Georgia State Golf Association Inc.

“DURING 2007, THE FINANCE COMMITTEE APPROVED THE DESIGNATION OF $500,000 IN NET ASSETS AS AN "EMERGENCY CASH RESERVE FUND". IN JUNE 2013, THE BOARD DESIGNATED $250,000 IN NET ASSETS AS AN "EMERGENCY CASH RESERVE FUND". IN MARCH 2016, THE BOARD INCREASED THIS AMOUNT TO $500,000. IN DECEMBER 2016, THE BOARD DESIGNATED $100,000 TO SELF-FUND THE PROMOTION OF A YOUTH ON COURSE PROGRAM IN GEORGIA. During 2017, the Association received certain temporarily restricted contributions for Adaptive Golf Program and 2017 Mid-Amateur Championship totaling $67,975. During 2017, $491,520 of net assets were released from donor restrictions by incurring expenses satisfying the purpose specified by donors for the Adaptive Golf Program. Net assets of $60,816 from Board designated building funds were released and $8,967 from board designated youth on course were released . A total of $561,303 were released.”

“The Association is exempt from federal income taxes under Section 501(c)(3) of the Internal Revenue Code and, therefore, no provision or liability for income taxes is included in the accompanying financial statements. The Association annually evaluates all federal and state income tax positions. This process includes an analysis of whether these income tax positions the Association takes meet the definition of an uncertain tax position under the Income Taxes Topic of the Financial Accounting Standards Codification. In the normal course of business, the Association is subject to examination by federal and state taxing authorities. In general, the Association is no longer subject to tax examinations for tax years ending before December 31, 2014. During December 2017, the President of the United States of America signed into law the Tax Cuts and Jobs Act. The law is generally effective for the tax years beginning in 2018, and therefore the Association's current tax liability for any potential unrelated business income tax will not be affected until the year ending December 31, 2018. There are other changes to the tax law that may affect the Association, but the magnitude of such changes has not been determined.”