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HomeMy WebLinkAboutJefferson Land Trust Sponsor Information 2018JEFFERSON LAND TRUST 2018 OPERATING BUDGET INCOME 2018 Restricted Capital Funds, Grant Funds from Gov'l and Private Sources $196,000 Operations Income Annual Contributions $293,000 Special Events $162,000 Fee for Services $151,000 Investment Income $8,000 Other / Release from Restriction $68,000 TOTAL INCOME $878,000 EXPENSE Program Expenses Advertising, Facility Rental, Food, Travel, Postage, Supplies, Printing $55,000 Acquisition and Conveyance Acquisition and closing expenses, due diligence expenses, recording fees $1,100 Land/Easement Holding Expenses $26,000 Professional Services Appraisals, environmental assessments, legal, surveys, financial management, land consulting $129,000 Administrative Expenses Accounting, equipment, postage, shipping, rent, communications, utilities $107,000 Training $9,000 Payroll $548,000 TOTAL EXPENSE $875,000 NET INCOME $3,000 BO A R D M E M B E R AD D R E S S PH O N E E- M A I L FI T C H , R o b i n - P r e s i d e n t ( D a n i e l B r a k e ) 1 0 5 F i n i s T r a i l , N o r d l a n d 9 8 3 5 8 3 6 0 - 3 8 5 - 3 1 5 9 r b n f i t c h @ g m a i l . c o m MO O R E , S t e v e - V i c e - P r e s i d e n t ( G i g i C a l l a i z a k i s ) 29 0 4 J a c k m a n S t , P T 3 7 9 - 6 9 8 4 ( H ) ; ( 3 6 0 ) 7 7 4 - 1 1 6 0 ( C ) ; ( 3 0 3 ) 4 7 5 - 9 1 8 7 s t e v e . a t . j l t @ g m a i l . c o m MA C H E T T E , M i c h a e l - T r e a s u r e r ( N a n c y ) 1 2 0 F a i r b r e e z e D r , P T 3 8 5 - 2 2 2 4 ( H ) ; ( 3 6 0 ) 5 3 1 - 2 4 4 1 ( C ) M a c h e t t e 1 5 5 0 @ g m a i l . c o m AX T M A N , B e t h a n y ( D e a n C r o w e ) 2 4 9 K e n n e d y R d P H 9 8 3 3 9 ( 3 6 0 ) 3 7 9 - 2 4 0 8 b a x t m a n @ g m a i l . c o m SC H W E N D I M A N , M a r c i a 23 L o n g m i r e L n , P L 9 8 3 6 5 4 2 5 - 2 1 8 - 5 4 5 8 m a r c i a s c h w e n d i m a n @ g m a i l . c o m HU L T M A N , G l e n d a ( P e t e r G e e r l o f s ) 5 3 3 1 F l a g l e r R d , N o r d l a n d 9 8 3 5 8 ( 3 6 0 ) 5 3 1 - 2 3 7 3 ( C ) ; 3 8 5 - 4 2 2 4 ( H ) t u e s d a y @ o l y m p u s . n e t KE I S T E R , G a r y ( S u s a n ) P O B o x 1 9 2 9 , P T 3 8 5 - 3 6 8 2 ( W ) ; 3 8 5 - 2 3 3 1 ( H ) g j k e i s t e r @ g m a i l . c o m WA R D R O P , D e b b i e ( M i c h a e l ) 2 0 4 S e a w a y P l a c e , P L 9 8 3 6 5 3 6 0 - 4 3 7 - 7 0 7 0 D W a r d r o p @ p o r t l u d l o w r e s o r t . c o m EV A N S , N a n ( F r e d N u s s b a u m ) 1 0 1 1 5 7 t h S t r e e t P T 5 0 3 - 7 0 9 - 5 9 1 9 n a n s w a l t z @ e a r t h l i n k . n e t BR I T T O N , C r a i g ( C a r l e e n B r u i n s ) P O B o x 5 8 3 , P T ( 3 6 0 ) 3 4 4 - 2 4 8 4 f r o g l e a p @ s o n i c . n e t SA N F O R D , T o m ( C a r r i e ) 60 2 E a s t F r o n t S t r e e t , P o r t A n g e l e s 9 8 3 6 3 ( 3 6 0 ) 4 1 7 - 1 8 1 5 to m @ n o r t h o l y m p i c l a n d t r u s t . o r g WE I N H E I M E R , M a l l o r e e 25 5 N . J a c o b M i l l e r R d P T 9 8 3 6 8 ( 7 0 3 ) 6 2 7 - 9 7 6 3 in f o @ j e f f e r s o n l a n d w o r k s . o r g SH O W A L T E R , M a r i l y n 15 9 6 S h i n e R d P o r t L u d l o w ( 3 6 0 ) 2 5 9 - 1 7 0 0 ma r i l y n . s h o w a l t e r @ g m a i l . c o m LL C Po r t H a d l o c k , W A 9 8 3 3 9 BO W M A N , M a r k - P r e s i d e n t ( N a n c y ) 2 1 3 9 W 7 t h S t , P A 9 8 3 6 3 ( 3 6 0 ) 4 6 1 - 4 1 3 1 ( C ) b o w m a n @ o l y p e n . c o m HU L T M A N , G l e n d a - B o a r d m e m b e r ( P e t e r G e e r l o f s ) 5 3 3 1 F l a g l e r R d , N o r d l a n d 9 8 3 5 8 ( 3 6 0 ) 5 3 1 - 2 3 7 3 ( C ) ; 3 8 5 - 4 2 2 4 ( H ) t u e s d a y @ o l y m p u s . n et FA I R B A N K , O w e n B o a r d m e m b e r ( S a r a h ) 8 1 5 V a n B u r e n S t , P T ( 3 6 0 ) 3 8 5 - 2 3 4 6 ( H ) so f a i r b a n k @ o l y m p u s . n e t SP A E T H , S a r a h - B o a r d m e m b e r 3 7 4 N J a c o b M i l l e r R d , P T 3 8 5 - 7 8 9 0 ( H ) ; ( 3 6 0 ) 6 4 3 - 0 5 7 0 ( C ) s s p a e t h @ s a v e l a n d . o r g ; e d @ s a v e l a n d . o r g ; s l s pa e t h 5 7 @ g m a i l . c o m AX T M A N , B e t h a n y ( D e a n C r o w e ) 2 4 9 K e n n e d y R d P H 9 8 3 3 9 ( 3 6 0 ) 3 7 9 - 2 4 0 8 b a x t m a n @ g m a i l . c o m ST A F F TU C K E R , R i c h a r d - E x e c u t i v e D i r e c t o r 32 0 N P a l m e r D r . P T (4 0 4 ) 3 4 5 - 2 4 3 6 ( C ) r t u c k e r @ s a v e l a n d . o r g , r i c h a r d m t u c k e r @ e a r t h l i n k . n e t SP A E T H , S a r a h - ( e x t . 1 0 1 ) D i r e c t o r , C o n s e r v a t i o n a n d S t r a t e g i c P a r t n e r s h i p s ( T o m G e o r g e ) 3 7 4 N J a c o b M i l l e r R o a d , P T 3 8 5 - 7 8 9 0 ( H) ; ( 3 6 0 ) 6 4 3 - 0 5 7 0 ( C ) pr o g r a m s @ s a v e l a n d . o r g ; e d @ s a v e l a n d . o r g ; s l s p a e t h 5 7 @ g m a i l . c o m KI N G F I S H E R , E r i k - ( e x t 1 0 3 ) S t e w a r d s h i p D i r e c t o r ( J e n ) 11 3 0 3 1 s t S t , P T 37 9 - 5 6 8 1 ( H ) ; ( 3 6 0 ) 5 3 1 - 2 2 9 4 ( C ) s t e w a r d @ s a v e l a n d . o r g ; e k i n g s f i s h e r @ s a v e l a n d . o r g CL A R K , C h r i s - ( e x t 1 0 2 ) D i r e c t o r , C o m m u n i c a t i o n s a n d D e v e l o p m e n t ( R o y ) 2 9 1 0 K i m b a l l C o u r t U n i t 2 P T ( 2 0 6 ) 2 5 1 - 4 1 3 6 ( C ) c c l a r k @ s av e l a n d . o r g , m s m a r x c @ g m a i l . c o m RO B E R T S O N , C a r o l i n e - ( e x t 1 0 5 ) O u t r e a c h D i r e c t o r P O B o x 2 0 3 2 , P T ( 5 5 9 ) 9 0 5 - 6 3 9 5 ( C ) c r o b e r t s o n @ s a v e l a n d . o r g ; b i g b o a t b r o t h e r @ g m a i l. c o m CL E N D A N I E L , C a r r i e - ( e x t 1 0 9 ) S t e w a r d s h i p A s s o c i a t e ( C l a y t o n Z i m m e r m a n ) 2 0 1 0 J a c k m a n S t , P T ( 3 6 0 ) 4 6 1 - 9 5 0 5 ( C ) c c l e n d a n i e l @ s a v e la n d . o r g ; c c l e n d a n i e l @ g m a i l . c o m ZA B L O C K I - A X L I N G , S a r a h - ( e x t 1 0 8 ) D e v e l o p m e n t M a n a g e r 63 3 1 9 t h S t , P T (2 0 6 ) 7 1 3 - 9 5 7 6 ( H ) s z a x l i n g @ s a v e l a n d . o r g , z a b l o c k i . a x l i n g @ g m a i l . c o m CA L H O U N , J e n n i f e r ( n o e x t ) F i n a n c e D i r e c t o r (5 0 9 ) 9 9 0 - 1 6 7 8 jc a l h o u n @ s a v e l a n d . o r g WA C K E R , K a t h l e e n - ( e x t 1 0 6 ) F i n a n c e A s s i s t a n t 26 7 S k i d d e r H i l l R d , Q u i l 9 8 3 7 6 7 6 5 - 0 0 8 1 ( H ) ; ( 9 2 5 ) 4 0 8 - 1 6 1 9 ( C ) kw a c k e r @ s a v e l a n d . o r g ; k a t h l e e n w a c k e r @ g m a i l . c o m BA T T E R S B Y , C a i t l i n - ( e x t 1 0 7 ) A d m i n i s t r a t i v e a n d D e v e l o p m e n t A s s i s t a n t 23 0 0 S D i s c o v e r y R d , P T ( 3 5 2 ) 2 2 3 - 9 5 6 0 ( C ) cb a t t e r s b y @ s a v e l a n d . o r g CO R E S U P P O R T AI C K I N , L e s l i e - G e o l o g y G r o u p f a c i l i t a t o r 3 2 0 M e a d o w R d , P T 3 8 5 - 9 2 7 0 ( H ) l e s l i e a i c k i n @ g m a i l . c o m AL M A E E , Z h a l e h - E v e n t C o o r d i n a t o r 3 4 9 3 5 t h S t , P T ( 3 6 0 ) 8 2 1 - 1 5 9 1 a r t i s t o r g a n i z e r @ g m a i l . c o m AR N N , B a r b a r a - F o r m e r O u t r e a c h M a n a g e r & d a t a b a s e q u e e n 7 7 6 L a n d i s L a n e , P T 3 4 4 - 3 1 6 3 ( H ) x a n g o @ o l y m p u s . n e t BA I E R , A n n - ( J o e ) P O B o x 6 5 0 5 5 , P L 9 8 3 6 5 ( 3 6 0 ) 4 3 7 - 7 9 3 0 ; ( 3 6 0 ) 3 0 2 - 0 3 3 6 ( C ) a b a i e r @ s a v e l a n d . o r g ; a t b a i e r @ a o l . c o m BE R Z U P S , I l o n a - w e b s i t e P O B o x 1 6 4 6 7 , S e a t t l e 9 8 1 1 6 ( 2 0 6 ) 4 6 2 - 5 5 1 8 ( W ) ; ( 2 0 6 ) 2 2 5 - 5 7 9 3 ( C ) i l o n a @ n x p a g e . c o m CA N N A V A R O , S h a n a - S k o o k u m s c a n n i n g v o l u n t e e r / w o r k e r ma r i l y n m o n r o f a n . c a n n a v a r o 5 @ g m a i l . c o m DI E F E N D E R F E R , H e i d a ( N a t h a n L a n d ) 1 5 2 4 S h e r i d a n , P T ( 3 6 0 ) 3 7 9 - 0 2 1 0 h e i d a l i n @ g m a i l . c o m DO R N , M a l c o l m - W a l l y w o r k s 38 5 - 2 7 7 1 ( W ) ; 3 8 5 - 0 9 4 4 ( H ) ; ( 3 6 0 ) 7 7 4 - 2 2 5 0 ( C ) wa l l y w o r k s @ o l y m p u s . n e t EI S E N H O U R , H e i d i - F o r m e r E D & D D P O B o x 3 3 8 , P H 9 8 3 3 9 3 7 9 - 1 0 7 2 ( H ) ; ( 3 6 0 ) 6 4 3 - 1 3 0 8 ( C ) e i s e n h o u r @ o l y m p u s . n e t ; w a l a n d t r u s t s @ g m a i l . co m FA I R B A N K , O w e n - C P C C h a i r ( S a r a h ) 5 0 8 L a w r e n c e S t , P T 3 8 5 - 2 3 4 6 ( H ) s o f a i r b a n k @ o l y m p u s . n e t GI L L I G A N , V i c t o r i a - E v e n t s u p p o r t ( J i m L a m b ) (2 1 2 ) 9 2 0 - 5 6 4 3 ( C ) v i c @ v i c t o r i a g i l l i g a n . c o m HU N T I N G F O R D , D a n - S O S P R I N T I N G 38 5 - 4 1 9 4 s o s @ o l y m p u s . n e t JO H N S O N , P e g g y - C r e a t i v i t y C o v e c o n t a c t 36 0 - 3 0 1 - 2 2 0 7 j o h n s o n p e g g y l @ g m a i l . c o m LA M K A , K a t h r y n 25 0 M a p l e L a n e , P L 9 8 3 6 5 4 3 7 - 2 5 5 7 ( H ) ; ( 2 0 6 ) 9 3 1 - 0 2 2 7 ( C ) k a t h r y n l a m k a @ g m a i l . c o m MA C H E T T E , M i c h a e l - G e o l o g y g r o u p p r o g r a m d i r e c t o r 1 2 0 F a i r b r e e z e D r , P T 3 8 5 - 2 2 2 4 ( H ) ; ( 3 6 0 ) 5 3 1 - 2 4 4 1 ( C ) p a l e o s e i s @ g m a i l . c o m MA S O N , D o u g - l e g a l s u p p o r t 2 4 0 4 3 5 t h S t , P T 3 8 5 - 1 5 1 7 ( H ) ; ( 3 6 0 ) 6 4 3 - 3 1 6 3 ( C ) s e a h o r s e @ o l y m p u s . n e t Mc C L E E S E , T i n a - C l a r i t y E n t e r p r i s e s o w n e r 7 3 4 W a t e r S t # 2 0 3 , P T 3 8 5 - 9 9 6 3 ( W ) ; 3 8 5 - 5 1 8 0 ( H ) ; ( 3 6 0 ) 3 0 1 - 4 4 3 8 ( C ) t i n a @ m c c l e e s e . n e t ; F A X : 3 7 9 - 5 4 7 5 Mc K E E , S e l d e n - p h o t o g r a p h y & w r i t i n g 37 9 - 3 3 4 1 b o d g e r m c k e e @ y a h o o . c o m NE B E L , P a m - C l a i r t y E n t e r p r i s e s s u p p o r t 7 3 4 W a t e r S t # 2 0 3 , P T 38 5 - 9 9 6 3 ( W ) ; 3 7 9 - 5 1 3 1 ( H ) ; ( 3 6 0 ) 7 7 4 - 1 6 2 8 ( C ) pa m @ c l a r i t y e i . c o m ; F A X : 3 7 9 - 5 4 7 5 PO S T , F r a n & D a n - v o l u n t e e r s / a u c t i o n , d ’ b a s e 55 4 - 0 4 1 7 f r a n . p o s t @ f r a n d a n g o . o r g , d a n . p o s t @ f r a n d a n g o . o r g RE E D , K i t t y - G e o l o g y G r o u p p r o g r a m c o - d i r e c t o r 9 2 7 5 6 t h S t , P T 3 8 5 - 6 0 0 2 t h o r c o g w @ o l y p e n . c o m RE I D , J e r r i - D e v o C h a i r / k e y v o l u n t e e r 1 3 3 1 E L u d l o w R i d g e R d , P L 9 8 3 6 5 ( 3 6 0 ) 4 3 7 - 9 9 7 7 r e i d i v i v a @ y a h o o . c o m TY L E R , J o a n n e ( L e n ) 1 3 2 5 Q u i n c y , P T 3 7 9 - 9 2 5 5 ( H ) ; ( 3 6 0 ) 7 7 4 - 6 6 6 7 ( C ) j oa n n e t @ o l y m p u s . n e t VA N C L E V E , B r i e 1 1 1 7 1 3 t h S t , P T ( 3 6 0 ) 6 4 3 - 1 2 6 6 B r i e . v a n . c l e v e @ g m a i l . c o m WH I P P L E , K r i s t i n a (5 4 1 ) 5 5 6 - 7 2 3 1 w h i p p l e s n a p p e r @ g m a i l . c o m Je f f e r s o n L a n d T r u s t R o s t e r 0 1 / 3 1 / 2 0 1 7 | F e d e r a l T a x I D - 9 1 - 1 4 6 5 0 7 8 | D U N S # 8 0 2 5 7 7 3 6 1 | U B I # 6 0 1 1 7 3 6 8 1 | p h o n e - 3 7 9 - 9 5 0 1 | 2n d l i n e - 3 7 9 - 1 1 3 5 | F a x # 3 7 9 - 9 8 9 7 | C h a r i t a b l e T r u s t # 2 9 1 2 1 | C h a r i t a b l e S o l i c i t a t i o n # 2 6 1 4 1 Jefferson Land Trust Organization March 2018 Jefferson Land Trust Board of Directors Jefferson Land Trust Advisor’s Circle Executive Director Richard Tucker 1.0 FTE Stewardship Director Erik Kingfisher 1.0 FTE Finance Manager Jennifer Calhoun.6 FTE Director of Conservation and Strategic Partnerships Sarah Spaeth 1.0 FTE Deputy Director Chris Clark 1.0 FTE VCC Intern 1 FTE Preserve Manager Carrie Clendaniel 1.0 FTE Finance Assistant Kathleen Wacker .5 FTE Outreach Director Caroline Robertson 1.0 FTE Development Manager Sarah Zablocki- Axling 1.0 FTE Admin Assistant Rebekah Korenowsky .6 FTE JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Years Ended December 31, 2016 and 2015 Aiken & Sanders, Inc PS CERTIFIED PUBLIC ACCOUNTANTS & MANAGEMENT CONSULTANTS TABLE OF CONTENTS Independent Auditor’s Report .......................................................................................................... 1 Consolidated Financial Statements: Consolidated Statement of Financial Position ............................................................................................. 5 Consolidated Statement of Activities and Changes in Net Assets-2016 ................................................. 7 Consolidated Statement of Activities and Changes in Net Assets-2015 ...................................................... 8 Consolidated Statement of Functional Expenses-2016 ................................................................................ 9 Consolidated Statement of Functional Expenses-2015 .............................................................................. 11 Consolidated Statement of Cash Flows ....................................................................................................... 9 Notes to the Consolidated Financial Statements ................................................................... 11 Aiken&S anders, Inc PS Independent Auditor’s Report To the Board of Directors Jefferson Land Trust & Subsidiary Port Townsend, WA Report on the Financial Statements We have audited the accompanying consolidated financial statements of Jefferson Land Trust and Subsidiary (collectively, JLT, a nonprofit organization), which comprise the consolidated statement of financial position as of December 31, 2016 and 2015, and the related consolidated statements of activities and changes in net assets, functional expenses, and cash flows for the years then ended, and the related notes to the consolidated financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free from material misstatement. 343 West Wishkah Street, Aberdeen, Washington 98520-6130 CERTIFIED PUBLIC ACCOUNTANTS Telephone (360) 533-3370 Fax (360) 532-7123 & MANAGEMENT CONSULTANTS An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal cont rol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the JLT as of December 31, 2016 and 2015, and changes in net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Aiken & Sanders, Inc., PS Certified Public Accountants & Management Consultants June 10, 2017 2 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2016 and December 31, 2015 Assets 2016 2015 Current Assets: Cash and cash equivalents $ 461,603 $ 477,335 Accounts receivable ,323 33 ,645 49 Current pledges receivable ,322 82 ,724 97 Note receivable-current portion ,380 4 ,167 4 Prepaid expenses ,610 12 5,306 Total Current Assets Land and Conservation Easements: 594,238 634,177 Habitat land ,533,608 2 ,490,598 2 Working land ,728 97 ,728 97 Open space land 332,761 332,771 Conservation easements 57 54 Total Land and Conservation Easements Fixed Assets: ,964,154 2 ,921,151 2 Furniture, equipment, and improvements ,469 82 ,530 68 Less: Accumulated depreciation (35,801 ) (28,314) Fixed assets, net Other Assets: ,668 46 40,216 Long term pledges receivable 123,122 213,374 Long term note receivable ,497 58 ,877 62 Land hold fee-net ,331 58 ,000 75 Investments 754,875 553,243 Total Other Assets 994,825 904,494 Total Assets ,599,885$ 4 $ 4,500,038 The accompanying notes are an integral part of these financial statements 3 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2016 and December 31, 2015 Liabilities & Net Assets 2016 2015 Current Liabilities: Accounts payable ,046$ 6 ,589$ 17 Accrued liabilities and deferred revenue ,490 48 42,198 Total Current Liabilities Long- Term Liabilities: ,536 54 59,787 Total Long-Term Liabilities Net Assets: Unrestricted - - Undesignated 398,270 339,559 Board designated 3,012,737 2,926,151 3,411,007 3,265,710 Temporarily restricted ,072,441 1 ,121,942 1 Permanently restricted ,901 61 52,599 Total Net Assets ,545,349 4 4,440,251 Total Liabilities & Net Assets ,599,885$ 4 $ 4,500,038 The accompanying notes are an integral part of these financial statements 4 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2016 Unrestricted Support and Revenues: Gifts and contributions $ 125,621 $ 253,620 $ 7,920 $ 387,161 Fair value of easement acquisitions 1,010,000 - - 1,010,000 Grants and contracts Special events income, net of 488,371 - - 488,371 expenses of $38,620 103,197 - - 103,197 Net investment return 51,277 - 1,382 52,659 Net assets released from restriction 303,121 (303,121) - - Total Support and Revenue Expenses: 2,081,587 (49,501) 9,302 2,041,388 Program services 1,593,001 - - 1,593,001 Management and general 174,984 - - 174,984 Fundraising 168,305 - - 168,305 Total Expenses 1,936,290 - - 1,936,290 Temporarily Permanently Total Restricted Restricted 2016 The accompanying notes are an integral part of these financial statements 5 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Activities and Changes in Net Assets For the Year Ended December 31, 2015 Unrestricte d Change in Net Assets 145,297 (49,501) 9,302 105,098 Net Assets, Beginning of Year 3,265,710 1,121,942 52,599 4,440,251 Net Assets, End of Year $ 3,411,007 $ 1,072,441 $ 61,901 $ 4,545,349 Support and Revenues: Gifts and contributions $ 130,437 $ 304,411 $ 7,660 $ 442,508 Grants and contracts Special events income, net of 1,441,631 - - 1,441,631 expenses of $34,818 123,726 - - 123,726 Temp orar ily Per man ently Tota l Rest ricte d Rest ricte d 2015 The accompanying notes are an integral part of these financial statements 6 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2016 Management Fund- Total Program and General Raising 2016 Salaries $ 242,515 $ 67,288 $ 96,208 $ 406,011 Timber sales - 9,385 - 9,385 Net investment return 7,613 - 460 8,073 Net assets released from restriction 361,752 (361,752) - - Total Support and Revenue Expenses: 2,065,159 (47,956) 8,120 2,025,323 Program services 557,064 - - 557,064 Management and general 172,916 - - 172,916 Fundraising 118,765 - - 118,765 Total Expenses 848,745 - - 848,745 Change in Net Assets 1,216,414 (47,956) 8,120 1,176,578 Net Assets, Beginning of Year 2,049,296 1,169,898 44,479 3,263,673 Net Assets, End of Year $ 3,265,710 $ 1,121,942 $ 52,599 $ 4,440,251 Payroll taxes 19,511 5,414 7,740 32,665 Employee benefits 28,894 8,017 11,463 48,374 Value of conservation easements written down 1,009,997 - - 1,009,997 Professional fees 153,944 47,311 24,395 225,650 Land and stewardship expenses 73,158 - - 73,158 Rent 14,001 3,436 5,150 22,587 Public awareness 4,056 523 1,549 6,128 Dues and subscriptions 2,817 1,207 1,627 5,651 Insurance 9,344 1,325 1,894 12,563 Postage and printing 5,781 216 8,060 14,057 Other 2,257 34,095 9 36,361 Travel and seminars 10,579 2,714 2,269 15,562 Office supplies 5,314 765 1,767 7,846 Telephone 3,040 844 1,205 5,089 Depreciation and amortization 4,385 1,092 2,010 7,487 Utilities 743 206 294 1,243 Web design and maintenance 2,665 - 2,665 5,330 Bank fees - 531 - 531 Total Expenses $ 1,593,001 $ 174,984 $ 168,305 $ 1,936,290 The accompanying notes are an integral part of these financial statements. 7 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Functional Expenses For the Year Ended December 31, 2015 Management Fund- Total Program and General Raising 2015 Salaries $ 260,528 $ 80,690 $ 70,098 $ 411,316 Payroll taxes 20,556 6,526 5,547 32,629 Employee benefits 26,967 8,561 7,277 42,805 Professional fees 137,450 45,282 16,127 198,859 Land and stewardship expenses 54,908 - - 54,908 Rent 15,621 4,510 3,832 23,963 Public awareness 4,141 98 3,475 7,714 Dues and subscriptions 1,989 631 537 3,157 Insurance 9,124 1,518 1,290 11,932 Postage and printing 5,687 255 6,383 12,325 Other 1,442 17,171 39 18,652 Travel and seminars 4,747 3,113 504 8,364 Office supplies 5,072 1,242 1,055 7,369 Telephone 2,980 946 804 4,730 Depreciation 4,511 1,432 1,217 7,160 Utilities 1,040 330 280 1,650 Web design and maintenance 301 - 300 601 Bank fees - 611 - 611 Total Expenses $ 557,064 $ 172,916 $ 118,765 $ 848,745 The accompanying notes are an integral part of these financial statements 8 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2016 and December 31, 2015 2016 2015 Cash flows from operating activities: Cash received from grantors, donors and customers ,086,139$ 2 ,019,107$ 2 Cash paid to suppliers and employees ,925,450) (1 (845,159) Cash received from interest ,171 19 10,575 Net cash provided (used) by operating activities Cash flows from investing activities: 179,860 1,184,523 Cash paid for equipment and improvements (13,938) (40,244) Cash paid for investments (283,657) (450,832) Cash received from investments 137,838 273,100 Proceeds from notes receivable ,167 4 ,964 3 Cash paid for land (65,002) ,017,800) (1 Cash paid for land hold fee - (100,000) Cash received from refund of land hold fee ,000 25 - Net cash provided (used) by investing activities Cash flows from financing activities: (195,592) (1,331,812) Net cash provided (used) by financing activities - - Net increase (decrease) in cash & cash equivalents (15,732) (147,289) Cash & cash equivalents at beginning of year 477,335 624,624 Cash & cash equivalents at end of year $ 461,603 $ 477,335 The accompanying notes are an integral part of these financial statements 9 Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2016 and December 31, 2015 Reconciliation of increase (decrease) in net assets to net cash provided (used) by operating activities: Increase (decrease) in net assets: Adjustments: $ 105,098 ,176,578$ 1 Depreciation and amortization ,160 7 ,160 7 Land hold fee amortization (adjustment) ,331) (8 ,000 25 Realized and unrealized losses (gains) on investments (33,488) ,540 2 Donated land Changes in assets and liabilities: - (158,020) (Increase) decrease in accounts receivable ,322 16 (14,471) (Increase) decrease in pledges receivable 105,654 140,025 (Increase) decrease in prepaid expense ,304) (7 (751) Increase (decrease) in accounts payable (11,543) (662) Increase (decrease) in accrued expenses and deferred revenue ,292 6 7,124 Net cash provided (used) by operating activities $ 179,860 $ 1,184,523 The accompanying notes are an integral part of these financial statements 10 A. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization-- Jefferson Land Trust (The Land Trust) is a Washington not-for-profit corporation formed on April 7, 1989. The Land Trust’s purpose is to acquire, preserve and manage open space lands and easements for land conservation purposes benefitting the public. The Land Trust also provides information and materials to the public on land conservation issues. The Land Trust serves Jefferson County on the Olympic Peninsula in Washington State. The Land Trust has been accredited by the national Land Trust Alliance since August 5, 2009. On September 5, 2007, JLT Resources, LLC was formed with the Land Trust as its only member. JLT Resources, LLC was formed for the purpose of purchasing and holding land for conservation purposes. Principles of Consolidation-- 2016 2015 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 11 These financial statements consolidate the statements of Jefferson Land Trust and JLT Resources, LLC (collectively, “JLT”). Inter-organization balances and transactions have been eliminated in consolidation. Basis of accounting-- The consolidated financial statements of JLT have been prepared on the accrual basis of accounting. Basis of presentation— Net assets, revenues, gains and losses are classified based on the existence or absence of donor -imposed restrictions. Accordingly, the net assets of JLT and changes therein are classified and reported as follows: Unrestricted Net Assets- Include all net assets on which there are no donor-imposed restrictions for use, or for which donor-imposed restrictions were temporary and have expired or been fulfilled. Temporarily Restricted Net Assets- Include all net assets subject to donor imposed restrictions that will be met by actions of JLT and/or passage of time. Permanently Restricted Net Assets- Include all net assets received by donations wherein the donors impose a permanent restriction on the use of the gift. The donors require the gift to be invested and only the income from such investments may be used to support the intended cause. All donor-restricted support is reported as increases in temporarily or permanently restricted net assets, depending on the nature of the restriction. When restrictions expire (that is, when a stipulated time restriction ends and/or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from restriction. Gifts of equipment are reported as unrestricted support unless explicit restrictions that specify how the assets are to be used and gifts of cash and other assets that must be used to acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long those long-lived assets must be maintained, expirations of donor restrictions are reported when the donated or acquired long-lived assets are placed in service. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 12 Property and Fixed Assets-- Improvements, furniture and equipment are capitalized at cost if purchased, or, if donated, at the approximate fair value at the date of donation. When retired or otherwise disposed of, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference, less any amount realized from disposition, is reflected in earnings. Maintenance and repairs are charged to expense as incurred. Costs of significant improvements are capitalized. JLT provides for deprec iation using the straight-line method over the estimated useful lives of the assets of five to ten years. JLT records acquisitions of land at cost if purchased. Land acquired through donation is recorded at fair value, with fair values generally based on independent professional appraisals. These assets fall into two primary categories: Conservation Lands- Real property with significant ecological value for habitat, open space, or working lands. Stewardship programs of JLT manage these properties to protect the natural biological diversity of the property. JLT manages its working timberland as a Forest Stewardship Council-Certified, managed forest. Conservation Easements- Voluntary legal agreements between a landowner and a land trust or go vernment agency to permanently protect the identified natural features and conservation values of the property. These easements may be sold or transferred to others so long as the assignee agrees to carry out, in perpetuity, the conservation purposes intended by the original grantor. Conservation easements owned by JLT protect habitat, open space and working lands, such as family farms, through its stewardship programs. Easements acquired represent numerous restrictions over the use and development of land not owned by JLT. Since the benefits of such easements accrue to the public upon acquisition, the fair market value of easements acquired is shown in the year of acquisition as an addition to net assets to record the donation of the easement, and unless conveyed to a public agency for consideration, shown as a reduction in net assets to record the value of the public’s benefit and to recognize that these easements have no marketable value once severed from the land and held by JLT. Easements held by JLT are carried on the consolidated statement of financial position at $1 each for tracking and accounting purposes. One easement valued at $68,000 in total was donated to JLT during the year ending December 31, 2016. Accordingly, $68,000 of contribution revenue and $67,999 of related write down expense have been reported on the consolidated statement of activities for the year end December 31, 2016. Estimates-- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates. Expense Allocation-- The costs of providing various programs and other activities have been summarized on a functional basis in the consolidated statement of functional expense. Accordingly, certain costs have been allocated among the programs and supporting services in line with benefits received. Cash and Cash Equivalents-- For reporting purposes, JLT considers all unrestricted highly liquid investments with a purchased maturity of three months or less to be cash and cash equivalents. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 13 Concentrations-- JLT maintains its cash in bank deposit accounts with three financial institutions. JLT’s cash balances may, at times, exceed federally insured limits. At December 31, 2016, two donor’s pledges represented approximately 55% of pledges receivable, and the total of all pledges from board members represented approximately 56% of pledges receivable. At December 31, 2015, two donor’s pledge represented approximately 55% of pledges receivable, and the total of all pledges from board members represented approximately 58% of pledges receivable. Investments-- Investments in marketable securities with readily determinable fair values are valued at their fair values in the consolidated statement of financial position. Certificates of deposit are carried at cost plus accrued interest in the consolidated statement of financial position. Unrealized gains and losses are included in the change in net assts. Grants and Contracts-- JLT receives grants and contracts from federal, state, and local agencies, as well as from private organizations, to be used for specific programs or land purchases. The excess of grants receivable over reimbursable expenditures to-date is recorded as deferred revenue. Federal Income Taxes-- The Internal Revenue Service has determined Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) to be exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).Contributions to JLT are deductible as allowed under IRC Section 170(b)(I)(A)(vi). During the year ended December 31, 2012, the Land Trust elected the provisions of Section 501(h), relating to expenditures to influence legislation. Subsequent Events-- JLT has evaluated subsequent events through June 10, 2017, the date on which the consolidated financial statements were available to be issued. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 14 B. UNRESTRICTED NET ASSETS: Unrestricted net assets consisted of the following at December 31, 2016 and 2015: 2016 2015 Designated: Quimper Wildlife Corridor $ 415,869 $ 417,869 Chimacum Creek 264,409 284,409 Duckabush Riparian Forest 492,800 492,800 Donovan Creek 270,000 205,000 Duckabush Wetlands & Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 100,000 100,000 Chimacum Commons ,850 90 ,850 90 Snow Creek Estuary ,000 86 ,000 86 Silver Reach 125,000 125,000 Gateway ,000 85 ,000 85 Kilham Corner ,930 38 ,930 38 Stewardship Fund 4 8,582 4,999 Conservation easements 57 54 Total Designated ,012,737 3 ,926,151 2 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 15 Undesignated 398,270 339,559 Total Unrestricted Net Assets $ 3,411,007 $ 3,265,710 C. TEMPORARILY RESTRICTED NET ASSETS: JLT’s temporarily restricted net assets consisted of the following at December 31, 2016 and 2015: 2016 2015 Purpose Restriction: For stewardship of Bullis Forest Preserve $ ,487 81 $ ,410 91 Satterberg Foundation Grant ,881 99 ,026 97 Working Farm Fund - - Consulting fees - ,410 4 Anonymous Agricultural Foundation Grant ,736 26 ,153 49 Stewardship funding 576,546 ,730 8 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 16 Cross Foundation ,000 40 - Midori Farm Fund ,086 32 - Education Outreach Fund ,290 5 ,915 19 Other program restrictions ,972 4 ,201 10 Time Restriction: 866,998 280,845 Outstanding pledges 205,443 311,097 Total Temporarily Restricted Net Assets $ 1,072,441 $ 591,942 Net assets of $194,602 and $221,727, respectively, were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of $108,519 and $140,025, respectively, were released due to the expiration of time restrictions for the years ended December 31, 2016 and 2015. D. PERMANENTLY RESTRICTED NET ASSETS: At December 31, 2016 and 2015, respectively, JLT had $61,901 and $52,599 of permanently restricted net assets in a general endowment fund, the income of which is available to support general operations. E. ENDOWMENTS: The JLT endowment consists of one fund established to support general operations. As required by U.S. GAAP, net asset associated with endowment funds are classified and reported based on the existence or absence of donorimposed restrictions. Nature of Endowments and Interpretation of Relevant Laws- JLT’s Board of Directors has reviewed the Washington State Prudent Management of Institutional Funds Act (PMIFA) and, having considered its rights and obligations thereunder, has determined that it is desirable to preserve, on a long-term basis, the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this determination, JLT classifies as permanently restricted nets assets (a) the original value of gifts donated to the permanent endowment, and (b) the original value of subsequent gifts to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 17 The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by JLT in a manner consistent with the standard of prudence prescribed by PMIFA. However, JLT has informed donors of its spending policy which states that no distributions will be made during the first five years of the fund’s existence or until it reaches a threshold balance of $400,000. Since these milestones have not yet been reached, JLT adds all amounts earned to the permanently restricted balance. In accordance with PMIFA, JLT considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds, (1) the duration and preservation of the various funds, (2) the purposes of the donor-restricted endowment funds, (3) general economic conditions, (4) the possible effect of inflation and deflation, (5) the expected total return from income and the appreciation of investments, (6) other resources of JLT, and (7) JLT’s investment policies. Endowment net assets, all permanently restricted, totaled $61,901 and $52,599, respectively, at December 31, 2016 and 2015. Changes in endowment net assets for the year ended December 31, 2016 are as follows: Temporarily Permanently Restricted Restricted Total Endowment Net Assets 1/1/2016 $ - $ ,599 52 $ ,599 52 Contributions - ,920 7 ,920 7 Investment Income - ,133 1 ,133 1 Net Appreciation (Depreciation) - 249 249 Endowment Net Assets 12/31/16 $ - $ 61,901 $ 61,901 Changes in endowment net assets for the year ended December 31, 2015 are as follows: Temporarily Permanently Restricted Restricted Total Endowment Net Assets 1/1/2015 $ - $ 44,479 $ 44,479 Contributions - ,660 7 ,660 7 Investment Income - 957 957 Net Appreciation (Depreciation) - (497) (497) Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 18 Endowment Net Assets 12/31/15 $ - $ 52,599 $ 52,599 Funds with Deficiencies- From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or PMIFA requires JLT to retain as a fund of perpetual duration. In accordance with U.S. GAAP, deficiencies of this nature are reported in unrestricted net assets. There were no such deficiencies as of December 31, 2016 or 2015. Return Objectives and Risk Parameters- JLT has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that JLT must hold in perpetuity or for donor-specified periods as well as board-designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of a custom Policy Index ma de up of various indices. The composition of the custom Policy Index is based upon the strategic asset allocation of the investment portfolio and assumes a moderate level of investment risk. The investment objectives of the Operations Endowment Fund include maintenance of principal, timely liquidity, and preservation of purchasing power over time. Strategies Employed for Achieving Objectives- To satisfy its long-term rate-of-return objective, JLT notes that for funds earmarked for capital appreciation, appropriate investments include intermediate term bond funds/ETF’s, equity mutual funds, equity ETF’s, and unconstrained bond funds. Spending Policy and How the Investment Objectives Relate to the Spending Policy - JLT’s spending policy intends that no distributions shall be made from the Operations Endowment Fund for the first five years of its existence or until it reaches a threshold balance of $400,000, whichever shall first occur. After a five -year period which ended in December of 2014, or after achieving the $400,000 threshold, distributions shall be made on an annual basis as determined by the Board. Regular disbursements should be limited to a maximum of 5% of the value of the portfolio at the beginning of each fiscal year, or one-half of the income generated by the fund for the most recent fiscal year, whichever is less. At no time will the distribution of the spendable amount result in the invasion of the original amounts donated. F. ACCOUNTS RECEIVABLE: Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its assessment of the current status of individual accounts. Balances still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to trade accounts receivable. Historically, bad debts have been immaterial. During 2016 and 2015, there were bad debts of $0 and $0, respectively. As of December 31, 2016, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31, 2016. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 19 G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in years prior to 2016. JLT has provided an allowance for uncollectible amounts based on its assessment of the current status of individual pledges and has discounted pledges to current value using a rate of .6%. Pledges receivable at December 31, 2016 are to be received as follows: Less than one year $ ,569 82 Two to five years 126,915 Thereafter ,600 6 216,084 Less discount to present value (503) Less allowance for uncollectible (10,138) $ 205,443 JLT has implemented a new development strategy that will result in a significant reduction of pledge receivables over the next 5 years. This planned reduction is in response to several changes in JLT’s constituency – an increase in foundation grants, an increase in an operating reserve that will provide emergency working cash equivalent to 6 months of operational expenses, and a desire by our donors to not request commitments that are relatively inflexible. H. NOTE RECEIVABLE: On February 15, 2008, JLT granted a loan to an individual in relation to one of the pieces of conservation land owned by JLT. A promissory noted was received in exchange. The promissory note is for the amount of $93,750 and is to be paid in monthly installments of approximately $600. The note matures on January 15, 2028 with an annual interest rate of 5%. Future expected amounts to be received at December 31, 2016 are as follows: Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 20 2017 $ 4 ,380 2018 4 ,604 2019 4 ,840 2020 5 ,087 2021 5 ,348 Thereafter ,618 38 $ 62,877 I. FURNITURE, EQUIPMENT, AND IMPROVEMENTS: Furniture, Equipment, and Improvements consist of the following at December 31, 2016 and 2015: 2016 2015 Furniture & Equipment, and Software $ ,617 52 $ ,678 38 Accumulated Depreciation and Amortization (29,831) (25,329) 22,786 1 3,349 Leasehold Improvements ,852 29 ,852 29 Accumulated Depreciation ,970) (5 ,985) (2 23,882 2 6,867 Fixed Assets-Net $ 46,668 $ 40,216 Accumulated Depreciation and Amortization was $35,801 and $28,314 at December 31, 2016 and 2015, respectively. J. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: 2016 2015 Quimper Wildlife Corridor $ 418,867 $ Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 21 417,869 Chimacum Creek 261,410 284,410 Duckabush Riparian Forest 492,800 492,800 Donovan Creek 205,000 205,000 Duckabush Wetlands & Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 165,000 100,000 Chimacum Commons ,850 90 ,850 90 Snow Creek Estuary ,000 86 ,000 86 Silver Reach 125,000 125,000 Gateway ,000 85 ,000 85 Kilham Corner ,930 38 ,930 38 Conservation easements 57 54 Total Unrestricted Net Assets $ 2,964,154 $ 2,921,151 K. ECONOMIC DEPENDENCY: For 2016 and 2015, grant funding was primarily provided by the State of Washington Recreation and Conservation Office and Jefferson County. A reduction in this level of support, if it were to occur, could have a significant impact on JLT’s operations. L. CONTINGENCIES: Amounts received or receivable from federal and state government agencies are subject to audit and potential adjustment by the contracting agencies. Any disallowed claims, including amounts already collected, would Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 22 become a liability of JLT if so determined in the future. It is management’s belief that no material amounts received or receivable will be required to be returned in the future. M. RETIREMENT PLAN: JLT maintains a Simplified Employee Pension – Individual Retirement Accounts Contribution Benefit Plan (“the Plan”). Eligible employees may join the Plan after one year of service. There were employer contributions of $8,514 and $0, respectively, for 2016 or 2015. N. LEASE AGREEMENTS: On June 21, 2012, JLT entered into an operating lease as lessee for its administrative office in Port Townsend, Washington. The lease expired in June of 2014 and is now on a month to month basis. The agreement calls for monthly payments of $1,563 plus utilities. JLT also rents a storage unit on a month to month basis. Rent expense totaled $22,587 and $23,963 for the years ended December 31, 2016 and 2015, respectively. O. SUBSEQUENT EVENTS: No events have occurred through June 10, 2017, which is the date the financial statements were available to be issued based on JLT facts and circumstances, for events requiring recording or disclosure in the financial statements for the year ended December 31, 2016. P. INCOME TAX & UNCERTAIN TAX POSITIONS: Jefferson Land Trust and JLT Resources, LLC (a disregarded entity) are tax exempt non-profit organizations under the Internal Revenue Code Section 501(c)(3) and are not classified as a private foundation. Accordingly, the financial statements do not include any provision for income taxes. JLT files income tax returns in the U.S. federal jurisdiction. The Trust is no longer subject to U.S. federal income tax examinations by tax authorities for years before 2013. Currently, there is no examination or pending examination with the Internal Revenue Service (IRS) or any other state or federal taxing authorities. JLT adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, on January 1, 2009. As of December 31, 2016, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. Q. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fai r value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 Measurements) and the lowest priority to unobservable inputs (Level 3 Measurements). The three levels of the fair value hierarchy under ASC 958 are described as follows: Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 23 Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Trust has the ability to access. Level 2: Inputs to valuation methodology include: Quoted prices for similar assets or liabilities in active markets. Quoted prices for identical or similar assets or liabilities in inactive ma rkets. Inputs other than quoted prices that are observable for the asset or liability. Inputs that are principally from or corroborated by observable market data by correlation or other means. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2016. Stocks: Valued at quoted market prices in active markets for identical assets. Mutual Funds: Valued at quoted market prices in active markets, which represent the net asset value (NAV) of shares held by the JLT at year end. Certificates of Deposit: Valued at original investment plus received and accrued interest. The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Trust believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a differ ent fair value measurement at the reporting date. The following table sets forth by level, within the fair value hierarchy, JLT’s assets at fair value as of December 31, 2016: Assets at Fair Value as of December 31, 2016 Level 1 Level 2 Level 3 Total Mutual funds $ 608,094 $ - $ - $ 608,094 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 24 Total Assets at Fair Value: $ 608,094 $ - $ - $ 608,094 Certificates of deposit, held at cost plus accrued interest 146,781 Total Investments $ 7 54,875 The following table sets forth by level, within the fair value hierarchy, JLT’s assets at fair value as of December 31, 2015: Assets at Fair Value as of December 31, 2015 Level 1 Level 2 Level 3 Total Stocks $ - $ - $ - $ - Mutual funds 376,376 - - 376,376 Total Assets at Fair Value: $ 376,376 $ - $ - $ 376,376 Certificates of deposit, held at cost plus accrued interest 176,867 Total Investments Investment return for the years ended December 31 consisted of the following: $ 5 53,243 2016 2015 Interest income $ ,171 19 $ ,613 10 Realized/unrealized (loss) gain ,488 33 ,540) (2 Total $ ,659 52 $ ,073 8 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2016 and 2015 25 R. LAND PURCHASE AND HOLD FEE: JLT signed a purchase and sale agreement with a third party during 2015 for the purchase of approximately 850 acres of forest land in Jefferson County. The terms of the agreement, dated March 17, 2015, required JLT to purchase the property for an amount not to exceed the appraised fair market value of the property. The terms of the agreement required the payment of a $100,000 non-refundable hold fee to the third party to allow time for the purchase process to be completed and for JLT to raise the necessary funding to complete the purchase. The hold fee agreement was to expire on March 17, 2019. During 2016, JLT signed an amended agreement that resulted in the refund of $25,000 of the $100,000 hold fee and extended the agreement to nine year from the original five years, now expiring in 2023. JLT adjusted amortization of the hold fee to the new life of the agreement which resulted in an increase to the hold fee asset of $8,331 in 2016. Amortization expense of $25,000 was recognized during 2015.