Educational & Memorial Foundation of the Tennessee Society of Cpas

“The organization has established endowment funds to ensure the observance of limitations and restrictions placed on the use of contributions and support to the foundation. These contributions are permanently invested. A description of these funds follows: *the life associates scholarship fund was created to account for the proceeds of the organization's primary fundraising activities. This fund receives all life associates' contributions not otherwise restricted. The fund's investment income supports the organization's primary scholarship programs. Earnings on these investments are recorded as unrestricted since they fund the current scholarship awards. *the john glenn fund grants awards to individuals of exceptional performance on the uniform certified public accountancy examinations given in the state of tennessee. *the paul l. Royston fund, robert w. Knapp fund, maxie o. Patton fund, richard l. Townsend fund, will j. Pugh fund, calvin a. & jean c. King fund, bernie goldstein fund, ward harder fund, memphis chapter fund, nashville chapter fund, chattanooga chapter fund, west tennessee chapter fund, appalachian chapter fund, b. Bradford floyd fund, deloitte fund, bruce sullivan fund, david k. Morgan fund, imogene a. Posey fund, r. Michael cain fund, paula b. Thomas fund, and robert v. Whisenant fund each support annual scholarships to deserving accounting students. The organization's trustees, with assistance from the society's scholarship committee, determine the recipients of the scholarships and other awards.”

“The society and the affiliated local chapters are exempt from federal income taxes under section 501(c)(6) of the internal revenue code, with the exception of taxes on unrelated business activity. The foundation is exempt from federal income taxes under section 501(c)(3) of the internal revenue code, with the exception of taxes on unrelated business income activity. The society and the affiliated local chapters and foundation are taxable for state excise taxes related to unrelated business income activity. The tscpa follows fasb asc 740, income taxes, which prescribes a recognition threshold and measurement attribute for a tax position taken or expected to be taken in a tax return. Fasb asc 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The tscpa evaluates the tax positions taken on tax filings and consults with outside professionals in evaluating the likelihood of unfavorable results from any such tax position. The tscpa has determined fasb asc 740 has no material effect on the financial statements due to the minimal nature of the present level of unrelated business income.”