VILLAGES OF WESTCREEK OWNERS’ ASSOCIATION, INC. …

[Pages:15]VILLAGES OF WESTCREEK OWNERS' ASSOCIATION, INC.

FINANCIAL STATEMENTS AND REQUIRED SUPPLEMENTARY INFORMATION

FOR THE YEAR ENDED DECEMBER 31, 2018

TABLE OF CONTENTS

INDEPENDENT ACCOUNTANT'S REVIEW REPORT...........................................................1 BALANCE SHEET .....................................................................................................................2 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE..............4 STATEMENT OF CASH FLOWS ..............................................................................................6 NOTES TO FINANCIAL STATEMENTS ..................................................................................7 REQUIRED SUPPLEMENTARY INFORMATION .................................................................11

FUTURE MAJOR REPAIRS & REPLACEMENTS........................................................12

INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Board of Directors and Members Villages of Westcreek Owners' Association, Inc.

Report on the Financial Statements

We have reviewed the accompanying financial statements of Villages of Westcreek Owners' Association, Inc., which comprise the balance sheet as of December 31, 2018, and the related statements of revenues, expenses, and changes in fund balance and cash flows for the year then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statement as a whole. Accordingly, we do not express such an opinion.

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.

Accountant's Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

Accountant's Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

1

Other Matter

The accompanying summarized financial information for the year ended December 31, 2017 was taken from financial statements compiled by us. We performed the compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the 2017 financial statements nor were we required to perform any procedures to verify the accuracy or the completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on the 2017 summarized financial information.

Accounting principles generally accepted in the United States of America require that information about future major repairs and replacements of common property on page 11, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board who considers it to be an essential part of financial reporting and for placing the basic financial statements in an appropriate operational, economic, or historical context. Such information was not audited, reviewed, or compiled by us and, accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on it.

Armstrong, Vaughan & Associates, P.C.

March 25, 2019

VILLAGES OF WESTCREEK OWNERS' ASSOCIATION, INC. BALANCE SHEET

DECEMBER 31, 2018 (With Comparative Totals for 2017)

ASSETS

Operating Fund

Replacement Fund

Totals

2018

2017

Current Assets:

Cash and Cash Equivalents

$ 131,395 $ 289,128

Cash and Cash Equivalents Designated

for Capital Improvements

-

-

Certificate of Deposit

2,714

-

Accounts Receivable

212,355

-

Allowance for Doubtful Accounts

(53,039)

-

Prepaid Insurance

5,818

-

Total Current Assets

299,243

289,128

$ 420,523 $ 431,748

2,714 212,355 (53,039) 5,818 588,371

244,781 2,705

176,106 (4,257) 5,082

856,165

Property and Equipment: Land Community Center Buildings & Equipment Office Equipment Furniture & Fixtures Accumulated Depreciation Total Property and Equipment

250,000 2,021,505

343,185 27,084 18,842 (867,044) 1,793,572

-

250,000

250,000

-

2,021,505

2,021,505

-

343,185

257,790

-

27,084

27,084

-

18,842

18,842

-

(867,044)

(804,532)

-

1,793,572

1,770,689

TOTAL ASSETS

$ 2,092,815 $ 289,128 $ 2,381,943 $ 2,626,854

See accompanying notes and independent accountant's review report. 2

VILLAGES OF WESTCREEK OWNERS' ASSOCIATION, INC. BALANCE SHEET

DECEMBER 31, 2018 (With Comparative Totals for 2017)

LIABILITIES AND FUND B ALANCE

Current Liabilities: Accounts Payable Prepaid Assessments Payroll Taxes Payable Accrued Salaries Spectrum Collections Note Payable - Current Portion Total Current Liabilities

Long-Term Liabilities: Note Payable - Long Term Total Long-Term Liabilities

Total Liabilities

Fund Balance: Designated for Capital Improvement Designated for Contingency Unrestricted Total Fund Balance

TOTAL LIABILITIES AND FUND BALANCE

Operating Fund

Replacement Fund

Totals

2018

2017

$ 85,257 $ 243,953 2,301 4,205 38,198 97,057 470,971

- $ 85,257 $ 69,541

-

243,953

156,930

-

2,301

1,595

-

4,205

4,205

-

38,198

47,209

-

97,057

85,112

-

470,971

364,592

501,546 501,546

972,517

-

501,546

637,912

-

501,546

637,912

-

972,517

1,002,504

1,120,298 1,120,298

289,128 289,128

1,409,426 1,409,426

244,794 3,000

1,376,556 1,624,350

$ 2,092,815 $ 289,128 $ 2,381,943 $ 2,626,854

See accompanying notes and independent accountant's review report. 3

VILLAGES OF WESTCREEK OWNERS' ASSOCIATION, INC. STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE

FOR THE YEAR ENDED DECEMBER 31, 2018 (With Comparative Totals for 2017)

REVENUES Homeowners Assessments Recreation Program Income Community Center Rental Gain on Sale of Assets Late Charges, Collection & NSF Charges Pool Income Interest Income Other Income

TOTAL REVENUES

Operating Fund

$ 1,210,542 75,657 33,192 10,831 3,415 12 13,292

1,346,941

EXPENSES

Corporate Administration:

Personnel Expenses

Depreciation

Management Fee

Uncollectible Assessments and Late Fees

Meeting and Committee Expenses

Insurance

General Administrative

Professional Fees

Interest Expense

Office Supplies and Equipment

Miscellaneous Administration Expenses

Website

Taxes

Projector Equipment

Total Corporate Administration

$

372,561 62,512 54,000 53,526 53,495 36,946 35,411 33,368 27,253 25,425 9,951 2,071

321 -

766,840

Replacement Fund

$ 138,023 -

2,062 -

140,085

-

-

-

-

-

-

-

-

-

-

-

-

-

-

$

-

Totals

2018

2017

$ 1,348,565 75,657 33,192 10,831 3,415 2,074 13,292

1,487,026

$ 1,348,292 60,865 22,860 13,000 9,558 9,166 382 44,080

1,508,203

372,561 62,512 54,000 53,526 53,495 36,946 35,411 33,368 27,253 25,425 9,951 2,071

321 -

$ 766,840

338,988 59,345 54,000

631 36,998 36,820 41,295 17,567 36,246 24,445 9,505 2,586

301 17,995

$ 676,722

See accompanying notes and independent accountant's review report. 4

VILLAGES OF WESTCREEK OWNERS' ASSOCIATION, INC. STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE (CONT.)

FOR THE YEAR ENDED DECEMBER 31, 2018 (With Comparative Totals for 2017)

EXPENSES (CONT.) Recreation Area Operations:

Pool Expense Landscaping, Park and Main Boulevards General Maintenance Utilities Monitoring Service Community Center Maintenance Fence Repairs Park Retaining Wall

Total Recreation Area Operations

Operating Fund

$ 114,979 186,724 151,848 98,962 57,035 33,630 643,178

Replacement Fund

$ 181,246 -

21,440 -

37,117 33,629 18,500 291,932

Totals

2018

2017

$ 296,225 186,724 173,288 98,962 57,035 33,630 37,117 33,629 18,500 935,110

$ 123,505 202,268 200,376 96,455 59,003 47,002 728,609

TOTAL EXPENSES

1,410,018

291,932

1,701,950

1,405,331

Excess (Deficiency) of Re venues Over (Under) Expenses

(63,077)

(151,847)

(214,924)

102,872

Transfer Between Funds

(64,513)

64,513

-

-

BEGINNING FUND BALANCE

1,247,888

376,462

1,624,350

1,521,478

ENDING FUND BALANCE

$ 1,120,298 $ 289,128 $ 1,409,426 $ 1,624,350

See accompanying notes and independent accountant's review report. 5

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