California Public Securities Association

“Client Note 1 - FORM 990 SCHEDULE CPOLITICAL CAMPAIGN AND LOBBYING ACTIVITIESSUPPLEMENTAL STATEMENTFOR THE TAX YEAR 2015, THE ORGANIZATION DID NOT HAVE ANY MEMBERSHIP DUES. THE ORGANIZATION DID HAVE LOBBYING EXPENSE WHICH EXCEEDED THE MEMBERSHIP DUES.THE IRS REQUIRES THAT THE ORGANIZATION MUST (A) ALLOCATE ALL MEMBERSHIP DUES TO ITS LOBBYING AND POLITICAL ACTIVITIES, AND (B) CARRY FORWARD ANY EXCESS LOBBYING AND POLITICAL EXPENSES TO THE NEXT YEAR. ANY ORGANIZATION THAT CHECKED "YES" TO PART III-A, LINE 2, IS REQUIRED TO COMPLETE PART III-B, AND MUST ALSO SEND DUES NOTICES TO ITS MEMBERS AT THE TIME OF ASSESSMENT OR PAYMENT OF DUES AND INCLUDE THE AMOUNT IT AGREED TO CARRYOVER AND IN ITS REASONABLE ESTIMATE OF THE DUES ALLOCABLE TO THE NONDEDUCTIBLE LOBBYING AND POLITICAL EXPENDITURES REPORTED IN PART III-B, LINE 2A.SINCE THE ORGANIZATION DID NOT HAVE ANY DUES PAYING MEMBERS IN 2015, IT COULD NOT NOTIFY THEM OF THE PORTION THAT IS NONDEDUCTIBLE. HOWEVER, IF THE SITUATION ARISES, THE ORGANIZATION WIL NOTIFY THE MEMBERS ANNUALLY OF THE AMOUNT OF DUES THAT ARE NOT DEDUCTIBLE AS A RESULT OF LOBBYING AND POLITICAL EXPEDITURES. AS A RESULT OF OF THIS NOTIFICATION, THE ORGANIZATION WILL NOT BE SUBJECT TO THE PROXY TAX.”

“Insurance $3199”

“OFFICE SUPPLIES $2300”

“Annual meeting expenses $1260”

“TELEPHONE $671”

“BANK CHARGES $190”

“FTB FILING FEES $10”