WASHINGTON HOUSE CONDOMINIUM ASSOCIATION FINANCIAL STATEMENTS AND. Year Ended Deceiaber 31,2017

Transcription

1 WASHINGTON HOUSE CONDOMINIUM ASSOCIATION FINANCIAL STATEMENTS AND SUPPLEMENT ARY INFORMATION Year Ended Deceiaber 31,2017

2 TABLE OF CONTENTS INDEPENDENT AUDITOR'S REPORT FINANCIAL STATEMENTS Balance Sheet 3 Statement of Revenues, Expenses, and Changes in Fund Balances 4 Statement of Cash Flows 5 Notes to Financial Statements 613 SUPPLEMENTARY INFORMATION Schedule of Operating. Replacement and Contingency Fund Revenues and Expenses Budget and Actual 14

3 m HAJEK & ASSOCIATES, P.A. Boltimore: (410) Bel Air: (410) Fax: (410) Toll Free: (800) CERTIFIED PUBLIC Courtland Street Suite 103 UCOUHTANTS INDEPENDENT AUDITOR'S REPORT Bel Air, MaryW To the Council Washington House Condominium Association We have audited the accompanying financial statements of Washington House Condominium Association, which comprise the balance sheet as of December 31, 2017, and the related statements of revenues, expenses, and changes in fund balance and cash flows for the year then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Staterpents 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 thel auditor's 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 intemal 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. I 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 abc^ve present fairly, in all material respects, the financial position of Washington House Condominium Association as of Djecember 31, 2017, 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. Page 1

4 INDEPENDENT AUDITOR'S REPORT (CONTINUED) Report on Supplementary Information Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on page 14 is presented for the purpose of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of the Association's management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. Disclaimer of Opinion on Required Supplementary Information Accounting principles generally accepted in the United States of America require that information concerning future major repairs and replacements shown on page 10 is 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 conteixt. We have applied certain limited procedures to the required supplementary information in accordance with auditirjg standards generally accepted in the United States of America, which consisted of inquiries of management about ithe methods of preparing the information and comparing the information for consistency with management's response 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. Bel Air, Maryland May 29,2018 Page 2

5 1,411,915 1,907,407 (172,675) 1,734,732 3,146,647 WASHINGTON HOUSE CONDOMINIUM ASSOCIATION BALANCE SHEET DECEMBER 31,2017 OPERATING FUND REPLACEMENT FUND CONTINGENCY FUND TOTAL ASSETS Current assets Cashincluding interest bearing accounts Assessments receivable (less allowance for doubtful accounts of S3,411 and $8,000) Litigation settlement receivable $ 68, $ 464,259 $ 323,704 2,000 1,220,000 $ 856,124 2,572 1,220,000 Total current assets 68, ,259 1,545,704 2,078,696 Fixed assets Equipment Less accumulated depreciation Net fixed assets 27,546 (27,546) 27,546 (27,546) TOTAL ASSETS $ 68,733 $ 464,259 $ 1,545,704 $ 2,078,696 LIABILITIES AND FUND BALANCES Current liabilities Accounts payable Current portion of debt Total current liabilities 174,393 $ 18,380 9, ,675 27, ,675 1,286,013 1,486,308 Long term liabilities: Loan payable Less current portion of debt Total long term liabilities 1,907,407 (172,675) 1,734,732 Other liabilities Security deposits 15,000 Total other liabilities 15,000 15,000 15,000 TOTAL LIABILITIES 89,393 3,236,040 Fund Balances (Deficit) (20,660) 464,259 (1,600,943) (1,157,344) TOTAL LIABILITIES AND FUND BALANCES S 68,733 $ 464,259 $ 1,545,704 S 2,078,696 The accompanying notes are an integral part of these financial statements. Page 3

6 WASHINGTON HOUSE CONDOMINIUM ASSOCIATION STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES YEAR ENDED DECEMBER 31,2017 OPERATING REPLACEMENT CONTINGENCY FUND FUND FUND TOTAL REVENUES Assessments Special assessments Settlement proceeds Utility assessments Other income $ 396,000 $ 42,315 14, ,600 1,220, , ,600 1,220,000 42,315 14,134 Interest income TOTAL REVENUES 452, ,183,600 2,636,950 EXPENSES Operating Capital expenditures Interest expense Legal and engineering fees Building repairs 339,971 85,263 2,000 89, , , ,971 85,263 89, , ,813 TOTAL EXPENSES 339,971 85, , ,894 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENSES 112,493 (84,377) 1,673,940 1,702,056 BEGINNING FUND BALANCES (DEFICIT) (27,237) 442,720 (3,274,883) (2,859,400) Interfiind transfers (105,916) 105,916 ENDING FUND BALANCES (DEFICIT) $ (20,660) $ 464,259 $ (1,600,943) $ (1,157,344) The accompanying notes are an integral part of these financial statements. Page 4

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