Commonweal Conservancy Inc.

“Part ii, line 5 - summarized policy the board has adopted a conservation easement policy that sets forth: criteria for acceptance of easements; provisions for annual monitoring of easements, including site inspection and communication with property owners; guidelines for inspecting and documenting condition of the property with respect to the terms of the easements; procedures for investigating, enforcing, and resolving violations of the terms of the easements. The organization is committed to maintaining the most constructive working relationships possible with the property owners and uses all reasonable attempts at negotiation before using litigation as a last resort to correct violations. Easements held by the organization reflect board policy. Part ii, line 9 - organization reporting of conservation easements since the benefits of the conservation easements accrue to the public upon acquisition, the fair market value of the 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 the 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. Easements are carried on the statement of financial position at $1 each for tracking and accounting purposes. The organization also donates and sells easements to public agencies and trusts. Donations and sales of easements are recorded as expenses measured at fair value of the decline in value of the related land.”

“Income taxes under section 501(c)(3) of the internal revenue code, commonweal conservancy, inc. Is exempt from taxes on income other than unrelated business income. The organization had no unrelated business income for the year ended june 30, 2021. Commonweal communities, inc., is a june 30, fiscal year-end c-corporation. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts for financial reporting purposes and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The organization utilizes the accounting requirements associated with uncertainty in income taxes using the provisions of fasb asc 740, income taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the positions will be sustained upon examination by the tax authorities. It also provides guidance for derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As of june 30, 2021, the organization has no uncertain tax positions that qualify for recognition or disclosure in the financial statements. The organization is a subject to routine audits by tax jurisdictions.”