Adult Life Programs Inc.

“The organization has an agreement with the north carolina community foundation, inc. (the "foundation"), a north carolina non-profit corporation and community foundation, to create an agency endowment (the "endowment") of the foundation. In doing so, the organization transferred and delivered to the foundation all right, title and interest to the property initially contributed to the endowment. The endowment, including all investment income, capital gains, and subsequent contributions, is the foundation's property. The endowment is devoted to the support of the organization. As provided by the foundation's current policies and procedures, a distribution is made annually. Generally, the principal is not distributed, thus building a permanent and growing support for this charitable cause. However, the foundation may distribute all or any part of the endowment, including principal and income, at any time for any authorized purpose, in the foundation's discretion. Should the time come when the organization's charitable use, in the judgment of the foundation's board of directors, becomes unnecessary, undesirable, impracticable, incapable of fulfillment, or inconsistent with the charitable needs of the community served by the foundation, the endowment shall be redirected to the most similar cause as can be determined by the foundation's board of directors. In accordance with the financial accounting standards board ("fasb") asc 958, not-for-profit entities, the principal portion of the endowment is reflected as permanently restricted. Any unrealized gains and losses associated with the endowment are reflected as permanently restricted funds until they are distributed to the organization.”

“Adult life programs, inc. Has implemented accounting requirements associated with uncertainty in income taxes using the provisions of financial accounting standards board ("fasb") asc 740, income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of june 30, 2015, adult life programs, inc. Has no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.”