BEAVER RUN HOMEOWNERS ASSOCIATION Financial Statements and Independent ...

BEAVER RUN HOMEOWNERS ASSOCIATION

Financial Statements and

Independent Auditors' Report December 31, 2017 and 2016

BEAVER RUN HOMEOWNERS ASSOCIATION

Table of Contents

Page Independent Auditors' Report....................................................................................................................1 Financial Statements

Balance Sheets...............................................................................................................................3 Statements of Revenues and Expenses..........................................................................................4 Statement of Changes in Fund Balances........................................................................................5 Statements of Cash Flows..............................................................................................................6 Notes to Financial Statements........................................................................................................7 Supplementary Information Schedule 1 - Supplementary Information on Major Repairs and Replacements.........................17 Schedule 2 - Combining Balance Sheet.......................................................................................18 Schedule 3 - Combining Statement of Revenues and Expenses..................................................19

8181 East Tufts Avenue, Suite 600 Denver, Colorado 80237-2579 P: 303-740-9400 F: 303-740-9009

EKS&H LLLP

INDEPENDENT AUDITORS' REPORT

Board of Directors and Homeowners Beaver Run Homeowners Association Breckenridge, Colorado

We have audited the accompanying financial statements of Beaver Run Homeowners Association (the "Association"), which are comprised of the balance sheets as of December 31, 2017 and 2016, and the related statements of revenues and expenses, changes in fund balances, and cash flows for the years then ended, and the related notes to the financial statements.

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 misstatement, whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Board of Directors and Homeowners Beaver Run Homeowners Association Page Two

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beaver Run Homeowners Association (the "Association") as of December 31, 2017 and 2016, 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.

DISCLAIMER OF OPINION ON REQUIRED SUPPLEMENTARY INFORMATION

Accounting principles generally accepted in the United States of America require that the information on future major repairs and replacements on Schedule 1 of the supplementary information be presented to supplement the financial statements. Such information, although not a part of the financial statements, is required by the Financial Accounting Standards Board who considers it to be an essential part of financial reporting for placing the financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with accounting principles 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 financial statements, and other knowledge we obtained during our audits of the 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.

SUPPLEMENTARY INFORMATION

Our audits were conducted for the purpose of forming an opinion on the financial statements as a whole. The combining information in Schedules 2 and 3 of the supplemental information is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of 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 audits 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.

March 22, 2018 Denver, Colorado

EKS&H LLLP

BEAVER RUN HOMEOWNERS ASSOCIATION Balance Sheets

December 31,

2017

2016

Current assets Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other Total current assets

Property and equipment, net Note receivable - BRICA Investment in BRICA

Total assets

Assets

$ 5,751,056 $ 5,073,752

1,666,993

1,946,001

639,003

588,633

355,293

307,147

8,412,345

7,915,533

3,815,662 272,202

4,657,350

4,103,952 272,202

3,512,845

$ 17,157,559 $ 15,804,532

Liabilities and Fund Balances

Current liabilities Accounts payable Due to BRICA Owners' distributions payable Accrued payroll and related Accrued taxes Accrued other Quarter-owner reserve Advance deposits Undistributed rental reserve Note payable, current portion Total current liabilities

$ 890,065 $ 1,077,311

175,119

170,267

1,406,078

1,392,681

780,369

848,194

639,231

585,191

106,421

104,024

58,247

96,182

3,620,674

2,974,550

1,043,891

737,720

25,845

3,716

8,745,940

7,989,836

Non-current liabilities Note payable, less current portion Total liabilities

8,745,940

25,845 8,015,681

Commitments and contingencies

Fund balances

8,411,619

7,788,851

Total liabilities and fund balances

$ 17,157,559 $ 15,804,532

See notes to financial statements. - 3-

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download