Ballet Co-Laboratory

“It is noted that Denis Henrot serves as a volunteer bookkeeper and advisor within our organization. Additionally it is important to highlight that he is the father of Zoe Henrot who holds the position of Artistic Director.”

“A draft of Form 990 and schedules is provided to all board members & directors for their review before filing”

“Officers and directors do review and sign an official disclosure form once a year.”

“Compensation for director positions Managing and Artistic Directors was collected from Form 990 of about 20 similar organizations two years ago. It was determined that compensation for the organizations Managing Director was competitive with market whereas the compensation for the Artistic Director lagged. A two-step adjustment with full effect as of the beginning of fiscal 26 was approved by the board to align both compensations. Further all compensations are adjusted annually on a COLA and merit basis.”

“| Explanation:| A draft of Form 990 and schedules is provided to all board members & directors for their review before filing”

“| Explanation:| All public exhibits are available upon request. Also the organization publishes an Annual Report to the Community by the end of September of each year. This report includes the disclosure of financials among other information.”

“| Explanation:| In fiscal 25 the organization changed its method of accounting to prepare form 990 from Cash to Accrual so as to comply with auditing and statutory requirements mandated in the state of Minnesota.”

“| Explanation:| The Organization recognizes operating leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities for fixed lease payments. Fixed base rent is expensed on a straight-line over the lease term while variable lease costs including common area management CAM charges are expensed as incurred and excluded from lease capitalization. ROU asset is reported on Part X on line 15 whereas the corresponding lease liability is reported on Part X line 25.”

“| Explanation:| The Organization recognizes operating leases in accordance with ASC 842 by recording right-of-use assets and lease liabilities for fixed lease payments. Fixed base rent is expensed on a straight-line over the lease term while variable lease costs including common area management CAM charges are expensed as incurred and excluded from lease capitalization. ROU asset is reported on Part X on line 15 whereas the corresponding lease liability is reported on Part X line 25.”

“| Explanation:| The organization made significant adjustments that impacted its financial reporting. Firstly prior period adjustments were necessary to reflect Wages & Taxes for June 2024 which were not initially reported on Form 990 2023 due to the cash basis accounting used that year. This adjustment amounted to $23,471. Secondly as of January 31 2026 the organization renewed its lease on the premises at 276 East Lafayette Frontage Road. The newly extended lease will now expire on January 31 2031. Consequently the organization revised the Leasehold Improvements depreciation schedule to end concurrently with the new lease term prompting an acceleration in the depreciation of the original Leasehold Improvements cost basis. This adjustment resulted in a decrease in the book value of this asset from the previously reported $205,553. Additionally in fiscal 25 the organization implemented a Fixed Assets qualification policy retroactively impacting the fixed assets cost basis. This policy change caused a reduction in the fixed assets cost basis decreasing it from the prior reported $277,806 to $268,336 at the beginning of fiscal 25. The combined effect of these adjustments lowered the book value of net assets at the start of fiscal 25 from the previously reported $223,590 to $172,475. These changes were necessary to align the organizations financial reporting with updated policies and lease agreements ensuring transparency and accuracy of its financial statements”

“| Explanation:| ... Ctd from Schedule D Part XIII 3rd Paragraph. [3] All tax-exempt entities are subject to review and audit by federal state and other applicable agencies. Such agencies may review the taxability of unrelated business income or the qualification of the tax-exempt entity under the Internal Revenue Code and applicable state statutes. For federal tax purposes the tax returns remain open for possible examination for a period of three years after the respective filing deadlines of those returns.”