** DRAFT - DISCUSSION COPY **

** DRAFT - DISCUSSION COPY ** AUDITED FINANCIAL STATEMENTS Year Ended December 31, 2013

CONTENTS Page(s) Independent Auditors' Report 2 (Two Pages) Financial Statements: Balance Sheet 3 Statement of Revenues and Expenses 4 and Net Assets Statement of Cash Flows 5 Notes to Financial Statements 6-10 Supplementary Information: Schedules of Operating Fund Revenues 12-22 and Expenses - Budget to Actual Schedules of Changes in Replacement Fund 23 Future Major Repairs and Replacements 24-31

3301 Bonita Beach Road, Suite 306 Bonita Springs, Florida 34134 Telephone (239) 390-8882 Fax (239) 390-8883 www.brierscpa.com INDEPENDENT AUDITORS REPORT To the Board of Directors Bayside Master Association, Inc. Bonita Springs, Florida We have audited the accompanying financial statements of Bayside Master Association, Inc., which comprise the balance sheet as of December 31, 2013, 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 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. Auditors 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 auditors judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Bayside Master Association, Inc. as of December 31, 2013, and 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. Member of American Institute of Certified Public Accountants Member of Florida Institute of Certified Public Accountants

INDEPENDENT AUDITORS REPORT (Continued) Disclaimer of Opinion on Required Supplementary Information Accounting principles generally accepted in the United States of America require that the future major repairs and replacements information on pages 29-36 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. ** DRAFT DISCUSSION COPY ** Certified Public Accountants Bonita Springs, Florida May 21, 2014 Member of American Institute of Certified Public Accountants Member of Florida Institute of Certified Public Accountants

BALANCE SHEET As of December 31, 2013 Operating Replacement Totals Fund Fund 2013 ASSETS Cash and cash equivalents $ 317,125 $ 353,311 $ 670,436 Accounts receivable - members, net 12,825-12,825 Accounts receivable - developer 30,910-30,910 Property, net of accumulated depreciation 322,947-322,947 Prepaid expenses 40,048-40,048 TOTAL ASSETS $ 723,855 $ 353,311 $ 1,077,166 LIABILITIES AND FUND BALANCES Accounts payable $ 34,878 $ - $ 34,878 Accrued payables 4,817-4,817 Foreclosure liability 322,947-322,947 Prepaid assessments 122,350-122,350 Security deposit 1,000-1,000 TOTAL LIABILITIES 485,992-485,992 FUND BALANCES Fund balance - Common 120,481 66,637 187,118 Fund balance - Waterside I & II (11,055) 72,980 61,925 Fund balance - Waterside III & IV (13,137) 65,672 52,535 Fund balance - Cabanas III & IV (319) 18,503 18,184 Fund balance - Waterside V & VI (3,736) 54,808 51,072 Fund balance - Cabanas V & VI 466 33,853 34,319 Fund balance - Manatee Bay & Sunset Gulf 3,735 40,858 44,593 Capital Contributions 141,428-141,428 TOTAL FUND BALANCES 237,863 353,311 591,174 TOTAL LIABILITIES AND FUND BALANCES $ 723,855 $ 353,311 $ 1,077,166 3

STATEMENT OF REVENUES AND EXPENSES AND NET ASSETS For the Year Ended December 31, 2013 Operating Replacement Totals Fund Fund 2013 REVENUES Operating assessments $ 888,450 $ - $ 888,450 Reserve assessments - 123,663 123,663 Dock assessments 6,169 538 6,707 Interest income and late fees 4,461 1,861 6,322 Rental income 12,000-12,000 Other income 5,418-5,418 EXPENSES Total Revenues 916,498 126,062 1,042,560 Administrative 81,287-81,287 Insurance 35,851-35,851 Maintenance - building and amenity 297,432-297,432 Maintenance - grounds 114,041-114,041 Utilities 367,549-367,549 Depreciation expense 12,441-12,441 Reserve expenditures - 126,704 126,704 Total Operating Expenses 908,601 126,704 1,035,305 Excess (deficiency) of revenues over expenses 7,897 (642) 7,255 OTHER COMPREHENSIVE INCOME (LOSS) Gain on foreclosurd unit 12,441-12,441 Total excess (deficiency) of revenues over expenses 20,338 (642) 19,696 BEGINNING FUND BALANCES 217,946 323,953 541,899 Interfund transfers (8,423) 8,423 - Contributions 8,002-8,002 Prior period adjustment - 21,577 21,577 ENDING FUND BALANCES $ 237,863 $ 353,311 $ 591,174 4

STATEMENT OF CASH FLOWS For the Year Ended December 31, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Operating Replacement Totals Fund Fund 2013 Excess (deficiency) of revenues over expenses $ 20,338 $ (642) $ 19,696 Adjustment to reconcile excess of revenues to net cash provided by operating activities: Depreciation 12,441-12,441 (Increase) decrease in: Accounts receivable - members, net (4,747) - (4,747) Accounts receivable - Waterside III 1,000-1,000 Interfund receivable - 7,841 7,841 Prepaid expenses 50,000-50,000 Utility deposits 1,949-1,949 Increase (decrease) in: Accounts payable (44,207) - (44,207) Accrued payables 4,817-4,817 Interfund payable (7,841) - (7,841) Foreclosure liability (12,441) - (12,441) Prepaid assessments 33,960-33,960 Due to MBCOPA (100) - (100) Net Cash Provided (Used) by Operating Activities 55,169 7,199 62,368 Net change in cash and cash equivalents 55,169 7,199 62,368 CASH AND CASH EQUIVALENTS, Beginning of Year 262,377 316,112 578,489 Interfund transfers (8,423) 8,423 - Contributions 8,002-8,002 Prior period adjustment - 21,577 21,577 CASH AND CASH EQUIVALENTS, End of Year $ 317,125 $ 353,311 $ 670,436 5

NOTES TO FINANCIAL STATEMENTS December 31, 2013 NOTE 1 NATURE OF ORGANIZATION Bayside Master Association, Inc. (the Association ) is incorporated in the State of Florida according to the terms of Florida Statutes, Chapter 617 and 720. The Association is responsible for the operation and maintenance of the common property within the Bayside complex. The Association is a 24.5 acre planned community located on Fort Myers Beach, which as of the balance sheet date, had sold 400 units. The Association began its operations on February 3, 1997. The Association s members are the only members. NOTE 2 DATE OF MANAGEMENT S REVIEW In preparing the financial statements, the Association has evaluated events and transactions for potential recognition or disclosure through April 30, 2014, the date that the financial statements were available for issuance. NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. Additionally, generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Accounting - Fund Accounting The Association prepares its financial statements on the accrual basis of accounting. To ensure observance of limitations and restrictions on the use of financial resources, the Association maintains its accounts using fund accounting. Financial resources are classified for accounting purposes in the following funds established according to their nature and purposes: Operating Fund This fund is used to account for financial resources available for the general operations of the Association. Replacement Fund This fund is used to accumulate financial resources designated for future major repairs and replacements. Cash and Cash Equivalents The Association considers cash and cash equivalents to include all highly liquid debt instruments with an original maturity of three months or less to be cash equivalents. Read independent auditors report. 6

NOTES TO FINANCIAL STATEMENTS December 31, 2013 NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Concentration of Credit Risk The majority of the Association s cash is placed in various financial institutions. At times, these balances may exceed federally insured limits. To date, the Association has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk with regards to its cash and cash equivalents. Property and Equipment The Association capitalizes all property and equipment to which it has title or other evidence of ownership with the exception of real property directly associated with the units. Ownership of the commonly held assets is vested directly or indirectly in the Member owners and those assets are not deemed to be severable. As a result, commonly owned assets are not presented in the Association s financial statements. Owners Assessments - Revenue Recognition All owners of the Association are obligated to pay quarterly assessments (maintenance fees) to provide funds for the Association s operating expenses, future capital acquisitions, and future major repairs and replacements. The annual budget and assessments of the owners are determined and approved by the Board of Directors. Interest Income Interest income is earned in the operating and replacement funds in direct proportion to the investments of each fund. NOTE 4 INCOME TAXES Homeowners associations may be taxed as either homeowners associations or regular corporations. Bayside Master Association, Inc. has elected to be taxed as a homeowners association. Under this election, the Association is taxed on its nonexempt function income, such as interest earnings. Exempt function income, which consists primarily of member assessments, is not taxable. The Association incurred no income taxes for the year ended December 31, 2013. As of December 31, 2013, the statute of limitations remains open for tax returns filed subsequent to and including 2011; however, no tax return examinations are in process or anticipated. Read independent auditors report. 7

NOTES TO FINANCIAL STATEMENTS December 31, 2013 NOTE 5 COMPONENTS OF CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of the following: December 31, 2013 Operating Fund Cash : Banking Institutions $ 317,125 Replacement Fund Cash : Banking Institutions 353,311 Total $ 670,436 NOTE 6 ACCOUNTS RECEIVABLE MEMBER OWNERS Assessments receivable at the balance sheet date represent fees due from Member owners. Normally, the Association s policy is to place liens on the properties of homeowners whose assessments are substantially delinquent. As of December 31, 2013 delinquent assessments for the Association, including developer receivables, totaled $30,799. The Association has recorded an allowance for doubtful accounts as of December 31, 2013 of $17,974. NOTE 7 FORECLOSED PROPERTY The association has acquired property in a foreclosure, the cost basis of which was fair value in the year of foreclosing plus costs associated with acquisition. The foreclosed property consists of: December 31, 2013 Condo unit #7103 $ 342,127 Less: Accumulated Depreciation (19,180) Property and Equipment Net $ 322,947 Depreciation expense for the year ended December 31, 2013 was $12,441. Being that there is sufficient evidence as of the balance sheet date that the bank will be foreclosing, a liability for the book value of the foreclosed property has been included in the financial statements. As a result of depreciation, the book value of the property that is liable to be due to the bank, decreased in 2013, which therefore requires a gain entry to be made to offset the loss associated with the prior year liability. Read independent auditors report. 8

NOTES TO FINANCIAL STATEMENTS December 31, 2013 NOTE 8 ASSESSMENTS RECEIVED IN ADVANCE Revenue from owners assessments is recorded as earned. Prepaid assessments are recorded as a deferred liability until such time as they are deemed due, at which time, the prepaid assessments are recognized as income to the Association. At December 31, 2013 prepaid assessments totaled $122,350. NOTE 9 REPLACEMENT FUND Florida Statutes require the Association to accumulate funds for future major repairs and replacements unless waived by the Association. Accumulated funds are held in separate banking accounts, and generally are not available for expenditures related to normal operations. The Board of Directors conducted an internal study to estimate the remaining useful lives and the 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 internal study. In addition to the regular assessments, the Association s governing documents require that funds be accumulated for future major repairs and replacements for the common areas. A portion of the yearly assessments is designated for this purpose. Accumulated funds, which aggregated $353,311 as of December 31, 2013 have been designated for this purpose. The Association uses the Cash Flow Funding method for calculating required funding levels. Under this method, the Association assigns a pool of funds to be used for any and all reserve projects. The Association performs an annual reserve study to estimate the remaining useful lives and replacement costs of the common property components. The Association is funding such major repairs and replacements over the estimated useful lives of the components based on the study's estimates of current replacement costs, considering amounts previously accumulated in the replacement fund. Actual expenditures, however, may vary from the estimated amounts, and the variations may be material. The following is a table of the activity in the replacement fund: Fund Description Balance December 31, 2012 Additions to Funds Charges/ Transfers to Funds Balance December 31, 2013 General $322,285 $ 154,201 $ (125,036) $351,450 Interest 1,668 1,861 (1,668) 1,861 Total $ 323,953 $ 156,062 $ (126,704) $ 353,311 Read independent auditors report. 9

NOTES TO FINANCIAL STATEMENTS December 31, 2013 NOTE 10 COMMITMENTS AND CONTINGENCIES The Association currently has contracts with various vendors, including a management contract. In addition, there is a contingent liability, not shown on the balance sheet, related to the foreclosure of the unit #7103 property. The original amount in dispute was $16,750 plus interest accrued at an annual 18% interest rate. The association believes that it can defend this litigation in court, but if not, the estimated liability as of December 31, 2013 is $19,292. Read independent auditors report. 10

SUPPLEMENTARY INFORMATION 11

SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 (Unaudited) Favorable Budget Actual (Unfavorable) REVENUES Operating Assessments $ 888,451 $ 888,450 $ (1) Dock Assessments 6,169 6,169 - Interest Income and Late Fees Operating interest 500 570 70 Interest & late fees 2,000 3,891 1,891 2,500 4,461 1,961 Rental Income 6,000 12,000 6,000 Other Income Proximity/barcode income - 185 185 Collection fee - 565 565 FPL sales tax refund - 4,668 4,668-5,418 5,418 EXPENSES Total Operating Income 903,120 916,498 13,378 Administrative Expenses Accounting 24,720 21,930 2,790 Corporate annual report 62 61 1 Management fees 9,120 9,020 100 Professional & legal 9,000 14,612 (5,612) Licenses & permits 1,625 1,500 125 Miscellaneous 10,377 9,083 1,294 Office 8,500 11,371 (2,871) Unit #7103 6,000 13,710 (7,710) 69,404 81,287 (11,883) Insurance Insurance - worker's comp 504 600 (96) Insurance 32,956 35,251 (2,295) Insurance - fidelity bond 1,000-1,000 34,460 35,851 (1,391) Maintenance - Building and Amenity Gate guard contract 141,400 120,510 20,890 Gate maintenance 5,000 10,813 (5,813) Generator & fire pump 14,800 21,337 (6,537) Janitorial service 31,580 35,300 (3,720) Janitorial supplies 360 2,355 (1,995) 12

SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 -- (Continued) EXPENSES -- Continued Budget Favorable (Unaudited) Actual (Unfavorable) Lift station - contract 9,500 11,048 (1,548) Gatehouse maintenance 300 2,818 (2,518) Pool contract 33,600 33,577 23 Pool repairs 43,000 31,939 11,061 Pool supplies 7,000 7,071 (71) Golf cart 1,000 1,590 (590) Geo thermal contract 2,800 1,886 914 Tennis courts 11,900 14,516 (2,616) Decorations 3,000 2,672 328 305,240 297,432 7,808 Maintenance - Grounds Grounds maint contract 35,760 37,600 (1,840) Grounds repair 13,000 6,611 6,389 Grounds mulch 11,000 11,000 - Irrigation wells 3,000 169 2,831 Lake & fountain maint 5,814 6,095 (281) Mangrove trimming 30,600 42,600 (12,000) Plant replacements 4,000-4,000 Pet stations 2,700 1,258 1,442 Irrigation repair & supplies 1,500 3,453 (1,953) Street sign & fences 500 345 155 Tree trimming 16,700 4,910 11,790 124,574 114,041 10,533 Utilities Cable 241,668 248,199 (6,531) Electricity 49,100 81,334 (32,234) Internet 600 1,010 (410) Electric - lift station 1,230 720 510 Electric - geo thermal 12,200 7,503 4,697 Propane 3,835 1,489 2,346 Telephone 1,700 1,618 82 Water - tennis courts 12,000 6,476 5,524 Water & sewer 16,425 19,200 (2,775) 338,758 367,549 (28,791) Total Operating Expenses 872,436 896,160 (23,724) Depreciation Expense - 12,441 (12,441) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ 30,684 $ 7,897 $ (22,787) 13

SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 -- (Continued) Budget Favorable (Unaudited) Actual (Unfavorable) Other Comprehensive Income Gain on foreclosure unit - 12,441 12,441 Dock assessment - reserves adjustment 538 - (538) Prior year surplus/(deficit) (31,222) - 31,222 TOTAL EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ - $ 20,338 $ 20,338 14

COMMONS SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 352,003 $ 352,000 $ (3) Dock Assessments 6,169 6,169 - Interest Income and Late Fees Operating interest 500 570 70 Interest & late fees 2,000 3,891 1,891 2,500 4,461 1,961 Rental Income 6,000 12,000 6,000 Other Income Proximity/barcode income - 185 185 Collection fee - 565 565 FPL sales tax refund - 26 26-776 776 EXPENSES Total Operating Income 366,672 375,406 8,734 Administrative Expenses Accounting 24,720 21,930 2,790 Corporate annual report 62 61 1 Management fees 9,120 9,020 100 Professional & legal 9,000 14,612 (5,612) Miscellaneous 8,670 7,592 1,078 Office 8,500 11,371 (2,871) Unit #7103 6,000 13,710 (7,710) 66,072 78,296 (12,224) Insurance Insurance - worker's comp 504 600 (96) Insurance 6,200 6,140 60 6,704 6,740 (36) Maintenance - Building and Amenity Gate guard contract 141,400 120,510 20,890 Gate maintenance 5,000 10,813 (5,813) Janitorial supplies 360 2,355 (1,995) Gatehouse maintenance 300 2,818 (2,518) Golf cart 1,000 1,590 (590) Tennis Courts 11,900 14,516 (2,616) Decorations 3,000 2,672 328 162,960 155,274 7,686 15

COMMONS SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 -- (Continued) EXPENSES -- Continued Budget Favorable (Unaudited) Actual (Unfavorable) Maintenance - Grounds Grounds maint contract 35,760 37,600 (1,840) Grounds repair 5,000 4,689 311 Grounds mulch 11,000 11,000 - Irrigation wells 3,000 169 2,831 Lake & fountain maint 5,814 6,095 (281) Mangrove trimming 30,600 42,600 (12,000) Plant replacements 4,000-4,000 Pet stations 2,700 1,258 1,442 Irrigation repair & supplies 1,500 3,453 (1,953) Street sign & fences 500 345 155 Tree trimming 11,000 3,195 7,805 110,874 110,404 470 Utilities Electricity 5,600 7,828 (2,228) Internet 600 1,010 (410) Telephone 1,700 1,618 82 Water - tennis courts 12,000 6,476 5,524 Water & sewer 700 553 147 20,600 17,485 3,115 Depreciation Expense - 12,441 (12,441) Total Operating Expenses 367,210 380,640 (13,430) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ (538) $ (5,234) $ (4,696) Other Comprehensive Income Gain on #7103 foreclosure 12,441 12,441 Dock assessment - reserve adjustment 538 - (538) TOTAL EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ - $ 7,207 $ 7,207 BEGINNING FUND BALANCE 113,274 ENDING FUND BALANCE $ 120,481 16

WATERSIDE I & II SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 128,566 $ 128,565 $ (1) EXPENSES Total Operating Income 128,566 128,565 (1) Administrative Expenses Licenses & permits 375 375 - Miscellaneous 89-89 464 375 89 Insurance Insurance 3,162 6,543 (3,381) 3,162 6,543 (3,381) Maintenance - Building and Amenity Generator & fire pump 1,800 1,366 434 Janitorial service 6,500 9,252 (2,752) Lift station - contract 3,000 8,961 (5,961) Pool contract 9,000 8,165 835 Pool repairs 13,000 9,671 3,329 Pool supplies 1,000 832 168 34,300 38,247 (3,947) Maintenance - Grounds Grounds repair 1,500-1,500 Tree trimming 300 200 100 1,800 200 1,600 Utilities Cable 68,000 70,891 (2,891) Electricity 17,340 19,095 (1,755) Propane 500 376 124 Water & sewer 3,000 3,893 (893) 88,840 94,255 (5,415) Total Operating Expenses 128,566 139,620 (11,054) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ - $ (11,055) $ (11,055) BEGINNING FUND BALANCE (18,470) Prior period adjustment 18,470 ENDING FUND BALANCE $ (11,055) 17

WATERSIDE III & IV SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 144,376 $ 144,379 $ 3 EXPENSES Total Operating Income 144,376 144,379 3 Administrative Expenses Licenses & permits 375 375 - Miscellaneous 601-601 976 375 601 Insurance Insurance 3,200 4,729 (1,529) Insurance - fidelity bond 1,000-1,000 4,200 4,729 (529) Maintenance - Building and Amenity Generator & fire pump 6,000 12,422 (6,422) Janitorial service 8,500 10,500 (2,000) Lift station - contract 2,000 805 1,195 Pool contract 10,500 10,878 (378) Pool repairs 7,500 11,920 (4,420) Geo thermal contract 1,000 946 54 35,500 47,471 (11,971) Maintenance - Grounds Grounds repair 1,000-1,000 Tree trimming 900 600 300 38,400 600 (10,617) Utilities Cable 68,000 71,191 (3,191) Electricity 8,160 7,210 950 Electric - lift station 600 360 240 Electric - geo thermal 6,200 7,503 (1,303) Propane 1,000 524 476 Water & sewer 4,300 4,013 287 88,260 90,801 (2,541) Total Operating Expenses 167,336 143,976 (25,057) Prior Year Surplus (13,540) - 13,540 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ (36,500) $ 403 $ 36,903 BEGINNING FUND BALANCE (16,647) Prior period adjustment 3,107 ENDING FUND BALANCE $ (13,137) 18

WATERSIDE CABANAS III & IV SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 (Unaudited) Favorable Budget Actual (Unfavorable) REVENUES Operating Assessments $ 14,220 $ 14,220 $ - EXPENSES Total Operating Income 14,220 14,220 - Administrative Expenses Miscellaneous 153 51 102 153 51 102 Insurance Insurance 5,626 5,962 (336) 5,626 5,962 (336) Maintenance - Building and Amenity Janitorial service 1,000 318 682 1,000 318 682 Utilities Water & sewer 1,100 1,078 22 1,100 1,078 22 Total Operating Expenses 7,879 7,409 470 Prior Year Surplus (6,341) - 6,341 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ - $ 6,811 $ 6,811 BEGINNING FUND BALANCE (7,130) ENDING FUND BALANCE $ (319) 19

WATERSIDE V & VI SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 102,076 $ 102,075 $ (1) Other Income FPL sales tax refund - 2,614 2,614-2,614 2,614 EXPENSES Total Operating Income 102,076 104,689 2,613 Administrative Expenses Licenses & permits 375 375 - Miscellaneous 327 322 5 702 697 5 Insurance Insurance 3,468 1,736 1,732 3,468 1,736 1,732 Maintenance - Building and Amenity Generator & fire pump 4,500 5,355 (855) Janitorial service 8,580 8,265 315 Lift station - contract 2,000 445 1,555 Pool contract 9,300 9,734 (434) Pool repairs 15,000 3,726 11,274 Pool supplies 1,500 448 1,052 Geo thermal contract 950 940 10 41,830 28,913 12,917 Maintenance - Grounds Grounds repair 1,000 1,551 (551) Tree trimming 2,000-2,000 45,780 1,551 14,376 Utilities Cable 35,500 35,854 (354) Electricity 8,900 31,276 (22,376) Electric - lift station 300 180 120 Propane 835 589 246 Water & sewer 1,200 1,536 (336) 46,735 69,435 (22,700) Total Operating Expenses 138,515 102,332 6,330 Prior Year Surplus (6,341) - 6,341 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ (42,780) $ 2,357 $ 45,137 BEGINNING FUND BALANCE (6,093) ENDING FUND BALANCE $ (3,736) 20

WATERSIDE CABANAS V & VI SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 15,468 $ 15,468 $ - EXPENSES Total Operating Income 15,468 15,468 - Administrative Expenses Miscellaneous 43 904 (861) 43 904 (861) Insurance Insurance 7,200 5,962 1,238 7,200 5,962 1,238 Maintenance - Building and Amenity Janitorial service 1,000 300 700 1,000 300 700 Utilities Water & sewer 1,825 1,904 (79) 1,825 1,904 (79) Total Operating Expenses 10,068 9,070 998 Prior Year Surplus (5,400) - 5,400 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ - $ 6,398 $ 6,398 BEGINNING FUND BALANCE (5,932) ENDING FUND BALANCE $ 466 21

MANATEE BAY & SUNSET GULF SCHEDULE OF OPERATING FUND REVENUES AND EXPENSES - BUDGET TO ACTUAL For the Year Ended December 31, 2013 REVENUES (Unaudited) Favorable Budget Actual (Unfavorable) Operating Assessments $ 131,743 $ 131,743 $ - Other Income FPL sales tax refund - 2,028 2,028-2,028 2,028 EXPENSES Total Operating Income 131,743 133,771 2,028 Administrative Expenses Licenses & permits 500 375 125 Miscellaneous 495 214 281 995 589 406 Insurance Insurance 4,100 4,179 (79) 4,100 4,179 (79) Maintenance - Building and Amenity Generator & fire pump 2,500 2,194 306 Janitorial service 6,000 6,665 (665) Lift station - contract 2,500 837 1,663 Pool contract 4,800 4,800 - Pool repairs 7,500 6,622 878 Pool supplies 4,500 5,791 (1,291) Geo thermal contract 850-850 28,650 26,909 1,741 Maintenance - Grounds Grounds repair 4,500 371 4,129 Tree trimming 2,500 915 1,585 36,500 1,286 8,305 Utilities Cable 70,168 70,263 (95) Electricity 9,100 15,925 (6,825) Electric - lift station 330 180 150 Electric - geo thermal 6,000-6,000 Propane 1,500-1,500 Water & sewer 4,300 6,223 (1,923) 91,398 92,591 (1,193) Total Operating Expenses 161,643 125,554 9,180 Prior Year Surplus 400 - (400) EXCESS (DEFICIENCY) OF REVENUES OVER EXPENSES $ (29,500) $ 8,217 $ 37,717 BEGINNING FUND BALANCE (4,482) ENDING FUND BALANCE $ 3,735 22

COMBINED SCHEDULE OF CHANGES IN REPLACEMENT FUND For the Year Ended December 31, 2013 Pooled Fund Balance Fund Balance January 1, 2013 Replacement Assessments Interest Charges to Fund Other Income Fund Balance December 31, 2013 Commons $ 90,753 $ 32,000 $ 313 $ (56,967) $ 538 $ 66,637 Waterside I & II 54,994 22,699 352 (5,065) - 72,980 Waterside III & IV 67,754 27,302 302 (29,686) - 65,672 Waterside Cabanas III & IV 35,968 3,060 198 (20,723) - 18,503 Waterside V & VI 35,448 19,101 259 - - 54,808 Waterside Cabanas V & VI 30,172 3,500 181 - - 33,853 Manatee Bay & Sunset Gulf 38,864 16,001 256 (14,263) 40,858 Totals $ 353,953 $ 123,663 $ 1,861 $ (126,704) $ 538 $ 353,311 23

The following table is based on estimates provided by the management company at the time of the financial review, using replacement costs and estimates from vendors. The table presents significant information about the components of the common property: Components SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS (COMBINED) As of December 31, 2013 Unaudited Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Fire Pump Replacement 35 19-33 $ 446,699 $ - $ - Generator Replacement 35 24-28 192,836 - - Guard Gate Equipment 10 9 20,000 - - Insurance 20 20 100,000 - - Interior Renovations, Restrooms 25 9-18 60,750 - - Lake Fountain / Areator Allowance 8 6 3,000 - - Landscaping 10 9 75,000 - - Lift Station 3 Year Cleanout 3 3 6,000 - - Lift Stations - Full Replacement 15 5 50,000 - - Paint Exterior Poolhouse 7 1-7 21,265 7,700 7,700 Painting 7 1-4 13,025 - - Painting - Guardhouse Exterior 7 1 2,288 2,357 2,357 Paving Asphalt Overlay 20 14 40,200 - - Pool / Spa Interior Resurfacing and Tile 12 1-10 140,216 - - Pool Deck Brick Pavers 25 9-18 163,643 - - Pool Deck Fencing and Gates 25 9-18 51,011 - - Pool Deck Furniture 10-12 0-12 56,176 - - Pool Deck Furniture - New 10 9 7,740 - - Pool Equipment & Pumps 10 9 50,000 Pool Heaters, Geothermal 15 4-12 100,000 - - Pool Heaters, Propane 10 4 10,815 - - Roof Replacement 35-40 24-27 63,360 - - Roof Replacement Poolhouse 25-35 14-24 51,816 - - Roofing - Guardhouse 30 24 7,300 - - Structural Replacements 25 7-14 36,760 - - Tennis Court Fencing and Gates 15 15 8,000 - - Tennis Lights Allowance 7 7 10,000 - - $ 1,787,900 $ 10,057 $ 131,175 Replacement Fund Balance at December 31, 2013 $ 353,311 24

COMMONS SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Paving Asphalt Overlay 20 14 $ 40,200 $ - $ - Lake Fountain / Areator Allowance 8 6 3,000 - - Landscaping 10 9 75,000 - - Painting - Guardhouse Exterior 7 1 2,288 2,357 2,357 Roofing - Guardhouse 30 24 7,300 - - Guard Gate Equipment 10 9 20,000 - - Tennis Court Fencing and Gates 15 15 8,000 - - Tennis Lights Allowance 7 7 10,000 - - Lift Stations - Full Replacement 15 5 50,000 - - Lift Station 3 Year Cleanout 3 3 6,000 - - Insurance 20 20 100,000 - - $ 321,788 $ 2,357 $ 39,000 Replacement Fund Balance at December 31, 2013 $ 66,637 25

WATERSIDE I & II SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Fire Pump Replacement 35 19 $ 110,000 $ - $ - Interior Renovations, Restrooms 25 9 14,960 - - Paint Exterior Poolhouse 7 5 2,805 - - Pool Deck Brick Pavers 25 9 35,105 - - Pool Deck Fencing and Gates 25 9 4,844 - - Pool Deck Furniture 12 12 11,700 - - Pool Heaters, Geothermal 15 4 35,000 - - Pool / Spa Interior Resurfacing and Tile 12 10 40,000 - - Roof Replacement Poolhouse 30 14 30,000 - - $ 284,414 $ - $ 22,500 Replacement Fund Balance at December 31, 2013 $ 72,980 26

WATERSIDE III & IV SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Fire Pump Replacement 35 28 $ 110,000 $ - $ - Generator Replacement 35 28 63,000 - - Interior Renovations, Restrooms 25 18 14,960 - - Paint Exterior Poolhouse 7 7 7,260 - - Pool Deck Brick Pavers 25 18 39,389 - - Pool Deck Fencing and Gates 25 18 12,594 - - Pool Deck Furniture 10 10 15,840 - - Pool Equipment & Pumps 10 9 50,000 - - Pool Heaters, Geothermal 15 12 37,500 - - Pool / Spa Interior Resurfacing and Tile 12 10 32,760 - - Roof Replacement Poolhouse 25 18 7,128 - - $ 390,431 $ - $ 28,900 Replacement Fund Balance at December 31, 2013 $ 65,672 27

WATERSIDE CABANAS III & IV SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Painting 7 1 $ 5,025 $ - $ - Roof Replacement 40 27 31,680 - - Structural Replacements 25 7 31,760 - - $ 68,465 $ - $ 3,000 Replacement Fund Balance at December 31, 2013 $ 18,503 28

WATERSIDE V & VI SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Fire Pump Replacement 35 33 $ 110,000 $ - $ - Generator Replacement 35 24 63,000 - - Interior Renovations, Restrooms 25 14 14,960 - - Paint Exterior Poolhouse 7 4 3,500 - - Pool Deck Brick Pavers 25 14 52,538 - - Pool Deck Fencing and Gates 25 14 14,048 - - Pool Deck Furniture - Old - - 9,540 - - Pool Deck Furniture - New 10 9 7,740 - - Pool Heaters, Geothermal 15 10 27,500 - - Pool / Spa Interior Resurfacing and Tile 12 1 29,646 - - Roof Replacement Poolhouse 35 24 7,128 - - $ 339,600 $ - $ 20,000 Replacement Fund Balance at December 31, 2013 $ 54,808 29

WATERSIDE CABANAS V & VI SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Painting 7 4 $ 8,000 $ - $ - Roof Replacement 35 24 31,680 - - Structural Replacements 25 14 5,000 - - $ 44,680 $ - $ 775 Replacement Fund Balance at December 31, 2013 $ 33,853 30

MANATEE BAY & SUNSET GULF SUPPLEMENTAL INFORMATION OF FUTURE MAJOR REPAIRS AND REPLACEMENTS As of December 31, 2013 Unaudited Components Estimated 2014 2014 Estimated Remaining Future Fund Approved Useful Useful Replacement (Expenditure) Budgeted Lives Lives Costs Requirements Funding Fire Pump Replacement 35 28 $ 116,699 $ - $ - Generator Replacement 35 28 66,836 - - Interior Renovations, Restrooms 25 18 15,870 - - Paint Exterior Poolhouse 7 1 7,700 7,700 7,700 Pool Deck Brick Pavers 25 18 36,611 - - Pool Deck Fencing and Gates 25 18 19,525 - - Pool Deck Furniture 10 3 19,096 - - Pool Heaters, Propane 10 4 10,815 - - Pool / Spa Interior Resurfacing and Tile 12 5 37,810 - - Roof Replacement Poolhouse 25 18 7,560 - - $ 338,522 $ 7,700 $ 17,000 Replacement Fund Balance at December 31, 2013 $ 40,858 31