Irving Schools Foundation

“PART X, LINE 2 - Management has concluded that any tax positions that would not meet the more-likely-than-not criterion of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740-10 would be immaterial to the financial statements taken as a whole. Accordingly, the accompanying financial statements do not include any provision for uncertain tax positions, and no related interest or penalties have Been recorded in the operating statements or accrued in the statements of financial position. Federal AND STATE tax returns of the ENTITY are Generally open to examination by the relevant taxing authority for a period of three years from the date the returns are filed.”

“PART V, LINE 4 - Temporarily restricted net assets of $615,739 at December 31, 2014, remained available for the Foundation for use for education scholarships and grants to students and teachers. The Foundations endowments consist of several individual funds established to provide scholarships and grants to the teachers, students and campuses of the Irving Independent School District. The endowments include both donor-restricted endowment funds and funds designated by the Foundation Board of Directors to function as endowments. As required by US GAAP, net assets associated with endowment funds, including funds designated by the Foundation Board of Directors to function as endowments, are classified and reported based on the existence or absence of donor imposed restrictions. The Foundation Board of Directors has interpreted the Uniform Prudent Management of Institutional Funds Act (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor restrictions to the contrary. As a result of this interpretation, the Foundation classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulations to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the organization in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Foundation considers the following factors in making a determination to Appropriate or accumulate donor restricted endowment fund: (1) The duration and preservation of the fund (2) The purposes of the organization and the donor-restricted endowment fund (3) General economic conditions (4) The possible effect of inflation and deflation (5) The expected total return from income and the appreciation of investments (6) Other resources of the organization (7) The investment policies of the organization. THE BALANCE AT DECEMBER 31, 2014 WAS $2,531,112.”

“Part xi, line 2d - special event expenses - $30,954 are reported on the financial statements with expenses. For the purpose of the 990, they are netted with revenue on part viii, line 8b.”

“Part xii, line 2d - special event expenses - $30,954 are reported on the financial statements with expenses. For the purpose of the 990, they are netted with revenue on part viii, line 8b.”