, funds from not-for-profit organizations. As of june 30, 2014 the community foundation held 141 such funds. Each fund is accepted under the terms of a transfer agreement. The community foundation also held a total of 9 charitable remainder unitrusts and 1 net income makeup charitable remainder unitrust. Several of the charitable remainder trust agreements require that the foundation makes annual or quarterly payments to the annuitants for life. The present value of these future annuity payments is reflected in form 990 part x under life interests payable. The present value of the estimated future payments is calculated using discount rates from 1% to 4% and applicable mortality tables. The remainder interest is recognized as temporarily restricted net assets to the extent the foundation is named as a beneficiary. Liability under charitable remainder trust agreements represents the portion of the remainder interest that will be distributed to third party beneficiaries upon the death of the non-charity life beneficiary.”

“Schedule d, part v, line 4 - the community foundation holds 232 endowment funds. The purpose of each fund is documented as part of the fund agreement (gift instrument) executed upon initiation of the fund.”

“The foundation qualifies for tax-exempt status under section 501(c)(3) of the internal revenue code as other than a private foundation. Accordingly, no provision for income taxes has been made in the accompanying financial statements. The foundation accounts for income taxes in accordance with fasb accounting standards codification (asc) topic 740, income taxes. Fasb asc 740 provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in an enterprises financial statements and requires an entity to recognize the financial statement impact of a tax position when it is more likely than not that the position will be sustained upon examination. Management has evaluated the foundation's tax positions and has concluded the foundation has taken no uncertain tax positions that require the recording of a liability. With few exceptions, the foundation is no longer subject to income tax examinations by the u.s. Federal or state tax authorities for years ending on or before june 30, 2010.”

“Reclass of cust. Fund mgmt rev netted with expenses on financial statements 25,086.”

“Reclass of cust. Fund mgmt rev netted with expenses on financial statements 25,086.”