Jefferson Franklin Community Action Corporation

“Escrow liabilities are established for families enrolled in the family self-sufficiency public housing program. Any increases in a family's rent as a result of increased earned income during the family's participation in the program result in a credit to the family's escrow account. Once a family graduates from the program, they may access the escrow and use it for any purpose.”

“Jfcac is exempt from federal income taxes under section 501(c)(3) of the internal revenue code (the "code"), except on net income derived from unrelated business activities as defined in the code. Accordingly, the jfcac files as a tax exempt organization. Jfcac follows guidance issued by the fasb on accounting for income taxes and has evaluated its tax positions, expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings, and believes that no provision for income taxes is necessary to cover any uncertain tax positions. Jfcac's returns for tax years 2015 and later remain subject to examination by taxing authorities. Pro is a c-corporation and files a separate tax return. Income taxes are provided based on the asset and liability method of accounting. Deferred income taxes are provided for the expected future tax consequences of temporary differences between the basis of assets and liabilities reported for financial and tax purposes. Pro is required to evaluate tax positions taken (or expected to be taken) in the course of preparing pro's tax returns and recognize a tax liability if pro has taken an uncertain tax position that more likely than not would not be sustained upon examination by the applicable taxing authorities. Pro has analyzed the tax positions taken and has concluded that as of september 30, 2018, there are no uncertain tax positions taken, or expected to be taken, that would require recognition of a liability or disclosure in the consolidated financial statements. If applicable, pro recognizes interest and penalties related to unrecognized tax liabilities in the consolidated statement of activities. Management is required to analyze all open tax years, as defined by the statute of limitations, for all major jurisdictions, including federal and certain state taxing authorities. The organization is no longer subject to u.s. Federal, state and local, or non-u.s. Income tax examinations by taxing authorities for years before 2015. As of and for the years ended september 30, 2018, the organization did not have a liability for any unrecognized taxes. The organization has no examinations in progress and is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax liabilities will significantly change in the next twelve months.”