Durango Education Centerinc

“The board treasurer and executive director review the form 990 and approve the finalizing of the form 990. The board of directors are provided a final form 990.”

“The board of directors review and approve the executive director's annual salary, with no participation by the executive director or other interested persons. The executive director's salary is established using comparable data for similarly qualified persons in functionally comparable postitions at similar nonprofits, consideration of roles and responsibilities of the executive director, and cost of living data. Comparable market data is obtained from salary surveys and form 990s filed by comparable nonprofit organizations. Discussions and decisions regarding the compensation are documented in board of director's meeting minutes. The executive director also receives reimbursements for routine, reasonable, and documented expenses incurred during the year under and accountable plain. The organization has a travel policy that caps reimbursement levels and requires lowbudget travel.”

“The organization makes its governing documents, policies and financial statements available upon request by the public.”

“Prior year adjustment to restricted net assets = -$18228”

“Prior year adjustment to unrestricted net assets = -$64162”

“The organization is a nonprofit, voluntary health and welfate organization and is exempt from income tax as provided under section 501 (c)(3) of the internal revenue code, except on net income derived from unrelated business activites. The organization adopted accounting requirements that prescribe when to recognize and how to measure the financial statement effects of income tax positions taken or expected to be taken on its income tax returns, including the position that the organization continues to qualify to be treated as a tax-exempt organization for both federal and state income tax purposes. These ruled require management to evaluate the likelihood that, upon examination by relevant taxing jurisdictions, those income tax positions would be sustained. Based on that evaluation, if it were more than 50% probable that a material amount of income tax would be imposed at the entity level upon examination by the relevant taxing authorities, a liability would be recognized in the accompanying statement of financial position along with any interest and penalties that would result from that assessment. When the organizaiton business income tax returns (form 990t) would be subject to examination by the internal revenue service for three years after they are filed. Should any penalties and interest be incurred, they would be recognized as management and general expenses. Based on the results of management's evaluation, these requirements did not have a material effect on the organization's financial statements. Consequently, no liability is recognized in the accompanying statements of financial position for uncertain income tax positions.”