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Home My WebLink AboutJeffersonLandTrust_OrganizationDocsPacket_CFF_2024Jefferson Land Trust Page 1 of 2 Jefferson Land Trust CONSERVATION FUTURES 202 RESOLUTION February 20, 2024 WHEREAS, Jefferson Land Trust is an applicant or sponsor for more than one Conservation Futures Funding application, and Conservation Futures Funding Application process requires that Jefferson Land Trust prioritize its projects, AND WHEREAS, Jefferson Land Trust has been working for over two decades in partnership with Jefferson County Conservation District, the Hood Canal Salmon Enhancement Group and private landowners to preserve the watersheds of Quilcene Bay, and WHEREAS, the HUMBLEBERRY FARM includes approximately 50.9 acres of lowland and rolling pastures of prime agricultural soils and Donovan Creek riparian habitat and will be protected for water quality, agricultural uses and wildlife habitat in the Quilcene Bay area, and WHEREAS, the Humbleberry Farm is directly adjacent to the Donovan Creek Wetlands Preserve, Lower Donovan Nature Preserve, Quilcene Heights Conservation Easement and other protected lands; it is indicated as priority farmland in several local and regional plans, and significant project funding is likely from the US Navy and the landowner is eager to complete the project, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, AND WHEREAS, Jefferson Land Trust has been working since 2004 in partnership with Northwest Watershed Institute and Department of Natural Resources to acquire and restore critical forestland, wetlands, riparian, estuarine, and nearshore habitat in the Tarboo Creek and Donvoan Creek watershed areas, and WHEREAS, purchase of a conservation easement on the 36.89-acre DEERFOOT HUBBARD FORESTproperty owned by Penney Hubbard by Jefferson land Trust would protect in perpetuity critical forest and wetland habitat from subdivision and further development, and will contribute to the larger Tarboo Creek and Donovan Creek protection efforts, and WHEREAS, this important community asset will require stewardship in perpetuity, to include annual monitoring, maintenance, and management, THEREFORE BE IT HEREBY RESOLVED that Jefferson Land Trust agreed at its February 20, 2024 Board of Directors meeting to sponsor two applications to the Jefferson County Conservation Futures Program. The Board agreed that the highest priority is funding for acquisition of parcels in the HUMBLEBERRY FARM. The second highest priority is funding for the acquisition of a conservation easement on the DEERFOOT HUBBARD FOREST. Jefferson Land Trust Page 2 of 2 Signed this ______ of March 2024 ____________________________________ Authorized by Board of Directors at their February 20, 2024 meeting Jefferson Land Trust 22 Tim Lawson, Vice President JEFFERSON LAND TRUST ➢ BOARD OF DIRECTORS ORGANIZATIONAL CHART ➢ RICHARD TUCKER - Executive Director ➢ SARAH SPAETH- Director of Conservation and Strategic Partnerships BLAISE SULLIVAN- Conservation Coordinator ➢ ERIK KINGFISHER- Stewardship Director CARRIE CLENDANIEL- Preserve Manager JAISE WILSON – Americorps Habitat Enhancement Crew Member GREG SACHS - Americorps Habitat Enhancement Crew Member KELCIE KYSAR – Americorps Habitat Enhancement Crew Member MARLOWE MOSER – Stewardship Assistant ➢ KATE GODMAN- Director of Philanthropy SARAH ZABLOCKI-AXLING- Development Manager SYDNEY LAROSE – Development Assistant RIC BREWER- Community Relations & Events Manager STEPHANIE WIEGAND- Communications Manager LILLY SCHNEIDER– Communications Coordinator ➢ PAULA McNEES- Finance Manager ➢ CRISTINA VILLALOBOS – Administrative & Preserve Assistant (Matrixed to Stewardship) ➢ RYEN HELZER – Community Forest Manager Jefferson Land Trust Board Roster 2024 Jefferson Land Trust Board of Directors 2024 Brian Rogers Board President • Chancellor of University of Alaska Fairbanks, retired • State of Alaska Legislator, retired Tim Lawson Vice President • Founder and Executive Director of Port Townsend School of Woodworking, retired Craig Britton Treasurer • General Manager for Midpeninsula Regional Open Space District, retired Sherry Moller Secretary • Plan Manager for Washington FAIR Pl Tom Sanford • Executive Director of North Olympic Land Trust Rick York • California Department of Fish and Game - Botanist and Biologist, retired Barry Mitzman • Reporter and Peabody Award- winning Television Producer, retired • Seattle University Strategic Communications Director, retired Ed Thompson • Attorney and land conservation professional, American Farmland Trust, retired Julie Lockhart • Educator and nonprofit professional, retired • Executive Director of WinterSpring, retired Jane Guiltinan • Dean Emeritus at Bastyr University • Naturopathic Physician, retired Jefferson Land Trust Board Roster 2024 Ben Wilson • Healthcare and Technology, retired • Board President of Climate Action Pathways for Schools Jennifer Harrison • Head of Gaming Experimentation, Microsoft • Managing Director of Earth Economics JEFFERSON LAND TRUST 2024 COMPILED OPERATING BUDGET INCOME Restricted Funds Federal, State & County Grants 108,810 Foundation Grants 90,000 Donor Restricted 501,800 Investment - Operations Income Annual Contributions 522,000 Special Events 57,500 Fee for Service 126,750 Investment Income - Other/Release from Restriction 317,548 Foundation Grants/Unrestricted 13,000 Total Income 1,737,408 EXPENSE Direct Program 124,100 Acquisition & Conveyance - Land/Easement Holding 47,200 Professional Services 168350.00 General & Administrative 1,396,286 Total Expense 1,735,936 Net Income 1,472 JEFFERSON LAND TRUST AND SUBSIDIARY Consolidated Financial Statements For the Years Ended December 31, 2022 and 2021 TABLE OF CONTENTS Independent Auditor’s Report .......................................................................................................... 1 Consolidated Financial Statements: Consolidated Statement of Financial Position ...................................................................... 3 Consolidated Statement of Activities and Changes in Net Assets-2022 .............................. 5 Consolidated Statement of Activities and Changes in Net Assets-2021 .............................. 6 Consolidated Statement of Functional Expenses-2022 ......................................................... 7 Consolidated Statement of Functional Expenses-2021 ......................................................... 8 Consolidated Statement of Cash Flows ................................................................................ 9 Consolidating Statement of Financial Position ..................................................................... 11 Consolidating Statement of Activities and Changes in Net Assets ...................................... 12 Consolidating Statement of Functional Expenses ................................................................. 13 Notes to the Consolidated Financial Statements ................................................................... 14 1 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND WASHINGTON SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS Independent Auditor’s Report To the Board of Directors Jefferson Land Trust & Subsidiary Port Townsend, WA Report on the Audit of the Financial Statements Opinion 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, 2022 and 2021, 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. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of JLT, as of December 31, 2022 and 2021, 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. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of JLT and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about JLT’s ability to continue as a going concern for one year after the date that the financial statements are available to be issued. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. 2 In performing an audit in accordance with GAAS, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit 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 JLT’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about JLT’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit. Other Information Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The supplementary information on pages 11-13 is presented for purposes of additional analysis and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Aiken & Sanders, Inc., PS Certified Public Accountants & Consultants July 28, 2023 Montesano, WA Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Financial Position As of December 31, 2022 and December 31, 2021 Assets 2022 2021 Current Assets: Cash and cash equivalents 2,173,070$ 1,479,474$ Accounts receivable 37,604 4,652 Current pledges receivable 1,063,546 1,017,724 Prepaid expense 1,361 - Note receivable-current portion - 5,650 Total Current Assets 3,275,581 2,507,500 Land and Conservation Easements: Habitat land 7,534,455 6,529,764 Working land 97,728 97,728 Open space land 332,761 332,761 Land for sale - 458,751 Conservation easements 69 67 Total Land and Conservation Easements 7,965,013 7,419,071 Fixed Assets: Furniture, equipment, and improvements 97,340 97,340 Less: Accumulated depreciation (61,086) (54,333) Fixed assets, net 36,254 43,007 Other Assets: Long term pledges receivable 471,051 16,542 Long term note receivable - 41,577 Land hold fee-net 8,333 16,666 Investments 1,463,104 1,084,530 Total Other Assets 1,942,488 1,159,315 Total Assets 13,219,336$ 11,128,893$ 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, 2022 and December 31, 2021 Liabilities & Net Assets 2022 2021 Current Liabilities: Accounts payable 26,399$ 14,227$ Accrued liabilities and deferred revenue 112,823 84,540 Line of credit - 83,537 Total Current Liabilities 139,222 182,304 Long-Term Liabilities: Note payable - - Total Liabilities 139,222 182,304 Net Assets: Without donor restrictions Undesignated 1,039,705 1,222,389 Board designated 7,833,694 7,181,832 8,873,399 8,404,221 With donor restrictions 4,206,715 2,542,368 Total Net Assets 13,080,114 10,946,589 Total Liabilities & Net Assets 13,219,336$ 11,128,893$ 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, 2022 Without Donor With Donor Total Restrictions Restrictions 2022 Support and Revenues: Gifts and contributions 576,404$ 2,522,348$ 3,098,752$ Donated lands and easements 977,256 - 977,256 Inkind donations 2,193 - 2,193 Grants and contracts 805,373 - 805,373 Special events income, net of expenses of $26,761 23,366 - 23,366 Net investment return (76,265) 1,894 (74,371) Net assets released from restriction 859,895 (859,895) - Total Support and Revenue 3,168,222 1,664,347 4,832,569 Expenses: Program services 1,960,104 - 1,960,104 Management and general 438,537 - 438,537 Fundraising 300,403 - 300,403 Total Expenses 2,699,044 - 2,699,044 Change in Net Assets 469,178 1,664,347 2,133,525 Net Assets, Beginning of Year 8,404,221 2,542,368 10,946,589 Net Assets, End of Year 8,873,399$ 4,206,715$ 13,080,114$ 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, 2021 Without Donor With Donor Total Restrictions Restrictions 2021 Support and Revenues: Gifts and contributions 1,534,523$ 1,588,023$ 3,122,546$ Donated land 382,400 - 382,400 Grants and contracts 720,657 - 720,657 Special events income, net of expenses of $6,993 32,027 - 32,027 Net investment return 162,538 - 162,538 Net assets released from restriction 397,897 (397,897) - Total Support and Revenue 3,230,042 1,190,126 4,420,168 Expenses: Program services 1,018,681 - 1,018,681 Management and general 308,619 - 308,619 Fundraising 223,460 - 223,460 Total Expenses 1,550,760 - 1,550,760 Change in Net Assets 1,679,282 1,190,126 2,869,408 Net Assets, Beginning of Year 6,724,939 1,352,242 8,077,181 Net Assets, End of Year 8,404,221$ 2,542,368$ 10,946,589$ The accompanying notes are an integral part of these financial statements 6 Jefferson Land Trust and SubsidiaryA Washington Not For Profit OrganizationConsolidated Statement of Functional Expenses For the Year Ended December 31, 2022Management Fund- Total Programand GeneralRaising2022Salaries 451,664$ 237,470$ 191,204$ 880,338$ Payroll taxes 36,334 19,103 15,381 70,818 Employee benefits 55,597 29,231 23,536 108,364 Value of conservation easements written down 890,117 - - 890,117 Professional fees 343,533 46,843 13,141 403,517 Land and stewardship expenses 93,842 - - 93,842 Rent 15,968 8,396 6,760 31,124 Public awareness 11,758 446 3,585 15,789 Dues and subscriptions 7,069 16,347 11,055 34,471 Insurance 9,773 4,831 3,890 18,494 Postage and printing 10,291 1,096 14,802 26,189 Other 4,969 9,118 815 14,902 Interest expense - 3,525 - 3,525 Travel and seminars 8,661 8,703 161 17,525 Office supplies 7,744 20,254 4,145 32,143 Depreciation and amortization 2,924 3,829 - 6,753 Utilities 7,129 3,748 3,018 13,895 Web design and maintenance 1,350 - - 1,350 Bad debts 890 23,918 - 24,808 Bank fees 491 1,679 8,910 11,080 Total Expenses 1,960,104$ 438,537$ 300,403$ 2,699,044$ The accompanying notes are an integral part of these financial statements.7 Jefferson Land Trust and SubsidiaryA Washington Not For Profit OrganizationConsolidated Statement of Functional Expenses For the Year Ended December 31, 2021Management Fund- Total Programand GeneralRaising2021Salaries 313,964$ 177,005$ 131,269$ 622,238$ Payroll taxes 25,209 14,208 10,541 49,958 Employee benefits 43,427 24,476 18,159 86,062 Value of conservation easements written down159,999 - - 159,999 Professional fees 301,876 27,253 25,541 354,670 Land and stewardship expenses 84,295 - - 84,295 Rent 27,988 4,437 1,707 34,132 Public awareness 1,627 2,113 1,173 4,913 Dues and subscriptions 1,639 17,924 4,803 24,366 Insurance 11,759 6,628 4,917 23,304 Postage and printing 8,166 26 8,848 17,040 Other 3,650 10,641 522 14,813 Interest expense 197 20 - 217 Travel and seminars 4,991 5,841 116 10,948 Office supplies 8,477 9,394 6,280 24,151 Telephone 809 456 338 1,603 Depreciation and amortization 2,307 5,584 - 7,891 Utilities 9,862 1,564 601 12,027 Web design and maintenance 1,684 - - 1,684 Bad debts 5,578 36 - 5,614 Bank fees 1,177 1,013 8,645 10,835 Total Expenses 1,018,681$ 308,619$ 223,460$ 1,550,760$ The accompanying notes are an integral part of these financial statements8 2022 2021 Cash flows from operating activities: Cash received from grantors, donors and customers 3,420,969$ 2,696,236$ Cash paid to suppliers and employees (1,851,446) (1,392,386) Cash paid for interest (3,525) (217) Cash received from interest 24,405 14,701 Net cash provided (used) by operating activities 1,590,403 1,318,334 Cash flows from investing activities: Cash paid for investments (518,055) (29,667) Cash received from investments 1,894 13,615 Proceeds from notes receivable 41,577 - Cash paid for property and equipment - (22,249) Cash paid for land (338,686) (905,752) Net cash provided (used) by investing activities (813,270) (944,053) Cash flows from financing activities: Cash paid on line of credit (83,537) - Cash received from line of credit - 83,537 Net cash provided (used) by financing activities (83,537) 83,537 Net increase (decrease) in cash & cash equivalents 693,596 457,818 Cash & cash equivalents at beginning of year 1,479,474 1,021,656 Cash & cash equivalents at end of year 2,173,070$ 1,479,474$ The accompanying notes are an integral part of these financial statements Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows 9 For the Years Ended December 31, 2022 and December 31, 2021 2022 2021 Reconciliation of increase (decrease) in net assets to net cash provided (used) by operating activities: Increase (decrease) in net assets: 2,133,525$ 2,869,408$ Adjustments: Depreciation and amortization 6,753 7,891 Bad debts 24,808 5,614 Land hold fee amortization (adjustment) 8,333 8,331 Debt forgiveness - (119,740) Realized and unrealized losses (gains) on investments 98,776 (147,837) Donated land (207,256) (382,400) Changes in assets and liabilities: (Increase) decrease in accounts receivable (32,952) (1,661) (Increase) decrease in pledges receivable (480,678) (918,886) (Increase) decrease in prepaid expense (1,361) - Increase (decrease) in accounts payable 12,172 (3,062) Increase (decrease) in accrued expenses and deferred revenue 28,283 676 Net cash provided (used) by operating activities 1,590,403$ 1,318,334$ The accompanying notes are an integral part of these financial statements Jefferson Land Trust and Subsidiary A Washington Not For Profit Organization Consolidated Statement of Cash Flows For the Years Ended December 31, 2022 and December 31, 2021 10 Jefferson Land Trust JLT Resources, LLC Subtotal Eliminations Consolidated 2022 Assets Current Assets: Cash and cash equivalents $ 2,150,837 $ 22,233 $ 2,173,070 $ - $ 2,173,070 Accounts receivable 37,604 - 37,604 - 37,604 Current pledges receivable 1,063,546 - 1,063,546 - 1,063,546 Prepaid expense 1,361 - 1,361 - 1,361 Note receivable-current portion - - - - - Total Current Assets 3,253,348 22,233 3,275,581 - 3,275,581 Land and Conservation Easements: Habitat land 7,269,075 265,380 7,534,455 - 7,534,455 Working land 97,728 - 97,728 - 97,728 Open space land 332,761 - 332,761 - 332,761 Land for sale - - - - - Conservation easements 69 - 69 - 69 Total Land and Conservation Easements 7,699,633 265,380 7,965,013 - 7,965,013 Fixed Assets: Furniture, equipment, and improvemen 87,203 10,137 97,340 - 97,340 Less: Accumulated depreciation (60,072) (1,014) (61,086) - (61,086) Total Fixed Assets 27,131 9,123 36,254 - 36,254 Other Assets: Long term pledges receivable 471,051 - 471,051 - 471,051 Long term notes receivable - - - - - Land hold fee-net 8,333 - 8,333 - 8,333 Investments 1,796,649 - 1,796,649 (333,545) 1,463,104 Total Other Assets 2,276,033 - 2,276,033 (333,545) 1,942,488 Total Assets 13,256,145$ 296,736$ 13,552,881$ (333,545)$ 13,219,336$ Liabilities Current Liabilities Accounts payable $ 26,399 $ - $ 26,399 $ - $ 26,399 Accrued liabilities and deferred revenu 112,823 - 112,823 - 112,823 Line of credit - - - - - Total Current Liabilities 139,222 - 139,222 - 139,222 Long Term Liabilities Note payable - - - - - Total Liabilities 139,222 - 139,222 - 139,222 Net Assets With Donor Restrictions 4,206,715 - 4,206,715 - 4,206,715 Without Donor Restrictions 8,910,208 296,736 9,206,944 (333,545) 8,873,399 Total Net Assets 13,116,923 296,736 13,413,659 (333,545) 13,080,114 Liabilities & Net Assets 13,256,145$ 296,736$ 13,552,881$ (333,545)$ 13,219,336$ The accompanying notes are an integral part of these financial statements. JEFFERSON LAND TRUST AND SUBSIDIARY Consolidating Statement of Financial Position Year Ended December 31, 2022 11 Jefferson Land TrustJLT Resources, LLC Subtotal Eliminations Consolidated 2022 Support and Revenues Gifts and contributions $ 3,098,752 $ - $ 3,098,752 $ - $ 3,098,752 Donated land and easements 943,100 34,156 977,256 - 977,256 Inkind donations 2,193 - 2,193 - 2,193 Grants and contracts 805,373 - 805,373 - 805,373 Special events income, net of expenses of $26,761 23,366 - 23,366 - 23,366 Net investment return (74,403) 32 (74,371) - (74,371) Net assets released from restriction - - - - - Total Support and Revenues 4,798,381 34,188 4,832,569 - 4,832,569 Program Expenses Jefferson Land Trust1,957,902 - 1,957,902 - 1,957,902 JLT Resources, LLC- 2,202 2,202 - 2,202 Total Program Expenses1,957,902 2,202 1,960,104 - 1,960,104 Management and general438,537 - 438,537 - 438,537 Fundraising300,403 - 300,403 - 300,403 Total Expenses 2,696,842 2,202 2,699,044 - 2,699,044 Change in Net Assets2,101,539 31,986 2,133,525 - 2,133,525 Capital Transfer- 105,985 105,985 (105,985)- Net assets - Beginning of Year 11,015,384 158,765 11,174,149 (227,560) 10,946,589 Net assets - End of the Year 13,116,923$ 296,736$ 13,413,659$ (333,545)$ 13,080,114$ The accompanying notes are an integral part of these financial statements.JEFFERSON LAND TRUST AND SUBSIDIARYConsolidating Statement of ActivitiesYear Ended December 31, 202212 Jefferson Land TrustJLT Resources, LLCTotal Program ServicesManagement & General Fundraising EliminationsConsolidated 2022Salaries $ 451,664 $ - $ 451,664 $ 237,470 $ 191,204 $ - $ 880,338 Payroll taxes 36,334 - 36,334 19,103 15,381 - 70,818 Employee benefits 55,597 - 55,597 29,231 23,536 - 108,364 Value of conservation easements written do 890,117 - 890,117 - - - 890,117 Professional fees 343,108 425 343,533 46,843 13,141 - 403,517 Land and stewardship expenses 93,157 685 93,842 - - - 93,842 Rent 15,968 - 15,968 8,396 6,760 - 31,124 Public awareness 11,758 - 11,758 446 3,585 - 15,789 Dues and subscriptions 7,069 - 7,069 16,347 11,055 - 34,471 Insurance 9,188 585 9,773 4,831 3,890 - 18,494 Postage and printing 10,291 - 10,291 1,096 14,802 - 26,189 Other 4,969 - 4,969 9,118 815 - 14,902 Interest expense - - - 3,525 - - 3,525 Travel and seminars 8,661 - 8,661 8,703 161 - 17,525 Office supplies 7,744 - 7,744 20,254 4,145 - 32,143 Depreciation and amortization 2,417 507 2,924 3,829 - - 6,753 Utilities 7,129 - 7,129 3,748 3,018 - 13,895 Web design and maintenance 1,350 - 1,350 - - - 1,350 Bad debts 890 - 890 23,918 - - 24,808 Bank fees 491 - 491 1,679 8,910 - 11,080 Total Expenses $ 1,957,902 $ 2,202 $ 1,960,104 $ 438,537 $ 300,403 $ - $ 2,699,044 The accompanying notes are an integral part of these financial statements.JEFFERSON LAND TRUST AND SUBSIDIARYConsolidating Statement of Functional ExpensesYear Ended December 31, 202213 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 14 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-- 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— JLT follows accounting prescribed by the Financial Accounting Standards Board in its Accounting Standards Codification (ASC) 958 Not-for Profit Entities. Under ASC 958, JLT is required to report information regarding its financial position and activities according to two classes of net assets: with donor restrictions, and without donor restrictions. With Donor Restrictions: Net assets that result from contributions whose use by JLT is restricted by donor imposed stipulations that may expire with the passage of time or can be fulfilled or otherwise removed by actions of JLT. Without Donor Restrictions: Net assets that are not restricted by donor stipulation. Gifts of goods and equipment are reported as without donor restrictions unless explicit donor stipulations specify how the donated assets must be used. 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 depreciation 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: Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 15 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 government 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. A total of $69 is recorded in the financial records for the nominal value of easements acquired. JLT has preserved a total of 4,517 acres of land with 69 current easements. The original acquisition cost of the easements, expensed when acquired, was in excess of $19,100,000. Portions of two easements with a value of $770,000 were donated to JLT during 2022. Accordingly, $770,000 of contribution revenue and $770,000 of related write down expense have been reported on the consolidated statements of activities for the year ended December 31, 2022. Portions of one easement with a value of $145,700 were donated to JLT during 2021. Accordingly, $145,700 of contribution revenue and $145,700 of related write down expense have been reported on the consolidated statements of activities for the year ended December 31, 2021. 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. Program expenses represent expenses incurred to fulfill JLT’s exempt purposes. Management and general expenses support that exempt purpose while fundraising expenses are incurred to raise resources to carry out program activities. Expenses are recorded, when appropriate, to the function receiving direct benefit. When expenses benefit more than one function, an allocation is made based on relative benefits provided to each function. 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, 2022 and 2021 16 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, 2022, four donor’s pledges represented approximately 86% of pledges receivable. At December 31, 2021, one donor’s pledges represented approximately 97% 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. That election remain in force unless revoked. Contributions-- Contributions are recognized when received or when a donor makes an unconditional promise to give to JLT. Contributions that are restricted by the donor are reported as increases in net assets without donor restrictions if the restrictions expire in the year in which the contributions are recognized. All other donor restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets with donor restrictions are reclassified to net assets without donor restrictions. Unconditional promises to give (pledges receivable) are recognized as revenues in the period the pledge is received. Long term pledges (collection expected in greater than one year) are discounted to the net present value of future cash flows. Conditional promises to give are recognized only when the conditions on which they depend are substantially met and the promise becomes unconditional. Subsequent Events-- JLT has evaluated subsequent events through July 28, 2023, 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, 2022 and 2021 17 B. LIQUIDITY AND AVAILABILITY OF FINANCIAL ASSETS: JLT, although it expects to receive current support to fund operations for 2023 and later years, has ($48,050) and $594,965 of financial assets available within one year of the statement of financial position dates on December 31, 2022 and 2021, respectively, to meet cash needs for general operating expenditures. JLT also has $578,659 and $471,239, of board designated assets as of December 31, 2022 and 2021, respectively, that can be reallocated for general expenditures if needed. Financial assets available within one year consist of the following: 2022 2021 Financial assets at year end $ 5,208,375 $ 3,650,149 Donor restricted to purpose (4,206,715) (2,525,826) Long term (471,051) (58,119) Board designations (578,659) (471,239) Financial assets available to meet cash needs within one year $ (48,050) $ 594,965 C. NET ASSETS COMPOSITION: JLT’s net assets with donor restrictions consisted of the following at December 31, 2022 and 2021: 2022 2021 Purpose Restriction: For stewardship of Bullis Forest Preserve $ 39,511 $ 41,988 Chi-yakh-wh 35,715 43,156 Campaign Readiness Fund/Operations 672,260 10,124 Stewardship funding 836,341 780,703 Quimper Wildlife Corridor 210,353 440,366 Karen Mckee Fund - 65,000 Other program restrictions 51,770 58,691 1,845,950 1,440,028 Time Restriction: Outstanding pledges 1,540,797 1,034,266 Permanent Restriction Endowment Fund 819,968 68,074 Total Net Assets With Donor Restrictions $ 4,206,715 $ 2,542,368 Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 18 Net assets without donor restrictions consisted of the following at December 31, 2022 and 2021: 2022 2021 Designated: Quimper Wildlife Corridor $ 1,576,803 $ 1,302,503 Chimacum Creek 388,347 388,347 Duckabush Riparian Forest 492,800 492,800 Duckabush Hacheney 90,000 90,000 Donovan Creek 270,000 270,000 Duckabush Wetlands & Oxbow 530,000 530,000 Bulis Forest Preserve 125,240 125,240 Moore 34,155 - Beaver Valley 105,986 - Brinnon-Wright 130,000 - Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 260,000 260,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Snow Creek-Hopkins 95,000 95,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 81,202 81,202 Fite & Fissler 182,226 182,226 Valley View 1,710,000 1,710,000 Discovery Bay 311,358 311,358 Longmire 145,000 145,000 Stewardship Fund 366,053 362,149 CP Operations Reserve 27,476 9,653 Karen Mckee Board Fund 13,328 14,591 Operations Reserve 171,801 84,846 Conservation easements 69 67 Total Designated 7,833,694 7,181,832 Undesignated 1,039,705 1,222,389 Total Net Assets Without Donor Restrictions: $ 8,873,399 $ 8,404,221 Net assets of $846,509 and $286,587, respectively, were released from donor restrictions by incurring expenses satisfying the purpose restriction specified by the donor, and net assets of $13,386 and $111,310, respectively, were released due to the expiration of time restrictions for the years ended December 31, 2022 and 2021. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 19 D. LINE OF CREDIT: JLT entered into a line of credit arrangement with 1st Security Bank during 2021. The line requires monthly payments of interest at 4.25% on outstanding balances. The line of credit principal balance was $0 and $83,537 at December 31, 2022 and 2021, respectively. 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 donor- imposed 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 nets assets with donor restrictions (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. The remaining portion of the donor-restricted endowment fund that is not classified in net assets with permanent donor restrictions is classified as net assets with donor restrictions 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 $819,968 and $68,074, respectively, at December 31, 2022 and 2021. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 20 Changes in endowment net assets for the year ended December 31, 2022 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2022 $ - $ 68,074 68,074 Contributions - 750,000 750,000 Investment Income - 1,894 1,894 Net Appreciation (Depreciation) - - - Endowment Net Assets 12/31/22 $ - $ 819,968 $ 819,968 Changes in endowment net assets for the year ended December 31, 2021 are as follows: Temporary Permanent Donor Restrictions Donor Restrictions Total Endowment Net Assets 1/1/2021 $ - $68,071 $ 68,071 Contributions - - - Investment Income - 3 3 Net Appreciation (Depreciation) - - - Endowment Net Assets 12/31/21 $ - $68,074 $ 68,074 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 net assets with donor restrictions. There were no such deficiencies as of December 31, 2022 or 2021. 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 made 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. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 21 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 2022 and 2021, there were bad debts of $24,808 and $5,614, respectively. As of December 31, 2022, management estimated that all accounts receivable were collectible. JLT had no material amounts past due at December 31, 2022. G. PLEDGES RECEIVABLE: JLT received promises to give from a number of donors in 2022 and in years prior to 2022. 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 .15%. Pledges receivable at December 31, 2022 are to be received as follows: Less than one year $ 1,063,546 Two to five years 480,455 Thereafter - 1,544,001 Less discount to present value (3,204) Less allowance for uncollectible (6,200) $ 1,534,597 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. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 22 The promissory note was for the amount of $93,750 and was to be paid in monthly installments of approximately $600. The note matured on January 15, 2028 with an annual interest rate of 5%. The note was paid in full during the year ended December 31, 2022. I. FURNITURE, EQUIPMENT, AND IMPROVEMENTS: Furniture, Equipment, and Improvements consist of the following at December 31, 2022 and 2021: 2022 2021 Furniture & Equipment, and Software $ 57,351 $ 57,351 Accumulated Depreciation and Amortization (33,825) (32,086) 23,526 25,265 Leasehold Improvements 39,989 39,989 Accumulated Depreciation (27,261) (22,247) 12,728 17,742 Fixed Assets-Net $ 36,254 $ 43,007 Accumulated Depreciation and Amortization was $61,086 and $54,333 at December 31, 2022 and 2021, respectively. J. ECONOMIC DEPENDENCY: For 2022 and 2021, grant funding was primarily provided by the State of Washington Recreation and Conservation Office, State of Washington Department of Commerce, and Jefferson County. A reduction in this level of support, if it were to occur, could have a significant impact on JLT’s operation K. 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 $20,580 and $15,866, respectively, for 2022 or 2021. L. LAND AND CONSERVATION EASEMENTS: Land and conservation easements at December 31 are summarized as follows: Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 23 2022 2021 Quimper Wildlife Corridor $ 1,711,301 $ 1,305,501 Chimacum Creek 385,348 385,348 Duckabush Riparian Forest 492,800 492,800 Duckabush-Hacheney 90,000 90,000 Donovan Creek 205,000 205,000 Duckabush Wetlands & Oxbow 530,000 530,000 Bulis Forest Preserve-JLTR 125,240 125,240 Beaver Valley-JLTR 105,985 - Moore-JLTR 34,155 - Upper Snow Creek Forest 340,000 340,000 Snow Creek Uncas Preserve 325,000 325,000 Chimacum Commons 90,850 90,850 Snow Creek Estuary 86,000 86,000 Silver Reach 125,000 125,000 Gateway 85,000 85,000 Kilham Corner 38,930 38,930 Valley View 2,002,000 2,002,000 Discovery Bay 418,583 418,583 Fissler 75,000 75,000 Longmire 145,000 145,000 Snow Creek-Hopkins 95,000 95,000 Thorndyke 458,751 - Land Held for Sale - 458,751 Conservation easements 69 67 Total Unrestricted Net Assets $ 7,965,013 $ 7,419,071 M. 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 2019. 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, 2022, there are no tax positions for which the deductibility is certain but for which there is uncertainty regarding the timing of such deductibility. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 24 N. INVESTMENTS AND FAIR VALUE MEASUREMENTS: JLT follows U.S. GAAP which establishes a framework for measuring fair value. That framework provides a fair 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: 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 markets. 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, 2022. 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. Community Foundation: Valued at applicable share of pooled market investments at foundation. 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 different 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, 2022: Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 25 Assets at Fair Value as of December 31, 2022 Level 1 Level 2 Level 3 Total Mutual funds $ 873,725 $ - $ - $ 873,725 Community Foundation - 200,083 - 200,083 Total Assets at Fair Value: $ 873,725 $ 200,083 $ - $ 1,073,808 Certificates of deposit, held at cost plus accrued interest 389,296 Total Investments $ 1,463,104 The following table sets forth by level, within the fair value hierarchy, JLT’s assets at fair value as of December 31, 2021: Assets at Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total Mutual funds $ 918,294 $ - $ - $ 918,294 Total Assets at Fair Value: $ 918,294 $ - $ - $ 918,294 Certificates of deposit, held at cost plus accrued interest 166,236 Total Investments $ 1,084,530 Investment return for the years ended December 31 consisted of the following: 2022 2021 Interest & dividend income $ 15,371 $ 14,701 Realized/unrealized (loss) gain (89,742) 147,837 Total $ (74,371) $ 162,538 O. 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. Jefferson Land Trust and Subsidiary Notes to Consolidated Financial Statements December 31, 2022 and 2021 26 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 $8,331 was recognized during 2022 and 2021. P. PAYCHECK PROTECTION PROGRAM LOAN: In April of 2020, JLT received a loan of $119,740 from Kitsap Bank. The loan was part of the Paycheck Protection Program, which is a United States Government program intended to mitigate the economic impact of the Covid-19 Pandemic. The loan was guaranteed by the United States Small Business Administration and carried a stated interest rate of 1%. The loan term was two years from inception, with interest payments starting on the 7th month following origination. However, the loan was eligible for forgiveness if the loan proceeds were used to subsidize payroll and certain occupancy costs of JLT. JLT used the loan proceeds for eligible expenses during 2020 and recognized grant income on loan forgiveness, which occurred in 2021.