Sta of Baltimore-Ila Container Royalty Plan

“Line 11 a explanation- a copy of the form 990 is made available to all trustees for review prior to filing.”

“Employees and trustees must disclose any relationship that could give rise to any potential conflicts of interest. The responses are reviewed by management each year.”

“The plan administrator and other union appointed positions are paid at rates as prescribed in certain contracts between the steamship trade association and the international longshoremen's association upon review and approval by the board of trustees.”

“The plan makes its governing documents, conflict of interest policy, and financial statements available to any participant upon request at the fund office.”

“The fund issued 1,296 2023 w-2's to members, on behalf of employers under a collective bargaining agreement, for taxable benefits and not for payment as employees of the fund. These w-2's are included on the 2023 w-3 filed with the internal revenue service, along with the federal and state payroll tax returns which include the reporting of taxable benefits to the fund members.”

“The accompanying tax return has been prepared on the modified cash basis of accounting, which is a comprehensive basis of accounting other than accounting principals generally accepted in the united states of america (u.s. Gaap). Under this basis of accounting, the only assets recognized in the financial statements are cash, investments, and excess contributions from the annual cap calculation. The only liabilities recognized in the financial statements are pass-through contributions which are payable to the crccf and the obligation to provide supplemental benefits to eligible participants (the supplemental benefit obligation also includes a liability for the plan's portion of the employer payroll taxes related to the supplemental benefit). Except for the assets and liabilities described above, all transactions are recognized in the financial statements as either cash receipts or cash disbursements. The modified cash basis of accounting differs from u.s. Gaap primarily because unrealized gains or losses on investments, accounts receivable, prepaid expenses, accounts payable, and accrued expenses, except for employer payroll taxes noted above, are not included in the financial statements. In addition, the plan recognizes lease costs as rent expense when paid. This differs from u.s. Gaap, which requires the recognition of lease assets and lease liabilities by lessees for both capital (finance) and operating leases. Since the financial statements are not prepared in accordance with the accrual basis of accounting, the financial statements are not intended to present the plan's financial activity in conformity with u.s. Gaap.”