MASTER ANNUAL REPORT
Frenchman’s Creek, Inc. and Subsidiary
Notes to Consolidated Financial Statements ______________________________________________________________________________________________________________
Note 5. Future Major Repairs and Replacements (Continued) The activity in the Replacement Fund for the years ended April 30, 2018 and 2017, is summarized as follows:
Drainage,
Painting and
Dredging
Roof
Infrastructure and Sea Walls
Total
Balance April 30, 2016
$
20,719
$
349,677
$
383,660
$
754,056
Additions
300,000
550,000
66,000
916,000
Expenditures
(216,961)
(429,124)
(90,304)
(736,389)
Interfund transfer
-
134,624
134,624
Balance April 30, 2017
103,758
605,177
359,356
1,068,291
Additions
300,000
750,000
66,000
1,116,000
Expenditures
(275,483)
(371,621)
(45,077) 380,279
(692,181)
Balance April 30, 2018
$
128,275
$
983,556
$
$
1,492,110
Note 6. Deferred Compensation Plan and Investments The Association has a deferred compensation agreement with the Executive Director. The terms of the agreement provide for additional compensation per year beginning June 30, 2002. The Association has con- tributed $1,323,660 and $1,213,420 into the plan as of April 30, 2018 and 2017, respectively, which is includ- ed in deferred compensation investments on the consolidated balance sheets. The contributions are placed in a separate investment account which is adjusted for any earnings or losses of the investments during the preceding year. The investment account consists of a diversified portfolio including cash, stocks, mutual funds and corporate fixed income securities. As of April 30, 2018 and 2017, investments at fair value, to fully fund the deferred compensation plan amounted to $1,739,985 and $1,543,485, respectively. The Executive Director agrees under the provisions of the agreement to assume all risk in connection with any decrease in the value of the amounts which are invested in the plan. Note 7. Long-Term Debt and Lines of Credit The Association has a revolving line of credit in the amount of $1,500,000. The line of credit has an interest rate equal to one month LIBOR plus 1.50% (3.40% as of April 30, 2018) and matures December 1, 2020. There were no borrowings on this line of credit during the years ended April 30, 2018 and 2017. In addition, on June 30, 2016, the Association entered into an additional $2,000,000 reducing revolving loan maturing on December 1, 2020. The available funds decline by $500,000 each year on December 1 until ma- turity. The line has an interest rate of LIBOR daily floating rate plus 1.5% (3.40% as of April 30, 2018) with accrued interest payable on a monthly basis and principal due on December 1 of each year until maturity. The Club had no borrowings or repayments during 2018 and borrowings and repayments of $300,000 in 2017. There are no outstanding borrowings as of April 30, 2018 and 2017.
2018/2019 Annual Report Page 39
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