Financial Statements December 31, 2018 Pinnacle Homeowners Association

Transcription

1 Financial Statements eidebailly.com

2 Table of Contents Independent Auditor s Report... 1 Financial Statements Balance Sheet... 3 Statement of Revenues and Expenses... 4 Statement of Changes in Fund Balances... 5 Statement of Cash Flows... 6 Notes to Financial Statements... 7 Supplementary Information Budget to Actual Major Repairs and Replacements Target Reserve Fund Balances Major Repairs and Replacements Budgeted Reserve Fund Balances Definition for Selected Expense Accounts Budget... 17

3 Independent Auditor s Report The Board of Directors Park City, Utah Report on the Financial Statements We have audited the accompanying balance sheet of the (the Association) as of, and the related statements of revenues and expenses, changes in fund balances, and cash flows for the year then ended and the related notes to the financial statements. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the as of, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. What inspires you, inspires us. eidebailly.com S. 800 E. P.O. Box Orem, UT T F EOE

4 Supplementary Information Our audit was performed for the purpose of forming an opinion on the financial statements as a whole. The supplementary information comparing the budget to actual income and expenses on pages 11-12, target reserve fund balances on page 13, definition for selected expense accounts on pages 15-16, and 2019 budget on pages is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. We have applied certain limited procedures, which consist primarily of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it. Disclaimer of Opinion on Required Supplementary Information Accounting principles generally accepted in the United States of America require that the schedule of future major repairs and replacements on page 14 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Report on Summarized Comparative Information We have previously audited s financial statements as of and for the year ended December 31, 2017, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 15, In our opinion, the summarized comparative information presented herein as of and for the year ended December 31, 2017 is consistent, in all material respects, with the audited financial statements from which it has been derived. Eide Bailly Signature Orem, Utah March 13,

5 Balance Sheet Total (For Comparative Purposes Only) Replacement & Replacement & Operating Restoration Operating Restoration Fund Fund Fund Fund Assets Current Assets Cash $ 391,148 $ 1,257,168 $ 376,144 $ 1,106,070 Assessments receivable, net 7,979-2,811 - Due from operating fund - 258, ,953 Prepaid insurance and other assets Total current assets 399,672 1,515, ,500 1,449,023 Other Assets Security boxes 5,000-5,000 - Accumulated depreciation (5,000) - (5,000) - Total other assets Total assets $ 399,672 $ 1,515,360 $ 379,500 $ 1,449,023 Liabilities and Fund Balances Current Liabilities Accounts payable and accrued expenses $ 141,480 $ - $ 34,330 $ - Assessments received in advance - - 2,217 - Due to replacement fund 258, ,953 - Total current liabilities 399, ,500 - Fund Balances Designated fund balance gatehouse - 5, Designated fund balance plumbing - 11, Designated fund balance building lighting - 26,488-59,551 Designated fund balance pole lighting - 13, Designated fund balance landscaping & irrigation - 38,151-65,380 Designated fund balance paving - 136,520-34,027 Designated fund balance building (siding) - 1,002,759-1,282,005 Designated fund balance building (decks & railing) - 247, Designated fund balance building (doors & garage) - 32, Designated fund balance signs ,913 Designated fund balance sprinklers ,147 Total fund balances - 1,515,360-1,449,023 Total liabilities and fund balances $ 399,672 $ 1,515,360 $ 379,500 $ 1,449,023 See Notes to Financial Statements 3

6 Statement of Revenues and Expenses Year Ended Replacement & Total (For Operating Restoration Comparative Fund Fund Total Purposes Only) Revenues Regular assessments $ 823,838 $ - $ 823,838 $ 784,601 Interest 1,123-1, Other late fees, lien fees, transfer fees 2,070-2,070 1,656 Total revenues 827, , ,144 Expenses Bank charges Cable television 56,354-56,354 55,050 Chimney sweeping 3,094-3,094 3,515 Christmas decorations 10,213-10,213 8,883 Common area cleaning 12,996-12,996 12,996 Freeze protection 1,725-1,725 2,276 Insurance 51,381-51,381 49,308 Landscaping 183,965 86, , ,316 Legal Audit and accounting 8,600-8,600 8,195 Property management fee 41,588-41,588 39,608 Meetings Office supplies 2,968-2,968 1,127 Pest control 3,224-3,224 1,331 Repairs and maintenance 69,245 37, , ,453 Security 49,163-49,163 49,041 Snow removal 87,651-87,651 89,521 Shuttle service 16,090-16,090 13,150 Trash removal 18,456-18,456 21,552 Utilities 8,766-8,766 8,061 Window cleaning 7,090-7,090 6,720 Reserve study 2,360-2,360 - Master plan ,000 Total expenses 635, , , ,184 Excess of revenues over expenses $ 191,224 $ (124,887) $ 66,337 $ 117,959 See Notes to Financial Statements 4

7 Statement of Changes in Fund Balances Year Ended Building Pole Landscaping Building - Building - Building - Total (For Operating Gatehouse Plumbing Lighting Lighting & Irrigation Paving Siding Decks & Railing Doors & Garage Signs Sprinklers Comparative Fund Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Total Purposes Only) Balance, at January 1 Excess of revenues $ - $ - $ - $ 59,551 $ - $ 34,027 $ 65,380 $ 1,282,005 $ - $ - $ 4,913 $ 3,147 $ 1,449,023 $ 1,331,064. over expenses 191, , ,959 Use of reserve funds (24,640) (37,986) (62,261) (124,887) - Fund transfers (191,224) 5,625 11,868 (33,063) 13, ,133 10,757 (279,245) 247,681 32,508 (4,913) 59, Balance, at December 31 $ - $ 5,625 $ 11,868 $ 26,488 $ 13,760 $ 136,520 $ 38,151 $ 1,002,759 $ 247,681 $ 32,508 $ - $ - $ 1,515,360 $ 1,449,023 See Notes to Financial Statements 5

8 Statement of Cash Flows Year Ended Total (For Comparative Purposes Only) Operating Activities Excess of revenues over expenses $ 66,337 $ 117,959 Changes in assets and liabilities Decrease (increase) in assessments receivable (5,166) 5,179 Increase (decrease) in accounts payable and accrued expenses 107,147 (30,576) Increase (decrease) in assessments received in advance (2,217) (23,887) Net Cash from Operating Activities 166,102 68,675 Net Change in Cash 166,102 68,675 Cash, Beginning of Year 1,482,214 1,413,539 Cash, End of Year $ 1,648,316 $ 1,482,214 Supplemental Disclosures Cash payments for income taxes during 2018 totaled $0. Cash payments for interest expense during 2018 totaled $0. See Notes to Financial Statements 6

9 Notes to Financial Statements Note 1 - Summary of Significant Accounting Policies Description of the Association The (the Association) is a statutory condominium association incorporated in the State of Utah on December 6, The Association is responsible for the operation and maintenance of the common property of the Association. The Association consists of 86 residential units located on approximately 39 acres in Park City, Utah. Fund Accounting The Association's governing documents provide certain guidelines for governing its financial activities. To ensure observance of limitations and restrictions on the use of financial resources, the Association maintains its accounts using fund accounting. Financial resources are classified for accounting and reporting purposes in the following funds established according to their nature and purpose: Operating Fund This fund is used to account for financial resources available for the general operations of the Association. Replacement and Restoration Funds These funds are used to accumulate financial resources designated for future major repairs, replacements and exterior restoration projects. Eleven such funds are currently established: gatehouse, plumbing, building lighting, pole lighting, paving, landscaping & irrigation, building siding, building decks & railing, building doors & garage, signs, and sprinklers. Comparative Totals Comparative total information for the prior year has been provided in the financial statements to provide an understanding of changes in financial position and operations of the Association. Member Assessments Association members are subject to quarterly assessments, at the beginning of each quarter, to provide funds for the Association's operating expenses, future capital acquisitions, and major repairs and replacements. Assessments receivable at the balance sheet date represent assessments due from unit owners. The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are delinquent, which minimizes doubtful accounts. Assessments are considered delinquent after 60 days of nonpayment. An allowance for doubtful accounts is established based on a review of individual account balances. Uncollectible accounts are charged to the allowance account when collection appears doubtful. At, the Association s allowance was $0. Financing charges are applied to the homeowner s account if dues are 30 days past due. Any excess assessments at year end are retained by the Association for use in future years. Pursuant to the Condominium Declaration and Bylaws of the Association, dues are allocated to the unit owners on the basis of their relative ownership interests in the condominium property. Members sometimes pay in advance of dues. These payments are recorded as assessments received in advance. 7

10 Notes to Financial Statements Income Taxes The Association is a Homeowners Association in accordance with Internal Revenue Service Code section 528. Under that section, the Association excludes from taxation exempt function income, which generally consists of revenue from uniform assessments to owners. The Association's investment interest and dividends were subject to tax. The Association is generally subject to income tax examinations by U.S. federal, state, and local tax authorities for up to three years. The Association believes that it has appropriate support for any tax positions taken affecting its annual filing requirements and, as such, does not have any uncertain tax positions that are material to the financial statements. The Association would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. Property and Common Areas Real property and common areas acquired from the developer, and related improvements to such property, are not recorded in the Association's financial statement because those properties are owned by the individual unit owners in common and not by the Association. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (ASU) , Revenue from Contracts with Customers (Topic 606), which supersedes most existing revenue recognition standards. It is effective for annual periods beginning after December 15, There are several other ASUs issued that amend and clarify this ASU. The standard is required to be adopted using a retrospective transition. The Company has not yet evaluated the impact these standards will have on its revenue recognition. Subsequent Events Subsequent events have been evaluated through March 13, 2019, the date the financial statements were available to be issued. Note 2 - Cash The Association maintains bank accounts which, at times, may exceed federally insured limits. The Association has not experienced any losses in such accounts. 8

11 Notes to Financial Statements Note 3 - Future Major Repairs and Replacements The Association s governing documents require funds to be accumulated for future major repairs and replacements. Funds are being accumulated based on estimated future costs and actual costs may vary from those estimates and the variations may be material. Accumulated funds were $1,515,360 at. The board has conducted their own study to estimate the remaining useful lives and the replacement costs of the common property components. A majority of the unit owners voted not to fund the Association s future needs for major repairs and replacements through increased systematic assessments. Therefore, amounts are being accumulated in the replacement fund based on reserve guidelines established by the board. Should these funds not be adequate to meet future needs, the Association has the right to increase regular annual dues, pass special assessments, or delay major repairs and replacements until funds are available. Note 4 - Managing Agent Burnside Property Maintenance Company was retained as the managing agent for The management company was paid management fees of $40.30 per unit, per month, through December Burnside Property Maintenance Company also provided repairs and maintenance and supervision of subcontractor services to the Association during the year. Note 5 - Common Property Common property to which the Association holds title but are not recognized as assets on the balance sheet, include the gatehouse (996 square feet), the gatehouse furnishings, landscaped areas (including irrigation systems), and roads. The Association has no existing land or recreation leases. The Association is responsible for normal maintenance, repair, or replacement of common areas and facilities (including limited common areas). Major repairs to limited common areas are the responsibility of the unit owners. The Board of Directors may dispose of items of personal property for cash or claims to cash with the Association retaining the proceeds; however, to dispose of real property the directors must obtain the approval of the owners in accordance with the Declaration of Condominium, Covenants, Conditions, and Restrictions and a percentage of the mortgagees. The Association property, real, personal, or mixed, may not be used by the Association to generate significant cash flows from members on the basis of usage or from homeowners. The property is for the use and benefit of the owners (members of the Association). Note 6 - Reserve Funds Per Utah law, the Association had an independent reserve analysis conducted to determine the needs of the Association to accumulate funds to cover the cost of repairing, replacing, and restoring common areas and facilities that have a useful life of three years or more. Costs that can be reasonably funded from the Association s general budget or from other Association funds were excluded. The study includes the appropriate amount of reserve funds, including target levels of reserves versus actual levels of reserves. The Association did not maintain all of its reserve funds separate from the operating funds of the Association. There is adequate cash for the reserves and the Association will transfer the cash to a separate account. Moneys in this fund are not used for daily maintenance expenses or for any purpose other than the purpose for which the reserve fund was established, unless a majority of the unit owners vote to approve the use of reserve fund money for that purpose. 9

12 Supplementary Information eidebailly.com

13 Budget to Actual Year Ended Variance Favorable Budget Actual (Unfavorable) Revenues 3020 Association dues $ 823,811 $ 823,838 $ Misc. income lien recording Finance charges 500 1,980 1, Interest income (1) 10,000 1,123 (8,877) 4999 Returned check charges Total revenues 834, ,031 (7,305) Expenses 4000 Management fees 41,588 41, Legal expenses misc. 1, Bad debt expense 1,000-1, Audit expense 8,500 8,600 (100) 4006 Long-distance phone charges 2,400 2, Postage expense (96) 4009 Bank charges Office supplies/xerox 700 2,372 (1,672) 4012 Insurance expense coverage 49,308 51,381 (2,073) 4014 Insurance expense deductible 2,500-2, Meeting expense Water sprinklers (6) 75, ,364 (64,364) 4021 Sprinkler repairs 20,000 17,129 2, Utah power electricity 4,500 4,674 (174) 4024 Trash removal 22,000 18, Cable television 55,000 56,354 (1,354) 4026 Gatehouse utilities 1,500 1,692 (192) 4028 Pest control 3,000 3,224 (224) 4031 Landscaping maintenance 80,000 84,190 (4,190) 4032 Landscaping repairs 5,000 3,697 1, Landscaping improvements 3,000 26,488 (23,488) 4034 Common area cleaning 13,000 12, Ext. paint touch-up (3) 10,000 5,680 4, Shuttle bus 13,500 16,090 (2,590) 4040 Security patrol 50,000 49, Fire sprinkler inspection (7) 7,500 2,916 4, Fire sprinkler repairs (5) 7,000 12,260 (5,260) 4052 R&M plumbing repairs 1, Water damage repairs (4) 4,500 (1,905) 6, R&M sewer & drain maintenance (3) 5, , Window/screen replacement 1,000-1, R&M siding & bldg repair (3) 15,000 10,547 4, R&M roof repairs 10,000 7,479 2, R&M electrical repairs 6,000 4,708 1, Light bulb replacement 3, , Sidewalk & driveway repair (2) 25,000 50,821 (25,821) 11

14 Budget to Actual Year Ended Variance Favorable Budget Actual (Unfavorable) Expenses (Continued) 4062 Exterior garage & door repair $ 1,000 $ 1,399 $ (399) 4065 Chimney inspector/repair 3,095-3, Christmas decorations 10,000 10,213 (213) 4068 Chimney sweeping 3,500 3, Window washing 7,000 7,090 (90) 4070 Driveway snow removal 65,000 65,195 (195) 4071 Snow removal pathways 25,000 22,457 2, Freeze protection 5,000 1,725 3, Nitrogen bottles 9,000 10,504 (1,504) 4095 Dryer vent repair Front door repair 2, , Reserve study - 2,360 (2,360) Total expenses 680, ,694 (84,048) Excess of revenues over expenses $ 154,120 $ 66,337 $ (87,783) Budgeted Revenues Transferred To (From) Painting reserve $ 23,388 $ - Gatehouse reserve - 5,625 Plumbing - 11,868 Building reserve siding 96,418 (279,245) Building reserve decks & railing - 247,681 Building reserve doors & garage - 32,508 Signs reserve 332 (4,913) Sprinklers reserve 1,503 (3,147) Lighting reserve building 3,339 (33,063) Lighting reserve pole 13,760 Paving reserve 10,712 (27,230) Landscaping & irrigation reserve 18, ,493 $ 154,120 $ 66,337 (1) Cash accounts were not switched to money market savings accounts as planned. (2) Plans were made to replace driveways. This will continue in 2019, as they were only partially completed. (3) Less snow than expected, as such less exterior repairs were needed. (4) Reimbursed for water damage. (5) Unplanned repairs in November and December. (6) More sprinkler needed repairs than originally planned. (7) Less inspections of fire sprinklers occurred during the year. 12

15 Major Repairs and Replacements Target Reserve Fund Balances The 's Board of Directors has reviewed and revised the independently prepared reserve analysis which estimates the remaining useful lives and the replacement costs of the components of common property. These estimates were based on current estimated replacement costs as of. Any project costs which are in excess of basic replacement will be funded from assessments at the time of the project and subject to a vote by homeowners. The following table is based on those estimates and presents significant information about the components of common property. The schedule illustrates targeted fund balances based on estimated useful life and replacement costs, and actual amounts may vary. Components Estimated Estimated 2019 Target 2019 Proposed Target Remaining Current Basic Target Reserve Build Amount (Decrease) Reserve Useful Replacement Balances at in Reserve in Reserve Balances at Lives Costs 12/31/2018 Balances (1) Balances 12/31/2019 Designated Funds: Building lighting reserve 14 $ 120,400 $ 52,976 $ 5,972 $ - $ 58,948 Poles lighting reserve 3 30,100 27,520 1,428-28,948 Paving reserve (2) ,950 76,302 10,174-86,476 Landscaping & irrigation reserve (2) , ,700 5,088 (107,999) 21,789 Building reserve siding 3 2,279,000 2,005, ,094-2,138,614 Building reserve decks & railing 16 1,376, ,360 66, ,408 Building reserve doors & garage ,600 65,016 8,816-73,832 Gatehouse reserve 11 25,000 11,250 1,500-12,750 Plumbing reserve (2) 2 25,800 23,736 1,527-25,263 $ 4,373,550 $ 2,882,380 $ 233,647 $ (107,999) $ 3,008,028 (1) It is the board's objective, adopted in 2011, for the operating surplus and the reserve funding to equal 50% of their respective targets. The 50% target represents a balance between funding capital expenditures from dues, based on larger annual increases, versus major assessments at the time of the project. Dues are expected to rise commensurate with the rate of inflation. (2) A total of $124,887 was spent on repairs in 2018: $37,986 on road paving/resurfacing, $24,640 on tree removal, and $62,261 for irrigation repair/replacement. 13

16 Major Repairs and Replacements Budgeted Reserve Fund Balances The s Board of Directors has reviewed and revised the independently prepared reserve analysis which estimates the remaining useful lives and replacement costs of the components of common property. These estimates were based on current estimated replacements costs as of. Any project costs which are in excess of basic replacement will be funded from assessments at the time of the project and subject to a vote by homeowners. The following table is based on those estimates and presents significant information about the components of common property. The schedule illustrates budgeted fund balances based on projected net cash flows for Actual amounts may vary. Any items with expenditures expected within five years should be funded or partially funded. Estimated Estimated 2019 Budget 2019 Proposed Budgeted Remaining Current Basic Reserve Build Amount (Decrease) Reserve Components Designated Funds: Useful Replacement Balances at in Reserve in Reserve Balances at Lives Costs 12/31/2018 Balances (1) Balances 12/31/2019 Building lighting reserve 14 $ 120,400 $ 26,488 $ 2,986 $ - $ 29,474 Poles lighting reserve 3 30,100 13, ,474 Paving reserve (2) ,950 38,151 5,087-43,238 Landscaping & irrigation reserve (2) , ,520 - (107,999) 28,521 Building reserve siding 3 2,279,000 1,002,759 66,547-1,069,306 Building reserve decks & railing 16 1,376, ,681 33, ,704 Building reserve doors & garage ,600 32,508 4,408-36,916 Gatehouse reserve 11 25,000 5, ,375 Plumbing reserve (2) 2 25,800 11, ,632 Undesignated reserve ,142 (67,142) - $ 4,373,550 $ 1,515,360 $ 181,421 $ (175,141) $ 1,521,640 (1) It is the board's objective, adopted in 2011, for the operating surplus and the reserve funding to equal 50% of their respective targets. The 50% target represents a balance between funding capital expenditures from dues, based on larger annual increases, versus major assessments at the time of the project. Dues are expected to rise commensurate with the rate of inflation. (2) A total of $124,887 was spent on repairs in 2018: $37,986 on road paving/resurfacing, $24,640 on tree removal, and $62,261 for irrigation repair/replacement. 14

17 Definition for Selected Expense Accounts 4000 Management Fees Management fees paid for accounting and administrative services such as processing vendor payments, depositing cash receipts, preparing quarterly invoices for homeowners dues and assessments, providing collection services on delinquent accounts, providing monthly financial information to the board members, acting as agent on behalf of Pinnacle for various utility companies, responding to title and mortgage companies and other office support to homeowners Long-Distance Phone Charges Flat fee charged for all long-distance calls Water Sprinklers Water usage for the sprinklers paid to Park City Municipal Corporation Landscaping Maintenance Regular mowing, weeding, fertilizing and other day-to-day maintenance of the landscape Landscaping Repairs Replacement of plants, trees, shrubs, borders and other winter damage to landscape Common Area Cleaning Flat fee paid for cleaning 37 acres of common area Fire Sprinkler Inspection Fire sprinkler fee paid for required annual inspection Fire Sprinkler Repairs Repairs and upgrades (compressors) to the fire sprinkler system Plumbing Repairs Repairs to outside plumbing systems and other plumbing within exterior walls Water Damage Repairs Covers repairs from association-responsible water damage. If damage exceeds insurance deductible, then insurance claim will be submitted. 15

18 Definition for Selected Expense Accounts 4055 Window Screen Replacement Repairs to outside window screens caused by snow and ice Siding & Building Repairs Repairs to all outside structure such as siding, handrails, decks or other Roof Repairs Any maintenance to copper roofing (sealing and flashings) Electrical Repairs Common area electrical repairs such as street lights and sprinkler system Sidewalk & Driveway Repair Asphalt, curb and gutter repairs Chimney Sweeping Annual cleaning of chimneys Freeze Protection Preventative maintenance for possible frozen pipes or other damage that could be caused by freezing temperatures. Includes temperature checks inside every unit Nitrogen Bottles Cost of nitrogen tanks for fire sprinkler system and the time to install them Master Plan Services to develop a long-term plan for capital expenditures. 16

19 2019 Budget Budget Revenues 3020 Association dues $ 865, Finance charges Interest income 5,000 Total revenues 870,529 Expenses 4000 Management fees 42, Legal expenses misc. 1, Bad debt expense 1, Audit expense 8, Long distance phone chgs 2, Postage expense Bank charges Office supplies / xerox 2, Insurance expense coverage 54, Insurance expense deductible 2, Meeting expense Water - sprinklers 17, Sprinkler repairs 70, Utah power-electricity 4, Trash removal 19, Cable television 59, Gatehouse utilities 1, Pest control 3, Landscaping maintenance 70, Landscaping repairs 5, Landscaping improvements 3, Common area cleaning 13, Ext. paint touch-up 10, Shuttle bus 16, Security patrol 50, Fire sprinkler inspection 7, Fire sprinkler repairs 7, R&M plumbing repairs 1, Water damage repairs 4, R&M sewer & drain maintenance 5, Window/screen replacement 1, R&M siding & bldg repair 15, R&M roof repairs 10, R&M electrical repairs 6, Light bulb replacement 3, Sidewalk & driveway repair 15, Exterior garage & door repair 1,000 17

20 2019 Budget Budget Expenses (Continued) 4065 Chimney inspection / repair 3, Christmas decorations 10, Chimney sweeping 3, Window washing 7, Driveway snow removal 80, Snow removal pathways 35, Freeze protection 5, Nitrogen bottles 9, Dryer vent repair Reserve study 2,000 Total expenses 689,108 Excess of Revenues Over Expenses to Allocate to Reserves $ 181,421 18