Sudbury Valley Trustees Inc.

“The policy regarding conservation easements states staff will conduct annual monitoring of conservation easements, encouraging landowners to be involved with the site visits and maintaining good relations with them. In cases of violation, sudbury valley trustees will assess the problem, work in a timely manner to protect the values of the conservation easement and find a resolution that fits the specific situation.”

“The organization has acquired and holds a number of conservation easements, each representing a legal interest in land owned by another person or entity. Conservation easements represent restrictions on the use, subdivision and/or development of certain parcels. The easements grant the organization the right to use, control, and/or protect land for conservation purposes. Because of the unique nature of these assets, the impracticality of obtaining consistent and reliable estimates of the values associated with these interests, and consistent with the practices followed by many environmental land trusts, the accompanying financial statements do not include any amounts for these property interests. Purchased easements are recognized as a program expense upon acquisition base on the acquisition cost of the easement.”

“Income from the restricted endowment is used primarily for the protection and stewardship of conservation land in our 36 community service region. Of the organization. Part v, line 1e: a negative expense is shown to correctly reflect the current endowment balance due to a reclassification.”

“The organization has been recognized by the internal revenue service ("irs") as exempt from federal income taxes under internal revenue code ("irc") section 501(a) as an organization described in irc section 501(c)(3), qualifies for charitable contribution deductions, and has been determined not to be a private foundation. The organization is annually required to file a return of organization exempt from income tax (form 990) with the irs. In addition, the organization is subject to income tax on net income that is derived from business activities that are unrelated to its exempt purpose. The organization accounts for uncertain tax provisions under financial accounting standards board ("fasb") accounting standards codification ("asc") 740, income taxes, which provides a framework for how entities should recognize, measure, present, and disclose uncertain tax positions in their financial statements. The organization may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Management has reviewed the organization's reporting and believes they have not taken tax positions that are more likely than not to be determined to be incorrect by the irs and, therefore, no adjustments or disclosures are required. The organization is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods pending or in progress.”