Audit Report for 2008 - Waterwood Improvement Association

Transcription

WATERWOODIMPROVEMENTASSOCIATION,INC.
FINANCIAL STATEMENTSAND SUPPLEMENTARYINFORA/L4TION
FORTHEYEARENDEDDECEMBER31,2OO8
Kenneth C. I)avis & CompanyoP.C.
Cert ifie d P ublic A ccountants
13001lth Street
Suite400
Huntsville,
Texas77340
(936)29r-3020
TABLE OF CONTENTS
INDEPENDENT
AUDITOR'SREPORT
FINANCIALSTATEMENTS
BalanceSheet
J
Statement
of RevenuesandExpenses
.
4
Statement
of Changesin Members'Equity
)
Statement
of CashFlows
6
Notesto FinancialStatements
8
SUPPLEMENTARYINORMATION
INDEPENDENTAUDITOR'S REPORTON SUPPLEMENTARYINFORMATION l 9
Scheduleof OperatingFundRevenues
andExpensesBudgetandActual
20
Supplementary
Informationon FutureMajor RepairsandReplacements
..
22
KEI\NETH C. DAVIS & COMPANY, P.C.
CERTIFIEDPABLI CACCOANTANTS
surrE4oo
l3oo1rt" srREET,
P.O.Box 6308
W2
PHONE(936)291-3020
FAX (936)291-9607
INDEPENDENTAUDITOR'S REPORT
Boardof Directorsof
WaterwoodImprovementAssociation,lnc.
We haveauditedthe accompanyingbalancesheetof WaterwoodImprovement
Association,Inc. asof December31, 2008,andthe relatedstatementof revenuesand
expenses,andchangesin members'equity andcashflows for the yearthen ended. These
financial statementsarethe responsibilityof the managementof WaterwoodImprovement
Association,Inc. Our responsibilityis to expressan opinionon thesefinancialstatements
basedon our audits.
We conductedour auditsin accordancewith auditingstandardsgenerallyacceptedin the
United Statesof America. Thosestandardsrequirethat we plan and perform the auditsto
obtainreasonableassuranceaboutwhetherthe financial statementsare free of material
misstatement.An audit includesexamining,on a testbasis,evidencesupportingthe
the
amountsanddisclosr:resin the financial statements.An audit also includesassessing
as
as
well
principles
by
management,
accounting
usedand significantestimatesmade
evaluatingthe overall financial statementpresentation.We believethat our auditsprovide
a reasonable
basisfor our opinion.
In our opinion, the financial statementsreferredto abovepresentfairly, in all material
Association,Inc. asof
respects,
the financialpositionof WaterwoodIrtrprovement
December31, 2008,andthe resultsof its operationsandits cashflows for the yearsthen
C. Davis& Company,P.C.
(This pageis intentionallyleft blank.)
WATERWOOD
IMPROVEMENT
ASSOCIATION.
INC.
BALANCESHEET
December
31.2008
ASSETS
Cashandcashequivalents,including
interest-bearing
deposits
Assessments
receivableandaccrued
intereston delinquentreceivables,
lessallowancefor uncollectibleaccountsNoteE
Accruedinterestreceivable
Investments- Note D
Prepaidexpenses
Propertyandequipment,less
accumulated
depreciation- Note M
Otherassets- Note M
TOTAL ASSETS
109,674
236,053
r21,863
7,748,509
7,417
202,282
273,r30
$
8,698,928
$
33,528
473
19,672
53.673
LIABILITIES ANIDMEMBERS'EQUITY
payable
AccorHrts
Payrolltorespayable
Notepayable- NoteN
Total Liabilities
- NoteK:
Members'Equity
Designatedfor currentand future obligations
Accumulatedothercomprehensive
income- Note D
TotalMembers'Equity
$
8,645,255
TOTAL LIABILITIES AND MEMBERS'EQUITY
$
8,698,928
8,603,757
4t.498
The accompanyrng
notesare an integralpart of thesefinancial statements.
ATERWOOD
IMPROVEMENT
ASSOCIATION,
INC.
STATEMENTOFREVENUES
AND EXPENSES
FortheYearEndedDecember
31.2008
REVENUES
Annualassessments
Intereston deliquent
Recoveries
Intereston investnents
Unrealizedgains/(losses
Capitalimprovementc
(Loss)/gainon saleof
- NoteL
Sign/Security
Donations- fireworks
Transferfees
Otherincome
Total Revenue
431,839
30,741
r6,377
324,642
(31,986)
4,444
384
6,000
3,867
4,250
3,376
793,934
EXPENSES
Salariesandbenefits
Bad debts
Roadmaintenance
Streetlights
MUD fees- Note C
Fire Departnent
Professional
services
Mailing
EMS
Securityservices
Garbagepick-up
Maintenance
Landlease,net
Interest
Depreciation
Otherexpenses
Total Expenses
$
Excess
Expenses
Over
$_@gJgO
The accompanyingnotesare
257,058
376,145
5,618
r1,287
27,365
20,719
12,240
16,300
88,250
18,583
18,689
156,292
5,136
1,789
27,017
81.612
1,124,100
integralpart of thesefinancial statements.
4
WATERWOOD
IMPROVEMENT
ASSOCIATION,
INC.
STATEMENT
IN MEMBERS'EQUITY
OFCHANGES
FortheYparEndedDecember
31.2008
MEMBERS'EQUITY,
BEGINNINGOFYEAR
$
Excess
Expenses
OverRevenues
MEMBERS'EQUITY,
ENDOFYEAR
8,975,42r
(330,166)
$
8,645,255
The accompanylngnotesarean integralpantof thesefinancial statements.
WATERWOOD
IMPROVEMENT
ASSOCI.ATION,
INC.
STATEMENT
OFCASHFLOWS
31.2008
CASH FLOWSFROI\,{/(USED
BY) OPERATING
ACTIVITIES:
(includinginterestandfees)
Memberassessments
lntereston investrnents
Gainon saleof equipment
Otherincome
Salariesandbenefits
lnterestexpense
Otheroperatingexpenses
$
282,079
332,412
384
21,937
(257,000)
(1,789)
(494,757)
NET CASH FROIW(USEDBY) OPERATINGACTIVITIES
$
(116,734)
CASH FLOW PROVIDED(USED)BY INVESTING
ACTIVITIES:
(Increase)/decrease
in investments
Properlyandequipment- purchases
Propertyand equipment- sales
s
198,546
(t9,749)
1,616
NET CASH (USED)/PROVIDEDBY INVESTING
ACTTVITIES
180.413
CASHFLOW PROVIDED/OSED)By FINANCTNG
ACTTVITIES:
Loans
( 10,751)
NET CASH (USEDYPROVIDEDBY INVESTING
ACTIVITIES
( 10,751)
NET INCREASEIN CASH AND CASH EQUIVALENTS
$
CASH AND CASH EQUTVALENTSAT BEGINNING
OF YEAR
CASH AND CASH EQUIVALENTSAT END OF YEAR
52,928
56,746
$
109,674
The accompanylngnotesare an integralpart of thesefinancial statements.
WATERWOOD
ASSOCIATION,
INC.
IMPROVEMENT
STATEMENTOFCASHFLOWS continued
31.2008
Reconciliationof excessof revenuesoverexpenses
to
provided
netcash
by operatingactivities:
Excessofrevenuesoverexpenses
Adjustmentsto reconcileexcessof revenues
overexpenses
to net cashprovidedby
operatingactivities:
Depreciation
Unrealizedlosson investnents
(Increase)/decrease
in :
Memberassessments
receivable
Interestreceivable
Otherassets
lncrease/(decrease)
in:
Accountspayable
Payrollta:res
(330,166)
Net cashprovided/(used)by operatingactivities
(t16,734)
27,017
31,986
r79,267
7,770
(7,417)
(25,249)
58
The accompanylngnotesare an integralpart of thesefinancial statements.
NOTESTO FINANCIAL STATEMENTS
NOTE A _ NATURE OF ORGANIZATION
WaterwoodImprovementAssociation,Inc. (WIA) is a non-profit corporationorganized
for the purposeof promoting and developingthe common good and social welfare of the
homeownersof the Waterwoodsubdivision,including providing for the constructionof
utilities and the maintenanceof roads,commonareas,and other improvements. In
addition,WIA provides24-hour securityand EMS servicefor the Waterwoodresidents.
The Waterwooddevelopmentis locatedin SanJacintoCounty and is comprisedof more
than 1,000acresof lots and developedhome sites,in addition to the greenbelts,roadsand
other commonareas. Currently,approximately400 homeownersand 1,700lot ownersare
servicedby WIA.
NOTE B - SUMMARY OF SIGNIFICANT ACCOLINTING POLICIES
GAAP Accounting
The Association'sgoverningdocumentsprovide certainguidelinesfor goveming its
financialactivities. In accordancewith generallyacceptedaccountingprinciples,the
financial statementshave beenpreparedon the accrualbasis. Revenuesare recognized
when they are eamedand expensesare recognizedwhen they are incurred.
Arurual Assessments
WIA is funded primarily through funds receivedfrom annual assessmentsand investment
portfolio income. In accordancewith the provisionsof the land deedcovenants,annual
assessments
are levied on all lot owners,with the exceptionof lots owned by governmental
entities. The assessments
are recognizedon the active accountsas income at the time they
are levied. The annualassessments
are levied eachDecember31, and if not paid by the
following March 3 i, becomedelinquentand bear interestat the rate of ten percentper
annum. Interestis assessed
twice a year,in March and December,on delinquentaccounts.
WIA routinely files liens on lots on which unpaid assessments
exist. Beginning in 2008,
receivableaccountsdeterminedto be uncollectiblewere not expensedas bad debtsafter
three years,as in prior years,but instead,all amountsdue to WIA are maintained as
Accounts Receivableand the amountsdeterminedto be uncollectible are set up in an
Allowance for UncollectibleAccounts. In future years,any changesto the Allowancewill
be madeby increasingor decreasingBad Debt Expenseor Recoveriesfor the amountof
the change.
WATERWOOD
ASSOCIATION,
INC.
IMPROVEMENT
NOTESTO FINANCIALSTATEMENTS
NOTE B - SUMMARY OF SIGNIFICANTACCOUNTINGPOLICIES.continued
PropertyandEquipment
Realpropertyand commonareasacquiredfrom the developerandrelatedimprovementsto
becausethose
suchpropertyarenot recordedin the Association'sfinancialstatements
propertiesaredirectly associatedwith the unit (that is, commonpropertywithout which the
units could not be occupiedand exteriorpropertythat is normally part of a freestanding
unit). Commonproperty ownedby WIA andnot capitalizedincludesdesignatedpark
sites,roads,sidewalks,and greenbelts.
The Associationcapitalizespersonalpropertyat cost and depreciatesit usingthe staightline methodover the estimatedusefullife.
IncomeTarces
A quali$ing homeowners'association
maybe taxedeitherasa homeowners'association
incomeis exempt
or asa regularcorporation. As a horneowners'association,assessment
from taxationif certainelectionsaremade,andthe associationis talcedonly on its
nonmembershipincome,suchasbank interestearnings,at regularfederalcorporaterates.
In 2008,WIA qualifiedunderSection528of the IntemalRevenueCodeasa
Homeowners'Associationandfiled a Form I120-H.
Statementof CashFlows
For purposesof reportingcashflows, all highly liquid invesbnentswith a maturity of three
monthsor lessareconsideredto be cashequivalents.This includesWIA's investnentin
the Morgan StanleyMoney Market Fundwhich investsin instrumentswith a maturity of
lessthan90 days.
Estimates
The preparationof financial statementsin conformity with generallyacceptedaccounting
principlesrequiresmanagementto makeestimatesandassumptionsthat affect certain
reportedamountsand disclosures.Accordingly,actualresultscould differ from those
estimates.
WATERWOOD
IMPROVEMENT
ASSOCIATION,
INC.
NOTE C - COMMITMENT FOR LAND IMPROVEMENTS
On March15,2005,the WaterwoodMunicipalUtility DistrictNo. I (MUD) boardof
directorsapproveda petitionto exclude(de-annex)about6,200undeveloped
acresfrom
the MUD. With the approvalof the petition,WIA couldno longerapplyto MUD for
extensionof waterandsewerservicesto theexcludedareas.
On May 25,2005,the SanJacintoCountyCommissioners
Courtapprovedthe deplattingof
the lastsix subdivisions.This actioneliminatedWIA's liability for providingservicesto
lot ownersin undeveloped
areas.Currently,mostlots servicedby WIA havewater,sewer,
electricity,telephoneanda pavedroadto the lot. In 2008,WIA accruedits final standby
chargeof 25% of its annualassessments
to the MUD for providing utilities to certain
improvedlots that havenot yet beenconnected.This chargeis no longerdueto theMUD,
effectiveJune28, 2008. The final paymentto the MUD from WIA, which wasaccruedfor
theperiodJanuary1,2008to June28,2008,waspaidon March27,2009.
NOTE D _ MARKETABLE AND NONMARKETABLE SECURITIES
In1994, WIA adoptedSFASNo. 115,Accountingfor CertainInvestmentsin Debtand
Equity Securities,which requiresclassificationof securitiesinto oneof threecategories,
dependingon the entity's intentandability to hold the securityuntil maturity.
On February1,1994,WIA assistedthe WaterwoodMUD by refinancing$2,590,000
in
outstandingbonds. Thesebondspay4o/ointerestandhavean annualprincipalpayment
dueon SeptemberI until September1,2009whenthe lastbondmaflres. Thesebondsare
not readily marketableand are intendedto be held to maturity. Therefore,in accordance
with SFASNo. 115,thesesecuritieswill be carriedat cost. The balanceof the portfoliois
considered
to be "availablefor sale"andthereforeis recordedat fair marketvalue.
10
NOTESTO FINANCTALSTATEMENTS
NOTE D - MARKETABLE AND NONMARKETABLE SECURITIES"continued
Realizedgainsandlossesarerecordedin the statementof revenuesandexpensesin the
periodtheyareearned.Bonddiscountis amortizedby WIA usingthe effective-interest
methodrequiredby SFASNo. I 15 ascalculatedby the investmentbrokers,Morgan
Stanley.
The aggregatecostandmarketvaluesof the investnent secr.ritiesare summarizedas
follows:
Available-for-salesecurities:
Amortized
Cost
Stateandmunicipalsecurities
with A\rq.Aor AA ratings
Market
$ 2562-0lL $ fu03.509
Cumulative
Unrealized
Gains/(losses)*
$ 4t-498
* Cumulativesince1994whenSFASNo. 115wasadopted.
Held-to-maturity securities:
WaterwoodMUD bonds
s 145.000
Duringthe yearendingDecember31,2008,eightbondswerepurchased,
threebonds
maturedandelevenbondswerecalled. Therewereno taxablegainsor lossesin 2008.
ll
WATERWOODMPROVEMENT ASSOCIATION
NOTE D - MARKETABLE AND NONMARKETABLE SECURITIES.sontinued
Net unrealizedholdinggains/(losses)
on available-for-sale
securitiesin the amountof
($31,985)for the yearendedDecember
other
31,2008havebeenincludedin accumulated
comprehensive
incomeof $41,498.
Maturitiesof available-for-sale
debtsecwitiesat December31. 2008areasfollows:
Estimated
Fair Value
Duein oneyeaf,or less(beforeDecember31,2009)
DuebetweenJanuaryl, 2010andDecembet3I,2012
DuebetweenJanuaryL,2013andDecember
31,2018
DuebetweenJanuary| , 2019andDecemb
er 3l , 2028
Total invesfinentin available-for-salesecurities
$
301,765
965,469
4,177,541
2.rs8.734
$ 7.603.509
Actual maflrities may differ from conftactualmaturitiesbecausesomeborrowershavethe
right to call or prepayobligationswith or without call or prepaymentpenalties. For
purposesof this schedule,the actualmaturity dateswereused.
Contractualmatruitiesof held-to-maturitysecuritiesat December31, 2008,areasfollows:
Net Carrying
Amount
Duein oneyearor less(beforeDecember31,2009)
Total investmentsin held-to-maturitvsecrnities
$ 145.000
$r45JD0
Theheld-to-maturitysecuritiesconsisttotally of WaterwoodMUD bondswhich mature
annuallyuntil September1, 2009. At December31, 2008,the estimatedfair valueof each
investnent approximatedits amortizedcostand,therefore,therewere no significant
holdinggainsor losses.
t2
WATERWOOD
IMPROVEMENT
ASSOCIATION
NOTEE - ASSESSMENTS
.ANDACCRUEDINTERESTON DELINQUENT
RECEIVABLES
Balance,beginningof year
(includinginterest)
Plus: Assessments
Plus: Net recoveries
Less: Collections
Less: Chargeoffs
Plus: Adjustrnentfor previousyeaxs'receivables
Balance,endof year
$ 415,305
462,580
15,924
(282,065)
(3,197)
22r.644
$ 830-19t
In 2008,WIA established
an allowancefor uncollectibleaccountsfor delinquent
assessments
andinterestasshownbelow:
Accountsreceivable
Less: Allowancefor uncollectibleaccourts
Net accountsreceivable
$ 830,191
€zl,l38)
$236J53
This accountwill be reviewedannuallyby WIA. In the past,all accountsreceivableover
threeyearsold were written offand no allowancewasused.
NOTE F - FEDERAL INCOME TAX
WIA files Form I120-H, a U.S. lncome Ta"r Retum for Homeowner'sAssociations,
annually.For 2008,WIA had a federalincometax expenseof $0. The invesmentpolicy
of WIA encouragesinvesting all bonds in tax-free rather than taxable secr.rities,the
primary reasonfor the minimal incometax liability.
NOTE G - RELATED PARTY TRA}ISACTIONS
Onememberof the boardof directorsis alsoan employeeof WIA. However,in matters
pertainingto thatboardmember'sareaof employment,all voteswereabstentions.
NOTE H - FUTUREMAJOR REPAIRSAND REPLACEMENTS
At sometime in the future, major repairson the road surfacesmay be required. The extent
of theserepairsor resurfacingwill haveto be assessed
on a caseby casebasisand San
JacintoCountyparticipationdetermined.SanJacintoCountyis responsiblefor all
subdivisionroadmaintenanceasevidencedby an easementgrantedto the Countyin 1979.
Shouldadditionalfunds,beyondcurrentoperatingfunds,be requiredto meetfuture needs,
the Associationcanborrow moneyor delavthe work until frrndsare available.
13
WATERWOODIMPROVEMENTASSOCIATION,
INC.
NOTEI_EMSSERVICES
On December13,2005,WIA enteredinto a contractwith GuardianEmergency
Medical
Services
(EMS)
to provideEmergency
1,
2006
effective
January
and
MedicalService
endingDecember3I,2010. Thecontractprovidedfor annualcompensation
of $80,000,
with thepossibilityof a CPI (Consumer
not
to
exceedthree
PriceIndex)increase
annually,
(3) percentperyear. Guardiancancelled
the contracteffectiveDecember3I,2007 and
agreedto provideservicesuntil a newprovidercouldbe found. A newcontractwasbegun
with LegacyEMS,effectiveFebruaryi, 2008for annualcompensation
of $89,000.
NOTEJ - SIGNIFICANTEVENT
In October2005NRPI (NationalRecreational
Inc.)purchased
798lotsfrom
Properties
KeystoneLandCompany.NRPI activelymarketedtheselotsfor saleuntil November
2007. Thebenefitto WIA wasincreasedassessment
revenuefrom the new ownersand
NRPI. 1n2006,WIA billed $160,202to NRPI whichwasreceivedin fulI in March2007.
On December
31, 2007, WIA billed $106,531to NRPL NRPI agreedto pay the2007
assessment
monthlyovera ninemonthperiod,endingDecember31, 2008. Accordingto
theagreement,
thefirst threepayments
weremadefor a total of $35,420,but no payments
weremadeby NRPI afterthattime. An additional$122,512is duefor 2008. It is WIA's
understanding
thatNRPI hasdefaultedon the loanagreementwith its lender,Capital
SourceBank,andthe lots arenow in theprocessof beingtransferredto CapitalSource
Bank. WIA continues
to negotiatewith NRPIregardingthepaymentof lot feesfor 2008
andtheremainder
of 2007.
NOTEK - DESIGNATEDMEMBERS'EOUITY
Insteadof specificallydesignating
WIA usesa
Members'Equityfor particularpurposes,
five-yearforecastof incomeandexpenditures
modelin planningfuturerequirements.
NOTEL _ OTHERACCOLTNTS
RECEIVABLE
in prioryearsWIA showeda receivable
from WaterwoodNationalfor $128,159which
represented
secrnityservicesprovidedandsignrentalby WIA since2001(throughApril
30,2006)whichwereunpaid.Dueto the unlikelypossibilityof repayment,
anallowance
for uncollectibleaccountswasalsoestablished
for the sameamount. WIA andWaterwood
Nationalsigneda "Confirmation,RenewalandExtensionof Debt" anda Promissory
Note
14
NOTE L - ACCOUNTSRECEIVABLE.continued
whichcallsfor the debtto be paid in full by February28,2009. As of December31, 2008,
allowance)from the booksandwill
WIA removedthis receivable(andthe corresponding
only reporton this receivablein the Notesto the FinancialStatements.Seeadditional
informationin Note O. WaterwoodNationalis now paying$500per monthfor current
securityservices,
effectiveJanuary1,2008.
NOTE M - PROPERTY.EOUIPMENTA}ID OTTIERASSETS
Propertyandequipmentconsistsof the following categories:
Less: AccumulatedDepreciation
Cost
$ 36,859
28,548
3,749
74,555
296.233
s 439,944
(237.662)
Net Cost
$ n2,2n
Autos
Office Equipment
OtherEquipment
CommonImprovements
Buildings
Otherassetsconsistprimarily of parkways,public areas(ie. durnpsite), acreageandone
a strip of
lot ownedby WIA andarevaluedat5273,130"of which $250,000represents
landalongthe eastsideof WaterwoodParkway,approximatelysix miles long and 150feet
wide, which waspurchasedby WIA in orderto maintaina no-cut zonein the entance to
theWaterwoodsubdivision.
NOTEN-NOTEPAYABLE
Notepayableconsistsof a mortgagenotepayableto Henry Colefor the purchaseof the
fire stationbuilding. The originalnotewasfor $90,000payablein monthly installmentsof
2000includinginterestatTo/oover a ten yearperiod. The
$1,045beginningSeptember
noteis securedby the fire stationbuilding.
Principalmaturitiesremainingareasfollows:
2009 $ 11,529
20t0
8"t44
$ 19.672
i5
NOTE O _ SUBSEQUENT
EVENTS
EffectiveJanuary1,2009a newpropertymanagement
systemwas initiatedby WIA which
is coordinatedwith the cunentaccountingsystem.In addition,new accountingprocedures
wereinitiatedby the Boardregardingthe reportingof accountsreceivable,the uirite off of
baddebtsandthe recordingof subsequent
recoveries.Cunentproperlyaccountswere
cross-checked
with the CAD (CentralAppraisalDistrict)to ensurethat the mostcurrent
propertylistingsandaddresses
wereinput into thenew system.
Conversionto the new systemwill helpensurethatpropertyandaccountingrecordscanbe
properlymaintainedand that future systemenhancements
will be supportedby the
company.
Property
period
bills
for
the
ending
December31, 2008andsent
Quickbooks
out in 2009werecreatedby the new system.
On April 9,2009,WLAfiled a lawsuitagainstWaterwood
Nationalfor the $128,159owed
to WIA for securityservicesprovidedandsignsprovidedby WIA since2001(through
April 30, 2006). WaterwoodNationalandWIA signeda "Confirmation,Renewaland
Extensionof Debt" anda PromissoryNotewhich calledfor the debtto be paid in full by
February26,2009. No paymentsweremadeby WaterwoodNationalon this debt,so the
lawsuitwasfiled.
T6
SUPPLEMENTARY
INFORMATiON
I7
(This pageis intentionallyleft blank.)
18
KENNETH C. DAVIS & COMPAII-Y,P.C.
CERTI FIED PUBLIC ACCOANTANTS
13OO
11MSTREET,SUITE4OO
P.O.Box 6308
HW2
(936)29t-3020
PHONE
FAX(936)29r-9607
TNDEPENDENT
AUDITORS'SREPORTON
SUPPLEMENTARYINFORMATION
To the Boardof DirectorsandPropertyOumers
WaterwoodImprovementAssociation
The informationincludedin the Scheduleof OperatingFund Revenuesand ExpensesBudgetandActual on pages20 and 21 is presentedonly for supplementaryanalysis
purposes.Suchinformation(exceptfor the budgetinformation,which wascompiled
without audit from informationthat is the representationof management,on which we did
not expressan opinionor anyotherform ofassurance)hasbeensubjectedto certain
limited procedures,which consistedprincipally of inquiries of managementregardingthe
methodsof measurement
andpresentationof the supplementaryinformation. However,
we did not audit the information andexpressno opinion on it.
The supplementaryinformation on future major repairsand replacementson page22 is not
a requiredpart of the basicfinancial statementsof WIA but is supplementaryinformation
requiredby the Americanlnstitute of Certified Public Accountants. We haveapplied
certainlimited procedures,
which consistedprincipallyof inquiriesof management
regardingthe methodsof measurement
andpresentationof the supplementaryinformation.
However,we did not audit the informationand expressno opinion on it.
C. Davis
I9
WATERWOOD
TNC.
IMPROVEMENT
ASSOCIATION,
SCHEDULEOFOPEMTTNGFLTND
REVENUESAND EXPENSES
BUDGETAND ACTUAL
31.2008
2008
Budget
REVENUES
Assessments
Intereston assessments
Intereston investments
Unrealizedlosson investments
Capitalimprovementcharges
Recoveries
gn/security(WWN)
Income-si
Donations- Fireworks
Transferfees
Gainon saleof assets
Otherincome
Total Revenue
$
EXPENSES
Postageanddelivery
Printing
TraveUMeals
Audit andaccounting
Professional
Fees
Insurance
WorkersCompensation
Depreciation
Duesandsubsciptions
InterestExpense
Rent/Storage
Supplies
Telephone/communications
Securityservices
Building
Salaries
GroupInsurance
SHECO
Garbagepick-up
390,000 s
500
330,000
6,660
15,000
5,000
3,860
5,000
2,250
759,270 s
7,500
7,500
1,000
13,550
2,500
20,000
4,000
1,900
1,500
5,000
8,000
2,000
5,000
230,000
23,000
22,000
19,500
Actual
Variance
Favorable
(Unfavorable)
43I,839 $
30,741
324,642
(31,986)
4,444
16,377
6,000
3,867
4,250
384
3,376
793.934 s
8,298
8,002
306
11,540
700
22,285
2,125
27,017
108
l,7gg
1,440
4,179
6,353
18,583
7,991
236,288
20,085
19,813
18,689
20
41,839
30,241
(5,358)
(31,986)
1
(2,216)
1,377_
7
(7s0)
384
1.126
34,664
(7e8)
(s02)
694
2,010
1,800
(2,295)
1,875
(27,0t7)
( 108)
1l
60
821
r,647
(16,583)
(2,991)
(6,288)
2,915
2,197
8ll
SCHEDULEOF OPERATINGFUND REVENUESAND EXPENSES
BUDGETAND ACTUAL - continued
31.2008
2008
Budget
Landscaping
Roadrepairs
Maintenance
Real estatetaxes
Land lease
Payrolltaxes
Christmas
Other
SpringOuting
Fireworks
MUD payments
FIT
Bank servicecharge
VolunteerFire Department
VehicleExpense
Emergency
MedicalService
Baddebts
Contingencies
Total Expenses
2,500
40,000
113,520
8,000
5,200
18,600
2,000
2,000
1,760
9,500
27,000
2,000
15,000
20,000
89,000
Actud
1,475
5,618
154,817
6,163
5,136
18,645
674
401
1,709
9,707
27,365
338
12,066
88,250
376,145
-
15.000
s
744,930 $
EXCESSOF REVENUES(EXPENDITURES)
OVER
EXPENDITURES/
REVENUES
14,340
$
Variance
Favorable
(Unfavorable)
1,124,100 $
1,025
34,382
(41,297)
1,837
64
(4s)
1,326
l,5gg
51
(207)
(36s)
2,000
(338)
2,934
20,000
750
(376,145)
15,000
(379,170)
(330,
I 66) _$.___(344,s06)-
21
INC.
WATERWOOD
ASSOCIATION,
IMPROVEMENT
AND
REPAIRS
MAJOR
FUTURE
SUPPLEMENTARY
INFORMATIONON
(COMPILED)
REPLACEMENTS
on a caseby case
Theextentof anymajor repairsor resurfacingwill haveto be assessed
basisandSanJacintoCountyparticipationdetermined.SanJacintoCountyis responsible
grantedto the Countyin
for all subdivisionroadmaintenance
asevidencedby an easement
1979. Shouldadditionalfunds,beyondcurrentoperatingfunds,be requiredto meetfuture
needs,the Associationcanborrowmoneyor delaythe work until fundsareavailable.The
lastcompleteresurfacingof all roadsn 1992costWIA approximately$1,500,000.
22

Audit Report for 2008 - Waterwood Improvement Association

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