Lutheran Homes of South Carolina Foundation Inc.

“The organization is a beneficiary of several trusts from which it has the irrevocable right to receive the income earned from the trust assets in perpetuity but never receives the assets held in trust. The beneficial interests in the trusts are recorded as contribution income, and the beneficial interest in the trusts are recorded at either fair value based on the present value of the estimated future cash flows or the fair value of the underlying assets included in the trusts. Any changes in the fair value of the trusts are recognized as permanently restricted gains or losses. On previous tax returns, the organization determined that it had reported ending balances that did not tie to the ending balance recorded on the audit report. To match the audit report going forward, the organization has made an adjustment in "other expenditure for facilities and programs." by doing this, the organization's reporting on schedule d will match the audit report going forward.”

“Lutheran homes of south carolina foundation, inc. As described in section 501(c)(3) of the internal revenue code (the "code") is exempt from federal and state income taxes on related income pursuant to section 501(a) of the code, and is not classified as a private foundation. The foundation's income tax returns are subject to review and examination by federal and state authorities. The foundation's income tax returns for 2011, 2012 and 2013 are open for inspection by taxing authorities. The foundation is not aware of any activities that would jeopardize its tax-exempt status. The foundation adopted the income tax standard for uncertain tax positions. This standard clarifies the accounting for uncertainty in income taxes recognized in an organization's financial statements in accordance with the income tax standard. This standard prescribes recognition and measurement of tax positions taken or expected to be taken on a tax return that are not certain to be realized. The implementation of this standard had no impact on the foundation's financial statements for the years ended september 30, 2012 or 2011.”