Graham Hospital Association

“Provide scholarships based on student needs from the income of the donor-restricted endowment funds. The permanent endowment is used for the purchase of property and equipment.”

“The hospital is exempt from income taxes under section 501(c)(3) of the internal revenue code. The hospital files a form 990 (return of organization exempt from income tax) annually. When the returns are filed, it is highly certain that some positions taken would be sustained upon examination by taxing authorities, while others are subject to uncertainty about the merits of the tax position taken or the amount of the position that would ultimately be sustained. Examples of tax positions common to nonprofit organizations include such matters as the following: the tax exempt status of each entity and various positions relative to potential sources of unrelated business income (ubi). Ubi is reported on form 990-t, as appropriate. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes that it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation process, if any. Tax positions are offset or aggregated with other positions. Tax positions that meet the "more likely than not" recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely to be realized on settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for uncertain tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of june 30, 2014 and 2013, there were no unrecognized tax benefits identified or recorded as a liability. Forms 990 filed by the hospital 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 hospital are generally no longer subject to examination for the years ended june 30, 2010 and prior.”

“Change in fair value of interest rate swap agreement -52,369. Change in interest in net assets of the foundation 56,825. Change in beneficial interest in perpetual trusts 588,467.”

“Rental expenses included with revenue on return -195,844.”

“Rental expenses included with revenue on return 195,844.”