2005 Financial Statement

Compiled Financial Statements

Prepared by Farley & Upham, P.A.
Certified Public Accountants
1415 Panther Lane, Suite 387
Naples, Florida 34109

To the Board of Directors
Heernett Foundation, Inc.

We have compiled the accompanying statement of financial position tax basis of Heernett Environmental Foundation, Inc. (a nonprofit corporation) as of December 31, 2005, and the related statement of activities tax basis for the year then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The financial statements have been prepared on the tax basis of accounting, which is a comprehensive basis of accounting other than generally accepted accounting principles.

A compilation is limited to presenting in the form of financial statements information that is the representation of management. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or any other form of assurance on them.

Management has elected to omit substantially all of the disclosures ordinarily included in financial statements prepared on the tax basis of accounting. If the omitted disclosures were included in the financial statements, they might influence the user’s conclusions about the Foundation’s assets, liabilities, net assets, revenues, and expenses. Accordingly, these financial statements are not designed for those who are not informed about such matters.

We are not independent with respect to Heernett Environmental Foundation, Inc.

Farley & Upham, P.A.
Certified Public Accountants
June 1, 2006

Heernett Foundation, Inc.
Statement of Financial Position - Cash Basis
December 31, 2005

Assets
Cash	$ 294,366
Investment in stock	$ 140
Property and equipment, at cost, net of accumulated depreciation of $60,217	$ 1,934
Land	$ 2,470,000
Funds held in trust	$ 20,369
Total assets	$ 2,786,809
Liabilities
Due to employee	$ 610
Total liabilities	$ 610
Net Assets
Unrestricted	$ 2,786,199
Total net assets	$ 2,786,199
Total liabilities and net assets	$ 2,786,809

Heernett Foundation, Inc.
Statement of Activities - Cash Basis
Year Ended December 31, 2005

Unrestricted revenues, gains and other support

Contributions	$ 50,807
Sale of timber, net	$ 303,223
Total unrestricted revenues, gains and other support	$ 354,030
Expenses
Program services
Land and stream conservation	$ 13,970
Public education	$ 12,148
Total program services	$ 26,118
Supporting services
Management and general	$ 21,174
Total supporting services	$ 21,174
Total expenses	$ 47,292
Increase in unrestricted net assets	$ 306,738
Net assets at beginning of year	$ 2,479,461
Net assets at end of year	$ 2,786,199