Mendocino College Foundation Inc.

“Student scholarships and support of college programs.”

“The foundation operates under section 501(c)(3) of the internal revenue code and section 23701(d) of the california revenue and taxation code and is exempt from federal and state income taxes. Accordingly, no provision for income taxes is included in the financial statements. In addition, the foundation qualifies for the charitable contribution deduction under section 170(b)(1)(a) and has been classified as an organization that is not a private foundation under section 509(a)(2). Fasb asc 740-10 clarifies the accounting for uncertainty in income taxes recognized in the foundations financial statements in accordance with fasb asc 740 and prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Fasb asc 740-10 also provides guidance on derecognition and measurement of a tax position taken or expected to be taken in a tax return. The foundation files exempt organization returns in the u.s. Federal jurisdiction and the state of california. The foundations federal exempt organization returns for tax years 2010 and beyond remain subject to examination by the internal revenue service. The foundations california exempt organization returns for tax years 2009 and beyond remain subject to examination by the franchise tax board. The foundation did not have unrecognized tax benefits as of june 30, 2014, and does not expect this to change significantly over the next 12 months. In connection with the adoption of fasb asc 740-10, the foundation will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. As of june 30, 2014, the foundation did not accrue interest or penalties related to uncertain tax positions.”