Providence Classical Academy Inc.

“The academy is exempt from federal and state income taxes under section 501(c)(3) of the internal revenue code. In addition, the academy has been determined by the internal revenue service not to be a private foundation within the meaning of section 509(a) of the irc. Income, which is not related to exempt purposes, less applicable deductions, is subject to federal and state corporate income taxes. The academy had no net unrelated business income during the year ended june 30, 2014 or 2013. The accounting standard on accounting for uncertainty in income taxes addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, the academy may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The guidance on accounting for uncertainty in income taxes also addresses de-recognition, classification, interest and penalties on income taxes, and accounting in interim periods. Management evaluated the academy's tax positions and concluded that the academy has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. Generally, the academy is no longer subject to income tax examinations by the u.s. Federal, state, or local tax authorities for fiscal years before 2011.”

“Fundraising expenses reported on statement of revenue 49,180. Accrual vs. Cash conversion difference 19,338.”

“Fundraising expenses reported on statement of revenue 49,180.”

“Accrual vs. Cash conversion difference 63,277.”