Landings Yacht, Golf and Tennis Club, Inc. Financial Report September 30, 2014

Transcription

1 Landings Yacht, Golf and Tennis Club, Inc. Financial Report September 30, 2014

2 Contents Independent Auditor s Report on the Financial Statements 1-2 Financial Statements Balance sheet 3 Statement of revenues, expenses and changes in fund balances 4-5 Statement of cash flows 6-7 Notes to financial statements 8-14 Supplementary Information on Future Major Repairs and Replacements (Unaudited) 15 Independent Auditor s Report on the Supplementary Information 16 Supplementary Information Statements of revenues, expenses and changes in fund balances information: Departmental schedules of certain revenues and certain expenses Operating Fund 17-18

3 Independent Auditor s Report on the Financial Statements and Required Supplementary Information To the Board of Administrators and Members Landings Yacht, Golf and Tennis Club, Inc. Fort Myers, Florida Report on the Financial Statements We have audited the accompanying financial statements of Landings Yacht, Golf and Tennis Club, Inc. (the Association ) which comprise the balance sheet as of September 30, 2014 and the related statements of revenues, expenses and changes in fund balances and cash flows for the year then ended and the related notes to the financial statements. 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 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 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 Landings Yacht, Golf and Tennis Club, Inc. as of September 30, 2014 and the changes in its fund balances and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 1

4 Report on Summarized Comparative Information We have previously audited Landings Yacht, Golf and Tennis Club s 2013 financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated February 19, In our opinion, the summarized comparative information presented herein as of and for the year ended September 30, 2014, is consistent, in all material respects, with the audited financial statements from which it has been derived. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the supplementary information on future major repairs and replacements on page 15 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 inquires, 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. Naples, Florida February 16,

5 Balance Sheet September 30, 2014 With Comparative Totals for 2013 Major Repairs and Operating Replacements Combined Funds Assets Fund Fund Cash $ 435,794 $ 841,617 $ 1,277,411 $ 772,308 Less designated cash (Note 2) - 243, , , , ,117 1,033, ,808 Certificates of deposit Accounts receivable, less allowance for doubtful accounts of $29, , , ,276 Inventories 287, , ,115 Prepaid expenses 72,740-72,740 97,283 Total current assets 1,427, ,117 2,026,005 1,386,482 Designated Cash (Note 2) - 243, , ,500 Property and Equipment, less accumulated depreciation (Note 3) 19,055,178-19,055,178 19,895,036 Loan Origination Fees, less accumulated amortization (Note 4) 122, , ,964 Other Assets 4,899-4,899 21,339 $ 20,610,439 $ 841,617 $ 21,452,056 $ 21,676,321 Liabilities and Fund Balances Current maturities of notes payable (Note 4) $ 504,107 $ - $ 504,107 $ 470,000 Current maturities of capital lease obligations ,788 Accounts payable 202, , ,962 Accrued expenses 212, , ,679 Membership assessments and fees collected in advance 328, , ,224 Total current liabilities 1,247,715-1,247,715 1,225,653 Notes Payable, net of current maturities (Note 4) 3,899,512-3,899,512 4,399,275 Capital Lease Obligations, net of current maturities Total liabilities 5,147,227-5,147,227 5,625,076 Fund Balances 15,463, ,617 16,304,829 16,051,245 $ 20,610,439 $ 841,617 $ 21,452,056 $ 21,676,321 * Eliminated in combination of funds. See Notes to Financial Statements. 3

6 Statement of Revenues, Expenses and Changes in Fund Balances Year Ended September 30, 2014 With Comparative Totals for 2013 Major Repairs and Operating Replacements Combined Funds Fund Fund Revenues: Maintenance fees (Note 7) $ 3,925,924 $ 556,499 $ 4,482,423 $ 4,335,268 Associate member dues 98,170-98,170 91,443 Food sales 1,114,414-1,114, ,122 Beverage sales 447, , ,726 Cart fees 108, ,964 84,853 Greens and guest fees 43,700-43,700 27,664 Pro shop sales 88,252-88,252 79,842 Other golf revenue 50,606-50,606 44,888 Tennis revenue 300, , ,095 Marina 2,060,741-2,060,741 1,921,755 Interest income Rental income 30,840-30,840 25,324 Miscellaneous 175, , ,684 8,444, ,499 9,001,049 8,313,334 Expenses: Food and beverage 2,030,292-2,030,292 1,723,653 Golf activities 335, , ,698 Golf course maintenance 760, , ,101 Tennis activities 528, , ,629 Marina 1,960,981-1,960,981 1,844,923 Administrative and general 755, , ,502 Management fees (Note 6) 186, , ,000 Security 307, , ,797 Utilities 355, , ,780 Property taxes 9,523-9,523 6,899 Insurance 495, , ,706 Landings environmental, waterway and road maintenance 591, , ,357 Miscellaneous - 2,200 2,200 8,517 8,315,951 2,200 8,318,151 7,718,562 Excess of revenues over expenses before depreciation and amortization and other revenues (expenses), forward 128, , , ,772 (Continued) 4

7 Statement of Revenues, Expenses, and Changes in Fund Balances (Continued) Year Ended September 30, 2014 With Comparative Totals for 2013 Major Repairs and Operating Replacements Combined Funds Fund Fund Excess of revenues over expenses before depreciation and amortization and other revenues (expenses), forwarded $ 128,599 $ 554,299 $ 682,898 $ 594,772 Depreciation and amortization 1,339,682-1,339,682 1,274,091 Deficiency of revenues over expenses before other revenues (expenses) (1,211,083) 554,299 (656,784) (679,319) Other revenues (expenses): Debt repayment fees 792, , ,478 Capital contribution fees - 419, , ,000 Renovation assessment ,668 Capital assessment ,500 Transfer fees 25,950-25,950 6,803 Loss on disposition of property and equipment ,800 Interest expense (Note 4) (326,612) - (326,612) (363,405) 491, , ,368 1,510,844 Excess (deficiency) of revenues over expenses (719,715) 973, , ,525 Fund balance, beginning 15,653, ,144 16,051,245 15,219,720 Property and equipment replacements transferred to operations 491,933 (491,933) - - Fund transfer 37,893 (37,893) - - Fund balance, ending $ 15,463,212 $ 841,617 $ 16,304,829 $ 16,051,245 See Notes to Financial Statements. 5

8 Statement of Cash Flows Year Ended September 30, 2014 With Comparative Totals for 2013 Operating Major Repairs and Replacements Combined Funds Fund Fund Cash Flows From Operating Activities Excess (deficiency) of revenues over expenses $ (719,715) $ 973,299 $ 253,584 $ 831,525 Adjustments to reconcile excess (deficiency) of revenues over expenses to net cash provided by operating activities: Depreciation 1,332,192-1,332,192 1,266,601 Amortization 7,490-7,490 7,490 Loss (gain) on disposition of property and equipment (15,800) Less current year debt repayment fees (465,656) - (465,656) - Changes in assets and liabilities: (Increase) decrease in: Accounts receivable (108,435) - (108,435) (103,915) Inventories (50,528) - (50,528) (29,622) Prepaid expenses 24,543-24,543 (18,321) Other assets 16,440-16,440 (1,100) Increase (decrease) in: Accounts payable (5,080) - (5,080) 283,038 Accrued expenses 4,658-4,658 9,028 Membership assessments and fees collected in advance (9,835) - (9,835) 149,635 Net cash provided by operating activities 26, , ,373 2,378,559 Cash Flows From Investing Activities Disbursements for property and equipment (401) (491,933) (492,334) (3,127,962) Proceeds on disposals of fixed assets ,800 Proceeds on redemption of certificates of deposit ,412 Interfund activity - (37,893) - * - Net cash provided by (used in) investing activities (401) (529,826) (492,334) (2,875,750) (Continued) 6

9 Statement of Cash Flows (Continued) Year Ended September 30, 2014 With Comparative Totals for 2013 Major Repairs and Operating Replacements Combined Funds Fund Fund Cash Flows From Financing Activities Principal payments on note payable (465,656) - (465,656) (557,604) Principal payments on capital lease obligation (1,936) - (1,936) (1,580) Debt repayment fees collected to offset current year debt payments 465, ,656 - Interfund activity 37, * - Net cash used in financing activities 35,957 - (1,936) (559,184) Net increase (decrease) in cash 61, , ,103 (1,056,375) Cash: Beginning 374, , ,308 1,828,683 Ending $ 435,794 $ 841,617 $ 1,277,411 $ 772,308 Supplemental Disclosures of Cash Flow Information Cash payments for interest $ 326,612 $ - $ 326,612 $ 363,405 Supplemental Schedule of Noncash Investing and Financing Activities Property and equipment replacements transferred to operations $ 491,933 $ (491,933) $ - $ - * Eliminated in combination of funds. See Notes to Financial Statements. 7

10 Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies Nature of organization: Landings Yacht, Golf and Tennis Club, Inc. (the Association), located in Fort Myers, Florida, was incorporated in October 1973 under the laws of Florida as a not-for-profit corporation. The Association is comprised of 1,127 Landings units and 30 Riverside units. All unit owners are responsible for the operation and maintenance of the common areas and recreational facilities of the Association, including but not limited to, the golf course, clubhouse, roadways, swimming pool, tennis courts, guard house and water retention areas. Riverside unit owners are not responsible for maintenance and expenses associated with the operation of the marina. A summary of the Association s significant accounting policies follows: Fund accounting: The Association uses fund accounting which requires that funds, such as operating funds and funds designated for major repairs and replacements, be classified separately for accounting and reporting purposes. Disbursements from the Operating Fund are generally at the discretion of the Board of Administrators. Disbursements from the Major Repairs and Replacements Fund generally may be made only for designated purposes. Accounting estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue recognition: Maintenance fees, including debt repayment for both the Operating Fund and Major Repairs and Replacements Funds and associate member dues are recognized as revenue on a pro rata basis over the period covered by the billing. Renovation assessments, capital assessments and capital contribution fees are recognized as revenue when received. Golf and tennis fees, pro shop sales, food and beverage and marina sales are recognized as revenue at the time of sale. Owners assessments: Association members are subject to annual maintenance, debt service and major repairs and replacement assessments to provide funds for the Association s operating expenses, debt service, future capital acquisitions and major repairs and replacements. The fee billed to all residents was approximately $4,540 for Landings unit owners and $3,665 for Riverside unit owners for the year ended September 30, The budget of the Association does not provide for reserve accounts for all capital expenditures and deferred maintenance that may result in special assessments. Owners may elect to provide for reserve accounts pursuant to Section (6) Florida Statutes, upon obtaining the approval of a majority of the total voting interests of the Association by vote of the members at a meeting or by written consent. The budget of the Association provides for limited voluntary deferred expenditure accounts, including capital expenditures and deferred maintenance, subject to limits on funding contained in our governing documents. Because the owners have not elected to provide for reserve accounts pursuant to Section (6), Florida Statutes, these funds are not subject to the restrictions on use of such funds set forth in that statute, nor are reserves calculated in accordance with that statute (see Note 8). Capital contribution fee: A capital contribution fee of $5,000 is charged to the Landings unit owners for the transferee of a conveyance of a lot or unit. A capital contribution fee of $4,000 is charged to Riverside unit owners upon the activation of membership. Capital contribution fees are recognized as revenue when received and used for the acquisition of new capital assets or applied to reserves created for maintenance, repair and replacement of capital improvements of the Association. 8

11 Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies (Continued) Cash and concentration of credit risk: For cash flow purposes, the Association considers designated cash to be cash. The Association maintains its excess cash in noninterest-bearing bank deposit accounts. Excess funds are also maintained in certificates of deposit. Accounts receivable: Accounts receivable are carried at the original charge amount less an estimate made for doubtful accounts, if any, based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. Accounts receivable are considered to be past due if any portion of the receivable balance is outstanding for more than 60 days. Interest of 1.5% per month to a maximum rate of 18% per annum is charged on accounts receivable that are outstanding for more than 60 days and is recognized as it is charged. Inventories: Inventories are stated at weighted average for marina fuel and the lower of cost (first-in, first-out method) or market for all other inventories which consist of food, beverage and merchandise sold in the pro shop and marina. Property and equipment: The Association capitalizes property and equipment to which it holds title or has evidence of ownership. Capitalized property and equipment is recorded at cost and depreciated using the straight-line method of depreciation as follows: Years Furniture, fixtures and equipment 3 15 Building improvements Ownership of certain commonly-owned assets is vested directly or indirectly in the unit owners, and those assets are not deemed to be severable. As a result, certain commonly-owned assets contributed by the Developer to the Association are not recorded on the Association s financial statements. The Association recognizes all personal property on its balance sheet. Subsequent to turnover, the Association s policy is to recognize roadway improvements and commonlyowned real property, not directly associated with the units, to which it has title and that it can dispose of for cash while retaining the proceeds. Loan origination fees: Loan origination fees are amortized using the effective interest method over the term of the loan agreement. 9

12 Notes to Financial Statements Note 1. Nature of Organization and Significant Accounting Policies (Continued) Income taxes: The Association is incorporated as a not-for-profit corporation under the laws of the State of Florida. However, the Association is not exempt from income taxes. For income tax purposes, the Association is required to segregate the results of its member activities from its nonmember activities and may be, subject to certain elections, taxed on each element. Nonmember activity losses may be used to offset member activity profits in current or future periods. Membership activity losses are referred to as deferred expense carryforwards and cannot be used to offset nonmember activity profits. Due to the nature of the Association s operations, the Association believes it is remote that it would utilize its deferred expense or net operating loss carryforwards, if any. As a result, it is the Association s policy not to disclose the deferred tax asset and related valuation allowances associated with the carryforwards. The Association has evaluated its tax positions and concluded that the Association has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of the accounting guidance for uncertainty in income taxes. With few exceptions, the Association is no longer subject to income tax examinations by the U.S. federal or state tax authorities for years prior to September 30, Operating income / performance measurement: The Association considers the excess of revenues over expenses before depreciation and amortization and other revenues (expenses) on the accompanying statement of revenues, expenses and changes in fund balances to be operating income for performance measurement purposes as this is the line item budgeted for financial management and internal reporting purposes. Comparative amounts: The financial statements include certain prior-year summarized comparative information in total but not by funds. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Association s financial statements for the year ended September 30, 2013, from which the summarized information was derived. Subsequent events: Management has assessed subsequent events through February 16, 2015, the date on which the financial statements were available to be issued. Note 2. Board Designated Funds The Board designated a portion of the major repairs and replacement funds for specific purposes. As of September 30, 2014 this consisted of the following: Hurricane insurance reserve $ 218,500 Stormwater system reserve 25,000 $ 243,500 10

13 Notes to Financial Statements Note 3. Property and Equipment Property and equipment consist of the following as of September 30, 2014: Land $ 4,918,633 Furniture, fixtures and equipment 6,874,713 Building improvements 16,028,163 27,821,509 Less accumulated depreciation 8,915,886 18,905,623 Construction in progress 149,555 $ 19,055,178 Note 4. Notes Payable Long-term debt as of September 30, 2014 consists of the following: Note payable to a bank in the original amount of $8,000,000, payable in monthly installments of principal and interest of $66,022, through July 2022, at a fixed rate of 6.93%. The note payable is collateralized by certain amenities. On May 15, 2008, the Association modified the original loan agreement to obtain a lower interest rate. The interest rate was lowered to 6.93% from 7.55%. During the refinancing, the Association elected not to change the payment amount. If the Association continues to pay the full $66,022, the note will be paid off in October This is reflected in the calculation of the future maturities schedule below. $ 4,403,619 Less current maturities $ 504,107 3,899,512 In connection with the note payable, the Association has agreed, among other things, (a) provide audited financial statements to the bank within 120 days of fiscal year end; (b) maintain a debt service coverage ratio of at least 1.0 to 1.0; and (c) maintain minimum liquidity of at least $250,

14 Notes to Financial Statements Note 5. Notes Payable Aggregate maturities required on the notes payable as of September 30, 2014 are due in future years as follows: Year Ending September 30, Amount 2015 $ 504, , , , ,626 Thereafter $ 1,512,868 4,403,619 Interest expense incurred on the notes payable totaled $326,612 for the year ended September 30, Note 5. Line of Credit The Association has an unsecured line of credit agreement in the amount of $250,000 with a financial institution. Interest is payable at prime (3.25% as of September 30, 2014). The line has been renewed through March 31, As of September 30, 2014, the Association had no outstanding borrowings under this agreement. Note 6. Commitments Management agreement: In January 2012, the Association signed an extension to the management and accounting agreement with Coral Hospitality through April Coral Hospitality will provide on-site management and maintenance and off-site administrative and accounting services. Under the extended agreements, management fees will be $9,000 per month and accounting fees will be $6,500 per month. Either party may terminate the agreements at any time for any reason without cause by giving the nonterminating party 120 days notice. During the year ended September 30, 2014, a total of $186,000 was paid under the agreement of which $108,000 was management fees and $78,000 was accounting fees. 12

15 Notes to Financial Statements Note 6. Commitments (Continued) Operating equipment leases: The Association is committed under various noncancelable operating leases for golf carts, golf course maintenance equipment and administrative office equipment through May As of September 30, 2014, future minimum lease payments under noncancelable operating leases are as follows: Year Ending September 30, Amount 2015 $ 154, , , ,134 Thereafter $ 2, ,643 Total rent expense for the year ended September 30, 2014 amounted to $194,204. Note 7. Future Major Repairs and Replacements The Association s Board has elected to designate funds to be accumulated for future major repairs and replacements. Accumulated funds are held in separate bank accounts and generally are not available for expenditures for normal operations. In 2009, the Board of Directors engaged an independent capital reserve analyst to estimate the remaining useful lives and the current replacement costs of the components of common property. The table included in the unaudited supplementary information on Future Major Repairs and Replacements is based on the study. As of September 30, 2014, the Association has accumulated $841,617 for future major repairs and replacements. An annual capital contribution of $480 per Landings unit owner and $378 per Riverside unit owner for 2014 is used to fund normal capital expenditures each year. The total amount collected for the year ended September 30, 2014 was $556,499. The Board has committed to fund $480 per Landings unit owner and $457 per Riverside unit owner for major repairs and replacements for the year ending September 30, 2014, totaling approximately $556,000. If additional funds are needed, the Association has the ability to pass special assessments, subject to membership approval, or delay major repairs and replacements until funds are available. Note 8. Utility Services The Association provides the billing function for water and sewer utility service in the Landings community. For the year ended September 30, 2014, the Association collected $604,102 in utility fees and paid $604,102 to Lee County Utilities. 13

16 Notes to Financial Statements Note 9. Employee Benefit Plan The Association sponsors a qualified deferred compensation plan under Section 401(k) of the Internal Revenue Code. Under the plan, employees may elect to defer a percentage of their salary, subject to Internal Revenue Service limits. All eligible employees who have reached the age of 21 and have at least one year of service are eligible. Contributions by the Association are at the discretion of the Board of Administrators. The Association s contributions for the year ended September 30, 2014 totaled $14,708. Note 10. Insurance Matters Where possible, the Association attempts to mitigate risk of hurricane damage through insurance. The Association s insurance policies were renewed through October 1, Due to the Association s coverages and deductibles, losses from future catastrophic weather events may require special membership assessments or funding from existing reserves. As of September 30, 2014, the Association has designated cash of $218,500 of major repair and replacement fund cash as a hurricane insurance reserve in the event of a named storm (see Note 2). 14

17 Supplementary Information on Future Major Repairs and Replacements (Unaudited) September 30, 2014 In 2009, the Board of Administrators engaged an independent capital reserve analyst to estimate the remaining useful lives and the current replacement costs of the components of common property. The following table is based on the study and presents significant information about the components of common property: Estimated Estimated Remaining Current Useful Lives Replacement (Years) Costs Component: Administrative buildings 1 19 $ 227,269 Golf course ,937,640 Helm club components ,016,837 Marina components ,761,232 Pavement ,766 Pool components ,107 Security, guardhouse ,173 Site improvements ,136 Tennis components ,808 Wheelhouse components 2 24 $ 535,426 8,810,394 The Association does not establish separate accounts for each major component of the Major Repairs and Replacement Fund. As of September 30, 2014, the Association had an accumulated fund balance of $841,617 for future major repairs and replacements. 15

18 Independent Auditor s Report on the Supplementary Information To the Board of Administrators and Members Landings Yacht, Golf and Tennis Club, Inc. Fort Myers, Florida We have audited the financial statements of Landings Yacht, Golf and Tennis Club, Inc. as of and for the years ended September 30, 2014, and have issued our report thereon which contains an unmodified opinion on those financial statements. See page 1 and 2. Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The departmental schedules of activities are presented for purposes of additional analysis and are 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. The information has been subjected to the auditing procedures applied in the audits 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. The Departmental Schedule of Certain Revenues and Expenses Operating Fund for the year ended September 30, 2013, was audited by us previously and we expressed an unqualified audit opinion on those financial statements in our report dated February 19, Naples, Florida February 16,

19 Statements of Revenues, Expenses and Changes in Fund Balances Information Years Ended September 30, 2014 and Departmental Schedules of Payroll and Certain Revenues and Certain Cost of Related Other Excess Expenses Operating Fund Revenues Sales Expenses Expenses (Deficiency) General revenues: Maintenance fees and associate member dues, excluding Helm Club Dining and Tennis $ 4,024,094 $ - $ - $ - $ 4,024,094 Interest income Rental income 30, ,840 Miscellaneous 175, ,216 4,230, ,230,297 Departments: Helm club food and beverage and dues 672, , , ,801 (223,551) Wheelhouse food and beverage 889, , , ,777 (245,154) Golf activities 291,522 57, ,480 77,061 (43,885) Golf course maintenance , ,003 (760,933) Tennis activities and dues 300,403 79, , ,664 (227,830) Marina 2,060,741 1,669, ,847 57,890 99,760 4,214,253 2,450,934 2,275, ,196 (1,401,593) Undistributed expenses: Administrative and general , ,066 (755,153) Management fees ,000 (186,000) Security ,536 25,643 (307,179) Utilities ,719 (355,719) Property taxes ,523 (9,523) Insurance ,329 (495,329) Landings environmental, waterway and road maintenance , ,430 (591,202) - - 1,013,395 1,686,710 (2,700,105) 4,214,253 2,450,934 3,289,111 2,575,906 (4,101,698) Excess of revenues over expenses before depreciation and amortization and other revenues (expenses) $ 8,444,550 $ 2,450,934 $ 3,289,111 $ 2,575,906 $ 128,599 17

20 2013 Payroll and Cost of Related Other Excess Revenues Sales Expenses Expenses (Deficiency) $ 3,858,733 $ - $ - $ - $ 3,858, , , , ,684 4,048, ,048, , , , ,939 (160,737) 815, , ,305 98,962 (275,068) 237,247 56, ,651 56,485 (48,451) , ,789 (730,101) 250,095 63, ,959 74,276 (202,534) 1,921,755 1,565, ,828 53,500 76,832 3,696,945 2,202,435 2,094, ,951 (1,340,059) , ,674 (832,502) ,000 (186,000) ,174 25,623 (299,797) ,780 (319,780) ,899 (6,899) ,706 (462,706) , ,771 (565,357) ,588 1,690,453 (2,673,041) 3,696,945 2,202,435 3,077,206 2,430,404 (4,013,100) $ 7,745,356 $ 2,202,435 $ 3,077,206 $ 2,430,404 $ 35,311 18