Bedford County Library Inc.

“Prior to the bedford county library being formed on january 1, 2014, the bedford county library system transferred assets (cash) to a local community foundation (the "foundation") which is holding this amount as an endowed component fund ("fund"). In order to establish this endowment, the bedford county library system transferred 12,322 of their unrestricted funds to this permanent endowment during the year ending december 31, 2006. As of january 1, 2014, this fund was contributed to the bedford county library. The library does not have access to this initially contributed amount. The library has granted the foundation variance power which gives the foundation's board of trustees the power to use the fund for other purposes in certain circumstances. The fund is subject to the foundation's investment and spending policies which currently result in a distribution to the library at times as determined by the bedford county library which cannot exceed the net earnings in the account. There were no distributions received during the year or since the inception of this fund. The library reports the fair value of the fund as beneficial interest in assets held at a community foundation in the statement of financial position. Changes in the value of the fund are reported as gains or losses in the statement of activities.”

“Accounting principles generally accepted in the united states of america provide consistent guidance for the accoun ting for uncertainty in income taxes recognized in the librarys financial statements and prescribe a threshold of more likely than not for recognition of tax positions taken or expected to be taken in a tax return. The library performed an evaluation of uncertain tax positions for the year ended december 31, 2019, and determined that there were no matters that would require recognition in the financial statements or that may have any effect on its tax exempt status. As of december 31, 2019, the statute of limitations for tax years 2016 through 2018 remains open with the u.s. Federal jurisdiction or the various states and local jurisdictions in which the library files tax returns. It is the librarys policy to recognize interest and/or penalties related to uncertain tax positions, if any, in income tax expense. As of december 31, 2019, the library had no accruals for interest and/or penalties.”