INDEPENDENT AUDITOR’S REPORT
To the Board of Directors and Members Association of Property Owners of the Hideout, Inc.
Opinion
We have audited the accompanying financial statements of the Association of Property Owners of the Hideout, Inc., which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of revenues, expenses, and changes in members’ equity and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Association of Property Owners of the Hideout, Inc. as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Association of Property Owners of the Hideout, Inc. and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Responsibilities of Management 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, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association of Property Owners of the Hideout, Inc.’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
1
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 Association of Property Owners of the Hideout, Inc.’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Association of Property Owners of the Hideout, Inc.’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole. The actual vs. budget by department and calculation of surplus(deficit) from budgeted operations on pages 14 through 16 are presented for purposes of additional analysis are not a required part of the financial statements. Such information is the responsibility of the Association’s 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.
Disclaimer of Opinion on Required Supplementary Information
Accounting principles generally accepted in the United States of America require that information on the future major repairs and replacements on page 17 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board, which 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.
Kingston, Pennsylvania
February 1, 2024
2
DECEMBER 31, 2023 AND 2022
ASSETS
LIABILITIES AND MEMBERS' EQUITY
2023 2022
3
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. BALANCE SHEETS
Current Assets: Cash and Cash Equivalents: (Note 1) Operating $ 877,626 $ 1,123,345 Reserves 729,341 1,052,666 Accounts Receivable: Assessments, Net of Allowance for Doubtful Accts (Note 1) 281,768 244,701 Other Accounts Receivable (Note 2) 100,477 357 Total Accounts Receivable 382,245 245,058 Short Term Investments – Reserves 898,509 999,781 Investments – Real estate 302,568 299,320 Inventories (Note 3) 197,207 137,511 Other Current Assets (Note 4) 72,829 112,121 Total Current Assets 3,460,325 3,969,802 Long Term Investments – Reserves 3,381,614 3,365,655 Property and Equipment: Developer's Initial Contribution 1 1 Land 283,687 283,265 Land Improvements 10,121,897 9,242,163 Construction in Progress 301,088 199,177 Buildings and Improvements 8,763,008 7,751,604 Vehicles and Equipment 7,881,320 8,232,361 27,351,001 25,708,571 Less: Accumulated Depreciation (16,963,948) (15,935,861) Net Property and Equipment 10,387,053 9,772,710 Total Assets $ 17,228,992 $ 17,108,167
Current Liabilities: Accounts Payable $ 375,876 $ 208,054 Accrued Expenses and Payroll Withholdings (Note 5) 233,589 256,007 Deferred member assessments 168,745 151,761 Deferred Income (Note 6) 89,569 96,124 Accrued Vacation 30,488 28,329 Total Current Liabilities 898,267 740,275 Total Liabilities 898,267 740,275 Members' Equity: Board Designated for Capital Replacements, Additions and Other Reserves 5,009,464 5,418,102 Undesignated Capital 11,321,261 10,949,790 Total Members' Equity 16,330,725 16,367,892 Total Liabilities and Members’ Equity $ 17,228,992 $ 17,108,167
notes to financial statements
See
4 ASSOCIATION
HIDEOUT, INC.
2023 2022 Non-Amenity Revenues and Expenses Non-Amenity Revenue Operating Assessments $ 6,099,199 $ 5,798,364 Investment Income 32,946 9,249 Administrative revenues and late charges 160,970 139,291 Total Non-Amenity Revenue 6,293,115 5,946,904 Non-Amenity Expenses Salaries, Payroll Taxes, and Employee Benefits 1,150,267 1,180,716 Provision for Bad Debts 293,225 159,015 Insurance 111,651 91,620 Professional Fees 71,707 100,154 Administrative expenses 527,601 512,361 Total Non-Amenity Expenses 2,154,451 2,043,866 Excess of Non-Amenity Revenue Over Non-Amenity Expenses $ 4,138,664 $ 3,903,038 Amenity Revenues and Expenses Amenity Revenue 3,203,783 2,996,147 Amenity Expenses (8,954,598) (8,457,324) Excess of Amenity Expenses Over Amenity Revenues (5,750,815) (5,461,177) Excess of Non-Amenity and Amenity Expenses over Non-Amenity and Amenity Revenues (1,612,151) (1,558,139) Net Revenues (Expenses) Representing Capital Reserves: Capital Reserve 1,348,105 883,385 New Capital 226,879 134,175 Total Net Revenues (Expenses) Representing Capital Reserves 1,574,984 1,017,560 Excess of All Revenues over All Expenses $ (37,167) $ (540,579)
notes to financial statements
OF PROPERTY OWNERS OF THE
STATEMENTS OF REVENUES AND EXPENSES YEARS ENDED DECEMBER 31, 2023 AND 2022
See
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC.
STATEMENTS OF CHANGES IN MEMBERS' EQUITY
YEARS ENDED DECEMBER 31, 2023 AND 2022
5
Description Undesignated and Other Reserves Total Balance - December 31, 2021 $ 11,612,033 $ 5,296,438 $ 16,908,471 Excess of Expenses over Revenues before Capital Reserve Revenues (1,558,139) - (1,558,139) Capital Reserve Revenues - 1,017,560 1,017,560 Net Transfers to Undesignated Equity for Capital Project Expenditures 895,896 (895,896)Balance - December 31, 2022 $ 10,949,790 $ 5,418,102 $ 16,367,892 Excess of Expenses over Revenues before Capital Reserve Revenues (1,612,151) - (1,612,151) Capital Reserve Revenues - 1,574,984 1,574,984 Net Transfers to Undesignated Equity for Capital Project Expenditures 1,983,622 (1,983,622)Balance - December 31, 2023 $ 11,321,261 $ 5,009,464 $ 16,330,725 See notes to financial statements
Board Designated Funds for Capital Replacements, Additions,
6
2022 Cash flows from Operating Activities: Excess of Amenity and Non-Amenity Expenses over Amenity and Non-Amenity Revenues $ (1,612,151) $ (1,558,139) Adjustments to Reconcile Excess of Expenses Over Revenues to Net Cash Provided (Consumed) by Operating Activities: Add back: Operating Expenses Not Decreasing Cash: Depreciation 1,208,841 1,149,730 Provision for Bad Debts 364,450 218,306 (Increase) Decrease in Current Assets: Annual Assessments Receivable (381,405) (156,781) Other Receivables (100,120) 84,898 Other Current Assets and Inventory (20,404) (40,491) Increase (Decrease) in Current Liabilities: Accounts Payable 167,822 (248,764) Accrued Vacation 2,159 (10,593) Accrued Expenses and Payroll Withholdings (22,409) 68,795 Deferred Income 10,429 46,288 Net Cash (used) by Operating Activities (382,788) (446,751) Cash Flows from Investing Activities: Increase in Investments – Real Estate (3,248) (3,634) Net (Increase) Decrease in Held-to-Maturity Securities 85,313 (1,813,391) Gain/(Loss) on retirement of assets 1,766 7,854 Capital Expenditures (1,845,071) (891,588) Net Cash (used) by Investing Activities (1,761,240) (2,700,759) Cash Flows from Capital and Related Financing Activities: Assessment Revenue Representing Replacement and New Capital Reserves 1,574,984 1,017,560 Net cash provided by financing activities 1,574,984 1,017,560 Net (Decrease) in Cash (569,044) (2,129,950) Cash and Cash Equivalents, beginning of the year 2,176,011 4,305,961 Cash and Cash Equivalents, end of the year $ 1,606,967 $ 2,176,011 Supplemental Information: Interest paid None None Income taxes paid $ 20,146 None
notes to financial statements
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2023 AND 2022 2023
See
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ORGANIZATION
The Association of Property Owners of the Hideout, Inc. was incorporated in February, 1970 as a non-profit corporation in the state of Pennsylvania. The Association is responsible for the operation and maintenance of the common property within the development. There are 3,908 billable properties within the development, of which 3,641 had paid their annual assessment in full for 2023. The development is located in Lake Ariel, Pennsylvania.
BASIS OF ACCOUNTING
The accompanying financial statements are prepared on the accrual basis of accounting in conformity with generally accepted accounting principles.
CASH AND CASH EQUIVALENTS
For cash flow purposes, the balance of cash and cash equivalents represents financial instruments with a maturity of three months or less as of December 31, and consisted of the following:
INVESTMENTS
The Association holds investments primarily in debt securities with which it intends to hold to maturity. Investments are considered short-term if they mature within twelve months. These investments are stated at amortized cost and consist of the following:
7
2023 2022 Petty cash and register banks $ 18,280 $ 18,083 Operating cash 859,346 1,105,262 Reserved funds (Capital Reserve and New Capital Funds) 729,341 1,052,666 Total Cash & Cash Equivalents $ 1,606,967 $ 2,176,011
2023 2022 Amortized Fair Amortized Fair Cost Value Cost Value Short Term: Bonds/Certificates of Deposit $ 898,509 $ 904,695 $ 999,781 $ 1,000,353 Equities - - -Total Short Term 898,509 904,695 999,781 1,000,353 Long Term: Bonds/Certificates of Deposit 1,316,859 1,316,769 1,321,339 1,312,006 Equities 2,064,755 2,357,902 2,044,316 2,059,016 Total Long Term 3,381,614 3,674,671 3,365,655 3,371,022 Total $ 4,280,123 $ 4,579,366 $ 4,365,436 $ 4,371,375
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2023 AND 2022
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued
The Association uses the specific identification method to value investments. All securities are considered to be held to maturity.
Under ASC 820-10, Fair Value Measurement, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Association uses various valuation approaches. ASC 820-10 establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Association.
Unobservable inputs reflect the Association’s assumption about the inputs market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy is categorized into three levels based on the inputs as follows:
Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Fund has the ability to access. Valuation adjustments and block discounts are not applied to Level 1 securities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.
Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.
Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement.
The following table presents information about the Association’s assets measured at fair value at December 31:
2023 2022
Level 1 $ 4,579,366 $ 4,371,375
Level 2 - -
Level 3 - -
Total $ 4,579,366 $ 4,371,375
8
2023 2022 Amortized Market Amortized Market Totals: Cost Value Cost Value Bonds/Certificates of Deposit $ 2,215,368 $ 2,221,464 $ 2,321,120 $ 2,312,359 Equities 2,064,755 2,357,902 2,044,316 2,059,016 Total All Investments $ 4,280,123 $ 4,579,366 $ 4,365,436 $ 4,371,375
): INVESTMENTS - continued
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(continued):
MEMBERS' ASSESSMENTS, ACCOUNTS RECEIVABLE and PROVISION for DOUBTFUL ACCOUNTS
Association members are subject to annual 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 property owners and are stated at their estimated net realizable value as determined by management. Under the terms of the agreement between the Association and the individual member (the Protective Covenants), the Board of Directors can designate a portion of member assessments as capital addition assessments. Members' equity designated for capital replacements, additions and other reserves amounted to $5,009,464 at December 31, 2023 and $5,418,102 at December 31, 2022
Assessment revenue is recognized when assessments are due. Any amounts received in advance of the due date are deferred until due. The Financial Accounting Standards Board issued Accounting Standards Code 606 requiring the deferral of the recognition of income until the services are rendered. The Association had determined ASC 606 does not apply to the Association as no customer relationship exists as it is defined by the Code. The Association does not defer the recognition of any portion of revenue as a contract liability.
A provision for doubtful accounts is recorded based upon an estimated percentage resulting from an account by account analysis, and by reference to payment history, aging reports and past experience.
Assessments receivable consisted of the following at December 31:
9
Member’s Equity designated for Capital Replacements and Additions 2023 2022 Capital Reserves $ 4,596,477 $ 4,920,229 New Capital 412,987 497,873 $ 5,009,464 $ 5,418,102
2023 2022 Member Assessments $ 2,297,553 $ 2,528,796 Fines, Citations, Collection Fees 54,704 69,913 Finance Charges 382,925 349,564 2,735,182 2,948,273 Allowance for Bad Debt (2,453,414) (2,703,572) Net Accounts Receivable $ 281,768 $ 244,701
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
CONCENTRATIONS OF CREDIT RISK
The Association maintains its cash accounts in one Pennsylvania financial institution. The Federal Deposit Insurance Corporation insures accounts up to $250,000 through December 31, 2023 at each institution. Funds on deposit in the Association’s sweep account are fully collateralized on a daily basis with United States Government Agency securities held in the institution’s investment portfolio. At December 31, 2023 and 2022, the Association had $-0- and $297,752 respectively in uninsured cash in bank accounts.
Deposits, in the amounts of $499,970 and $210,069 held in sweep accounts as of December 31, 2023 and 2022, respectfully, are fully collateralized on a daily basis with United States Government, US Government Agency and US Government Sponsored Enterprise Securities held in the bank’s investment portfolio. In the event of a bank failure, purchased securities in sweep transactions immediately become due and payable to the sweep account customers.
Substantially all of the Association’s revenue is derived from property owners in the Hideout. The Association has filed judgments on the property owners who fail to pay dues and assessments.
INCOME TAXES
The Association can elect annually to file its federal income tax return as a regular corporation or to be treated under a special provision of the Internal Revenue Code as a homeowners' association. Under the provisions of the homeowners' election, members' assessments and capital additions revenue are excluded from taxable income. The Association had an income tax liability of $32,885 at December 31, 2023 and $13,502 at December 31, 2022.
PROPERTY AND EQUIPMENT
The Association capitalizes all property and equipment to which it has title. Assets conveyed to the Association by the developer consist of 450 acres of common area including lakes and ponds, 40 miles of paved roads, saleable lots, pools, beaches, campgrounds, a golf course and other recreational buildings and facilities. These assets have been capitalized at $1. These buildings and recreational facilities have insurable value of approximately $12.8 million as updated in 2011 by the Association’s insurance appraiser. Other property and equipment acquired by the Association are recorded at cost.
DEPRECIATION
Capitalized common property is depreciated over its estimated useful life using the straight-line method of depreciation as follows:
Road paving 5-10 years
Building and improvements 20 years
Vehicles and equipment 1-10 years
10
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT,
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued):
CASH FLOWS
For purposes of the statements of cash flows, the Association considers investments purchased with a maturity of less than three months to be cash equivalents.
COMPENSATED ABSENCES (ACCRUED VACATION) and SICK PAY
Effective January 1, 2021, paid time off is accrued as earned according to the years of any employee’s service. A maximum of 40 hours of unused paid time off may be carried over into the following calendar year. Any accrued, but unused paid time off will be forfeited at the end of the calendar year. Sick pay cannot be carried over from one year to the next. At the end of the calendar year, any unused sick pay will be paid to the employee at their current compensation rate.
Reclassification of prior year financial statement amounts:
To facilitate comparison between current and prior year financial statements, certain items in the prior year financial statements have been reclassified to reflect their presentation in the current year financial statements.
NOTE 2 - OTHER ACCOUNTS RECEIVABLE:
As of December 31, other accounts receivable consisted of the following:
NOTE 3 - INVENTORIES:
Inventories consist of road maintenance materials, food and beverages, golf pro shop and recreation merchandise and are stated at the lower of cost or market. Inventory at December 31, consisted of the following:
11
INC.
2023 2022 Community relations receivable $ 14,707 $ 6 Miscellaneous 439 351 Medical expense reimbursements 85,331Total Other Accounts Receivable $ 100,477 $ 357
2023 2022 Clubhouse $ 37,973 $ 24,641 Maintenance 52,111 17,384 Pro Shop 12,837 11,904 Recreation 45,421 25,421 Art Center 6,049 6,141 Gate Transmitters 3,897 5,823 Lodge 33,303 39,081 Snackbars 5,616 7,116 Total Inventory $ 197,207 $ 137,511
NOTE 4 - OTHER CURRENT ASSETS:
as of December 31 consisted of the following:
NOTE 5 - ACCRUED EXPENSES AND PAYROLL WITHHOLDINGS:
NOTE 6 - DEFERRED INCOME:
Deferred income represents income collected or credited in advance of the fiscal year to which it relates. Deferred income at December 31 consisted of the following:
NOTE 7 – LINE OF CREDIT:
The Association has a $250,000 line of credit available. The line is subject to variable interest rates subject to change from time to time, currently at 8.25% per annum. The line must be cleared for a period of thirty consecutive days during the calendar year. At December 31, 2023 and 2022, there were no outstanding draws. The line is approved through June 30, 2024.
12
INC. NOTES
FINANCIAL
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT,
TO
STATEMENTS DECEMBER 31, 2023 AND 2022
Current Assets
2023 2022 Prepaid Insurance $ 72,829 $ 77,396 Prepaid Expenses - 34,725 Total Other Assets $ 72,829 $ 112,121
Other
Accrued Expenses and Payroll Withholdings as of December 31 consisted
the following: 2023 2022 Accrued Payroll $ 176,836 $ 182,174 Accrued Payroll Taxes and Withholdings 32,929 46,316 Accrued Sales and Use Taxes 4,039 3,886 Accrued Federal Income Tax 19,285 6,546 Accrued Insurance Payable - 17,085 Banquet deposits 500Total Accrued Expenses & Withholdings $ 233,589 $ 256,007
of
2023 2022 Gift Certificates $ 18,511 $ 17,132 Deposits 51,000 63,000 A.P.C. Cards, Filing and Renter Fees 20,058 15,992 Total Deferred Income $ 89,569 $ 96,124
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2023 AND 2022
NOTE 8 – PENSION PLAN:
The Association maintains a 401k retirement plan. Employees worked a minimum of a year to participate. Employee funds withheld are matched up to 50% of the first 6% of eligible employee’s earnings, which, for the years ended December 31, 2023 and 2022, amounted to $32,862 and $38,172, respectively. There is no future pension liability. Participants are fully vested.
NOTE 9 - FUTURE MAJOR REPAIRS AND REPLACEMENTS:
The Association is funding major repairs and replacements by designating a portion of member assessments as capital addition assessments. The Association's board of directors conducted a study to estimate the remaining useful lives and the replacement costs of the common property components. Actual expenditures, however, may vary from the estimated amounts and the variations may be material. Therefore, the adequacy of amounts designated for future repairs and replacements cannot presently be determined. If additional funds are needed, however, the Association has the right to increase regular assessments or levy special assessments, or it may delay major repairs and replacements until funds are available.
NOTE 10 – COMMITMENTS AND CONTINGENCIES:
The Roamingwood Sewer and Water Association, acting as agent for South Wayne County Water and Sewer Authority which provides sewer and water services to the residents of The Hideout, is currently in the construction stage of a major infrastructure improvement program These improvements will lead to increased water and sewer rates for its customers. In conjunction, in November of 2012, the Association entered into a reimbursement agreement with Roamingwood, whereby the Association agreed to reimburse Roamingwood $200,000 per year for ten years for Phase I and $200,000 per year for ten years for Phase II for road repaving which was necessary as a result of the improvement program. All Phases have been completed and the Association owes one more payment. Payments will be finalized in 2024.
NOTE 11 – SUBSEQUENT EVENTS:
Management has evaluated subsequent events through February 1, 2024, the date the financial statements were available to be issued.
13
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC.
SUPPLEMENTARY INFORMATION
ACTUAL vs. BUDGET BY DEPARTMENT (INCLUDES ALL FUNDS)
YEARS ENDED DECEMBER 31, 2023 AND 2022
14
2023 2022 Actual Budget Variance Actual Budget Variance Non Amenity Revenues: Dues, Net of provision for bad debts $ 7,216,273 $ 7,190,500 $ 25,773 $ 7,054,326 $ 6,916,000 $ 138,326 Late Charges 103,481 28,000 75,481 79,631 25,000 54,631 Investment income 202,034 53,000 149,034 89,081 65,250 23,831 Transfer fees 465,130 500,000 (34,870) 508,258 370,000 138,258 Miscellaneous - 12,000 (12,000) 8,504 2,000 6,504 Gain on sale of equipment 1,766 - 1,766 - -Total Non-Amenity Revenues 7,988,684 7,783,500 205,184 7,739,800 7,378,250 361,550 Departmental Income: Security 142,140 118,983 23,157 101,046 118,611 (17,565) Laurel Park 19,485 22,921 (3,436) 20,583 25,500 (4,917) Ski Hill 167,825 80,575 87,250 148,996 96,619 52,377 Marina 179,895 156,700 23,195 178,440 151,765 26,675 Pools/Beach 88,662 110,250 (21,588) 106,176 106,250 (74) Recreation-fitness & mini-golf 159,028 160,375 (1,347) 157,324 171,500 (14,176) Golf course & golf maint. 234,181 205,500 28,681 203,074 200,800 2,274 Arts & crafts 28,099 24,100 3,999 31,095 19,560 11,535 Maintenance 1,419 2,500 (1,081) 191 9,825 (9,634) Lake & environmental 49,320 49,000 320 48,640 44,000 4,640 Administration & admin. fees 722,512 640,000 82,512 737,794 450,010 287,784 Community relations 247,352 190,900 56,452 227,482 182,250 45,232 Clubhouse & tabmaster 762,082 780,553 (18,471) 808,911 634,146 174,765 Snack bars 170,944 113,703 57,241 139,306 87,500 51,806 Woodworkers 3,750 4,250 (500) 3,240 4,750 (1,510) Lodge & Tiki bar 317,006 268,500 48,506 189,170 241,900 (52,730) Total Departmental Revenues 3,293,700 2,928,810 364,890 3,101,468 2,544,986 556,482 Other Revenues: Grant revenues - - - 105,623 - 105,623 Total Other Revenues - - - 105,623 - 105,623 Total Revenues 11,282,384 10,712,310 570,074 10,946,891 9,923,236 1,023,655
15
SUPPLEMENTARY
ACTUAL vs. BUDGET BY DEPARTMENT
YEARS ENDED DECEMBER 31, 2023 AND 2022 2023 2022 Actual Budget Variance Actual Budget Variance Expenditures: Security 1,700,057 1,539,305 (160,752) 1,576,327 1,496,894 (79,433) Laurel Park 12,535 14,291 1,756 17,691 14,840 (2,851) Ski Hill 479,337 287,602 (191,735) 366,458 278,932 (87,526) Marina 43,129 35,914 (7,215) 70,166 57,485 (12,681) Pools/Beach 232,490 195,643 (36,847) 217,357 187,302 (30,055) Recreation & fitness 503,973 450,651 (53,322) 502,966 466,572 (36,394) Golf course & golf maint. 488,325 413,364 (74,961) 433,534 406,730 (26,804) Arts & crafts 98,692 86,221 (12,471) 104,119 76,478 (27,641) Maintenance 1,822,291 2,068,251 245,960 2,019,593 1,745,967 (273,626) Lakes & environmental 433,126 467,153 34,027 285,525 422,192 136,667 Administration & admin fees 1,805,075 1,788,744 (16,331) 1,820,660 1,555,823 (264,837) Community relations 175,273 192,783 17,510 173,908 178,369 4,461 Clubhouse & tabmaster 1,283,409 1,031,816 (251,593) 1,175,813 941,485 (234,328) Snack bars 190,345 149,965 (40,380) 164,864 132,171 (32,693) Woodworkers 10,655 10,910 255 10,955 11,114 159 Lodge & Tiki bar 306,000 340,685 34,685 235,341 322,678 87,337 Total Departmental Expenditures 9,584,712 9,073,298 (511,414) 9,175,277 8,295,032 (880,245) Other Expenditures: Contingency & other 24,577 44,000 19,423 54,998 70,000 15,002 Investment expense 17,080 10,450 (6,630) 39,895 - (39,895) Stormwater projects 96,649 100,000 3,351 115,018 100,000 (15,018) Realized loss on sale of investments - - - 474,502 - (474,502) Roads 354,807 175,000 (179,807) 456,714 500,000 43,286 Loss on disposal of fixed assets - - - 7,834 - (7,834) Provision for income taxes 32,885 2,000 (30,885) 13,502 17,001 3,499 Total Other Expenditures 525,998 331,450 (194,548) 1,162,463 687,001 (475,462) Total Expenditures 10,110,710 9,404,748 (705,962) 10,337,740 8,982,033 (1,355,707) Net Income Before Depreciation 1,171,674 1,307,562 (135,888) 609,151 941,203 (332,052) Depreciation Expense 1,208,841 1,140,000 (68,841) 1,149,730 1,080,000 (69,730) Net Income $ (37,167) $ 167,562 $ (204,729) $ (540,579) $ (138,797) $ (401,782)
ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC.
INFORMATION
(INCLUDES ALL FUNDS)-continued
This calculation of the surplus can be reconciled to the surplus in accordance with generally accepted accounting principles per the audit report as follows:
excess of revenues over expenses
Contingency Fund To Future Budgets
The by-law contingency fund is funded as follows:
2017
2018
2020 deficit applied
2022
2023
2021
2022
16 ASSOCIATION OF PROPERTY OWNERS OF THE HIDEOUT, INC. SUPPLEMENTARY INFORMATION
Actual Budget Variance Revenues: Deficit carryforward $ 151,994 $ 151,994 $Dues (collected) 5,770,985 5,785,250 (14,265) Late charges (collected) 67,731 28,000 39,731 Delinquent dues collected 178,266 100,000 78,266 Administration fees 35,750 10,000 25,750 Amenity and other income 3,294,307 3,013,810 280,497 Interest 32,946 18,000 14,946 Other (220) 2,000 (2,220) 9,531,759 9,109,054 422,705 Expenses: Amenity expense 9,584,748 8,983,054 (601,694) Net of insect spray reserve/expense - 85,000 85,000 Contingency expense 24,834 40,000 15,166 Income taxes 568 1,000 432 9,610,150 9,109,054 (501,096) Surplus (deficit) $ (78,391) $ - $ (78,391)
CALCULATION OF SURPLUS (DEFICIT) FROM BUDGETED OPERATIONS YEAR ENDED DECEMBER 31, 2023
Audited
$ (27,243) Add: Surplus carry forward 151,994 Depreciation 1,207,075 Bad debt expense, net 364,450 Delinquent dues collected 178,266
Dues collected vs. billed (307,490)
& other charges collected vs. billed (70,459) Net revenues representing reserve funds (1,574,984) $ (78,391)
Less:
Late
$ 200,000
(141,908)
deficit applied
(130,660)
- $ (128,954)
deficit applied
to 2024
deficit
- (78,391)
$ (72,568) $ (207,345)
applied
to 2025
Carried over to 2023 budget $ 151,994
Carried over to 2024 budget (128,954)
Carried over to 2025 budget (78,391)
budgets $ (55,351)
2023
To future
