PALM BEACH COUNTY SPORTS COMMISSION, INC.

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

NOTE 13 - LIQUIDITY AND AVAILABLITY (Cont’d)

As part of the Commission’s liquidity management, it structures its financial assets to be available forgeneral expenditures and other obligations as they come due. To further help manage its liquidity needs, the Commission has been advanced cash from the County in prior fiscal years totaling $500,000. This is due to the reimbursement process which takes on average 45-60 days.

Additionally, the Commission has a cumulative reserve totaling $4,278,344 as of September 30, 2022. This reserve increases or decreases each year depending on bed tax collections and whether the Commission goes over/under budget at the end of the fiscal year. Although the Commission does not intend to spend from their reserve other than amounts appropriated for general expenditures as part of its annual contract budget approval and appropriation, amounts from their reserve could be made available, if necessary, with permission from the County and are earmarked by County Ordinance for the Commission.

NOTE 14 - PAYCHECK PROTECTION PROGRAM

On April 16, 2020, the Commission received loan proceeds in the amount of $128,053 under the Paycheck Protection Program (“PPP”). Established as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), the PPP provided loans to qualifying businesses in amounts up to 2.5 times the business’s average monthly payroll expenses. PPP loans and accrued interest are forgivable if the borrower maintains its payroll levels and uses the loan proceeds for eligible purposes, including payroll, benefits, rent, and utilities. On April 5, 2021, the note payable was forgiven, at which time the Commission recognized the support in the accompanying statement of activities.

In March 2021, the Organization was approved for $128,053, a Second Draw of its loan through the U.S. Small Business Administration ("SBA") under the Paycheck Protection Program. During the current and prior fiscal years, loan repayments were deferred in accordance with the Paycheck Protection Flexibility Act of 2020.

On November 8, 2021, the principal and accrued interest of the second PPP loan was forgiven, at which time the Commission recognized the support in the accompanying statement of activities.

NOTE 15 - SUBSEQUENT EVENTS

The Commission has evaluated events that occurred subsequent to the year-end for potential recognition or disclosure in the financial statements through the date on which the financial statements were available to be issued.

On October 31, 2022, an additional $100,000 advance was provided by the County to the Commission for working capital as allowed per the contract with County.

The date when the financial statements were available to be issued was March 17, 2023.