Teikyo Loretto Heights University

“Colorado heights and pathways are organized as colorado nonprofit corporations and have been recognized by the internal revenue service (irs) as exempt from federal income taxes under section 501(a) of the internal revenue code as organizations described in section 501(c)(3), qualify for the charitable contribution deduction under section 170(b)(1)(a)(ii) , and have been determined not to be private foundations under section 509(a)(1). Colorado heights is annually required to file a return of organization exempt from income tax (form 990) with the irs. Pathways is annually required to file a return of small exempt organizations (form 990-n). In addition, the entities are subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. Colorado heights files an exempt organization business income tax return (form 990-t) with the irs to report its unrelated business taxable income. Pathways has determined it is not subject to unrelated business income tax and has not filed an exempt organization business income tax return (form 990-t) with the irs. The university paid no unrelated business income tax during the year ended june 30, 2015. Each entity believes that it has appropriate support for any tax positions taken affecting its annual filing requirements and any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements. The entities would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Colorado heights forms 990-t and other income tax filings required by state, local, or non-u.s. Tax authorities are no longer subject to examination for years before 2012.”

“Scholarships netted with income on financial statements -160,714.”

“Rental expenses netted with income on form 990 -2,447,528. Loss on disposal of asset -5,969.”

“Rental expenses netted with income on form 990 2,447,528.”

“Tuition assistance netted with income on financials 160,714.”