Annual Rept 2015.publisher. full report

Frenchman’s Creek, Inc. and Subsidiary

Notes to Consolidated Financial Statements

Note 3.

Designated Funds (Continued)

In addition, the capital assessments, which members have elected to pay on an installment basis (see Note 9) totaling $3,240,606 and $3,468,207 as of April 30, 2014 and 2013, respectively, will be added to these funds when collected in accordance with these installment plans. These amounts are not included in accounts receivable or fund balances as of April 30, 2014 and 2013.

Note 4.

Property and Equipment

The major classifications of property and equipment as of April 30, 2014 and 2013 are:

Loss on Disposal of Property and Equipment: During the year ended April 30, 2014, the Association wrote off and disposed of property and equipment with a cost and accumulated depreciation of $279,517 and $225,410, respectively. Proceeds received from the total dispositions amounted to $18,673 resulting in total loss of $35,434 recognized in the consolidated statement of reve- nues and expenses and changes in fund balances for the year ended April 30, 2014. During the year ended April 30, 2013, the Association wrote off and disposed of property and equipment with a cost and accumu- lated depreciation of $658,731 and $655,446, respectively. Proceeds received from the disposition amounted to $1,425 resulting in total loss of $1,861 recognized in the consolidated statement of revenues and expenses and changes in fund balances for the year ended April 30, 2013. The Association’s Board of Governors requires that funds be accumulated for certain future major repairs and replacements. The funds are being accumulated in the Replacement Fund based on estimates of future needs for repairs and replacements of com- mon property components. Actual expenditures may vary from the estimated future expenditures and the variations may be mate- rial. If additional funds are needed, the Association has the right, subject to membership approval, to increase regular assessments, pass special assessments or delay major repairs and replacements until funds are available. The effect on future assessments has not been determined at this time. Note 5. Future Major Repairs and Replacements

2014/2015 Annual Report Page 39