PALM BEACH COUNTY SPORTS COMMISSION, INC.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED SEPTEMBER 30, 2022, AND 2021

NOTE 3 - NON-CONTRACT EXPENSES

The Commission incurs certain expenses in the normal course of its operations which are not reimbursed under the contract with the County. These expenses are related primarily to sports events, sponsorships, and membership services that are not covered under the contract with the County. The total amount of these expenses was approximately $192,459 and $191,772 for the years ended September 30, 2022, and 2021, respectively. This includes $9,805 and $14,063 of in-kind expenses for the years ended September 30, 2022 and 2021 that are shown under the Business Entities column in the table presented in Note 7.

NOTE 4 - PENSION PLAN

The Commission adopted a 401(k) Plan and Trust on January 1, 2015, for the benefit of all eligible employees to save for retirement on a tax-advantage basis. Employees are eligible to participate in the plan on the first day of the calendar month following their date of hire. At that time, the employer will make Safe Harbor non-elective contributions equal to 3% of employee's compensation which is 100% vested. Employer also contributes discretionary or Profit-Sharing contributions of 7.86% of employee compensation which is fully vested. Effective January 1, 2015, employees under the plan may elect to contribute into the plan by making 401(k) salary deferrals which results in a reduction in their taxable wages or elect to contribute into a Roth 401(k) subject to federal income tax. Both employee deferrals in addition to employee rollover contributions from a previous employer’s Simplified Employee Pension Plan (SEP) are 100% vested immediately. Contributions made by the Commission to the 401(k) Plan for the years ended September 30, 2022, and 2021 were $81,235 and $56,316.

NOTE 5 - COMPENSATED ABSENCES

Vacation pay is accrued by employees starting on their date of hire. If employees do not take their vacation in the ensuing twelve months, they may rollover unused vacation into the following year subject to certain limits. Accrued vacation of $39,302 and $33,979 is included in these financial statements for the years ended September 30, 2022 and 2021, respectively.

NOTE 6 - COMMITMENTS

The Commission's administrative office located in West Palm Beach are provided by the County for the benefit of the Commission. The Commission leases office equipment under non-cancelable operating leases with expiration dates that extend through February 2028.

Future minimum lease payments under the operating leases are as follows:

Fiscal Year Ending September 30,