Maritime Academy is a private school that offers education to children from Kindergarten to Grade 8 . The school operates as a not-for-profit entity and oversight of the school is performed by the board of directors. The board reviews the operational and financial results monthly to ensure the school is meeting its budget responsibilities. Revenues for the school generally come from three sources: student tuition, government funding, and various fundraising programs seeking additional funds for specific purposes. Government funding is provided based on the number of students enrolled, and the funds are to be spent only on the provision of education services. A requirement of government funding is that the school must submit annual audited financial statements. Jones \& Black, CPAs are the auditors of the Maritime Academy. Their firm policy is to use the following percentages when determining materiality: 1. 5% of normalized pre-tax profit 2. 3% of equity 3. 1% of total assets 4. 2% of revenues OR expenses Performance Materiality is to be 65% of planning materiality. Select financial data for Maritime Academy is below: Required: Assess planning materiality (calculation) 2020 - remember to consider the users and objectives in your analysis (discussion). Also, calculate performance materiality. If you were assessing planning materiality for 2019 , would your base change? Why or why not