Austin Parks Foundation

Part X, Line 2:

“The foundation is exempt from federal income taxes under section 501(c)(3) of the internal revenue code. Unrelated business income, of which the foundation had no significant amounts for the years ended september 30, 2014 or 2013, is subject to federal income taxes. Accordingly, there is no provision or liability for federal income taxes in the accompanying financial statements. The foundation regularly assesses uncertain tax positions in each of the tax jurisdictions in which it has operations and accounts for the related financial statement implications. Unrecognized tax benefits are reported using the two-step approach under which tax effects of a position are recognized only if it is "more-likely-than-not" to be sustained and the amount of the tax benefit recognized is equal to the largest tax benefit that is greater than fifty percent likely of being realized upon ultimate settlement of the tax position. Determining the appropriate level of unrecognized tax benefits requires the foundation to exercise judgment regarding the uncertain application of tax law. The amount of unrecognized tax benefits is adjusted when information becomes available or when an event occurs indicating a change is appropriate. Future changes in unrecognized tax benefits requirements could have a material impact on the results of operations. The foundation is generally no longer subject to tax examinations relating to us federal tax returns for years prior to fiscal year ended september 30, 2010.”