Step Up for Students - Florida Inc.

“In june 2014, legislation creating scholarships for special needs children was signed into law in florida. A gardiner scholarship account is established for each child that is awarded a special needs scholarship. Parents use this money to personalize the education of their children with unique abilities by directing money towards a combination of programs and state approved providers. These include schools, therapists, specialists, cirriculum and technology and college savings accounts. During the years ended june 30, 2018 and 2017, step up for students distributed approximately $77.1 million and $60.7 million, leaving a balance of approximately $58.4 million and $36.2 million respectively, which is recorded in the consolidated statement of financial position as both an asset and a liability. Step up for students is acting as an agent for this program, therefore, there are no revenues and expenses reported on the statement of activities for scholarship funds received and distributed from the state of florida.”

“Step up for students is exempt from federal income taxes under section 501(c)(3) of the internal revenue code and from state income taxes under similar provisions of the florida statutes. Accordingly, no provision for federal and state income taxes has been recorded in the financial statements. Step up for students has made an election under section 501(h) of the internal revenue code, which permits certain eligible 501(c)(3) organizations to make limited expenditures to influence legislation. Step up for students would be subject to an excise tax if it spends more than the amounts permitted. Such limits have not been exceeded. The alabama opportunity scholarship fund is a disregarded entity for federal and state income tax purposes and therefore, reports all federal and state tax information through step up for students. Accordingly, no provision for federal and state income taxes has been recorded in the accompanying consolidated financial statements. Step up for students follows accounting standards relating to accounting for uncertainty in income taxes. Management assessed whether there were any uncertain tax positions which may give rise to income tax liabilities and determined that there were no such matters requiring recognition in the consolidated financial statements. Generally, step up for students is no longer subject to u.s. Federal or state income tax examinations by tax authorities for years before june 30, 2015.”