2007 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, 2007, 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
May 9, 2008

Heernett Foundation, Inc.
Statement of Financial Position - Tax Basis
December 31, 2007

Assets
Cash	$ 25,950
Investment in stock	$ 140
Land	$ 2,870,861
Property and equipment, at cost, net of accumulated depreciation of $28,272	$ 60,483
Total assets	$ 2,957,434
Liabilities
Reimbursements and other liabilities	$ 11,189
Longterm debt	$ 170,500
Total liabilities	$ 181,689
Net Assets
Unrestricted	$ 2,775,745
Total net assets	$ 2,775,745
Total liabilities and net assets	$ 2,957,434

Heernett Foundation, Inc.
Statement of Activities - Tax Basis
Year Ended December 31, 2007

Unrestricted revenues, gains and other support

Contributions	$ 39,391
Sale of timber, net	$ 44,242
Interest	$ 6,067
Miscellaneous income	$ 6,178
Total unrestricted revenues, gains and other support	$ 95,878
Expenses
Program services
Land and stream conservation	$ 23,156
Public education	$ 15,366
Contributions made	$ 1,000
Total program services	$ 39,522
Supporting services
Management and general	$ 23,310
Total supporting services	$ 23,310
Total expenses	$ 62,832
Increase in unrestricted net assets	$ 33,046
Net assets at beginning of year	$ 2,742,699
Net assets at end of year	$ 2,775,745