Historic Deerfield Inc.

“All seven of the conservation easements held by the organization were acquired prior to 2006. The value of conservation easements if included in the balance sheet. Expenses associated with monitoring, inspecting, handling of violations, and enforcing conservation easements during the year are reported as expenses in the year incurred on the organization's revenue and expenses statement.”

“In accordance with the practice usually followed by museums, the organization does not carry its collections on the statement of financial position. Since items acquired for collections by purchase are not capitalized, the cost of those acquisitions are reported as decreases in net assets in the statement of activities. The proceeds from items disposed of are reported as increases in the appropriate class of net assets in the statement of activities. Contributed works of art, historical treasures and similar assets that are not added to the collection are reported as assets held for sale on the statement of financial position at their fair values at the date of the gift.”

“The endowment fund is to help further the organization's mission to open doors to new perspectives that inspire people to seek a deeper understanding of themselves, their communities, and the world. During the review of fiscal year 2018, it was determined that the endowment required a correction of an error. Unrestricted and temporarily restricted net assets were restated to reflect a reclassification of endowment assets. The organization has two donor-restricted funds in which the net appreciation is unrestricted; however, in accordance with u.s. Gaap such net appreciation should be reflected as temporarily restricted until appropriated for expenditure (time restriction).”

“The organization is exempt from federal income taxes other than unrelated business income under section 501(c)(3) of the internal revenue code (irc) and also has received classification as a massachusetts public charity. Accounting principles generally accepted in the united states of america require the organization's management to evaluate tax positions taken by the organization and recognize a tax liability (or asset) if the organization has taken any uncertain tax positions that more than likely would not be sustained upon examination by the internal revenue service (irs). Management has analyzed the tax positions taken by the organization and has concluded that as of june 30, 2018, there are no uncertain positions taken or expected to be taken that would require recognition of a tax liability (or asset) or disclosure in the financial statements. The organization is subject to routine audits by taxing jurisdictions; however there are currently no audits for any tax periods in progress.”

“Change in value of trusts 1,383,323. Change in net assets related to collection items -204,942.”

“Reclass cost of goods sold -177,753. Reclass of rental expenses -155,221.”

“Reclass of cost of goods sold 177,753. Reclass of rental expenses 155,221.”