BELMONT COUNTRY CLUB. Report on Review of Financial Statements Years Ended June 30, 2013 and 2012

Transcription

1 Report on Review of Financial Statements Years Ended June 30, 2013 and 2012

2 TABLE OF CONTENTS INDEPENDENT ACCOUNTANTS REVIEW REPORT 1 FINANCIAL STATEMENTS FOR THE YEARS ENDED JUNE 30, 2013 AND 2012: Statements of Financial Position 2 Statements of Activities 3 Statements of Changes in Net Assets 4 Statements of Cash Flows 5 Page Notes to Financial Statements 6-13 SUPPLEMENTARY INFORMATION: Independent Accountants Review Report on Supplementary Information 15 Statements of Outside Business Activities 16 Statement of Activities by Department 17-20

3 INDEPENDENT ACCOUNTANTS REVIEW REPORT To the Board of Directors Belmont Country Club Fresno, California We have reviewed the accompanying statements of financial position of Belmont Country Club (the Club ), a non-profit corporation, as of June 30, 2013 and 2012, and the related statements of activities, changes in net assets and cash flows for the years then ended. A review includes primarily applying analytical procedures to management s financial data and making inquiries of Club management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the reviews in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. Those standards require us to perform procedures to obtain limited assurance that there are no material modifications that should be made to the financial statements. We believe that the results of our procedures provide a reasonable basis for our report. Based on our reviews, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. Janzen, Tamberi & Wong Accountancy Corporation September 3, 2013

4 STATEMENTS OF FINANCIAL POSITION JUNE 30, 2013 AND ASSETS CURRENT ASSETS: Cash $ 230,652 $ 273,565 Accounts receivable, net of allowance for doubtful accounts of $3,500 in 2013 and , ,351 Other receivables 21,685 1,902 Inventories 75,739 69,948 Prepaid expenses 17,731 38,005 Deferred income taxes 3,186 - Total current assets 528, ,771 PROPERTY AND EQUIPMENT: Property and equipment 4,462,214 4,440,845 Less accumulated depreciation 3,303,366 3,124,691 Total property and equipment, net 1,158,848 1,316,154 OTHER ASSETS: Deferred income taxes 20,942 - Loan fees; net of accumulated amortization of $11,562 and $8,841, respectively 15,643 18,364 Total other assets 36,585 18,364 TOTAL ASSETS $ 1,723,440 $ 1,869,289

5 CURRENT LIABILITIES: Accounts payable $ 204,557 $ 151,085 Accrued expenses 97, ,178 Current portion of long-term debt 32,349 30,292 Current portion of capital lease obligations 6,026 17,184 Current portion lifelong members deferred revenue 63,384 46,704 Other deferred revenue 123, ,828 Total current liabilities 527, ,271 LONG-TERM LIABILITIES: Long-term debt 1,352,272 1,384,175 Capital lease obligations - 6,026 Lifelong members deferred revenue 275, ,514 Total long-term liabilities 1,627,946 1,618,715 NET ASSETS: Unrestricted (432,065) (232,697) TOTAL LIABILITIES AND NET ASSETS $ 1,723,440 $ 1,869,289 See independent accountants review report and notes to financial statements

6 STATEMENTS OF ACTIVITIES UNRESTRICTED REVENUE: Dues, assessments and transfer fees $ 952,341 $ 972,582 Food, bar and pro shop sales 873, ,127 Other 525, ,800 Total unrestricted revenue 2,351,829 2,200,509 UNRESTRICTED COSTS AND EXPENSES: Cost of food, bar and pro shop sales 384, ,607 Salaries and wages 850, ,432 Other expenses 1,065,318 1,001,992 Interest 93,961 96,953 Depreciation 181, ,558 Total unrestricted costs and expenses 2,575,325 2,429,542 CHANGE IN NET ASSETS BEFORE INCOME TAXES (223,496) (229,033) PROVISION FOR INCOME TAXES 24,128 - CHANGE IN NET ASSETS $ (199,368) $ (229,033) See independent accountants review report and notes to financial statements

7 STATEMENTS OF CHANGES IN NET ASSETS Cumulative Excess of Unrestricted Revenue Over Total Memberships Expenses BALANCE, JUNE 30, 2011 $ (3,664) $ 559,165 $ (562,829) Unrestricted revenue 2,200,509-2,200,509 Unrestricted costs and expenses (2,429,542) - (2,429,542) BALANCE, JUNE 30, 2012 (232,697) 559,165 (791,862) Unrestricted revenue 2,351,829-2,351,829 Unrestricted costs and expenses (2,575,325) - (2,575,325) Provision for income taxes 24,128-24,128 BALANCE, JUNE 30, 2013 $ (432,065) $ 559,165 $ (991,230) See independent accountants review report and notes to financial statements

8 STATEMENTS OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES: Change in net assets $ (199,368) $ (229,033) Adjustment to reconcile change in net assets to net cash provided by (used in) operating activities: Amortization 2,721 2,720 Depreciation 181, ,558 Loss on sale of property and equipment Changes in assets and liabilities: (Increase) decrease in accounts receivable (27,663) 12,761 (Increase) decrease in other receivables (19,783) 3,254 Increase in inventories (5,791) (16,213) Decrease in prepaid expenses 20,274 32,721 Increase in deferred income tax assets (24,128) - (Increase) decrease in accounts payable 53,472 (9,046) Increase (decrease) in accrued expenses (22,511) 4,726 Increase (decrease) in lifelong members deferred revenue 63,840 (16,700) Increase in other deferred revenue 5, Net cash provided by (used in) operating activities 28,236 (22,423) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property and equipment (24,119) (34,757) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on long-term debt (29,846) (28,120) Principal payments on capital lease obligations (17,184) (15,919) Net cash used in financing activities (47,030) (44,039) NET DECREASE IN CASH (42,913) (101,219) CASH AT BEGINNING OF YEAR 273, ,784 CASH AT END OF YEAR $ 230,652 $ 273,565 CASH PAID DURING THE YEAR FOR: Interest $ 93,961 $ 96,953 Income taxes $ - $ - See independent accountants review report and notes to financial statements

9 NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Belmont Country Club (the Club ) which was incorporated in 1956 is a nonprofit California corporation. The purpose of the Club is to promote the game of golf and other recreational activities for the pleasure of its members. At June 30, 2013 and 2012, membership in the Club by type is summarized as follows: Regular Lifelong Corporate Associate 6 4 Lifetime 4 6 Social Honorary 2 2 Non-equity Young professionals Single golfer Junior Club Inactive Method of Accounting The Club s accounts are maintained on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Revenue and related assets are recognized when earned, and expenses are recognized when the obligation is incurred. Basis of Presentation Accounting principles generally accepted in the United States of America require the Club to report information regarding its financial position and activities according to three classes of net assets: unrestricted, temporarily restricted and permanently restricted. Statement of Cash Flows For purposes of reporting cash flows, short-term investments with maturities of three months or less at the date of acquisition are considered cash equivalents. Accounts Receivable The Club provides credit, in the normal course of business, to its members and customers. The Club does not require collateral to secure its accounts receivable. The Club does not charge interest, but it does charge a $20 fee each month for member balances that are not paid on a timely basis. The allowance for doubtful accounts is based on management s evaluation of outstanding accounts receivable at the end of the year. Management determines whether or not accounts are delinquent based on how recently payments have been received and See independent accountants review report

10 NOTES TO FINANCIAL STATEMENTS (Continued) other known factors about the individual account holder. Management charges-off accounts receivable through bad debt expense and records any account recoveries with an off-set to bad debt expense. The direct charge-off method provides results similar to the reserve method in all material respects. Bad debt expense charged to operations in 2013 and 2012 was $1,036 and $0, respectively. Inventories Inventories are valued at the lower of cost or market determined by the first-in, firstout method. Inventories consist of food, bar and pro shop items. Property and Equipment Property and equipment are stated at cost if purchased and fair value if donated. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, ranging from 3 to 40 years. Expenditures for maintenance and repairs are charged to expense as incurred. Major expenditures which extend the useful life of the property and equipment are capitalized. Loan Fees Loan fees and closing costs are amortized over the term of the related loan using the straight-line method. Membership Dues and Charges Membership dues and charges are recognized as revenue in the applicable membership period. Any unearned amounts are included in deferred revenue at the end of each accounting period. In 2011, the Club updated its bylaws to add a lifelong membership category, which allows a maximum of 20 members to pay $25,000 in advance for a permanent, non-transferable membership. The Club amortizes these dues at the rate of the current monthly regular dues when the lifelong membership is paid, which was $278 in 2013 and Income Taxes The Club is a membership organization with tax-exempt status under Internal Revenue Code Section 501(c)(7) and California Revenue and Taxation Code Section 23701(g). The Internal Revenue Code specifies that non-member usage of the Club s facilities cannot exceed 15% of the Club s gross revenue in order to maintain its tax-exempt status. Accounting of Taxes Assessed Taxes assessed by various government authorities on various revenue-producing Club transactions (such as sales tax) are presented on the income statement on a net basis. As such, taxes assessed and collected by the Club are excluded from sales revenue. Advertising Costs The Club expenses non-direct response advertising costs as incurred and included such costs in other expenses. Fair Value of Financial Instruments Accounting principles generally accepted in the United States of America define fair value, establish a framework for measuring fair value, establish a fair value hierarchy based on the quality of inputs used to measure fair value and enhance disclosure requirements for fair value measurements. The Club accounts for a significant portion of its financial instruments at fair value or considers fair value in their measurements. Assets and liabilities, including cash, accounts receivable, other receivables, inventories, prepaid expenses, loan fees, accounts payable, accrued expenses and deferred revenues, are carried at amounts which See independent accountants review report

11 NOTES TO FINANCIAL STATEMENTS (Continued) approximate fair value. The carrying value of long-term debt and capital lease obligations, including the current portion, approximates fair value, based on current borrowing rates for loans with similar maturities. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make assumptions, estimates and judgments that affect the amounts reported in the financial statements, including the notes thereto, and related disclosures of commitments and contingencies, if any. Management relies on historical experience and on other assumptions believed to be reasonable under the circumstances in making its judgment and estimates. Actual results could differ from those estimates. Subsequent Events Subsequent events have been evaluated through September 3, 2013, which is the date the financial statements were available to be issued. 2. CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Club to concentrations of credit risk consist primarily of cash equivalents and trade receivables. The Club had concentrations of credit risk in the amount of $0 and $53,172 at June 30, 2013 and 2012, respectively, arising from cash deposits in one financial institution exceeding the federally insured limited amount of $250,000. Most of the Club s business activity is with members arising within the County of Fresno, California. As of June 30, 2013 and 2012, the Club s receivables from members were as follows: Accounts receivable $ 182,514 $ 154,851 See independent accountants review report

12 NOTES TO FINANCIAL STATEMENTS (Continued) 3. PROPERTY AND EQUIPMENT Property and equipment consist of the following: See independent accountants review report Land $ 106,033 $ 106,033 Buildings and golf course 2,738,834 2,730,439 Irrigation and lawn equipment 1,394,990 1,383,861 Clubhouse equipment 166, ,226 Golf carts 4,845 3,000 Office equipment 51,286 51,286 4,462,214 4,440,845 Less accumulated depreciation 3,303,366 3,124, LONG-TERM DEBT Long-term debt consists of the following at June 30: $ 1,158,848 $ 1,316, Note payable, Westamerica Bank, payable in monthly installments of $10,218.58, including interest of 6.50% dated February 25, 2009, collateralized by a deed of trust on real property with a depreciated book value of $1,099,299; remaining principal due March 1, $ 1,384,621 $ 1,414,467 Less current portion 32,349 30,292 $ 1,352,272 $ 1,384,175 The following is a schedule of future maturities of long-term debt as of June 30, 2013: 2014 $ 32, , , , ,059 Thereafter 1,199,626 $ 1,384,621

13 NOTES TO FINANCIAL STATEMENTS (Continued) 5. CAPITAL LEASE OBLIGATIONS The Club entered into a capital lease, which includes a bargain purchase option at the end of the lease term, for machinery and equipment in October The capital lease obligations have been recorded in the accompanying financial statements at the fair value of the equipment leased, including applicable sales tax. The capitalized cost of this equipment at June 30, 2013 and 2012 was $75,688 and related accumulated depreciation on this equipment at June 30, 2013 and 2012 was $51,360 and $40,547, respectively. Future minimum payments under the capital lease are as follows: Year ending June 30, 2014 $ 6,123 Less imputed interest 97 Present value of future payments 6,026 Less current portion 6,026 Long-term portion $ - Total amortization expense for the equipment for the years ended June 30, 2013 and 2012 was $10,813, which was included in depreciation expense. 6. OPERATING LEASES The Club entered into an operating lease for golf carts in April The Club traded in its golf cart fleet for a reduction of rent over the lease term for a value of $76,800, which is considered prepaid rent and will be expensed on a straight-line basis over the lease term. Prepaid rent of $0 and $17,025 related to this operating lease is included in prepaid expense for the years ended June 30, 2013 and 2012, respectively. The lease terminated in March 2013, and the Club continues to lease the golf carts on a month-to-month basis. Total rent expense charged to operations in 2013 and 2012 related to this lease was $44,929 and $50,271, respectively. The Club entered into an operating lease for machinery and equipment in September The lease term ended in September 2012 and the machinery and equipment was returned. Total rent expense charged to operations in 2013 and 2012 related to this lease was $9,372 and $35,083, respectively. The Club entered into an operating lease for a copier and finisher in April Total rent expense charged to operations in 2013 and 2012 related to this lease was $1,444. The Club entered into an operating lease for machinery and equipment in October Total rent charged to operations in 2013 related to this lease was $25,049. Prepaid rent of $3,536 related to this operating lease is included in prepaid expense for the year ended June 30, See independent accountants review report

14 NOTES TO FINANCIAL STATEMENTS (Continued) Future minimum lease payments, including applicable sales taxes, under all non-cancellable operating leases are as follows: Year ending June 30, 2014 $ 43, , ,970 17, INCOME TAXES Total $ 149,741 The Club is taxed on unrelated business income, which consists primarily of revenue received from non-member activities offset by related expenses. The Club generated income from non-member activities of $68,585 and $12,097 during the years ended June 30, 2013 and 2012, respectively. The income amount was reduced by a $1,000 specific deduction allowed by federal tax law in both years and by deferred income taxes of $24,128 in 2013, which results in taxable income of $43,457 and $11,097 for the years ended June 30, 2013 and 2012, respectively. The Club was subject to a 15% federal tax rate, which resulted in federal taxes of $6,519 and $1,665 for the years ended June 30, 2013 and 2012, respectively. The federal taxes were offset by a $6,519 and $1,665 carryforward for each respective year related to Internal Revenue Code ( IRC ) Section 45B for employer-paid Social Security and Medicare taxes on certain employee cash tips. Thus, there were no federal taxes due in either year. There were no state taxes generated due to the application of a $43,457 and $11,097 small business loss carryforward for each respective year. The effective federal and state tax rates for 2013 and 2012 were 0%. The Club has carryforward non-refundable credits related to IRC Section 45B for employer-paid Social Security and Medicare taxes on certain employee cash tips. These credits are available to offset future federal taxable unrelated business income as follows: Available until year ending June 30, 2026 $ 5, , , , , , , ,772 Total $ 41,171 See independent accountants review report

15 NOTES TO FINANCIAL STATEMENTS (Continued) The Club has eligible small business loss carryforwards available to offset future state taxable unrelated business income as follows: Available until year ending June 30, 2029 $ ,707 Total $ 24,068 The realization of the benefit of these credits is dependent on future unrelated business taxable income, which was considered uncertain as of the end of As such, the Club did not record a deferred tax asset related to these credits in However, the Club s management has ascertained in 2013 that continued future unrelated business taxable income is likely. Therefore, the Club has recorded a deferred tax asset related to these credits in 2013, utilizing statutory tax rates of 15% for federal taxes and 8.84% for state taxes. The components of income tax benefit are as follows: Deferred tax benefit: Federal $ 22,000 $ - State 2,128 - Provision for income taxes $ 24,128 $ - The components of the deferred tax assets consist of the following for the year ended June 30, 2013: Federal State Total Deferred tax assets: IRC Section 45B credit carryforward $ 22,000 $ - $ 22,000 Small business loss carryforward - 2,128 2,128 $ 22,000 $ 2,128 $ 24,128 Balance sheet classification: Deferred tax assets, short-term $ 1,058 $ 2,128 $ 3,186 Deferred tax assets, long-term $ 20,942 $ - $ 20,942 The Club s federal and state tax returns remain subject to audit for the preceding three years. See independent accountants review report

16 NOTES TO FINANCIAL STATEMENTS (Continued) 8. LITIGATION AND CONTINGENCIES The Club believes it is in compliance with all environmental laws and regulations and that there are no other liabilities, litigations or claims that would materially affect the financial position or operations at this time. * * * * * * See independent accountants review report

17 SUPPLEMENTARY INFORMATION

18 INDEPENDENT ACCOUNTANTS REVIEW REPORT ON SUPPLEMENTARY INFORMATION To the Board of Directors Belmont Country Club Fresno, California Our report on our reviews of the basic financial statements of Belmont Country Club for the years ended June 30, 2013 and 2012 appears on page 1. Those reviews were made primarily for the purpose of expressing a conclusion that there are no material modifications that should be made to the financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America. The supplementary information included in the accompanying statements of outside business activities and activities by department are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the inquiry and analytical procedures applied in the reviews of the basic financial statements, and we did not become aware of any material modifications that should be made to such information. Janzen, Tamberi & Wong Accountancy Corporation September 3, 2013

19 STATEMENTS OF OUTSIDE BUSINESS ACTIVITIES REVENUE: Cart rentals $ 38,258 $ 29,890 Green fees 85,880 66,033 Clubhouse 203, ,683 Total revenue 328, ,606 DIRECT COSTS AND EXPENSES: Clubhouse 57,061 36,236 Salaries and wages 87,702 79,755 Total direct costs and expenses 144, ,991 GROSS PROFIT BEFORE ALLOCATED EXPENSES 183, ,615 ALLOCATED EXPENSES: Golf course 53,639 45,177 Clubhouse 69,335 60,829 Pro shop 15,850 11,512 Total allocated expenses 138, ,518 CHANGE IN NET ASSETS BEFORE INCOME TAXES 44,457 12,097 PROVISION FOR INCOME TAXES 24,128 - CHANGE IN NET ASSETS $ 68,585 $ 12,097 See independent accountants review report on supplementary information

20 STATEMENT OF ACTIVITIES BY DEPARTMENT YEAR ENDED JUNE 30, 2013 Golf Pro Club O/S Grand Course Shop Food Bar House Admin. Total Events Total REVENUE: Dues and assessments $ 619,022 $ - $ - $ - $ 190,468 $ 142,851 $ 952,341 $ - $ 952,341 Tournament fees 45, ,344-45,344 Carts, clubs, range balls - 220, ,645 38, ,903 Green fees 83, ,414 85, ,294 Food, bar and pro shop sales - 151, , , , , ,508 Interest Loss on disposal of property and equipment Other 137 1, ,450 2,015 52,337-52,337 Total revenue 747, , , , , ,968 2,023, ,044 2,351,829 COSTS AND EXPENSES: Cost of food, bar and pro shop sales - 110, ,656 82, ,058 57, ,119 Salaries and wages 329, ,653 74,323 65, , ,800 87, ,502 Payroll taxes 35,341 14,336 7,972 6,993-17,179 81,821 9,407 91,228 Equipment rental 36,036 44, ,811 1,733 87,509-87,509 Bank charges ,620 24,620-24,620 Cart repair and maintenance Repair and maintenance 18,423 1,219 6,801 5,965 5,885 31,332 69,625 8,081 77,706 Irrigation maintenance 18, ,823-18,823 Gas and oil 33, ,977-33,977 Seeds, plants, sand and fertilizer 131, ,172 16, ,209 Insurance 65,513 26,576 14,778 12,963-31, ,675 17, ,114 Supplies 15,588 4,623 3,579 3,139 3,098-30,027 5,704 35,731 Taxes and licenses 15,507 7,749 5,724 5,021 4,953 3,003 41,957 6,801 48,758 Telephone 3,655 1,827 1,349 1,184 1, ,892 1,603 11,495 Travel and promotion ,047-2,047 Utilities 26,537 21,593 11,903 10,440 10,301 37, ,117 14, ,259 Laundry and uniforms 5,972 11,078 9,569 8, ,431 11,740 47,171 Range expense See independent accountants review report on supplementary information

21 STATEMENT OF ACTIVITIES BY DEPARTMENT (continued) YEAR ENDED JUNE 30, 2013 Golf Pro Club O/S Grand Course Shop Food Bar House Admin. Total Events Total COSTS AND EXPENSES (continued): Janitorial ,975-3,975 5,457 9,432 Office supplies ,890 2,890-2,890 Contract labor - - 7,156 7, ,312 13,279 27,591 Snacks for members ,866-3,866-3,866 Meals for Board members Postage and freight ,915 4,588-4,588 Dues and subscriptions ,723 4,583 2,476 7,059 Legal and accounting ,429 7,429-7,429 Data processing ,028 5,028-5,028 Social events - 5, ,999-5,999 Bad debt expense ,036-1,036 Advertising Tournament expense 42, ,877-42,877 Printing 2, ,355-5,355 Education and training Miscellaneous - 1, , , ,276 Interest 61,911 1, ,352 2,715 93,961-93,961 Amortization ,721 2,721-2,721 Depreciation 81,104 1,525 34,882 30,597 6,121 1, ,663 25, ,425 Total costs and expenses 927, , , ,356 79, ,932 2,291, ,587 2,575,325 CHANGE IN NET ASSETS BEFORE INCOME TAXES (179,879) (16,503) (38,332) ,908 (193,964) (267,953) 44,457 (223,496) PROVISION FOR INCOME TAXES ,128 24,128 CHANGE IN NET ASSETS $ (179,879) $ (16,503) $ (38,332) $ 817 $ 159,908 $ (193,964) $ (267,953) $ 68,585 $ (199,368) See independent accountants review report on supplementary information

22 STATEMENT OF ACTIVITIES BY DEPARTMENT YEAR ENDED JUNE 30, 2012 Golf Pro Club O/S Grand Course Shop Food Bar House Admin. Total Events Total REVENUE: Dues and assessments $ 632,179 $ - $ - $ - $ 194,516 $ 145,887 $ 972,582 $ - $ 972,582 Tournament fees 38, ,168-38,168 Carts, clubs, range balls - 220, ,422 29, ,312 Green fees 79, ,893 66, ,926 Food, bar and pro shop sales - 123, , , , , ,127 Interest Loss on disposal of property and equipment - (238) (238) - (238) Other 95 1, ,957 2,169 38,528-38,528 Total revenue 750, , , , , ,160 1,954, ,606 2,200,509 COSTS AND EXPENSES: Cost of food, bar and pro shop sales - 91, ,564 79, ,371 36, ,607 Salaries and wages 324, ,535 80,611 77, , ,677 79, ,432 Payroll taxes 36,062 13,158 8,949 8,562-13,383 80,114 8,854 88,968 Equipment rental 39,837 50, ,975 1,597 96,567-96,567 Bank charges ,549 14,549-14,549 Cart repair and maintenance Repair and maintenance 28, ,345 8,941 8,622 16,143 72,464 9,310 81,774 Irrigation maintenance 25, ,940-25,940 Gas and oil 27, ,320-27,320 Seeds, plants, sand and fertilizer 111, ,013 10, ,308 Insurance 57,714 21,059 14,321 13,702-21, ,214 14, ,383 Supplies 17,368 4,041 4,502 4,307 4,154-34,372 4,631 39,003 Taxes and licenses 16,113 7,410 6,145 5,879 4,885 3,179 43,611 5,274 48,885 Telephone - 2,702 1,932 1,848 1,782 1,162 9,426 1,924 11,350 Travel and promotion 1, ,079-2,079 Utilities 46,294 21,275 15,211 14,553 14, ,367 15, ,520 Laundry and uniforms ,743 18, ,632 11,986 50,618 Range expense 2, ,828-2,828 See independent accountants review report on supplementary information

23 STATEMENT OF ACTIVITIES BY DEPARTMENT (continued) YEAR ENDED JUNE 30, 2012 Golf Pro Club O/S Grand Course Shop Food Bar House Admin. Total Events Total COSTS AND EXPENSES (continued): Janitorial ,062-9,062-9,062 Office supplies ,263 4,263-4,263 Contract labor ,000 12,000 Snacks for members ,736-3,736-3,736 Meals for Board meetings Postage and freight 3,745-1,231 1,178 1,136-7,290-7,290 Dues and subscriptions ,045 5,712-5,712 Legal and accounting ,160 9,160-9,160 Data processing ,635 12,635-12,635 Social events - 1, ,789-1,789 Bad debt expense Advertising Tournament expense 36, ,864-36,864 Printing 2, ,726-4,726 Education and training 1, ,670-1,670 Miscellaneous - 1,441 1, , ,996 1,026 9,022 Interest 63,882 2, ,223 2,802 96,953-96,953 Amortization ,720 2,720-2,720 Depreciation 87, ,714 36,082 5,041 1, ,662 22, ,558 Total costs and expenses 931, , , ,295 91, ,451 2,196, ,509 2,429,542 CHANGE IN NET ASSETS BEFORE INCOME TAXES (181,404) 6,736 (84,697) (35,595) 136,121 (82,291) (241,130) 12,097 (229,033) PROVISION FOR INCOME TAXES CHANGE IN NET ASSETS $ (181,404) $ 6,736 $ (84,697) $ (35,595) $ 136,121 $ (82,291) $ (241,130) $ 12,097 $ (229,033) See independent accountants review report on supplementary information