SAMPLE CONDOMINIUM FINANCIAL STATEMENTS FOR THE …

[Pages:16]SAMPLE CONDOMINIUM FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

SAMPLE CONDOMINIUM

INDEX

Page INDEPENDENT AUDITORS' REPORT .......................................................................... 1 BALANCE SHEETS ............................................................................................................ 2?3 STATEMENTS OF OPERATIONS AND CHANGES IN MEMBERS' EQUITY................. 4

Administrative Expenses (Schedule 1) ...................................................................... 5 Operating Expenses (Schedule 2) .............................................................................. 5 Repairs and Maintenance (Schedule 3)...................................................................... 6 Taxes (Schedule 4).................................................................................................... 6 Major Repairs and Replacements (Schedule 5).......................................................... 6 STATEMENTS OF CASH FLOWS...................................................................................... 7 NOTES TO FINANCIAL STATEMENTS............................................................................ 8?12 REPORT ON SUPPLEMENTARY DATA........................................................................ 13 STATEMENTS OF OPERATIONS AND RELATED BUDGETS........................................ 14

Greenberg & Brennan, CPA's, P.C.

Certified Public Accountants

111 JOHN STREET SUITE 1810 NEW YORK, NY 10038

TELEPHONE (212) 370-1488 FAX (212) 370-1513

WILLIAM J. GREENBERG, CPA JOHN J. BRENNAN, CPA ALBERT M. KUSHNIROV, CPA

A PRACTICE LIMITED TO COOPERATIVES AND CONDOMINIUMS

INDEPENDENT AUDITORS' REPORT

To the Board of Managers and Unit Owners of Sample Condominium

We have audited the accompanying balance sheets of Sample Condominium (the "Association") as of December 31, 2010 and 2009, and the related statements of operations and changes in members' equity and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. 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 as established by the Auditing Standards Board of the American Institute of Certified Public Accountants. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sample Condominium as of December 31, 2010 and 2009 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

As discussed in Note 3 to the financial statements, the Association's governing documents do not require that funds be accumulated for future major repairs and replacements. As such, the Association has not estimated the remaining useful lives and replacement costs of the common property and, therefore, has not presented the estimates of future costs of major repairs and replacements that the American Institute of Certified Public Accountants has determined is required to supplement, although not required to be part of, the basic financial statements.

GREENBERG & BRENNAN, CPA's, P.C. April 21, 2011

SAMPLE CONDOMINIUM BALANCE SHEETS

ASSETS

CURRENT ASSETS Cash and Equivalents: (Note 2B)

Cash ? Operating Account Reserve Fund (Note 4)

Total Cash and Equivalents

Mortgage Defeasance Fund (Note 4) Unit Owner Receivables (Note 2E) Other Receivables Prepaid Insurance Other Prepaid Expenses

Total Current Assets

Fixed Assets (Notes 2C and 2D) Superintendent's Apartment Fixtures and Equipment

Less: Accumulated Depreciation

Net Book Value of Fixed Assets

TOTAL ASSETS

December 31,

2010

2009

$ 64,668 222,576

287,244

129,468 58,608 570 32,594 76

508,560

250,000 16,668

266,668 34,457

232,211

$ 740,771

$ 86,660 91,797

178,457

67,325 43,137 1,331 34,473 1,776

326,499

250,000 16,668 266,668 22,606

244,062

$ 570,561

See Independent Auditors' Report and Notes to Financial Statements. ? 2 ?

SAMPLE CONDOMINIUM BALANCE SHEETS

LIABILITIES AND MEMBERS' EQUITY

Current Liabilities

December 31,

2010

2009

Accounts Payable and Accrued Expenses Prepaid Common Charges

$ 75,003 1,436

$ 56,613 759

Total Current Liabilities

76,439

57,372

Mortgage Payable (Note 6)

230,000

236,566

Total Liabilities

306,439

293,938

Members' Equity Accumulated Surplus from Operations Working Capital Contributions (Note 2F)

Total Members' Equity

TOTAL LIABILITIES AND MEMBERS' EQUITY

392,482 41,850

434,332

$ 740,771

234,773 41,850

276,623

$ 570,561

See Independent Auditors' Report and Notes to Financial Statements. ? 3 ?

SAMPLE CONDOMINIUM STATEMENTS OF OPERATIONS AND CHANGES IN MEMBERS' EQUITY

INCOME

Common Charges (Note 2E) Late Charges Moving Fees Miscellaneous Interest Income Laundry

TOTAL INCOME

For the Years Ended

December 31,

2010

2009

$ 750,754 4,150 1,600 14,062 1,225 15

771,806

$ 750,754 5,700 9,825 8,525 695 1,434

776,933

EXPENSES

Administrative Expenses

? Schedule 1

Operating Expenses

? Schedule 2

Repairs and Maintenance

? Schedule 3

Taxes

? Schedule 4

Major Repairs and Replacements ? Schedule 5

Mortgage Interest Expense (Note 6)

TOTAL EXPENSES

Surplus Before Depreciation

Less: Depreciation (Note 2C)

NET SURPLUS FOR THE YEAR

MEMBERS' EQUITY ? Beginning of the Year

MEMBERS' EQUITY ? End of the Year

129,325 362,249

71,327 1,085 21,285 16,975

602,246

169,560

11,851

157,709

276,623

$ 434,332

114,788 372,903

53,724 1,197

? 16,975

559,587

217,346

10,746

206,600

70,023

$ 276,623

See Independent Auditors' Report and Notes to Financial Statements. ? 4 ?

SAMPLE CONDOMINIUM STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY

SCHEDULE 1 SCHEDULE 2

SCHEDULE 1

ADMINISTRATIVE EXPENSES Management Fees Legal Fees Auditing Fees Other Professional Fees Building Insurance Telephone Bad Debt ? Uncollectible Arrears Write Off (Note 2E) Miscellaneous Administrative

TOTAL ADMINISTRATIVE EXPENSES

For the Years Ended

December 31,

2010

2009

$ 35,650 5,906 8,400 950 58,432 7,654 6,132 6,201

$ 129,325

$ 33,953 5,501 8,100 ? 55,312 5,333 ? 6,589

$ 114,788

SCHEDULE 2

OPERATING EXPENSES

Utilities Heating Electricity and Gas Water and Sewer Charges

Total Utilities

Payroll and Related Costs Concierge Service Payroll Payroll Taxes Disability and Workers Compensation Insurance Other Payroll Costs

Total Payroll and Related Costs

TOTAL OPERATING EXPENSES

$ 73,252 66,892 32,147

172,291

89,178 85,584 8,162 6,086

948

189,958

$ 362,249

$ 88,344 71,846 26,750

186,940

95,189 76,874 9,043 3,900

957

185,963

$ 372,903

See Independent Auditors' Report and Notes to Financial Statements. ? 5 ?

SAMPLE CONDOMINIUM STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY

SCHEDULE 3 SCHEDULE 4

SCHEDULE 3

REPAIRS AND MAINTENANCE Elevator Plumbing HVAC Intercom, Alarm and Security System Sprinkler Gym Miscellaneous Interior Doors and Floors Miscellaneous Exterior Permits and Inspections Exterminating Cleaning Landscaping Building Supplies and Janitorial Equipment

TOTAL REPAIRS AND MAINTENANCE

For the Years Ended

December 31,

2010

2009

$ 11,372 5,298 2,909 4,430 2,210 1,556 11,104 5,740 ? 2,891 1,437 5,719 5,000 11,661

$ 71,327

$ 19,481 ? ?

3,401 3,030

? 4,345

381 2,288 2,900 2,095 1,522 3,760 10,521

$ 53,724

SCHEDULE 4

TAXES New York City Real Estate Taxes New York State and City Corporation Taxes (Note 2G)

TOTAL TAXES

$ 264 821

$ 1,085

$ 261 936

$ 1,197

SCHEDULE 5

MAJOR REPAIRS AND REPLACEMENTS Entrance Gate Replacement Laundry Room Door Replacement

TOTAL MAJOR REPAIRS AND REPLACEMENTS

$ 18,781 2,504

$ 21,285

$ ? ?

$ ?

See Independent Auditors' Report and Notes to Financial Statements. ? 6 ?

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