Food System Economic Partnership

Schedule D, Page 3, Part X

“Food system economic partnership is a nonprofit corporation exempt from income taxes as described in section 501(c)(3) of the internal revenue code and is classified by the internal revenue service as other than a private foundation. Accordingly, no provision for income taxes has been made. Fsep follows the provisions of asc 740, pertaining to accounting for uncertainty in income taxes. The pronouncement requires the use of a more-likely-than- not recognition criteria before and separate from the measurement of a tax position. An entity shall initially recognize the financial statement effects of a tax position when it is more likely than not, based on the technical merits, that the position will be sustained upon examination. With respect to the organization, this would primarily relate to the determination of unrelated business taxable income and to the maintenance of its tax exempt status. Management has evaluated the adopted policies and procedures that have been implemented to provide assurance that income is properly characterized and activities that jeopardize its tax exempt status are within limits established under existing tax code and regulations. Management has determined the effects of uncertain tax positions are not material to the organization for recognition or disclosure in the accompanying financial statements and, accordingly, no income tax liability has been recorded for uncertain income tax positions in the accompanying financial statements. Income tax years 2010 through the current year are open for examination. Penalties and interest may be assessed on income taxes that are delinquent. The assessment of uncertain income taxes is subject to estimate, and it is reasonably possible that the estimate may change in the near term and the change may be material.”