Peconic Land Trust Incorporated

“The Cow Neck Conservation Easement was donated to Peconic Land Trust on December 27, 2000, allowing no more than 5 single-family residential sites on 540 acres. In 2017, the boundary between the Equestrian, Farm, and Game Management Zone and Open Area was adjusted, as permitted in Section 4.12 of the 2014 Amended and Restated Conservation Easement (2014 Restatement). The 2017 amendment also corrected a mistake in acreage calculations discovered while reviewing the document after the amendment request. I.Boundary-line adjustment: Section 4.12 of the Easement allows the landowner to adjust the boundary lines between the Equestrian, Farm, and Game Management Zone and the non-Equestrian, Farm, and Game Management Zone so long as the overall acreage of the Equestrian, Farm, and Game Management Zone does not exceed its original surface area (stated in the 2014 Restatement as 112.4 acres more on this below) and so long as the boundary adjustment does not materially impair the Propertys Conservation Values (as such term is defined in the 2014 Restatement). Given that the amended acreage of both areas were the same (as confirmed by a survey), it was clear that the Equestrian, Farm, and Game Management Zone would not be increased beyond its former size. The Trust obtained a report prepared by GEI Consultants, dated June 22, 2016 (Report), concluding that the proposed boundary-line adjustment would not materially impair the Propertys Conservation Values and, in fact, appears to result in a positive conservation outcome. Therefore, the Trust approved the boundary-line adjustment as provided in the Site Plan pursuant to Section 4.12 of the Easement. Outcome: 2.94 acres of the Open Area were removed from the Open Area and added to the Equestrian, Farm, and Game Management Zone, while 2.94 acres of the Equestrian, Farm, and Game Management Zone were removed from the Equestrian, Farm, and Game Management Zone and added to the Open Area in a land swap of identical acreages. II.Correction: While reviewing the amendment request, it was discovered that the acreage reference for the Equestrian, Farm, and Game Management Zone in Section 4.12, namely 112.4 acres, was incorrect. That number should have been 113 acres (as specified in the first bullet point of Article III of the 2014 Restatement as well as the attached EXHIBIT A of the 2014 Restatement). Therefore, we included this simple change in the amendment to the 2014 Restatement to rectify this error.”

“Easement monitoring policy: All easements are to be rountinely monitoredwith written records maintained each time a property is monitored.Easements should be monitored at least annually to detect changes and toinsure the property is being used in accordance with the terms andrestrictions placed on it. Monitoring includes landowner contact,property inspection as well as written documentation.”

“Organizations policy of accounting for easements: Conservation easementsare generally recorded as revenue and assets based on appraised valuesas determined by qualified independent appraisals supplied by donors ofeasements. As there is sometimes a lag time between donation and whenapprasial information is avialable to the organization, all valuationsmay not be included in the year a donation of an easement is made. Incertain cases, appraised values are not supplied to the organization,and in those instances, valuations are not recorded as revenue or asassets, unless the organization obtains its own appraisal. Footnote toaudited Financial Statement: Donations of land and conservationeasements are generally recorded as revenue and assets based uponappraised value as determined by qualified independent appraisers.There is sometimes a substantial lag time between when a property oreasement is donated to the Trust and when the appraised values areavailable to the Trust, because of this, all valuations may not beincluded in the year a donation is received. In order to be included inthe year of donation, the appraised value must be received prior to thedate of the audit report. Those received after that date will beincluded in the subsequent year. Gifts of conservation easements are, inmost instances, perpetual and therefore recorded as permanentlyrestricted. Gifts of land held for conservation or other purposes aregenerally unrestricted.”

“Event expenses $174784 Loss on disposal of fixed assets $-75392 Cost of goods sold $4497”

“Event expenses $174784 Cost of goods sold $4497”