Oaktree Foundation Inc.

“Sch. L Part IIOaktree leases a property from its President, Carol Joob, to house the rescued pets that the group cares for while they are awaiting adoption. Mrs. Joob purchased a property (39867 High Street, Cherry Valley, CA 92223) for the organization to house the rescued pets. Since banks and mortgage companies are unwilling to loan to nonprofit corporations, Mrs. Joob and her husband purchased the property in their names, as well as incurred the mortgage. Oaktree supplied the $95K down payment, and the Joob's signed a promissory note with Oaktree. Oaktree pays monthly rent, which is equal to the mortgage and property taxes on the property. The Joob's report the monthly rent as rental income on their IRS Schedule E form. The property is used 100% by Oaktree for charitable purposes. Sch. L Part II, continued.The intent of the Joob's & Oaktree was, and continues to be, to refinance & transfer the property 100% in Oaktree's name, in order to eliminate any related party transactions. The Board of Directors continues to monitor this and is actively seeking alternative financing. Due to the real estate downturn, especially in the Riverside county, where property values plummeted by 50%, it's been difficult to refinance the property into Oaktree's name. Both the Joob's and the Board of Directors continue to seek financing for this property and transfer complete title to Oaktree, thus eliminating the $95K note receivable.”

“Description AmountDepreciation from 4562 2,643Auto Expense 22,179Pet Food & Supplies 22,556Pet Promotion 721Licenses and Permits 1,118Bank Charges 155Veterinary Expenses 21,673Pet Sitting/Boarding 1,359Adoption Fees 829Volunteer Relations 2,062”

“Category Beginning of Year End of YearNote Receivable 95,000 95,000”