TERRAMERE HOMEOWNERS ASSOCIATION, INC. SLINGERLANDS, NEW YORK FINANCIAL STATEMENTS DECEMBER 31, 2015
TERRAMERE HOMEOWNERS ASSOCIATION, INC. TABLE OF CONTENTS DECEMBER 31, 2015 Independent Accountant s Review Report Page 1 Balance Sheets Page 2 Statements of Revenues and Expenses and Changes in Fund Balances Page 3 Statements of Cash Flows Page 4 Notes to Financial Statements Pages 5-6
T. M. BYXBEE COMPANY CERTIFIED PUBLIC ACCOUNTANTS, NY, P.C. 18 Computer 80 Wolf Drive Road, East Suite - Suite 102, 101, Albany, NY 12205-2608 12205-1111 Telephone 518/458-2213 Fax 518/458-9193 INDEPENDENT ACCOUNTANT'S REVIEW REPORT info@tmbyxbee.com To the Board of Directors of Terramere Homeowner s Association, Inc. Albany, New York We have reviewed the accompanying financial statements of Terramere Homeowner s Association, Inc. (a nonprofit organization) which comprise the balance sheets as of December 31, 2015 and 2014, and related statements of revenue and expenses and changes in fund balances and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management s financial data and making inquiries of 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 as a whole. Accordingly, we do not express such an opinion. 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 misstatements whether due to fraud or error. Accountant s Responsibility Our responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion. Accountant s Conclusion Based on our reviews, we are not aware of any material modifications that should be made to the accompanying financial statements in order to be in conformity with accounting principles generally accepted in the United States of America. February 9, 2016 Albany, New York Page 1
. TERRAMERE HOMEOWNERS' ASSOCIATION, INC. BALANCE SHEETS A S S E T S 2015 2014 OPERATING FUND Cash $ 8,832 $ 5,567 Assessments Receivable 275 - TOTAL OPERATING FUND 9,107 5,567 REPLACEMENT FUND Cash 62,154 46,674 TOTAL REPLACEMENT FUND 62,154 46,674 TOTAL ASSETS $ 71,261 $ 52,241 L I A B I L I T I E S A N D F U N D B A L A N C E S CURRENT LIABILITIES Prepaid Assessments $ 3,854 $ 829 Income Taxes Payable 89 51 TOTAL CURRENT LIABILITIES 3,943 880 FUND BALANCES Operating Fund 20,163 4,687 Replacement Fund 47,155 46,674 TOTAL FUND BALANCES 67,318 51,361 TOTAL LIABILITIES AND FUND BALANCES $ 71,261 $ 52,241 See independent accountant's review report and notes to financial statements. Page 2
TERRAMERE HOMEOWNERS' ASSOCIATION, INC. STATEMENTS OF REVENUE AND EXPENSES 2015 2014 OPERATING FUND: REVENUES Assessments $ 158,125 $ 160,850 Late Fees 225 75 Insurance Premium Credit - 44 TOTAL REVENUE 158,350 160,969 EXPENSES Office Expenses 808 598 Accounting Fees 1,425 1,350 Consulting Fees 3,800 - Refuse Collection 7,639 7,639 Water and Sewer Tax 9,526 3,440 Lawn Irrigation 4,428 4,104 Repairs and Maintenance 3,264 32,677 Landscaping and Snowplowing 104,046 102,869 Tree Service 2,052 3,240 Insurance 1,421 1,421 Real Estate Tax 1,146 2,871 Utilities 3,230 4,491 Income Taxes 89 80 TOTAL EXPENSES 142,874 164,780 EXCESS (DEFICIT) OF REVENUE OVER EXPENSES 15,476 (3,814) BEGINNING FUND BALANCE 4,687 8,501 ENDING FUND BALANCE $ 20,163 $ 4,687 REPLACEMENT FUND: REVENUES Interest $ 481 $ 32 TOTAL REVENUE 481 32 EXCESS OF REVENUE OVER EXPENSES 481 32 BEGINNING FUND BALANCE 46,674 46,642 ENDING FUND BALANCE $ 47,155 $ 46,674 See independent accountant's review report and notes to financial statements. Page 3
TERRAMERE HOMEOWNERS' ASSOCIATION, INC. STATEMENTS OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES: 2015 2014 Excess (Deficit) Revenues over Expenses: Operating Fund $ 15,476 $ (3,814) Replacement Fund 481 32 15,957 (3,782) Adjustments to Reconcile Excess (Deficit) Revenues over Expenses to Net Cash Provided by Operating Activities: (Increase) Decrease in: Assessments Receivable (275) - Prepaid Income Taxes - 29 Increase (Decrease) in: Prepaid Assessments 3,025 (4,375) Income Taxes Payable 38 51 TOTAL ADJUSTMENTS 2,788 (4,295) NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES 18,745 (8,077) CASH - BEGINNING OF YEAR 52,241 60,318 CASH - END OF YEAR $ 70,986 $ 52,241 OPERATING FUND $ 8,832 $ 5,567 REPLACEMENT FUND 62,154 46,674 CASH - END OF YEAR $ 70,986 $ 52,241 See independent accountant's review report and notes to financial statements. Page 4
TERRAMERE HOMEOWNERS ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Organization Terramere Homeowners Association, Inc. (the Association) was formed in April of 2000 under Section 402 of the Not-For-Profit Corporation Law of New York State, to own, operate and maintain Association property, and enforce provisions of the Declaration and By-Laws. All purchasers and subsequent owners of homes in the community automatically become members of the Association. The business affairs of the Association are managed by the Board of Directors, who are voted on annually by members of the Association. Members of the Association pay monthly maintenance charges to the Association for the operation and maintenance of Association property, and to create a reserve for the purpose of defraying in whole or in part the cost of any capital improvements as the Board of Directors may deem proper. Financial Statement Presentation The financial statements of the Association have been prepared on the accrual basis. The Association uses fund accounting, which requires that funds, such as operating funds and funds designated for future major repairs and replacements, be classified separately for accounting and reporting purposes. Disbursements from the operating fund are generally at the discretion of the Board of Directors. Disbursements from the replacement fund may be made for their designated purpose. 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 estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from these estimates. Assessments The annual budget and assessments are determined by the Board of Directors. The Association retains excess operating funds at the end of the operating year, if any, for use in future operating periods. Assessments Receivable Assessments receivable represent unpaid monthly assessments. The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are in arrears. The Association had receivables of $275 and $0 at December 31, 2015 and 2014, respectively. See independent accountant's review report. Page 5
TERRAMERE HOMEOWNERS ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Continued) Federal and State Taxes The Association s assessments are exempt from Federal and State income taxes. The Association is liable for Federal tax on non-exempt function income and New York State franchise fees. Future Major Repairs and Replacements The Association s Board of Directors requires that funds be accumulated for future major repairs and replacements. Accumulated funds are to be held in separate accounts and are generally not available for expenditures for normal operations. Funds are 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 and replacements. If additional funds are needed, the Association has the right, subject to membership approval, to increase assessments, or delay major repairs and replacements until funds are available. NOTE 2 INCOME TAXES The Association has adopted the provisions of FASB ASC 740-10, Accounting for Uncertainty in Income Taxes, and as a result has not identified any tax position which falls within the scope of this standard. The tax returns filed by the Association are subject to examination by tax jurisdictions (generally for three years from the filing date), and as a result, returns for the years subsequent to the year ended December 31, 2011 remain subject to examination. No interest or penalties have been recognized in the Balance Sheet or Statement of Revenue and Expenses and Changes in Fund Balances. NOTE 3 COMMITMENTS AND CONTINGENCIES Events Occurring After Reporting Date The Company has evaluated events and transactions that occurred between December 31, 2015 and February 9, 2016, which is the date the financial statements were available to be issued, for possible disclosure and recognition in the financial statements. See independent accountant's review report. Page 6