Errol By The Sea Condominium Association, Inc. Financial Statements and Independent Auditors Report For the Year Ended December 31, 2015 1
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TABLE OF CONTENTS FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. Page Accountants' Report: Independent auditors report... 5 Financial Statements: Balance sheet... 7 Statement of revenues, expenses and changes in fund balances... 8 Statement of cash flows... 9 Notes to the financial statements... 11 Supplemental Information: Schedule 1-Supplemental information on future major repairs and replacements... 19 Schedule 2-Schedule of operating fund revenues and expenses budget to actual... 20 3
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INDEPENDENT AUDITORS REPORT To the Board of Directors Errol by the Sea Condominium Association, Inc. We have audited the accompanying financial statements of Errol By The Sea Condominium Association, Inc., which comprise the balance sheet as of December 31, 2015, 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 Statements 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; 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 from 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 Errol By The Sea Condominium Association, Inc. as of December 31, 2015, and results of its operations and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. 205 MAGNOLIA ST. NEW SMYRNA BEACH, FL 32168-7125 PHONE (386) 427-1333 FAX (386) 427-5823 www.bmcpa.com MEMBER: American Institute of Certified Public Accountants and AICPA Private Companies Practice Section 5
Disclaimer of Opinion on Required Supplementary Information Accounting principles generally accepted in the United States of America require that the information on future major repairs and replacements on Schedule 1 of the accompanying information 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 accounting principles generally accepted in the United States of America, which consisted of inquires of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquires, the financial statements, and other knowledge we obtained during our audits of the 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. Other Matters Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The supplementary information contained in Schedule 2 is presented for purposes of additional analysis and is not a required part of the basic 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 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. June 10, 2016 6
BALANCE SHEET December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC 2015 Operating Replacement Fund Fund Total Assets: Current assets: Cash and cash equivalents... $ 130,298 455,401 585,699 Accounts receivable, net... 4,216-4,216 Due from rental program... 5,241-5,241 Prepaid assets... 1,440-1,440 Total current assets... 141,195 455,401 596,596 Property and equipment (net)... 30,492-30,492 Total assets... $ 171,687 455,401 627,088 Liabilities and Fund Balances: Current liabilities: Other accrued liabilities... $ 7,940-7,940 Assessments received in advance... 40,014-40,014 Current portion of long-term debt... 8,660-8,660 Total current liabilities... 56,614-56,614 Long-term debt: Mortgages payable... 22,430-22,430 Total liabilities... 79,044-79,044 Fund balances... 92,643 455,401 548,044 Total liabilities and fund balances... $ 171,687 455,401 627,088 The accompanying notes are an integral part of the financial statements. 7
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES For the Year Ended December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC 2015 Operating Replacement Fund Fund Total Revenues: Member assessments... $ 640,138 86,474 726,612 Rental service fees... 103,465-103,465 Rental cancellation fees... 6,912-6,912 Vending proceeds-laundry... 4,360-4,360 Interest and dividends... - 728 728 Late charges... 2,275-2,275 Miscellaneous... 13,468-13,468 Total revenues... 770,618 87,202 857,820 Expenses: Operating... 462,448-462,448 Administrative... 160,917 46 160,963 Maintenance and repairs... 72,573-72,573 Capital expenditures... - 50,000 50,000 Total expenses... 695,938 50,046 745,984 Excess of revenues over expenses... 74,680 37,156 111,836 Fund Balances, beginning of year... 17,963 418,245 436,208 Fund Balances, end of year... $ 92,643 455,401 548,044 The accompanying notes are an integral part of the financial statements. 8
STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC 2015 Operating Replacement Fund Fund Total Cash Flows From Operating Activities: Excess revenues over expenses... $ 74,680 37,156 111,836 Adjustments to reconcile excess of revenues over expenses to net cash provided by operating activities: Depreciation... 5,665-5,665 Decrease (increase) in operating assets: Accounts receivable, net... (703) - (703) Due from replacement fund... 16,533-16,533 Due from rental program... (5,241) - (5,241) Increase (decrease) in operating liabilities: Accounts payable... (4,773) (18,239) (23,012) Due to operating fund... - (16,533) (16,533) Accrued liabilities... (9,058) - (9,058) Net cash provided by (used in) operating activities. 77,103 2,384 79,487 Cash Flows From Investing Activities: Acquisition of equipment... (16,661) - (16,661) Maturity of investment... - 100,000 100,000 Net cash provided by (used in) investing activities. (16,661) 100,000 83,339 Cash Flows From Financing Activities: Principal payments on mortgages payable... (8,039) - (8,039) Net increase in cash and cash equivalents... 52,403 102,384 154,787 Cash and cash equivalents, beginning of year... 77,895 353,017 430,912 Cash and cash equivalents, end of year... $ 130,298 455,401 585,699 Supplemental Disclosures Interest paid... $ 2,547-2,547 The accompanying notes are an integral part of the financial statements. 9
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NOTES TO THE FINANCIAL STATEMENTS December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES General The accounting policies of Errol by the Sea Condominium Association, Inc. (the Association ) conform to generally accepted accounting principles as promulgated by the American Institute of Certified Public Accountants and the Financial Accounting Standards Board. Organization The Association was incorporated June 7, 1974, under the laws of the State of Florida as a not-for-profit corporation for the purpose of overseeing the common operations and property located at 4501 South Atlantic Avenue,, in accordance with the terms of Chapter 718, Florida Statutes and the provisions of the Declaration of Condominium. The Association has 130 residential units and is responsible for preserving and maintaining the common property. Basis of Presentation The accompanying financial statements include the assets, liabilities, equity and financial activities which are fiscally responsible to the Treasurer level of administration of the Association. These financial statements do not include any financial activities associated with the collection and disbursement of rentals, revenues and/or deposits received and held by the Association in a trustee capacity as agent for the respective unit owners. Fund Accounting In order to ensure observance of limitations and restrictions placed on the use of resources available to the Association, its accounts are maintained in accordance with the principles of fund accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds established according to their nature and purposes. Separate reporting entities are maintained for each fund in the accompanying financial statements based on the different funding policies for operations and capital replacements as follows: Operating Fund This fund is used to account for operating assessments paid by unit owners to meet the regular, recurring costs of operation. Expenditures of this fund are limited to those connected with the day-to-day operations. All earnings and service fees are remitted to the unit owners and the Association as earned. Replacement Fund This fund is used to accumulate financial resources in the form of capital assessments paid by unit owners to fund future replacements, major repairs and purchases of additional commonly owned assets. Interest earnings on this fund are retained in the fund net of applicable income taxes. Expenditures from this fund are restricted to those items for which assessments were levied. Accrual Basis of Accounting The accrual basis of accounting is utilized. By use of this method of accounting, revenues and expenses are identified with specific periods of time and are recorded as incurred, along with acquired assets, without regard to the date of receipts or payment of cash. The financial statements which are prepared on this basis conform to the practices of business organizations in general, with respect to such items as receivables, prepayments, assessments received in advance, and accrual of liabilities. 11
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. Member Assessments Association members are subject to monthly assessments 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 fees due from unit owners. Pursuant to its By-Laws, the Association has the right to retain legal counsel and place liens on the properties of homeowners whose assessments are thirty days or more delinquent. The Association considers all assessments receivable at December 31, 2015 to be fully collectible. Any excess assessments at year end are retained by the Association for use in the succeeding year. Rental Program Unit owners can elect to make their units available to the pool for rental use, but not on a shared basis. The unit owner receives rental income only when the unit is rented and remains responsible for the unit s direct expenses. Any costs associated with the rental activity are generally deducted from rental income to be paid to the unit owner. The association, as rental agent, is responsible for sending a Form 1099 to the unit owner, but has no other reporting obligation. Cash and Cash Equivalents For purposes of the statement of cash flows, the Association considers all highly liquid investments available for current use with an initial maturity of three months or less to be cash equivalents. The carrying value of cash and cash equivalents approximates fair value because of the short term maturities of those financial instruments. Property and Equipment The ownership of commonly owned assets is vested directly or indirectly in the unit owners and these assets are not deemed to be severable. As a result, the Association capitalizes property titled in the name of the Association for which the Association has control over the disposition of the asset. Other commonly owned assets which cannot be separated or sold by the Association are not capitalized, but rather are charged to operations in the period of acquisition and appropriately captioned as "capital expenditures." Capitalized property and equipment are accounted for and capitalized at cost and depreciated by use of the straight-line method of depreciation over the assets' estimated useful lives and the depreciation allowance or cost recovery method permitted by the Internal Revenue Code at the time the asset is placed in service. The estimated useful lives are as follows: Building... Equipment... 35 years 5-7 years When assets are retired or otherwise disposed of, the cost of the asset and the related accumulated depreciation are removed from the fund that owned the assets. Any profit or loss on the retirement is reflected in the statement of revenues and expenses. The costs of maintenance and repairs are charged as operating expenditures as incurred by the Association. Costs of renewals and betterments to real property regardless of amount are charged as capital expenditures as incurred. Such costs are not capitalized. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. 12
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. Income Taxes The Association's tax returns are prepared on a tax basis different from the basis utilized for book purposes. A homeowners' association is considered an organization exempt from income taxes under Section 528 of the Internal Revenue Code. However, an income tax is imposed on the Association's non-exempt function income (interest and rental income). Alternatively, the Association can make an election each year to revoke filing Form 1120-H under Section 528 of the Internal Revenue Code, thereby requiring that the income tax returns be filed under the provisions of Section 277 of the Internal Revenue Code (hereinafter referred to as IRC Section 277 ). Under IRC Section 277, the Association is taxed on both net membership and net nonmembership income. Accordingly, the Association must segregate membership and nonmembership income and expenses. In conjunction with the provisions of IRC Section 118, the Association also must differentiate assessments to members as either capital contributions (assessments contributed to the Replacement Fund) or as membership income (assessments received in the Operating Fund.) The Association s income tax liability under IRC Section 277 depends on whether membership and nonmembership activities result in income or loss. Revenue Ruling 70-604 may be elected by the Association to defer net membership taxable income from taxation by, in effect, returning the excess to its members or reducing the subsequent year s operating budget. The options permitted under this revenue ruling allow the Association to either: (a) apply the excess membership income over membership expenses to the following year s operating fund assessments, or (b) refund the excess of membership income over membership expenses to the Association s members. The Association s federal and state Corporate Income Tax Returns (Forms 1120 and F1120) for 2013, 2014, and 2015 are subject to examination by the IRS and Florida Department of Revenue, generally for three years after they are filed. NOTE 2 DEPOSITS AND INVESTMENTS At December 31, 2015, the carrying amount of the Association s operating fund cash deposits were $130,298 and the bank balance was $130,909. The entire bank balance was insured by the Federal Deposit Insurance Corporation at year end. Included in the carrying amount of the association s operating fund deposits was cash on hand of $255. At December 31, 2015, the carrying amounts of the Association s replacement fund cash deposits were $455,401 and the bank balances were $455,399. All funds on deposit were insured by the Federal Deposit Insurance Corporation at year end. 13
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. NOTE 3 - PROPERTY AND EQUIPMENT The following is a summary of property and equipment at December 31, 2015: Buildings - office... $ 33,730 Buildings - manager's apartment... 42,782 Improvements other than buildings... 4,390 Office and maintenance equipment... 34,345 115,247 Less: accumulated depreciation... (84,755) Net property and equipment... $ 30,492 Depreciation expense was $5,665 for the year ended December 31, 2015. NOTE 4 - FUTURE MAJOR REPAIRS AND REPLACEMENTS The Association's governing documents and Florida Law (Chapter 718, F.S.), require that funds be accumulated for future major repairs and replacements. Accumulated funds that have been collected at December 31, 2015, which total $455,401, are segregated and held in separate checking and savings accounts and generally are not available for expenditures for normal operations. The board of directors conducts an annual workshop to update the estimates of the remaining useful lives and the replacement costs of the components of common property and to address specific major repairs and replacements. The schedule included in the supplementary schedules section of the financial statements provides more information on future major repairs and replacements and is based on the most recent study. The board is funding for major repairs and replacements over the remaining useful lives of the components based on the study's estimates of current replacement costs and considering amounts previously accumulated in the replacement fund. Funds are being accumulated in the replacement fund based on estimates of future needs for repairs and replacements of common property components. Actual expenditures may vary from the estimated future expenditures, and the variations may be material. Therefore, amounts accumulated in the replacement fund may not be adequate to meet all future needs for major repairs and replacements. If additional funds are needed, the Association has the right, subject to board approval, to increase regular assessments, pass special assessments, or delay major repairs and replacements until funds are available. NOTE 5 - ASSESSMENTS CHARGED TO UNIT OWNERS Pursuant to the Declaration of Condominium and Bylaws of the Association, assessments (both regular and special) are allocated to the unit owners in the various proportions or percentages provided in the Declaration. Monthly assessments to owners ranged from $355 to $567 in 2015. During 2015, approximately 11.5% of these amounts, ($41 to $65 monthly) were designated to the replacement fund. The annual budget and assessment of owners are determined and approved by the board of directors. The Declaration of Condominium and Bylaws provides, among other matters, that any excess assessments and 14
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. other cash income collected over expenditures, if any, in a year is to be taken into account in the preparation of the annual budget for the succeeding year, and can be used in future operating periods. NOTE 6 - INCOME TAXES Condominium associations may be taxed either as homeowners' associations or as regular corporations. For the year ended December 31, 2015, the Association was taxed as a regular corporation and filed Forms 1120 and F1120. As a regular corporation, membership income is exempt from taxation if certain elections are made, and the Association is taxed only on its non-membership income, such as interest earnings, at regular federal and state corporate rates. As of December 31, 2015, the Association has accumulated net operating loss carry-forwards of $37,164 (federal) and $22,472 (state) available to offset future profits and which expire in varying amounts through 2034. NOTE 7 - LONG-TERM DEBT The following is a summary of the Association's long-term debt at December 31, 2015: 7.09% Mortgage note payable, dated January 12, 2004, payable in equal monthly installments of $882.23 through 2019, secured by the Association's investment in the resident manager's apartment... $ 31,090 Less: current maturities... (8,660) Net long-term debt... $ 22,430 Interest expense incurred and charged for the year ended December 31, 2015 for the above long-term debt through totaled $2,547. The aggregate minimum debt service payments required to service this debt over each of the remaining years is as follows: Year ended December 31, 2016... $ 10,587 Year ended December 31, 2017... 10,587 Year ended December 31, 2018... 10,587 Year ended December 31, 2019... 3,178 34,939 Less: amounts representing interest... (3,849) Total... $ 31,090 15
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. NOTE 8 - OPERATING LEASES During 2015, the Association had two separate operating lease agreements for copiers. The first lease commenced on June 12, 2010 for a period of sixty (60) months, expiring June 12, 2015. The second lease commenced on August 1, 2014 for a period of sixty-three (63) months. This lease included an incentive payment in the amount of $2,611, paid to the Association to assist with the remaining lease payments of the preceding operating lease. Rental expense charged to operations totaled $3,563 for the year ended December 31, 2015. Future minimum rental payments under this operating lease that have initial or remaining noncancellable lease terms in excess of one year as of December 31, 2015 are as follows: 2016... $ 1,673 2017... 1,673 2018... 1,673 2019... 1,533 Total... $ 6,552 NOTE 9 RENTAL PROGRAM The owners of the condominium units may individually elect to offer their units for rent as part of an overall rental program. During 2015, approximately 80 owners elected to participate in the rental program. Each owner is credited with the rental income received from the specific unit being rented less the actual expenses incurred (such as management fees, taxes, credit card fees and cleaning fees). The association acts as an agent, assisting owners with the rental program, thus the only amounts included within the Association s financial statements are the management fees. The following is a summary of 2015 activity for the Rental Program: As of December 31, 2015: Cash held... $ 373,303 Due to Errol by the Sea Condominium Association... (5,241) Due to owners... (33,612) Credit card fees payable... (2,726) Sales tax payable... (5,547) Security deposits & unearned rents... (326,177) - 16
NOTES TO THE FINANCIAL STATEMENTS (Continued) December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC. For the year ended December 31, 2015: Gross rents collected... $ (1,169,387) Disbursed to owners... 903,637 Management fees... 103,465 Cleaning fees... 9,760 Credit card fees payable... 29,788 State/county taxes... 122,737 - NOTE 10 RELATED PARTY TRANSACTIONS During 2015 year, there were no recorded related party transactions between the Association, its Board of Directors, officers or unit owners. NOTE 11 DATE OF MANAGEMENT S REVIEW In preparing these financial statements, the Association has evaluated events and transactions for potential recognition or disclosure through June 10, 2016, the date the financial statements were available to be issued. 17
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SUPPLEMENTAL INFORMATION ON FUTURE MAJOR REPAIRS Schedule 1 AND REPLACEMENTS For the Year Ended December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC The board of directors annually reviews the major components of common property. As part of the review, the board reevaluates the estimated remaining useful lives and the estimated current replacement costs of each of the components of the Replacement Fund. Where applicable, licensed contractors are consulted regarding useful lives and current replacement costs. This reserve budget, including estimated current replacement costs was approved by the board of directors in October 2014. The following table presents significant information about the components of common property: 2015 Estimated Replacement Interest Settlements Replacement Current Estimated Estimated Fund Earnings and Fund Replacement Remaining Repair Balance at and Bank Internal Balance at Cost Useful Life Date 12/31/14 Additions Charges Expenditures Transfers 12/31/15 Painting/waterproofing... $ 195,574 3 years 2018 $ 108,843 28,910 207 - - 137,960 Roof replacement... 255,000 8 years 2023 131,793 15,401 221 - - 147,415415 Pavement... 49,500 20 year 2035 12,459 1,852 21 - - 14,332 Elevators South... 40,000 1 year 2016 40,000 - - (50,000) 10,000 - Elevators West... 40,000 3 year 2018 20,000 6,667 25 - (10,000) 16,692 Elevators North... 35,000 7 year 2022-5,000 7 - - 5,007 Pools Resurfaced... 40,000 3 year 2018 25,000 5,000 45 - - 30,045 Decks/concrete/seawall/walks... 233,215 5 years 2020 80,150 23,644 156 - - 103,950 $ 888,289 $ 418,245 86,474 682 (50,000) - 455,401 19
SUPPLEMENTARY INFORMATION - Schedule 2 SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES- BUDGET TO ACTUAL For the Year Ended December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC Variance- Favorable Budget Actual (Unfavorable) Revenues: Member assessments... $ 640,137 640,138 1 Rental service fees... 95,000 103,465 8,465 Rental cancellation fees... 1,000 6,912 5,912 Laundry... 8,500 4,360 (4,140) Late charges... 3,000 2,275 (725) Miscellaneous... 9,570 13,468 3,898 Total revenues... 757,207 770,618 13,411 Expenses: Operating: Parts for owners... 4,000-4,000 Maintenance supplies... - 11,428 (11,428) Salary-pool monitor... - 1,682 (1,682) Salary-maintenance staff... 73,000 81,058 (8,058) Auto expense-manager... 1,500 213 1,287 Temporarily labor... - 8,750 (8,750) Licenses and taxes... - 857 (857) Dues and publications... 4,000 2,200 1,800 Replacement items... - 1,568 (1,568) Supplies-grounds... 7,500 1,365 6,135 Supplies-paint... 2,500 3,477 (977) Supplies-pool... 27,500 21,691 5,809 Small tools... - 497 (497) Elevator contract... 7,000 8,097 (1,097) Security guards... 8,000 1,260 6,740 Pest control... 4,640 5,793 (1,153) Walkway repairs... 6,800-6,800 Drywall repairs... 2,200 4,644 (2,444) Insurance... 102,000 90,995 11,005 Miscellaneous rental expenses... 13,000 15,389 (2,389) Other miscellaneous... - 870 (870) Utilities... 211,380 200,614 10,766 Total operating... 475,020 462,448 12,572 20
SUPPLEMENTARY INFORMATION - Schedule 2 SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES- BUDGET TO ACTUAL - (Continued) For the Year Ended December 31, 2015 ERROL BY THE SEA CONDOMINIUM ASSOCIATION, INC Variance- Favorable Budget Actual (Unfavorable) Administrative: Salary-Manager... $ 41,000 41,096 (96) Salary-Office staff... 64,000 53,531 10,469 Payroll taxes... 18,000 13,958 4,042 Computer expenses... 4,000 4,289 (289) Copier lease... 2,000 3,563 (1,563) Board supplies... - 370 (370) Office Supplies... 11,600 10,610 990 Telephone... 6,500 6,938 (438) Bank charges... 400 1,172 (772) Health insurance premiums... 2,500-2,500 Depreciation... - 5,665 (5,665) Interest... 10,587 2,547 8,040 Miscellaneous... 10,000 2,468 7,532 Professional fees... 17,000 10,041 6,959 Licenses and taxes... 3,700 1,525 2,175 Utilities-Clubhouse... - 3,144 (3,144) Total administrative... 191,287 160,917 30,370 Maintenance and repairs: Manager's unit maintenance and repairs... 12,500 15,236 (2,736) Grounds maintenance... 27,000 28,477 (1,477) Buildings, equipment and pool... 51,400 28,860 22,540 Total maintenance and repairs... 90,900 72,573 18,327 Total expenses... 757,207 695,938 61,269 Excess of revenues over expenses... $ 0 74,680 74,679 21
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