Habitat for Humanity of Smith County

“Jennifer rosenlieb, director of new construction, is the mother of kearby dickeson, board director”

“The form 990 is reviewed and approved by the ceo. A copy of the return will be provided to each member of the board of directors for their review.”

“The organization does not enter into contracts, agreements or business activities with board members, staff or volunteers. Purchase procedures are reviewed semi-annually to ensure no conflicts of interest.”

“The Board did not evaluate the CEO in the current fiscal year. The CEO's compensation was increased by a "Cost of Living" budget line item, approved by the Board for all employees.”

“Governing documents, conflict of interest policy and financial statements are made available to the public upon request.”

“Deferred gain on like-kind exchange = -$17000”

“Unrelated business gross income was generated from the sale of purchased items rather than donated items at the restore. Gross sales for the restore were $839,669 of which $599,867 (71.44% of gross sales) were from donated items and $239,802 (28.56% of gross sales) were from purchased items. Since the income from the sale of merchandise did not substantially (at least 85%) come from donated goods to the organization, no exclusion is allowed for the sale of purchased items and the filing of form 990-t is required.”

“Form 990, part x, line 10a (land, buildings and equipment) agrees to the financial statement audit, however is different from the depreciation schedule on the tax return by $3,506. The difference is due to a like-kind exchange that occurred in fiscal year 2016 (2015 tax year). The like-kind exchange is recognized for gaap purposes on the audit, however is not recognized for exempt organizations on the tax return. In the like-kind exchange for the audit, the new asset absorbed a deferred loss of $3,506, which increased the asset basis. However, on the 2015 tax return, we disposed of the old asset, effectively reporting the loss of $3,506, and then entered a new asset at the original cost, (which effectively was $3,506 less than the basis in the asset per the audit). A reconciling item was included in part xi of the 2015 tax return to reflect the difference in ending net assets. The difference will be resolved in the future when the asset is disposed, at which point the gain or loss on the disposal of the asset will be reported with a difference of $3,506 between the audit and the tax return (due to the difference in basis). Part xi and xii will each include a reconciling item of $3,506 to reflect the differences.”