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Notes to Financial Statements <br /> Page 5 <br /> Income Tax Status <br /> The Organization qualifies as a tax-exempt organization under <br /> Section 501(c) (3) of the Internal Revenue Code and, therefore, <br /> has no provision for federal or state income taxes. The <br /> Organization is not a private foundation under Section <br /> 170(b) (1) (A) (vi) of the Internal Revenue Code. <br /> On January 1, 2009, the Organization adopted the recognition <br /> requirements for uncertain income tax positions as required by <br /> generally accepted accounting principles, ASC 740-10, which <br /> prescribes how an organization should measure, recognize, <br /> present, and disclose uncertain income tax positions taken by <br /> an organization. There was no impact to the Organization's <br /> financial statements as a result of the implementation of ASC <br /> 740-10. <br /> The Organization's open audit periods are the fiscal years <br /> ended November 30, 2010 through November 30, 2012 . <br /> Estimates <br /> The presentation of financial statements in conformity with <br /> accounting principles generally accepted in the United States <br /> of America requires the Organization to make estimates and <br /> assumptions that affect certain reported amounts and <br /> disclosures. Accordingly, actual results may differ from those <br /> estimates. <br /> Reclassifications <br /> Certain 2012 balances have been reclassified to conform to 2013 <br /> presentation. <br /> Note 2: Estimated Retroactive Adjustments <br /> The Organization provides health care services to Medicare and <br /> Medicaid patients_ Reimbursements for covered services are <br /> based on tentative payment rates. Actual reimbursements are <br /> determined after the submission of annual cost reports which <br /> are audited by the intermediaries. Provision for estimated <br /> reimbursement adjustments is reported in the financial <br /> statements in the period that the services are provided. <br /> Total adjustments receivable as of November 30, 2013 and 2012 <br /> are $784,279 and $902,005, respectively. Total retroactive <br /> adjustments payable as of November 30, 2013 and 2012 are $-0- <br /> and $-0-, respectively. <br /> -18- <br />