100 HARBOR ROAD - Foundation Center

74 OMB No . 1545-00,17

Form 990 ,~ 13pturn of Organization Exempt from Income Tax 2004

Under section 501(c), 527, or 4947(ax1) of the Internal Revenue Code °!e~ (except black lung benefit trust or private foundation) Open to Public

oaPuftine � t or the Treasury Ins action Internal Revenue Service -the organization may have to use a copy of this return to satisfy stale reporting requirements . P

A For the 2004 calendar ear, or tax ear beginning 2004 and ending Chock d applicable, D Employer IdonUfluUon Number

Addrouncl,ango PRSIaE 1 PORT WASHINGTON TENNIS ACADEMY 11-2112356 dirit 100 HARBOR ROAD E Telephone number ~, Nome change ~~'~P.'

S°° PORT WASHINGTON, NY 11050 181111111 slum specific 516-883-6925

in .true" Ac ou Unp Final iotum Ilono . F mo~ihoa : Cath X ntcnial

Amended ~vlurn -[-~ 00101 (eyocily) "

Application pending * Section 501(cx 3) organizations and 4947(ax 1) nonoxompt x and i are not oppl~enblo to soCfbn ~Y organizations chorltablo trusts must attach a corn

Plotod 5~chodulo A ~ u

(Form 990 or 990-E~. H !a) i~ u, .5 to vrotiu ionitio for ulldinlooY Yep No

G Web site : " N/A H (b) II Yea,' enter numUar of affiliates

(C) A110 0l1 OffihL166 included? ~ r0 " a NO

J Organization 1y 0 (II No,' attach u hay Sao inslnuliona ) (check only Ofl6~ . . ~ n S01(t) 3 ~ (inaorl no) a4947(a)(1) or a 55~

H (d) is this v separate return bled by ton K Check here II If the organization's gross receipts are normally not more than ~

orgarnzation covered by o group niling~ n Yon I A I No $25,000 The organization need not file a return with the IRS, but if the organization received a Form 990 Package in the mail, it should file a return without financial data Some states require a complete return .

Group Exemi Check to attach Schedu (See InstrucU

I M

)tion Number if the organization is not required e B (Form 990, 990-EZ, or 990~PF) L Gross receipts . Add lines 6b, 8b, 9b, and lOb to line 12 - 2, 787, 204 .

Revenue, Expenses, and Changes in Net Assets or Fund Balances 1 Contributions, gifts, grants, and similar amounts received a Direct public support . . . . . . . 1 a

b Indirect public support . . 1 b

c Government contributions (grants) . . . . . . . . 1 c d Tof ~ I (add I nQ

s(cash $ 61,0 89 . noncooh ~ } la through~c)

2 Program service revenue including government fees and contracts (from Part VII, line 93) 3 Membership dues and assessments . . . . . . . . . . 4 Interest on savings and temporary cash investments . . . 5 Dividends and interest from securities 6 a Gross rents . . . . . . . . . . . . . . . . . . 6 a b Less rental expenses . . . . . . . . . 6b c Net rental income or (loss) (subtract line 6b from line 6a)

7 Other investment income (describe . . . (A) Securities

8a Cross amount from sales of assets other than inventory Sa

b Less cost or other basis and sales expenses 8b c Gam or (loss) (attach schedule) . . . . . . . . d Net gain or (loss) (combine line 8c, columns (A) and (B))

9 Special events and activities (attach schedule) If any amount is from gaming, check here a Gross revenue (not including $ 51,889 . of contributions

reported on line 1 . . . . 9 . 1

61,089 . 2,095 997 .

231 288 . 3,197 .

-68,234 .

2,273,337 . 1,752,996 .

680,613 .

2,433,559 . -160,222 .

8,339,146 .

8,178,924 . Form 990 (2004)

11~

N

d. W

w

Z a U

R E v E N U E

8d -a 258,561 . 258,561 .

STATEMENT 1 9c 187,072 . 255,306 .

STATEMENT 2 lOc 11 12 12 e a fines i d, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c, and 11)

13 Program services (from line 44, column (B)) 14 Management and general (from line 44, column (C))

P 15 Fundraising (from line 44, column (D))

N 16 Payments to affiliates (attach schedule 17 Total expenses add lines 16 and 44, column (A) ) 18 Excess or (defeat) for the year (subtract line 17 from line 12)

N 5 19 Net assets or fund balances at beginning of year (from line 73, column (A))

i T 20 Other changes in net assets or fund balances (attach explanation)

21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) BAA For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions .

~ 20 21

TEEA0107L 01/07/05

i c~ es olh r than fundraising expenses 9b in ~~ ecial events (subtract line 9b from line 9a)

10 Gr a sit i2~r ~ s returns and allowances 10a 00, Los~o~goods sot Q lOb

I Gr ~ ~T 4f ventory (attach schedule) (subtract line IOb from line l0a)

pl qQi~e~lalUrdlsl Wart VI , line 103)

61 , 089 .

ld

6c

(B) Other

14 15 16 17 18

2

a~ssaw~ ,{ , 4p

22 Giants and allocations (all sch) SEE STM 3 "F?".":~ ; ';. '~ ~

. '.'~` ft w

S F;~ L{ # "v":iM (cash $ ~'~~ non-cash $ 113, 094 . ) . . . 22 113 094 . 113 094 . ~

23 Specific assistance to individuals (aU sch) . . 23 ~~"'G , { $ ; '~} ~~~''~'`~

,{

~~~F;s" s<,~ ~~ 24 Benefits paid to or for members (att sch) . . . . . . 24 ,

25 Compensation of officers, directors, etc . . . . . . 25 261 063 . 86 , 307 . 174 756 . 26 Other salaries and wages . . . . . . 26 890 816 842 , 094 . 98 722 . 27 Pension plan contributions . . . . . . . . . . . . 27 18 230 . 12 824 . 5,406 .. 28 Other employee benefits . . . . . . . . 28 76 754 . 62,542 . 14,212 . 29 Payroll taxes. . . . . . . . . . . . . . . . . . . . 29 84 996 . 67, 491 . 17,555 . 30 Professional fundraising fees. . . . . . . . . 80 31 Accounting toes . . . . . . . . . . . 31 25 708 . 25,708 . 32 Legal tees . . . . . . . . . . . . . 82 5 135 . 5,135 . 33 Supplies . . . . . . . . . . 83 34 Telephone . . . . . 34 7 450 3,725 3 725 . 35 Postage and shipping 35 36 GLcuPaiicy . . . . . . 36 37 EyuIpinen? rental and maintenance 37 38 Printing and publications 38 39 Travel 39

40 Conferences, conventions, and meetings . . 40 41 Interest 41 55,953 . 55,953 . 42 Depreciation, depletion, etc (attach schedule) 42 311 , 748 . 296 , 161 . 15 , 587 . 43 Other expenses not covered above (itemize)

a SEE STATEMENT -4 43a 582 612 . 268 758 . 313 854 . b 43b c-------------------

43c d 43c I I

430 44 Total functional expenses (add lines 22 . 43

oegan;heielotaletollinog 3~u~ss(e)-(a), 44 2 , 433 , 559 . 1 , 752, 996 . 1 680, 613 .1 0 .

Joint Costs. Check . - if you are following SOP 98.2 . Are any point costs from a combined educational campaign and fundraising solicitation reported m (B) Piogrom services? -F-I Yos X No If 'Yes,' enter (i) the aggregate amount of those joint costs $ , (ii) the amount allocated to Program services $ ; (ifi) the amount allocated to Management and general $ ; and (iv) the amount allocated

to Fundraising $ 'P~~'t:llb : I Statement of Program Service Accomplishments what is the organization's primary exempt purpose? - SEE ATTACHED All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of clients served, publications issued, etc Discuss achievements that are not measurable . (Section 501(c)(3) & (4) organ-izations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants & allocations to others )

a SEE ATTACHED

1,752, 946 .

---------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------

(Grants and allocations $ ) c

-------------------------------------------------------------------- -------------------------------

(Grants and allocations $ ) d

-----------------------------------------------------------------------------------------------------------

(Grants and allocations $ ) e Other program services (Grants and allocations $ )

f Total of Program Service Expenses (should equal line 44, column (B), Program services) ~ 1, 752, 946

BAA TEEA0102L O1ro7ros Form 990 (2004)

Fdrm 990 04 PORT WASHINGTON TENNIS ACADEMY 11-2112356 Pa 'PtRIilStatement offunctMnal Expenses an organizations must complete column (P) . Columns (B), (G), and (D) are

required for section 501(c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others.

Do not include amounts reported ori'line ~ (A) Total (B) Program (C) Management

D Fundraisin 6b 8b 9b 106 or 16 0l Part I services and general ~ 1

------------------------------------------------------(Grants and allocations $ 113,094 . )

b

Program Service Expenses (Royuorad for 501(c)(3) and

(4) orgnnizadonn and d447(a)I) trusts, but optional for oUiera )

,, .< Form 990 (2004) PORT 4a.A' SHINGTON TENNIS ACADEMY 11-2112356

PattgIYBalance Sheets (see4nstructions)

Note : Where required, attached schedules and amounts within the description column should be for end-of-year amounts only.

45 Cash - non-interest-bearing . . . . . . . . . . . . 46 Savings and temporary cash investments . . . . . . . . . .

A Beginning of year End of year

903,213 . 45 503,529 .

TEEA0103L 01/07105

47a Accounts receivable . . . . . . . . . . . . . . . . . . . 47a 86 , 723 . 1 b Less : allowance for doubtful accounts . . . . . . . . . 47b 5,000 . 1 64, 995 . I~J47c~- 81,723 .

48o Fledges receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48a b less : allowance (or doubtful accounts , , . 48b 48c

49 Grants receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

50 Recefvables from officers, directors, trustees, and key s employees (attach schedule) . . . . . . . . . . . . . . . . . . . SO

51 o Other notes & loans receivable (attach sch) . . . . . . 51 0 fit , s b Less' allowance for doubtful accounts 51 b 3 , 800 . 51 c

52 Inventories for sage or use . . . . . . 21,246 . 52 23,996 . 5r Prepaid expenses sricl dbfriiecl charges . . . . . 63, 638 . 53 85 , 605 . 54 Investments - securities (attach schedule) ~~ Cost[] FMV 54 55 a Investments -land, buildings, & equipment : basis . 55a

b Less accumulated depreciation ~`'^ (attach schedule) . . . . . . . . 55b 55c

56 Investments - other (attach schedule) 56 57a Land, buildings, and equipment : basis . . . . 57a , 11,949 , 420 .

, 40 b Less accumulated depreaatio (attach schedule) . . '. kATEMENT 5 . 57b 2,110 640 . 9 , 936 , 133 . 57c 9 , 83 8, 780 .

58 Other assets (describe 0- ) 58 59 Total assets add lines 45 through 58 must equal line 74 10, 492 525 . 59 10 , 533,628 . 60 Accounts payable and accrued expenses . 1 , 042 , 862 . 60 952, 696 . 61 Grants payable . . . . . . . . . . . . . . . . . 61

a 62 Deterred revenue . . . . . . . . . . . . . . . . . . . 960, 517 . 62 402 , 008 . 63 Loans from officers, directors, trustees, and key employees (attach schedule) . . . SEE STM 6 63 460 , 000 . 64a Tax-exempt bond liabilities (attach schedule) . . . . . . . 64a

b Mortgages and other notes payable (attach schedule) . . . . SEE STATEMENT 7 650 , 000 . 64b 600 , 000 . s 65 Other liabilities (describe ~ . ) . 65

66 Total liabilities add dines 60 through 65 . 2, 153 379 . 66 2, 354 , 704 . Organizations that follow SEAS 117, check horn and complete lines 67 '` H L"1

through 69 and lines 73 and 74. ~;'~ 67 Unrestricted . . . . . . . . . . . . . 8,339 , 146 . 67 8,178 , 924 . 68 Temporarily restricted 68 69 Permanently restricted . . 69

Organizations that do not follow SFAS 117, check here " ~ and complete lines 70 through 74 ,"

70 Capital stock, trust principal, or current funds 70f7 71 Paid-in or capital surplus, or land, building, and equipment fund 71

s 72 Retained earnings, endowment, accumulated income, or other funds 72

A 73 Total net assets or fund balances (add lines 67 through 69 or lines 70 through J

72, column (A) must equal line 19, column (B) must equal line 21} 8, 339, 146 . 73 8,178, 924 . 74 Total liabilities and net assets/fund balances add lines 66 and 73) 10, 492, 525 . 74 10,533,628 .

Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization m such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments

BAA

. " Form 990 11-2112356

6WlYs6Reconciliation of Expenses per Audited Financial Statements with Expenses per Return

a Total expenses and losses per audited financial statements . . ~ a 2 688

b Amounts included on line o but not on line 17, Form 990

(1) Donated serve ices and use of facilities

(2) Prior year adjust . nonts re oiled on I toe 20, Foam 990 ~

(3) Losses reported on 'ti~;`' ~h s;>r"

PORT WASHINGTON TENNIS ACADEMY Reconciliation of Revenue Per Audited Financial Statements with Revenue per Return (See instructions .)

4

865 . 8,64

`, Form 990 but not on line a :

(1) Investment expenses not included on line 6b, Form 990 :.3;s" ;a ; s

(2) Other (specify) n~ . " , " ' ~ : »`>

---------$ $ , Add amounts on lines (1) and (2) ~ d

e Total expenses per line 17 Form

TEEA0104L 01107/05

a Total revenue, pains, and other support per audited financial statements . . . ~ a

b Amounts included on line a but not on line 12, Form 990 :

(1) Net unrealized gains on investments . $

(Z) DOIIi118d S9YV " +k~ ices and use 01 IarilitioS . ,

(3) Recoveries of prior year giants . . . $ ~`

(4) Other (specify) : < :>H

SEE STM 8 $ 255, 306 . Add amounts on lines (1) Through (4) . . ~ b

c Luic b inuiua low b . . ` c

d Amounts included on line 12, r°~ Form 990 but not on line a : '~

(1) Investment expenses not included on line

26b, form 990 $ (2) Other (specify) . .,<k`

`o

--------'S r

Add amounts on lines (1) and (2) . ~ d

e Total revenue per line 12 Form

Imo 20, form 990, s ,~ yj`~ {~i<Y?( ;zs r (Y) Other (specify) 3>

SEE STMT 9-$ 255,306 . 255, 306 . Add amounts on lines (1) through (4) ~ b 255, 306 .

2 , 273 , 337 . 1 c dine a minus pine b ~ c 2, 433, 559 .

d Amounts included on line 17 t r ~ + s ~ `

990 (line c plus line d . .

. . . . . . . . - e 2 , 27 3 337 . 990 line c pus line d) ~ 11- e 2,433,559 . part V List of Officers Directors Trustees and Key Employees List each one even if not coin ensated, see instructions

(B) Title and average hours (C) Compensation (D) Contributions to (E) Expense (A) Name and address per week devoted (If not paid, employee benefit account and other

to position enter -0-) plans and deferred allowances compensation

RICHARD ZAUSNER DIRECTOR/PRES 168,446 . 5,054 . 16,333 . P .O . BOX 603 50 PORT WASHINGTON, NY 11050 MARTIN ZAUSNER DIRECTOR 0 . 0 . 0 .

923 FIFTH AVENUE NONE NEW YORK, NY 10021 SUSAN KROWITZ DIRECTOR/SECTY 92,616 . 2,779 . 8,021 .

1 TOMS POINT LANE 50 PORT WASHINGTON NY 11050

---------------------- ----------------------

---------------------- ----------------------

---------------------- ---------------------

75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $100,000 from you organization and all related organizations, of which more than $10,000 was provided by the related orgarnzations7 Yes N No If 'Yes,' attach schedule - see instructions

BAA Form 990 (2004)

Form 990 04 PORT frpASHII4IGTON TENNIS ACADEMY ff_PSi~E .VIM Other Information (See instructions.)

-2112356

TEEA01OSl 01/07/05

76 Did the organization engage in any activity not previously reported to the IRS If 'Yes,' attach a detailed description of each activity , , 76 X

77 Were any changes made in the organizing or governing documents but not reported to the IRS' . 77 X

If 'Yes,' attach a conformed copy of the changes.

78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? 78a X

b If 'Yes,' has it filed a tax return on Form 990-T for this years . . 78b N Ap ~_ ; .M$

i s~`' 7.

79 Was there a liquidation, dissolution, termination, or substantial contraction during the ~~~i~`~ "" yeas? If 'Yes,' attach a statement . . . . . 79

SOa is the organization related (other than by association with fi statewide or nationwide organization) through common membership, governing bodies, trustees, officers, etc, to any other exempt or nonexempt organization? . , , . . . 80e X

Vii~ti"ds, dii1ei UIbname OCU160Iy£1111ZFJIIUf1- N/A_____________e____ and check whether it is ~ exempt or ~ nonexempt 4 1,

81 o Enter direct and indirect political expenditures. See line $1 instructions I 81 al 0 . 's n ;̀~r,,"x

b Did file organization file Form 1120-POL for this year? 81 b X

82 a Did the organization receive donated services or the use of rnatei lets, equipment, or facilities at no charge or at substantially less man fair rental value? 82a + X

~~ h It 'yes,' you may indicate the value of these !!ems here Do not inc!udc thin amount revenue in Part I or as an expense in Part II (See instructions in Part III .) 82b N/A

83a Did the organization comply with the public inspection requirements for returns and exemption applications? 83a X

b Did the organization comply with the disclosure requirements relating to quid pro quo contributions 83b X

84a Did the organization solicit any contributions or gifts that were not tax deductibles 84a X

b If 'Yes,' did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible . . . . . . . . . . . . . . . . 84b N A

85 501(c)(4), (5), or (6) organisations a Were substantially all dues nondeductible by members 85a N A

b Did the organization make only in-house lobbying expenditures of $2,000 or less? 85b K IA

If 'Yes' was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year . '<

c Dues, assessments, and similar amounts from members 85c N/A ". :. ss ;K s+ ` )

d Section 162(e) lobbying and political expenditures 85d N/A

e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices 85e N/A l

Taxable amount of lobbying and political expenditures (line 85d less 85e) 85f N/A I , N, A g Does the organization elect to pay the section 6033(e) tax on the amount on line 85t~ ~ 859

h If section 6033(a)(1 )(A) dues notices were sent, does the organization agree to add the amount on line 8St to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following lax yeas? 85h N A

86 501(c)(7) organizations Enter : a Initiation lees and capital contributions included on line 12 . . . . . . . . . . . . . . . . . . 86a N/A

b Gross receipts, included on line 12, for public use of club facilities 86b N/A

87 501(c)(12) organizations . Enter' a Gross income from members or shareholders 87a N/A

b Gross income from other sources . (Do not net amounts due or paid to other sources against amounts due or received from them .) . . 87b N/A

88 At any time during the year, did the organization own a 50% or greater interest m a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301 .7701 .2 and 301 .7701-37 If 'Yes,' complete Part IX . 88 X

89a 501(c)(3) organizations . Enter : Amount of tax imposed on the organization during the year under'

section 4911 ~ 0 . , section 4912 . 0 . ; section 4955 ~ 0 .

b 501(c)(3) and 501(c)(4) organizations Did the organization engage in any section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior years If 'Yes,' attach a statement explaining each transaction 89b X

c Enter Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958

d Enter Amount of tax on line 89c, above, reimbursed by the organization 90a List the states with which a copy of this return is filed - NEW YORK

b Number of employees employed in the pay period that includes March 12, 2004 (See instructions ) I 90b~ 0

91 The books are in care of - RICHARD ZAUSNER Telephone number ~ 516-883-6425

Located a~ " 100 HARBOR RD PORT WASHINGTON, NY ZAP + 4 - 11050

92 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041- Check here N/A

and enter the amount of tax-exempt interest received or accrued during the tax year -1 92 I N/A

Form 990 (2004) BAA

ADVANCE THEIR EDUCATIONAL OPPORTUNITIES THROUGH TENNIS . 94 DUES COLLECTED FROM MEMBERS TO DEFRAY TOTAL COSTS .

FpaR IX Information Reg arding Taxable Subsidiaries and Disregarded Entities see instructions ) (A) (B) (C) (D) (E)

Name, address, and EIN of corporation, Percentage of Nature of activities Total End-of-year partnership, or disregarded entity ownership interest income assets

N/A

Fart X Information Regardin g Transfers Associated with Personal Benefit Contracts see instructions ) a Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contracts Yes X No b Did the organization, during the year, pay premiums, directly or r n I benefit contracts Yes X No

Note : If 'Yes' to (b, file Form 8870 and Form 4720 see ~nstn~ctio Under penal of peg I dac that I amined this return, includ true, correct d co I e a ton pr re r (other than officer) is b

Please

Here ~ S~9~t ~~r1Q0 /# ~/fl,efsN 41 Type or print name and title

Paid Preparer's

Pre- signature 10- /Z,_,__1 parer's Firm's name (or MAN I NO & CO ̀ NY Use emrloyed)I' ~ 18 ALT WHITMAN ROAD Only ZP+a~dnd MET ILLE, NY 11747 BAA

dc Form 990 2004 PORT Wk5HIN(3TON TENNIS ACADEMY 11-2112356 jPar`,t~Vfla Analysis of Income-Producing Activities (See instructions .

Unrelated business income Excluded b section 512 513 or 514 Note : Enter gross amounts unless (A) (B) (~ (D) Related or exempt otherwise indicated Business code Ariiounl Exclusion code Amount function income

93 Program service revenue : a TEACHING/TOURNAMENTS 2 , 045 , 997 . b c d 0 f Meqicare/Medicald payments . . . . . g Fees & contracts from government agencies . .

94 Membership dues and assessments. . 231,288 . 95 Interest on savings & temporary cash invmnls. . 14 3 , 197 . 96 Dividends & Interest from securities . . . . . --77777 97 Net rental income or (loss) from reel estate:

. . . a debt-financed property. . . . . b not debt-financed property. . . . .

98 Net rental income or (loss) from pers prop

99 (lfhPr mvAsfmPnf income 100 Gain or (loss) from sales of assets

other than inventory .

101 Net income or (loss) from special events . . . . 102 Gross profit or Qoss) from sales of inventory 3 -68 ,234 . 103 Other revenue: a

b c d e

lea Subtotal (add columns (B), (D), and (E)) -65 , 037 . 2 , 277 , 285 . 105 Total (add pine 104, columns (B), (D), and (E)) . . . . . . ~ 2,212,248 .

Note : Line 105 plus line 1d, Part l, should equal the amount on line IZ, Part 1 Part VIII Relationshi p of Activities to the Accomplishment of Exem pt Purposes See instructions Line No . Explain how each activity for which income Is reported in column (E) of Part VII contributed importantly to the accomplishment

of the organization's exempt purposes (other than by pro vi ding f unds for such purposes)

93 A REVENUE COLLECTED TO OFFSET THE COST OF MAINTAINING FACILITIES FOR STUDENTS TO

OMB No . 1545-0047 Organization Exempt Under Section 501(c(3)

(Except Private Foundation) and Section 501(o), 5010, 501(k), 501(n), or Section 4947(axl) Nonexempt Charitable Trust Supplementary Information - (See separate instructions .)

MUST be completed by the above organizations and attached to their Form 990 or 990-EZ.

2004 Dopartmant of Iha Traasury Internal Rovanuo Sarvico

Nama of Iha orp2rnaahon Employer IdanUOcallon number

11-2112356 Directors, and Trustees ~ Compensation of the Five Highest Paid Employees Other Than

(See Instructions . List each one. If there are none, enter 'None.')

(a) Name and address of each (b) Title and average (c) Compensation (d) Contributions (o) Expense employee paid more hours per week to employee benefit account and other

then $50,000 devoted to position I I plans acid defeniod I allowances Compensation

92 .079 .1 2,763J 8, 0 :

-------------------------

Total number of others receiving over $50 ,000 for professional services 11- 1 01

BAA For Paperwork Reduction Act Notice, see the Instructions for Form 990 and Form 990-EZ . Schedule A (Form 990 or 990-EZ) 2004

TEEA0401L 07122/04

A, .c SCHEDULE A (Form 990 or 990-EZ)

SIMON SHELTON TENNIS PRO

100 HARBOR ROAD, PT WASHINGTON 48

MADELINE FISCHBACH MANAGER

PO BOX 603, PT WASHINGTON - 1 48

-------------------------

60,279 .1 700 .1 4,017 .

Total number of other employees paid over $50 00Q ~ 0 ' s~:S ;\s " " 7sY . ;

Part II~' ` Compensation ,of,the Five Highest Paid Independent Contractors for Professional Services (See instructions . List each one (whether individuals or firms) II there are none, enter 'None .')

(a) Name and address of each independent contractor paid more than $50,000 (b) Type of service (c) Compensation

NONE

Provide the following information about the supported organizations (See instructions )

(b) Line number from above (a) Name(s) of supported organization(s)

14 n An organization organized and operated to test for public safety Section 509(a)(4) (See instructions )

BAA TEEA0402L 07/27/04 Schedule A (Form 990 or Form 990 EZ) 2004

sv

Schedule A (Form 990 or 99PAE 2004 PORT WASHINGTON TENNIS ACADEMY 11-2112356 Pa e

~~ Statements About Activities (see instructions .) Yes

1 During the year, has we organization attempted to influence national, state, nr local legislation, including any attempt to influence public opinion on a legislative matter or referendums If 'Yes,' enter (he total expenses paid

or incurred in connection with the lobbying activities . . . ' $ N/A (Must equal amounts on line 38, Part VIA, or line I of Part VI~B ) 1 X

Orqarnzations that made an election under section 501~h ) by filing Form 5768 must complete Part VIA, Other organizations checking 'Yes' must complete Part VI~B AND attach a statement giving a detailed description of they'd',, lobbying activities . ~. n ' ~`s~<

2 Duni79 Use year, has the organization, either directly or indirectly, erg9a en in any of the followin g acts with any >~;? .44~1k~; ~ 1 k, substantial contributors, trustees, directors, officers, creators, key I ern ~oY Y ees, or member of their' families, or with ally taxable organization with which any such person is affiliated as an officer, director, trustoe, majority owner, or pr mcipol t~ Y

'^ " `~~ 2`C~Ss beneficiary? (l/ the answer to any question !s 'Yes,' attach a defiled sfafernorif Flxplainmg the ?mnshctions 'w .. .

a Sale, exchange, or loosing of property? . . . . . . . . . . . . . . . . . . 28 X

b Lending of money or other extension of credit? I 2bl I X

c Furnishing of goods, services, or facilities

d Payment of compensation (or payment or reimbursement of expenses if more than $1,000) I 2di I X

e Transfer of any part of its income or assets? . 2e X

3a Do you make grants for scholarships, fellowships, student loans, etc (If 'Yes ' attach an explanation of now you determine that recipients qualify to receive payments) 3a X

b Do you have a section 403(b) annuity plan for your employees? 3b X 4a Did you maintain any separate account for participating donors where donors have the right to provide advice

on the use or distribution of funds? . . . . . . . 4a X b Do you provide credit counseling, debt management, credit repair, or debt negotiation services I 4b~ ~ X

Park IV ~;' Reason for Non-Private Foundation Status see instructions)

The organization is not a private foundation because it is : (Please check only ONE applicable box .) 5 A church, convention of churches, or association of churches Section 170(b)(1)(A)(1) 6 X A school . Section 170(b)(1)(A)(ii) . (Also complete Part V ) 7 A hospital or a cooperative hospital service organization Section 170(b)(1)(A)(ui) .

8 A Federal, state, or local government or governmental unit Section 170(b)(1)(A)(v)

9 U A medical research organization operated in conjunction with a hospital Section 170(b)(1)(A)(m) Enter the hospital's name, city, and state

10 ~ An organization operated for the benefit of a college or university owned or operated by a governmental unit Section 1 %0(b)(1)(A)(iv) (Also complete the Support Schedule in Part IV-A .)

11 a F ]An organization that normally receives a substantial part of its support from a governmental unit or from the general public Section 170(b)(1)(A)(w) . (Also complete the Support Schedule in Part IV-A )

11 b ~ A community trust Section 170(b)(1)(A)(vi) . (Also complete the Support Schedule in Part IV~A )

12 An organization that normally receives. (1) more than 33.113°/. of its support from contributions, membership fees, and gross receipts from activities related to its charitable, etc, functions - subject to certain exceptions, and (2) no more than 33-113% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975 . See section 509(a)(2) (Also complete the Support Schedule in Part IV-A )

13 n An organization that is not controlled by any disqualified persons (other than foundation managers) and supports organizations described in : (1) lines 5 through 12 above ; or (2) section 501(c)(4), (5), or (6), if they meet the test of section 509(a)~2) (See section 509(a)(3) .)

22 Other income . Attach a schedule Do not Include gain or (loss) tram sale of cap ital assets. . . . . . . . . . . . . . .

23 Total of lines 15 through 22 . 24 Line 23 minus line 17 . . . . . . . . . 25 Enter 1 % of line 23 . 26 Organizations described on lines 10 or 11 : a Enter 2% of amount in column (e), line 24 N/A 0- 26a

b Prepare a list for your records to show the name of and amount contributed by each person (other than a governmental unit or publicly supported organisation) whose total gifts for 2000 through 2003 exceeded the amount shown in line Z6a Do not file this list with your

, return . Enter the total of nil these excess amounts . . . . . . . . . . . . . . . . ~ 26b c Total support for section 509(a)(1) lest : Enter line 24, column (e) 11 26c d Add Amounts from column (e) for lines : 18 19

22 26b 26d e Public support (line 26c minus line 26d total) . . . . . 0- 26e f Public support percentage (line 26e numerator divided b line 26c denominator 110 . 26f $

27 Organizations described on line 12: N/A a For amounts included in lines 15, 16, and 17 that were received from a 'disqualified person,' prepare a list for your records to show the name of, and total amounts received in each year from, each 'disqualified person ' Do not file this list with your return . Enter the sum of such amounts for each year : (2003) ------------(2002)------------(2001)------------(2000)-------------

bFor any amount included in line 17 that was received from each person (other than 'disqualified persons'), prepare a list for your records to show the name of, and amount received for each year, that was more than the larger of (1) the amount on line 25 for the year or (2) $5,000 (Include in the list organizations described in lines 5 through 11, as well as individuals ) Do not file this list with your return . After computing the difference between the amount received and the larger amount described in (1) or (2), enter the sum of these differences (the excess amounts) for each year (2003) ------------ (2002)------------(2001)------------ (2000)-------------

c Add Amounts from column (e) for lines 15 16

17 20 21 27c

d Add Line 27a total and line 27b total 27d

e Public support (line 27c total minus line 27d total) ~ 27e

( Total support for section 509(a)(2) test Enter amount from line 23, column (e) ' 27f

g Public support percentage (line 27e (numerator) divided by line 27( (denominator)) 10. 27 $

h Investment income percentage line 18, column e numerator divided b line 27f denominator ~ 27h

28 Unusual Grants : For an organization described in line 10, 11, or 12 that received any unusual grants during 2000 through 2003, prepare a list for your records to show, for each year, the name of the contributor, the date and arnount of the gran(, and a boot description of the nature of the grant Do not file this list with your return. Do not include these grants in line 15 N/A

BAA TEEA0403L 07/23/04 Schedule A (Form 990 or 990 EZ) 2004

A Schedule A Form 990 or 990E 2004 PORT WASHINGTON TENNIS ACADEMY 11-2112356 Page 3

Pai'.t,IV-A3~ Support Schedule (Complete only if you checked a box on line 10, 11, or 12 .) Use cash mefhodoloccountlng, Note : You ma use the worksheet in the Instructions for converting from the accrual to the cash method of accounting

Calendar year (or fiscal year (a) (b) (c) (d (e) beginning in) . . . . . . . . . . . . 11~ 2063 2062 CUl)I 2000 Total 15 Gifts, grants, and contributions

received . (Do not include unusual rants . See line 28. ) . N/A

16 Membership fees received .

17 Gross receipts tram admissions, merchandise sold or services performed, ui furn ishing of facilities in any activity that is related to the organization's chwitablo alc p ur p ose . . . . . . . . . . . .

18 Gross income tram interest, dividends, amounts received from payments on securities loans (section 512(n )(5)), gents, royalties, and unrelated business taxable income (loss section 511 taxes) Ifom businesses acquired by the organ . izalion after June 30 1975 . . . .

19 Net income from unrelated business activities not included in line 18

20 Tax revenues lowed for the organization's benefit and either paid to it or expended on its behalf . . . . . . . . . . .

21 The value of services or facilities furnished to the organization by a governmental unit without charge . Do not include the value of services or facilities generally furnished to the public without charge

ac Schedule A 204 PORT WASHINGTON TENNIS ACADEMY

Questionnaire see instructions .) JLY by schools that checked the box on line 6 in Part IV)

11-2112356 Paqe 4 'orm 990 or 990E Private Schoc (To be completed

No

------------------ ?''t;~ ;nz:;

32 noes the organization maintain the following:

a Records indicating the racial composition of the student body, faculty, and adrninistfalive staffs 32a X

b Records documenting that scholarships and other financial assistance are awarded on a racially nondiscriminatory basis? . . . 32b X

c Copies of alt catalogues, brochures, announcements, and other written communications to the public dealing with student admissions, programs, and scholarships . 32c X

d Copies of all material used by the organization or on its behalf to solicit contributions 32d X 77-

1f you answered 'No' to any of the above, please explain (If you need more space, attach a separate statement

--------------------------------------------------------- - --

--------------------------------------------------------- ~i

33 Does the organization discriminate by race in any way with respect to ? ^ ~' >

a Students' rights or privileges? . . . . 33+a

b Admissions policies? . . 33b X

34a Does the organization receive any financial aid or assistance from a governmental agency

3abl I X b Has the organization's right to such aid ever been revoked or suspended If you answered 'Yes' to either 34a or b, please explain using an attached statement

35 Does the organization certify that it has complied with the applicable requirements of sections 4 01 through 4 05 of Rev Proc 75.50, 1975 2 C B 587, covering racial nondiscrimination? if 'No,' attach an explanation,

BAA TEEA0404L 07/23/04 Schedule A (Form 990 or 990-EZ)

29 Does the organization have a racially nondiscriminatory policy toward students by statement in its charter, bylaws, other governing instrument, or in a resolution of its governing body? 29 X

7%M 777 30 Does the organization include a statement of its racially nondiscriminatory policy toward students in all its brochures,

catalogues, and other written communications with the public dealing with student admissions, programs, and scholarships? . . . . . . . . . . . . . . . . . . 30 X

31 Has U ie ui yanizaUon publicized its racially nondiscriminetoiy policy througn newspaper or broadcast mocha during ,, NMI use period of solicitation for students, or during the regis6~t~on period if it has no solicitation program, in a way that

makes the policy known to all parts of the general community It serves? . . . . . . 31 X

It 'Yes,' please describe, it 'Na,' please explain . (It you ncod morn space, attach a snpaia1G slaitoindnl ) WEEKLY NEWSPAPER ADS STATE THE FOLLOWING NON DISCRIMINATORY POLICY<;,~� ;t k "WE ADMIT STUDENTS OF ANY RACES COLORI NATIONALITY AND ETHNI--R-IC -GI-N-. _ ' ~

c Employment of faculty or administrative staff?

d Scholarships or other financial assistance

e Educational policies . .

1 Use of facilities?

g Athletic programs?

h Other extracurricular actiwties7

If you answered 'Yes' to any of the above, please explain (If you need more space, attach a separate statement )

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

33c X

33d X

33e X

33f X

33g X

33h X

34al I X

Schedule A orm 990 or 9WE 2004 PORT WASHINGTON TENNIS ACADEMY 11-2112356 Page 5 ~r`t~l=°A Lobbying Expenditures by Electing Public Charities See instructions .)

(To be completed ONLY by an eligible organization that (pled Form 5768) N/A Check ~ a if the organization belongs to an affiliated group Check ~ b if you checked 'a' and 'limited control' provisions app ly.

Limits on Lobbying Expenditures Affiliated group To be completed totals for ALL electing a (fhe term expenditures means amounts paid or mcurre .)

36 Total lobbying expenditures to influence public opinion (grassroots lobbying) . . . 36

37 Total lobbying expenditures to Influence a legislative body (direct lobbying) 97

38 Total lobbying expenditures (add lines 36 and 37) 38

39 Other exempt purpose expenditures . . . . . . . . . . . 39 40 Total exempt purpose expenditures (add lines 38 and 39) 40 41 Lobbying in(7 nontaxable amount . Entor the amount from the following table -

If lho amount on Ilno 40 Is - Tho lobbying nontaxoblo amount Is - q

Not over $500,000 . . . . . . . . . . . . . . . . 20% of the amount on line AQ ;`,v`, ~,,~ ̀ ~.~y Over $500,000 but not over :1,000,000 . . . . . :100,000 plus 15% of the excess over S500,000 S ~ ~''~

Over $1,000,000 but not over :1,500,000. . . . . . ;1)5,000 plus 10% of the excess over $1,000,000 41

Over $1,500,000 but not over 117,000,000 . . . $225,000 plus 5% of the excess over $1,500,000 Over $17,000,000 . . . . . . . . . . $1,000,000 ' +` ,

42 Grassroots nontaxable amount (enter 25% of line 41) 42

43 Subtract line 42 from line 36 . Enter -0~ if line 42 is more than line 36 43

44 Subtract line 41 from line 38 . Enter -0~ if line 41 is more than line 38 44 Caution : 11 there is nn amount on either line 43 or line 44, you must file Form 4720

4 -Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of we five columns below .

See the instructions for lines 45 through 50 .)

"< ,

TEEA0405L 07/23/04

Lobbying Expenditures During 4 -Year Averaging Period

Calendar year (a) (b) (c) (d) (e) (or fiscal year 2004 2003 2002 2001 Total beginning in) 1~

45 Lobbying nontaxable amount

46 Lobb m cedin .~.ss g, amount

I501% of line 4 e . : .~r:.,~"r

47 Total lobbying expenditures

48 Grassroots nontaxable amount . . . .

g ----g- 49 Grassroots cedm amount

'~g" ̀'i:' ' A'`;," fi' :~~.''~;,k , . . ; ; . > (150% of Ime 48 e ~:: .:> ' f,, "?~`> :s'S :,

50 Grassroots lobbying expenditures

F15It VI-13 Lobbying Activity by Nonelecting Public Charities (For reporting only by organizations that did not complete Part VIA) (See instructions ) N/A

During the year, did the organization attempt to influence national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of Yes No Amount

a Volunteers

b Paid staff or management (Include compensation in expenses reported on lines c through h.)

c Media advertisements

d Mailings to members, legislators, or the public

e Publications, or published or broadcast statements

( Grants to other organizations for lobbying purposes

g Direct contact with legislators, their staffs, government officials, or a legislative body

h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any other means

i Total lobbying expenditures (add lines c through h.)

If 'Yes' to any of the above also attach a statement giving a detailed description of the lobbying activities

BAA Schedule A (Form 990 or 990~EZ) 2004

52a Is the organization directly or indirectly affiliated with, or related to, one or more tax-exempt organizations described in section 501(c) of the Code (other than section 501(c)(3)) or in section 527 - E] Yes X No

BAA Schedule A (Form 990 or yyU LL) 2004

TEEA0406L 11/29/04

.n Schedule A Form 990 or 99e'E 2004 PORT WASHINGTON TENNIS ACADEMY 11-2112356 Page 6 ,~' it:>`,Il~S; Information Regarding Transfers To and Transactions and Relationships With Noncharitable

Exempt Organizations (see instructions)

51 Did the reporting organization directly or indirectly engage in any of the following with any other organization described in section 501(c) of the Code (other than section 501(c)(3) organizations) or in section 527, relating to political organizations'

a Transfers from the reporting organization to a nonchantabie exempt organization of : Yes No

(I)Cash . . . . . . . . . 51 a I X . . . . . . . . . a II X (II)Other assets . . . . . . . . . . . . . . . .

b Other transactions : (I)Sales or exchanges of assets with e nonchoi itablo uxempt organizetinri . . . b IL X (II)Purchases of assets from a noncharltable exempt organization . . . . b II X (iii)Rental of facilities, equipment, or other assets . . . . . . . . . . . . . . . . . b III X (Iv)Reimbursement arrangements . . . . . . . . . . . . . . . . . . . b iv . X (v)Loans or loan guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . b y X (vi)Performance of services or membership or fundraising solicitations b vl X

c Sharing of facilities, equipment, mailing lists, other assets, or paid employees c X d If the answer to any of the above is 'Yes,' Complete the following schedule Column (h) should always show the lair market value of the uoods, other assets, or services given by the reportin orqar~izat,on If the or garnzation received less than fair market value in an transaction or sharing arrangement , sh6w In column d tfie value of the oocls, other assets, or services received

(a) (b) (c) (d) L,ne no Amount involved P1ame of nonchantabla cAU1 i INl U1 yai iILaIlul i Desuiphon of Transfers, transactions, and sharing arrangements

N/

n

NONCASH GRANTS ANA ALLOCATIONS

$ 113,094 .

(A) (B) (C) (D) PROGRAM MANAGEMENT

TOTAL SERVICES & GENERAL FUNDRAISING

14,216 . 14,216 . -139,519 . -139,519 .

1,200 . 1,200 . 6,470 . 6,470 .

21,986 . 21,986 . 142,595 . 35,649 . 106,946 . 50,501 . 50,501 . 48,763 . 11,061 . 37,702 . 18,000 . 18,000 .

ADVERTISING ALLOC . TO COST OF GOODS SOLD COMMUNITY BENEFIT PROGRAMS CONSULTANTS DUES AND SUBSCRIPTIONS INSURANCE KITCHEN EXPENSES OFFICE PROFESSIONAL DRESS

., .<

2004 FEDERAL STATEMENTS PAGE 1

CLIENT P02356 PORT WASHINGTON TENNIS ACADEMY 11-2112356

8/10/05 03 06PM

STATEMENT 1 FORM 990, PART I, LINE 9 NET INCOME (LOSS) FROM SPECIAL EVENTS

LESS LESS NET GROSS CONTRI- GROSS DIRECT INCOME

SPECIAL EVENTS RECEIPTS HUTIQNS REVENUE EXPENSES -(BOSS)

U .S . OPEN TICKETS 310 450 . 51`889258 561 . 258 561 . 0 . TOTAL $ 3i~5b~ $ 51,~~ '$7~5t,=. 5~5~`~6~

STATEMENT 2 FORM 990, PART f, LINE 10 GROSS PROFIT (LOSS) FROM SALES OF INVENTORY

. . . . . . . . . . . . . . . . . . . . . $ 187,072 .

GROSS SALES . . . . . . . . . . . . . . . . . . . . . . . . . $ -18 LESS RETURNS & ALLOWANCES . . . . . . . . . 0 . NET SALES . . . . . . . . . . . . . . . . $ 187,072 . LESS COST OF GOODS SOLD. . . . . . 255 306 .

~4- GROSS PROFIT FROM SALES OF INVENTORY $ -6

STATEMENT 3 FORM 990, PART II, LINE 22 GRANTS AND ALLOCATIONS

CLASS OF ACTIVITY : DONEE'S NAME : BOOK VALUE : FAIR MARKET VALUE :

STATEMENT 4 FORM 990, PART II, LINE 43 OTHER EXPENSES

SCHOLARSHIPS SEE ATTACHED 113,094 .

TOTAL GRANTS AND ALLOCATIONS

h

0 .S

PORT WASHINGTON TENNIS ACADEMY 03:06PM I

STATEMENT 4 (CONTINUED) FORM 990, PART II, LINE 43 OTHER EXPENSES

(A) (B) (C) (D) PROGRAM MANAGEMENT

TOTAL SERVICES & GENURAL_ _FUNQRAI NG

71,768 . 68,180 . 3,588 . 89,850 . 89,850 . 2,702 . 2,702 .

41,915 . 91,915 . 206,79 . 196,155 . 10,329 .

5 , 686 . 2 , 843 . 2 893 , 6 12 . 2 6 8, 13,8 ~ 0 . 58 2 3

STATEMENT 5 FORM 990, PART IV, LINE 57 LAND, BUILDINGS, AND EQUIPMENT

BALANCE DUE

RICHARD A . ZAUSNER OFFICER PAYABLE UPON DEMAND NONE WORKING CAPITAL 400,000 .

LENDER'S NAME : LENDER'S TITLE : REPAYMENT TERMS : SECURITY PROVIDED : PURPOSE OF LOAN : ORIGINAL AMOUNT : BALANCE DUE : 400 000 .

TOTAL ,0

2004

CLIENT P02356

8/10/05

FEDERAL STATEMENTS PAGE 21

11-21123561

REPAIRS AND MTC SNOW DAMAGE, NET OF INSURANCE TOURNAMENT EXPENSES TRAVEL AND ENTERTAINMENT UTILITIES VEHICLE EXPENSES

TOTAL

ACCUM . BOOK CATEGORY BASIS DEPREC . VALUE

AUTOMOBILES / TRANSPORTATION EQUIPMENT $ 96,237 . $ 55,122 . $ 41,115 . FURNITURE AND FIXTURES 113,145 . 83,310 . 29,835 . MACHINERY AND EQUIPMENT 126,893 . 107,896 . 18,997 . BUILDINGS 10,863,145 . 1,864,312 . 8,998,833 . LAND 750 000 . 750 000 .

-`T$0. TOTAL 11,949 , 420 . 2,110,640 . 9,83i,

STATEMENT 6 FORM 990, PART IV, LINE 63 LOANS FROM OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES

, . . . FEDERAL STATEMENTS 2004

STATEMENT 9 FORM 990, PART IV-B, LINE B(4) OTHER AMOUNTS

COSTS OF GOODS SOLD . . . . . . . . . . 255 306 . . TOTAL 255 , 76-6-

P02356 PORT WASHINGTON TENNIS ACADEMY CLIENT 8/10/05

STATEMENT 7 FORM 990, PART IV, LINE 64B MORTGAGES AND OTHER NOTES PAYABLE

OTHER NOTES PAYABLE

LENDER'S NAME : FIRST NAT . BANK OF LONG ISLAND DATE OF NOTE : 4/30/2004 REPAYMENT TERMS : SCHEDULED PMTS THROUGH 2011 SECURITY PROVIDED : ASSETS, EXCLUDING REAL ESTATE PURPOSE OF LOAN : TERM LOAN - WORKING CAPITAL ORIGINAL AMOUNT : 700,000 . BALANCE DUE :

STATEMENT 8 FORM 990, PART IV-A, LINE B(4) OTHER AMOUNTS

COST OF GOODS SOLD

PAGE 3

11-2112356

03 05 PM

$ 600,000 .

TOTAL b ,UUU .

$ 255 306 . TOTAL 255 ,30 6 .

03 06PM I

PORT WASHINGTON TENNIS ACADEMY MAKES GRANTS FOR SCHOLARSHIPS TO STUDENTS . SEE ATTACHED SCHEDULE FOR A COMPLETE LISTING OF SCHOLARSHIPS GRANTED FOR YEAR ENDED DECEMBER 31, 2004 .

2004 , FEDERAL SUPPLEMENTAL INFORMATION

CLIENT P02356 PORT WASHINGTON TENNIS ACADEMY

8/10/05

SCHEDULE A - (FORM 990) PART III ITEM 3A

PORT WASHINGTON TENNIS ACADEMY INC . AWARDS TENNIS LESSON TUITION SCHOLARSHIPS ON THE FOLLOWING NON-DISCRIMINATORY BASiS ;

(1) ANY CHILD OF ANY EMPLOYEE OF PORT WASHINGTON TENNIS ACADEMY, INC . (OTHER THAN A CHILD OF A CREATOR, DONOR, DIRECTOR, TRUSTEE OR OFFICER OF PORT WASHINGTON TENNIS ACADEMY, INC .) IS ELIGIBLE FOR A TENNIS LESSON TUITION SCHOLARSHIP .

(2) ANY OTHER CHILD IS ELIGIBLE FOR A TENNIS LESSON TUITION SCHOLARSHIP BASED ON FINANCIAL NEED . THE PARENTS OF ANY CHILD APPLYING FOR A SCHOLARSHIP BASED ON FINANCIAL NEED MUST SUBMIT A PERSONAL FINANCIAL STATEMENT TO PORT WASHINGTON TENNIS ACADEMY, INC . A SCHOLARSHIP COMMITTEE REVIEWS SUCH APPLICATION AND AWARDS SUCH SCHOLARSHIPS BASED SOLELY ON NEED .

FORM 990 - PART III

ORGANIZATION'S PRIMARY EXEMPT PURPOSE :

PROVIDE OPPORTUNITY FOR HIGHER EDUCATION (COLLEGE) THROUGH TENNIS .

(A) EXEMPT PURPOSE ACHIEVEMENTS :

PORT WASHINGTON TENNIS ACADEMY STRIVES TO CREATE A DRUG FREE ENVIRONMENT LEADING TO HIGHER EDUCATION, USING TENNIS AS AN ENTRY EDGE FOR COLLEGE PLACEMENT . THE STUDENT BODY SERVED RANGES FROM 500-800 IN ANY GIVEN YEAR .

SCHEDULE A - (FORM 990) PART III QUES . 3

PAGE 1

11-21123561

PROGRAM PAG # AMOUNT

2 20,189 50 3 14,148 00 4 13,680 00 5 24,570.00 6 13,68000 7 26,826 00

113,093 50

PORT WASHINGTON TENNIS ACADEMY # 11-2112356

2004 SCHOLARSHIPS SUMMARY

2004 SPRING SCHOLARSHIPS

7ACARIA5 IMPERIAL ICU-U9 72ND AVENUE SIRING 04 $71400 FLUSHING, NY 11305 CHALL

S'fACY LEE I PARK DRIVE SNRING04 $123 00 OLD WLSTQURI', N`( 11568 GOLD

SUMMER 2004

SURAJ PYLA 100 HARBOR ROAD SUMMER $237500 PORT WASHINGTON, NY 11050 CAMP04

OLIViA AHN 54 BOURNDALE ROAD SUMMER $23750 MANHASSET, NY 11030 CAMP04

KAYLEE CARBALLO 94 HARBOR RD SUMMER $2375 00 PORT WASH, NY 11050 CAMP 04

SURAJ PYLA 100 HARBOR RD SUMMER $2175.00 PORT WASH., NY 11050 CAMP04

MICHAEL MATfELSON 37 CAREY RD SUMMER $220 GREATNCCK, NY 11021 CAMP04

OLIVIA AHN 54 BOURNUALE RD SUMMER $510 00 MANHASSE'f, NY 11030 CAMP04

MICHAEL MATI'ELSON 37 CAREY RD SUMMER $1050 00 GREATNECK, NY 11021 CAMI'04

SPRING 2005 KEVIN CRt1WFOf2D 57 HARBOR ROAD SPRINGOS $148000

PORT WASHINGTON, NY 11050 CONT

MORGAN FLEfSCHMAN 112 WEST 56'r' STREET #22N SPRING OS $160000 NEW YORK, NY 10019 YELLOW

MADELINE FROMER S POND ROAD SPRINGOS $148000 GREAT NECK, NY 11024 SMASH

ALEX FROMER 5 POND ROAD SPRiNG05 $148000 GREAT NECK, NY 11024 SMASH

MATTHEW CASTANEDA 238 NASSAU BLVD SOUTH SPRINGOS $70000 GARDEN CITY, NY 11530 CHALL

JEFFREY CASTANEDA 238 NASSAU BLVD SOUTH SPRTNCOS $70000 GARDEN CITY, NY 11530 CHALL

RYAN KIM 5 N MARYLAND AVE SPRINGOS $80000 PORT WASHINGTON, NY 11050 TAN

SURA1 PYLA 100 HARBOR ROAD X-MAS2004 $52500 PORT WASHINGTON, NY 11050 CAMP

(9

2004 SPRING SCHOLARSHIPS JONATHAN GOME7 94 HARBOR ROAD X-MAS2nn4 $?3U 00

PORT WASHINGTON, NY 11050 CAMP

7 Z ~ &- t, #. Q -016/o (J

2004 FALL SCHOLARSHIPS MATTHEW CASTANEDA 238 NASSAU BLVD SOUTH FALL2004 $680 00 ,/

GARDEN CITY SOUTH, NY 11530 CWALL.

JEFFREY CASTANEnA 238 NASSAU BLVD SOUTH FALL2004 $C,80 Op`/ GARDEN CITY SOUTH, NY 11530 CHALL

CLAUDIA NAVARLTTE G FIRST STREET FALL2004 $ltSl).UpJ °' GItELNVALE, NY 11548 CI-I/MOM $15000

KAYLA ARENA 75 SOUTH MIDDLE NECK RD rALL2004 $714 .00 GREAT NECK, NY 11021 CHALI..

OI ..IVIA AHN 54 f30U1tNDAI.l3 ROAD N FA1.,1,211114 9.72 MANHASSI:`I', NY 11030 SMASH

ILEX FItOMEIt 5 POND ROAD FALL2004 $144000,/ GREAT NECK, NY 11024 SM/ME"M $150.00 v"

MADELINE FROMEIt 5 POND ROAD FALL2004 $144- 0 00 ~T GREAT NECK, NY 11024 SM/MEM $ I SU 00 ,/

KEVIN CRAWFORD 57 HARBOR ROAD FALL2004 $1512 110 v/ NUM' WASH1NCi'I'UN, NY 11050 CON'I' .

RYAN KIM 5 N. MARYLAND AVE FALL2004 $81900 PORT WASHINGTON, NY 11050 TAN

MORGAN FLETSCHMAN 112 WEST 56"' STREET #22N FALL2004 $1638 00 v" NEW YORK, NY 1()0 19 YE/M EM $150 0U ,- ~

MICHAEL MATTELSON 37 CAREY RD FALL2004 $117 .00v' GREAT NECK, NY 11021 GOLD

LESLIE TANG 1 MURRAY LANE FALL2004 $819 00 V' ROSLYN HEIGHTS, NY 11577 WHITE

J TYLER HALL 10 SOMERSET DRIVE SOUTH FALL2004 $549 .00 GREAT NECK, NY 11020 SWINGER

JUSTIN f-IALL 10 SOMERSET DRIVE SOU'ff-I FALL2004 $54900/ GREAT NECK, NY 11020 Cf-IAI.L

JOSEPH7INE NERNANDrZ 94 94 HARBOR ROAD NOV2004 $20000 PORT WASHINGTON, NY 11050 TRAIL

MICHAEL MATTELSON 37 CAREY ROAD FALL2004 $35 1 .00 ./ GREAT NECK, NY 11021 GOLD

MIRYAN CASTANEDA 238 NASSAU BLVD SOUTH FEB2004 $20000 ,/ GARDEN CITY, NY 11530 7'RAILBL

MIRYAN CASTANEDA 238 NASSUA BLVD SOUTH APRIL2004 $220 OO GARDEN CITY, NY 11530 TRAILBLA

ANASTASIA ZAINTZ lUl STERLING COURT APRIL2004 $22000-/ MUTTOWN, NY 11021 TRAfLBL

TOTAL $14148 00

5

scc ""t a . � } i ; < S

~I' ' , t TTAl~.~ ' ,

STACY LEE 1 PARK DRIVE EAST Tl'C 72000 OLDWESTBURY, NY 11568

I?UI KUWAMURA 77 RYDER ROAD TI'C 72(1 .0(1 MANWASSE'f, NY 11030

ALEX STEINI3ERG 65 CORNWLLLS BEACH RD 'i-rc 720 .00 SANDS POINT, NY 11050

NICK MI?I2KLLSON 43 PARK AVE 'ITC 720 PORTWASI-I ., NY 11050

.i173rrrriFEiz LvYrnnvsoN 61 FOX CRAI-,I'RD 72000 MANII ASSET, NY 11030

JORDAN 1301tSANYI 104 I,UQUrIt RIB 'I"I'C 720.00 POwl' WASH, NY 11050

DAVID POUI.OFSKY £3 SOUNDVILW LANE i,I,C 72000 SANDS POINT, NY 11050

HOLLY REICH 184 GARDEN ST rrc 72000 RUSLYN, NY 11577

BRITTANY BORSANYI 104 LUQUER RD 'iTC 72000 PORT WASH, NY 11050

DAVID LANGE 35 ELLIOT RD TTC 72000 GREAT NECK, NY 11021

SLRCEY YURKIN 12 CEDAR LANE TTC 72000 SANDS POINT, NY 11050

ALYSSA RU1Z 1 BAY CLUB DRIVE TTC 720.00 BAYSIDE, NY 11300

KATHi2.TN SOROKKO 240-02 GG AVE 'f'TC 720.00 DOUGLASTON, NY 11363

ANGCLO ZAHARAKIS 'ITC 72000

DANLANDI ROBINSON 124-531 .15 " ST "I'fC 72000 S . OZONE: PARK, NY 11420

TIFFANY KURNIAWAN 37-2063 "" ST Tl'C 72000 WOODSIDC, NY 11377

LAURA CI-IEN 1 I TIBI3fTS LANE TCC 72000 POR"I' WASFIING'fON, NY 11050

DAVID DEPOULI 137 BAYVfEW AVE TTC 72000 PORT WASH NY 11050

JONATHAN TEPLITSKY 10 HILL RD T7C 72000 PORT WASH ., NY 11050

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RAfSSA ANTWI 137-QI 233 STREET NYJTf, 1638.00 I.AUItELTON, NY 11422

STEPHANIE AN'I'WI 137-01233 STREET NYJTL 1638.00 I.AUlZEI.TON, NY 11422

ANGELO zAWARAKI5 NYJ'I'L 1(,3x.011

f?DWAItD LNG 2G-1( 200 S"fRLC:T NYJTI. 163R,(10 BAYSII)I--., NY 11360

K11.,I3Y FEATM'El2S'I'ON 164 131?ACI-I 121' S'I'121?I:"I' NYJ'I'I . I(3K,f10 ILOCKAWAI' PARK, NY 11694

DANI..ANDI ROBINSON 12~t-53 I35 ST NYJ't'I. 163800 S. 0/.ONE PAIlK, NY 11,120

DON VARICKAMACKAL 7U-45 260 ST NYJTL 163800 I.NN OAKS, NY 11004

JAMAAL HOLDER 105-80 FLATLANDS ST NYJTL 163800 BkUUKLYN, NY 11236

CLARK RUIZ l BAYCLUB DR NYJTL 163800 BAYSIDE, NY 113(0

ALYSSA RU1Z 1 BAY CLUB DR NYJTL 163800 BAYSIDE, NY 11360

JOE LASKOWSKI 66-10 YELLOWSTONE BLVD 1 A NYJTL 163800 FOREST HILLS, NY 11375

LAURENT OCTOBRE 64-49 175'" ST NYJTL 103800 FRESH MEADOWS, N Y 11365

SEBASTIAN LAGOS 51-28 30 "' AVE NYJTL 163800 WOODSIDE, NY 11377

SABOOR SI-IEERAZI 61-24 233 ST N1'J'1'L 163800 13AYSIDr, NY 11364

KATI-fRiN SOROKKO 240-n2 CSC"' AVI? NYJYL 1638 00 DOUGLASTON, NY 11362

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2vOO., 5-i f3RITTSNY BORSANYT 104 LUQUER RD TTC 720.00

PORT WASH, NY 11050

JORDAN BORSANYI 104 LUQUER RD 'ITC 72000 PORT WASH ., NY 11050

JULIA 13I20WNE 1 MARIO LANE '("1'C 720.00 GLEN HEAD, NY 11545

I.AU1tA CHHN 1 I TI I31TS LA N E- [-[,C 720.00 POR'I'WASI-I ., NY 11050

SHINANN rEA'CF[t?RSTON 164 BEACH 121 S'I' S'I'REI?'I' 'I"I'f'; 72000 ROCKAWAY PARK, NY 11694

MARTINA FBATH'F:RS"fON 164 BEACH 1215"f S`I'I2L1"I' '1"1"C 720 .01) ROCKAWAY PARK, NY 11694

DAVID LANGE 35 EI ..LIO`f ROAD 'I"I'C 720 .00 GREAT NECK, NY 11021

JACOB MASTBAUM 152 RENI ROAD 72000 MANHASSET, NY 11030

ANDREW OPPO 31 SUNSET DRIVE TTC 72000 MANHASSET, NY 11030

NICK MERKELSON 43 PARK AVENUE TTC 72000 PORT WASH ., NY 1] 050

PRIYANKA REDDY 4 MARLENE DRIVE TTC 720.00 SYOSSET, NY

ANDREW SEIDEN ONE ELM COURT TTC 72000 PORT WASH., NY 11050

LAiLA SELIM 26 SHOREWOOD DRIVE TTC 72000 SANDS POINT, NY 1050

SERGEY YURKIN 12 CEDAR LANG TTC 720,00 SANDS POINT, NY 11050

KATHRIN SOROKKO 240-02 66TH AVE 'I-rc 72000 DOUGLASTON, NY 11362

DAVID DEPOULI 137 BAYVIEW AVE 'fTC 72000 PORT WASH, NY 11050

EDWARD ENC 2C-16 200TH STREET TCC 72000 BAYSIDE, NY 11360

V1V1AN QUAN 1031 CEDAR DRIVE TTC 720.0() NEW HYDE PARK, NY 11040

ALEX STETNBERG 67 CORNWELLS BEACH RD TTC 72000 SANDS POINT, NY 11050

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RAISSA AN1'VJI 137-01233 ST NYJTL $1560.00 LAUItEL'fON, NY 1 1422 MEMB $150.00

STEI'HANE ANTWf 137-01233 ST NYJTL $1560.00 LAURI?LTON, NY 11422 MLMg $15000

LAUREN LNG 26-16 2U0'" S'f NYJ'I"L $1440.00 BAYSIDI, NY 11360 CO/MIA $150 00

EDWARD i?NC 26-Ib2uU5"I' NYJ'I'l. $ISCI) .(1u BAYSII)L, NY 11360 MEM13 $150.00

Kf1.13Y FI?ATFIERS7'ON 164 BEACH 121" S'I'RE 3, 1?'I' NYJ"I'L $1560 00 ItOCKAWAY PARK, NY I 1694 M EM 13 $150.00

NYJ' I'1_$1639 00 MARTINA FEATI-fERS'fON 164 f3LAC1.1 121x' STREET ROCICAWAY PARK, NY 11694 ME MB $150.00

SI-IiNANN FEATHERSTON 164 BEACH 121' STREET NY1TL 41638 .00 ROCKAWAY PARK, NY 11694 MEMB $15000

SEBASTIAN GONZALEZ ~ 144-90 41 AVE APT 612 NYJTL $156000 FLUSHING, NY 11355 MEMB $15000

MARIANA GONZALEZ 144-90 41 AVE APT 612 NYJTLC $1440 .00 FLUSHING, NY 11355 CO/ME $15000

KHALIL HALL-HOOPER 112-3n NORTHERN BLVD 2F NYJTL $156000 CORONA, NY 11368 MEMB $15000

JOE LASKOWSKI 66-10 YELLOWSTONE BLVD APTI NYITL $163800 FOREST FflLLS, NY 11375 MEMB $150,00

LAURENT OCTOBRE 64-49 l75'" ST NYJTL $1638 nn FRESH MEADOWS, N.Y 11365 MEMB $150.00

JONATHAN PERKTNS 45-08 169 ST NYJTL $156000 FLUSHING, NY 11358 MEMB $150.00

JUSTIN PERKINS 45-08 169 ST NYJ'I'L $163800 FLUSHING, NY 11358 MEMB $150.00

S!-CRADDHA PRAHFIU 87-45 254"' STREET NYJTL $1560.00 BELLEROSE, NY 11426 MEMB $15000

KATHRIN SOROKKO 240-02 CG"' AVE NYJTL $1638.00 DOUGLASTON, NY 11362 MEMB $150.00

ADRIAN RANGL 201-23 EPSOM COURSE NY1'fL $163800 HOLLlSWOOD, NY 11427 MEMB $150.00

t1 2mat.,

0

YEARS ENDED DECEMBER 31, 2004 AND 2003

PORT WASHINGTON TENNIS ACADEMY, INC .

AUDITED FINANCIAL STATEMENTS

4

6-10 Notes to Financial Statements

PORT WASHINGTON TENNIS ACADEMY, INC .

TABLE OF CONTENTS

INDEPENDENT AUDITORS' REPORT

FINANCIAL STATEMENTS

Statements of Financial Position

Statements of Activities

Statements of Cash Flows

PAGE

1

2

3

4-5

MAIL Z1, PINO & COMPANY, P.C . r, r.A r: CERTIFIED PUBLIC ACCOUNTANTS

1895 WALT WHITMAN ROAD " MELVILLE, NEW YORK 11747 (631) 420-5820 " FAX: (63t) 420-8332 " E-MAIL: [email protected]

-- , ' - ' INDEPENDENT AUDITORS', 'REPORT

'To the Board of Directors of '.Port Washington Tennis Academy, Inc .,

. ._' . : , . _ ';.Port Washington, .New York

:We have audited. the accompanying , statements , of financial position of. Port ' , 'Washington Tennis Academy, Inc . (a non-profit~corporation) as of December 31, 2004

and 2003, and the related statements of activities and cash flows for the years then ended . These financial statements -are the responsibility of the Academy's management . Ourresponsibility is~to express an, opinion on these financial statements based on our audit .

' We conducted our audit in accordance with auditing standards,genera lly~acceptedin, ,the United States of America ., 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 examining, on a test basis, evidence

supporting the amounts and disclosures in the financial statements . An audit also includes assessing the accounting principles used and,significant estimates made by management, as well as evaluating, the overall financial statement presentation . We believe that our audit provides 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 Port Washington Tennis Academy, . Inc : as of, December 31, 2004 and 2003, and the changes in its net. assets and its cash flows

,'_ . . ' f,orthe years then ended in conformity with ~accounting,principles generally acceptedin the United States of America .

. . . . June 23, ; 2005

, . ., -,-.

. ., . ., . : I

.MEMBERS AMERICAN INSTITUTE OF.CERTIFIED "PUBLIC ACCOUNTANTS / NEW YORK STATE SOCIETY Of CERTIFIED PUBLIC ACCOUNTANTS , _

.,

ASSETS

Less accumulated depreciation

$ 10,533,628 $10,492,525

LIABILITIES AND NET ASSTS

Net Assets (Unrestricted)

$ 10,533,628 $10,492,525

-2-

PORT WASHINGTON TENNIS ACADEMY, INC. STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2004 AND 2003

2004 2003

Current Assets Cash and equivalents Accounts receivable, net of allowance for

doubtful accounts of $5,000 in 2004 and 2003 Pro shop inventory Prepaid expenses' Employee loan

Total current assets

Property and Equipment Land Buildings and improvements Equipment

$ 503,522 $ 403,213

81,723 64,495 23,996 21,246 85,605 63,638

3,800

694,846 556,392

750,000 750,000 10,868,039 10,628,299

331,383 327,628 11,949,422 11,705,927 2,1 10,640 1,769,794

9,838,782 9,936,133

Current Liabilities Accounts payable and accrued expenses Unearned income Current portion of credit line payable (Note 3) Current portion of term loan (Note 3) Loan payable - member (Note 4)

Total current liabilities

Long-Term Liabilities Credit line payable, net of current portion (Note 3) Term loan, net of current portion (Note 3)

Total liabilities

Commitments and Contingencies (Note 5)

$ 952,696 $ 1,042,862 402,008 460,517

- 50,000 100,000 - 400,000 -

1,854,704 1,553,379

- 600,000 500,000 -

2,354,704 2,153,379

8,178,924 8,339,146

The accompanying notes are an integral part of these financial statements

Revenues and Gains

8,339,146 8,723,770

$8,178,924 $8,339,146 Net Assets at End of Year

-3-

PORT WASHINGTON TENNIS ACADEMY, INC . STATEMENTS OF ACTIVITIES

(CHANGES IN UNRESTRICTED NET ASSETS) YEARS ENDED DECEMBER 31, 2004 AND 2003

2004 2003

Teaching Tournaments Pro shop sales Membership fees Contributions, net of direct costs of $258,561 . and $250,656 in 2004 and 2003, respectively

Interest income

Total revenues and gains

Expenses

Program Teaching Tournaments Pro shop Scholarships Community benefit programs Informational program

Total program expenses

Management and general Interest expense Snow damage (Note 5)

Total expenses

Decrease in Net Assets (Unrestricted)

Net Assets at Beginning of Year

$2,004,807 $ 1,799,315 41,190 45,736

187,072 156,252 231,288 209,300

61,089 165,259 3,197 6,061

2,528,643 2,381,923

1,572,995 1,395,054 11,743 20,098

255,306 244,455 113,094 114,773

1,200 30,100 53,914 51,135

2,008,252 1,855,615

534,811 447,710 55,952 10,960 89,850 452,262

2,688,865 2,766,547

(160,222) (384,624)

The accompanying notes are an integral part of these financial statements .

i

2004

$2,336,615 (2,026,710)

(89,850) (55,952) 3,197

$ 2,373,728 (2,039,108) (452,262) (10,960) 6,061

350,000 650,000

403,213 292,721

$ 503,522 $ 403,213 Cash and equivalents - end

Supplemental Disclosure of Non Cash Investing Activities

Building improvements financed through accounts payable $ - $ 897,763

-4-

PORT WASHINGTON TENNIS ACADEMY, INC . STATEMENTS OF CASH FLOWS


Cash Flows From Operating Activities

Membership fees, program fees and contributions received

Cash paid to suppliers and employees Snow damage, net of insurance proceeds Interest paid Interest and dividends received

Net cash provided by (used in) operating activities

Cash Flows From Investing Activities

Payments for building and equipment Transfer from board designated funds

Net cash used in investing activities

Cash Flows From Financing Activities

Line of credit borrowings Line of credit repayments Proceeds from term loan Term loan repayments Loan from member

Net cash provided by financing activities

Net increase in cash and equivalents

Cash and equivalents - beginning

2003

167,300 (122,541)

(416,991) (1,416,967) - 1,000,000

(416,991) (416,967)

100,000 650,000 (750,000) - 700,000 - (100,000) 400,000 -

100,309 110,492

The accompanying notes are an integral part of these financial statements .

2004 Reconciliation of Change in Net Assets

to Net Cash Provided by (Used in) Operating Activities :

2003

$ (160,222) $(384,624) Change in net assets

Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities :

Net cash provided by (used in) operating activities $ 167,300 $022,541)

-5-

PORT WASHINGTON TENNIS ACADEMY, INC. STATEMENTS OF CASH FLOWS


Depreciation

(Increase) Decrease in : Accounts receivable Prepaid expenses Inventory Employee loan receivable

Increase (Decrease) in : Accounts payable and accrued expenses Unearned revenue

Total adjustments

340,846 196,212

(17,228) (11,023) (21,967) (1,253) (2,750) 8,909 3,800 (2,900)

83,330 (51,524) (58,509) 123,662

327,522 262,083

The accompanying notes are an integral part of these financial statements

-6-

PORT WASHINGTON TENNIS ACADEMY, INC . NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION ACTIVITY

The Port Washington Tennis Academy, Inc . ("the Academy"), located in Port Washington, NY, was organized on January 10, 1966 as a non-profit organization . Its activities consist of providing students/members with various levels of lessons, programs, scholarships and court facilities for the game of tennis . The Academy grants credit to students/members, substantially all of whom are local residents .

BASIS OF ACCOUNTING

The Academy's records are maintained on the accrual basis of accounting . Income is recognized when earned and expenses are recognized when incurred .

Revenue is derived from a variety of sources, such as membership dues, classes and program fees and contributions . The Academy bills the members for their participation in many of these programs prior to the effective starting date . Therefore, income is recognized as earned over the time period of the program .

BASIS OF PRESENTATION

Financial statement presentation follows the recommendation of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No . 117, "Financial Statements of Not-for-Profit Organizations". Under SFAS No . 117, the Academy is required to report information regarding its financial position and activities according to three classes of net assets : unrestricted, temporarily restricted, and permanently restricted . A description of the three net asset categories follows :

Unrestricted - Net assets that are not subject to donor-imposed restrictions . Unrestricted net assets may be designated for specific purposes by action of the Board of Directors .

-7-


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Temporarily Restricted - Net assets whose use by the Academy is subject to donor-imposed restrictions that can be fulfilled by actions of the Academy pursuant to those restrictions or that expire by the passage of time . No temporarily restricted assets were held during 2004 and 2003 and accordingly, these financials do not reflect any activity related to this class of net assets for 2004 and 2003 .

Permanently Restricted - Net assets subject to donor-imposed restrictions that may be maintained permanently by the Academy. No permanently restricted assets were held during 2004 and 2003 and accordingly, these financials do not reflect any activity related to this class of net assets for 2004 and 2003.

ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures . Accordingly, actual results could differ from those estimates.

INVENTORY

Inventory consists of rackets, footwear and sportswear located in the pro shop, which is operated for the convenience of its members . Inventory is stated at the lower of cost or market .

PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost . Maintenance and repairs are expensed as incurred . Any extensive repairs or improvements that prolong an assets life are capitalized and depreciated over their estimated useful life . Gains and losses on dispositions of property are reported on the Statement of Activities as realized .

-8-

~ PORT WASHINGTON TENNIS ACADEMY, INC . NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2004 AND 2003

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Depreciation is calculated using straight-line and accelerated methods over the estimated useful lives of the assets, ranging from five to forty-five years . Depreciation expense for the years ended December 31, 2004 and 2003 was $340,846 and $196,212 respectively .

INCOME TAXES

The Academy is a non-profit organization as described in Section 501(c)(3) of the Internal Revenue Code and is exempt from federal and state income taxes.

CASH AND EQUIVALENTS

Cash and cash equivalents include cash on hand, amounts due from banks, and highly liquid investments purchased with an original maturity of three months or less . Cash accounts at banks are insured by the FDIC for up to $100,000 . Amounts in excess of insured limits were approximately $390,000 at December 31, 2004. Management monitors the soundness of these financial institutions and believes the Academy's risk is negligible .

FUNCTIONAL ALLOCATION OF EXPENSES

The costs of providing the various programs and activities have been summarized on a functional basis in the statement of activities . Accordingly, certain costs have been allocated among the programs and supporting services benefited .

o

-9-


NOTE 2 - PENSION PLAN

The Academy maintains a Savings Incentive Match Plan (SIMPLE Plan) for its employees. All employees who receive compensation of at least $5,000 in any two preceding years and are reasonably expected to receive at least $5,000 in a plan year are eligible to participate . The Academy must make matching contributions to the SIMPLE Individual Retirement Account (IRA) on behalf of each eligible employee equal to as much as the employee elects as a salary reduction contribution, but not exceeding three percent of compensation for the year . The contributions accrued at December 31, 2004 and 2003 and paid in the following years were $18,230 and $22,706, respectively .

NOTE 3 - LINE OF CREDIT/TERM LOAN

In April 2003, the Academy obtained a line of credit in the amount of $750,000 from State Bank of Long Island ("SBLI") . The line of credit was payable upon demand . If no demand was made, all unpaid principal and interest were payable on April 30, 2004. Payments consisted of interest only at the "SBLI Prime Rate" plus .5% through April 30, 2004 . The facility was secured by an assignment of $300,000 in cash balances maintained in a SBLI account and a security interest in all assets of the Academy, excluding real estate . Borrowings on the line of credit were $650,000 at December 31, 2003 . In April 2004, the line of credit was replaced with a $700,000 term loan, which is evidenced by a promissory note . The Academy is required to make eighty-one (81) monthly interest payments, starting May 31, 2004, with interest calculated on the unpaid principal balance at the "SBLI Prime Rate" plus 1 .0% . In addition, the Academy is required to make seven (7) annual payments of $50,000 each beginning September 30, 2004, and seven (7) annual payments of $50,000 each beginning February 28, 2005 . The note is secured by the general assets of the Academy, excluding real estate .

Principal maturities of long-term debt under the term loan are as follows :

Year ending December 31, 2005 $ 50,000 2006 100,000 2007 100,000 2008 100,000 2009 100,000

Thereafter 150,000 $ 600,000

-10-


NOTE 4 - LOAN PAYABLE - MEMBER

In 2004, the President and sole member of the Academy loaned the Academy $400,000 . The unsecured loan is payable upon demand and interest payments calculated at a rate of .5% over prime ire payable monthly . Interest paid in 2004 totaled $13,1160 .

NOTE 5 - COMMITMENTS AND CONTINGENCIES

Facility Construction and Renovations

The Academy completed a major renovation of its tennis facility in 2004 . The general contractor for the renovation has brought suit against the Academy for unpaid work and damages claimed at $725,000. The Academy has presented counter claims of an indeterminate amount in excess of the plaintiff's claims and intends to vigorously defend its position . Amounts accrued and capitalized at December 31, 2004 and 2003 related to the construction totaled $720,000 and $870,000 respectively . The Academy has not recorded its counter claims .

Bonus Retention Plan

In March 2004, the Board adopted a retention bonus plan that was available to full-time staff employed at December 31, 2003, and was based upon a calculation using the employee's 2003 salary and the consecutive years worked through December 31, 2003 . The calculated bonus amount was divided into nine equal payments payable over three years . Payments not made before an employee's termination will be forfeited . This plan benefits employees who were employed at the end of 2003 only . Should all the employees remain with the Academy through September 30, 2006, the maximum bonuses payable would be $209,000.

Snow Damage

In February 2003, a portion of the roof of the Academy's tennis facility collapsed after a snow storm . Claims were filed with Travelers Insurance Company ("Travelers") for reimbursement of costs and lost income totaling $724,000. The Academy received $200,000 as an advance against its claims in 2003 .

Subsequent event - In 2005 Travelers settled all undisputed claims and made payments totaling $152,000 . The Academy is still pursuing the disputed balance of claims for repair costs of $372,000 from Travelers . Travelers claimed that the disputed costs were excessive or were actual improvements as opposed to repairs .

Application for Extension of Time to File an Exempt Organization Return OMB No 1sos .17o9 Form

(Rev December 2004)

Department of the Treasury Internal Rev enue Service 11 File a ication for each return .

It you are filing for an Automatic 3-Month Extension, complete only Part I and check this box

If you are riling for an Additional (not automatic) 3-Month Extension, comploto only Part II (on page 2 of this form) .

Do not compote Port //unless you have already been granted an automatic 3-month extension on a previously filed Form 8868 .

Form 990-T corporations requesting an automatic 6-month extension - check this box and complete Par 1 I only

All other corporations (lnrlucllnq Form 990-C filers) nwsl usQ Fnnn %OM In request an BYIF.'I7S/Arl of 11I11Q 10 file income tfir returns Parlnershlps, REMICs and Busts must use Foam 8736 to request an extension al Time to nee Form 1065, 1066, or 1041

Eloctronlc Filing (o-fllo). Form 8868 can be filed electronically it you want a 3-month automatic extension of tune to file one of the returns noted below (6~rnonths for corporate Form 990.7 filers) . However, you cannot file it electronIc;~~l~lY It you wa~7t the additional (nut tlutoms~UC) 3 month nxldiiswn, uisleud you iIiusl suUiiiil ills fully cunipleldd SiUiiud i)tye 2 (Pail II) ul Fuiiii S25 EH Fur mwiH llblbul5 uii Ilie dluclionic filing of tills lorin, wsit www.irs.qov/efile.

Name of Exempt Organization Employar Identification number

Typo or rant Iie by me PORT WASHINGTON TE ~

due date for Number, drool, and room or suite nun

filing your return See 100 HARBOR ROAD II IJiIUC1WI IJ Clly, lawn u1 yuel urfiuo . Fw a rutaiyn

11-2112356 [S ACADEMY If o P 0 box, sea mstmchons

state Zii- code nay, ono ulaLuCLwIa

WASHINGTON, NY 11050 Check type of return to be filed (file a separate application for each return)

X Form 990 Form 990-T (corporation) Form 990-BL Form 990-T (section 401(a) or 408(a) trust)

Form 990-EZ Form 990~T (trust other than above) Form 990~PF Form 1041~A

Form 4720 Form 5227 Form 6069 Form 8870

FIFZ0501L 01/07/05

Automatic 3-Month Extension of Time - Only submit original (no copies needed)

0 The books are in the care of I- RICHARD ZAUSNER

Telephone No . 516-883-6425 - _ _ _ _ _ . FAX No . If the organization does not have an office or place of business in the United States, check this box

I( this is for a Group Return, enter the organization's four digit Group Exemption Number (GEN) If this is for the whole group,

check this box. . 01 n . If it is for part of the group, check this box 01 Fland attach a list with the names and EINs of all members

the extension will cover. `

1 I request an automatic 3-month (6-months for a Form 990-T corporation) extension of time until _ 8/15----,20 05-,

to file the exempt organization return for the organization named above The extension is for the organization's return for,

calendar year 20 04_ or 11- M tax year beginning _ - _, 20 ---, and ending , 20

2 If this lax year is (or less than 12 months, check reason D Initial return El Final return ~ Change in accounting period

3a If this application is for Form 990-BL, 990~PF, 990~T, 4720, or 6069, enter the tentative tax, less any nonrefundable credits . See instructions . . . .

b If this application is for Form 990-PF or 990~T, enter any refundable credits and estimated tax payments made Include any prior year overpayment allowed as a credit $ 0

c Balance Due . Subtract line 3b from line 3a Include your payment with this form, or, if required, deposit with FTD coupon or, if required, by using EFTPS (Electronic Federal Tax Payment System) See instructions $ 0 .

Caution. If you are going to make an electronic fund withdrawal with this Form 8868, see Form 8453 EO and Form 8879-EO for payment instructions BAA For Privacy Act and Paperwork Reduction Act Notice, see instructions . Form 8868 (Rev 12-2004)

100 HARBOR ROAD - Foundation Center

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