Pima Council on Aging Foundation

“Endowment funds are held to provide a permanent and broad based funding base that will insure the continuity of the Pima Council on Aging.”

“FIN 48 (ASC 740) Footnote from Consolidated Financial Statements: PCOA and Foundation are exempt from income taxes under both federal Internal Revenue Code Section 501(c)(3)) and Arizona income tax laws, and are classified as other than private foundations. Income from certain activities not directly related to these entities' tax-exempt purpose, however, may be subject to taxation as unrelated business taxable income (UBTI). PCOA for All was taxable as a corporation. When PCOA for All was converted to PimaCare it became a single-member limited liability company and is now a disregarded entity for tax purposes. As a result, PimaCare's activities are exempt from income taxes. Accordingly, income taxes presented on the consolidated statement of functional expenses represents the tax provision from income earned as PCOA for All and no provision for income taxes is provided for PimaCare. GAAP requires management to perform an evaluation of all tax positions taken or expected to be taken in the course of preparing the Organizations' tax returns to determine whether the tax positions meet a "more likely than not" standard of being sustained under examination by the applicable taxing authorities. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. PCOA and Foundation are only subject to income taxes on UBTI. As a result, these entities are required to file informational returns for federal and state purposes and, if it has UBTI, federal and state income tax returns. PCOA for All was required to file federal and state income tax returns. With limited exceptions, the Organizations are no longer subject to tax examination for any years earlier than 2012 for federal and 2011 for state. Management has performed its evaluation of tax positions taken on all open tax returns and has determined that there were no positions taken that do not meet the "more likely than not" standard.”