Aquinnahgay Head Community Association

“2 Family members of the Polsby family.”

“The governing body receives a complete copy of the Form 990 to review and comment on before being released to the Internal Revenue Service.”

“The organization provides a Form 990 copy to all persons requesting the information.”

“The organization provides access to the documentation either in person or a hard copy is prepared and given to the requesting person.”

“Upon review of AGHCA financial statements, restatements were made to the classifications of income and expenses. Upon review of the Form 990 and the restatements, an amended Form 990 was required. The following areas were adjusted: Form 990 Part 1, Revenues and expenses, Form 990 Part III lines 4a - 4c were adjusted to the corrections, Form 990, Part VIII line 1 f - corrected to the new financial statement, Form 990, Part IX, line 1 was previously incorrectly combined with Line 11 B, Line 19 was not previously reported as program expenses,”

“In 2013 the Town of Aquinnah established and maintains a separate, audited internal account entitled the Gay Head Lighthouse Gift Fund for the sole purpose of collecting and then disbursing the funds required to the plan for (i.e. geological tests and analysis re alternate sites) and implement the move and restoration of the historic Gay Head Light, which due to continuing erosion of nearby cliffs and would in due course slide into the ocean unless moved. This project was estimated to cost $3 million (now revised upwards to $3.5 million). (The Lighthouse was successfully moved in the spring of 2015 but much continued site work and restoration of the Lighthouse remains to be completed.) The Town received confirmation from the IRS that contributions to the Lighthouse Fund are tax deductible under Section 170 (c) (1) of the Internal Revenue Code in the same manner as permitted under Section 501 (c) (3). However, some donors advised that they wanted to make their contributions through an entity having a Section 501 (c) (3) status (i.e. AGHCA) or (ii) through entities like charitable trusts the governing instruments of which specify that they will make grants/contributions only to organizations that have a Section 501 (c) (3) status (i.e. AGHCA). To help facilitate this effort, AGHCA agreed to accept donations from such individuals and such charitable trusts and to the contribute the same amounts to the said Lighthouse Fund. Thus, as indicated in Part III, Item 4a, in 2014 AGHCA contributed $197,166.21 to the said Lighthouse Fund of which $192,472.64 represented contributions to AGHCA made expressly to Save the Gay Head Light campaign.”

“Revision to opening cash balance -29,328.”

“The tax return was prepared on a cash basis but the reviewed financial statements were prepared on an accrual basis according to GAAP which increased the professional fees (legal) by $75,551 and was recorded on the Statement of Financial Position (Balance Sheet) for the same amount in Accounts payable and accrued expenses.”