PALM BEACH COUNTY SPORTS COMMISSION, INC.

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

NOTE 10 - CONTINGENCIES (Cont’d)

The COVID-19 pandemic has had a broad and negative impact on commerce and financial markets around the world. The United States and global markets experienced significant declines in value resulting from uncertainty caused by the pandemic. The Commission was impacted by the pandemic but with the help of strong reserves and the Paycheck Protection Program (PPP) the Commission was able to navigate through the uncertain times.

While uncertainty in the markets overall remain, with continued supply chain issues, inflation, higher interest rates, and the potential for a recession, management believes the Commission is well positioned with a strong reserve. Additionally, bed tax revenues have not only returned to pre-pandemic levels, but the County has seen record setting bed tax revenues in 2022 and TDC forecasts for 2023 and 2024 remain optimistic.

The extent to which COVID-19 or other economic indicators may impact the Commission’s financial position, changes in net assets, and cash flows is uncertain, and accordingly, the accompanying financial statements include no adjustments relating to those potential effects.

NOTE 11 - NET ASSETS WITH DONOR RESTRICTIONS

The Commission recognizes monies received from Florida Sports Foundation (FSF) as designated with a restricted purpose. These donor-restricted funds are awarded to supplement a grant from the Sports Commission to a Category G grantee and for purposes that include business development, Coop marketing, digital media, event hosting, event servicing and familiarization tours. As of September 30, 2022, and 2021, these net assets with donor restrictions totaled $533,154 and $418,651, respectively.

Net assets were released from donor restrictions by incurring expenses satisfying the restrictions noted above of $106,177 and $163,014 for September 30, 2022, and 2021, respectively.

NOTE 12 - RELATED PARTY TRANSACTIONS

During the prior fiscal year, the Commission supported a not-for-profit organization (African American Golfers Hall of Fame) of which a member of the Board of Directors is that corporations President.

The Commission paid $4,500 and $2,500 to this related party for the year ended September 30, 2022, and 2021, respectively.

NOTE 13 - LIQUIDITY AND AVAILABLITY

The following financial assets available to meet cash needs for general expenditure, without donor restrictions or other designations limiting their use, within one year of the date of the statement of financial position: