Crooked River Ranch...The accompanying notes are an integral part of the financial statements. 4...
Transcript of Crooked River Ranch...The accompanying notes are an integral part of the financial statements. 4...
__________________________________________________________
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION
(An Oregon Domestic
Not-For-Profit Corporation)
__________________________________________________
FINANCIAL STATEMENTS (Audited)
For the Years Ended
April 30, 2019 and 2018
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION
(A Not-For-Profit Corporation)
CONTENTS
Independent Auditors’ Report ................................................................................................................. 1
Financial Statements:
Balance Sheets .................................................................................................................................. 3
Statements of Income and Changes in Association Equity ....................................................... 5
Statements of Cash Flows .............................................................................................................. 6
Notes to Financial Statements ....................................................................................................... 8
Supplemental Information:
Statements of Income by Department .......................................................................................... 19
Schedule of Income – Entire Ranch
Budget and Actual (Non - GAAP Budgetary Basis - Unaudited) ....................................... 20
Schedule of Homeowners Dues Compared to
Administration Costs (Non – GAAP - Unaudited) ............................................................... 21
CAPSTONE CERTIFIED PUBLIC ACCOUNTANTS, LLC
698 NW York Dr, Bend, OR 97703 phone: 541-382-5099 fax: 541-388-1056 735 SW 9th St, Redmond 97756 phone: 541-548-3569 fax: 541-548-3580
PO Box 1563, Sisters, OR 97759 phone: 5411 549-1237 fax: 541- 549-4465
To the Board of Directors
Crooked River Ranch Club and
Maintenance Association
Crooked River Ranch, Oregon
INDEPENDENT AUDITORS’ REPORT
We have audited the accompanying financial statements of Crooked River Ranch Club and
Maintenance Association (a not-for-profit Corporation) which comprise the balance sheets as of
April 30, 2019 and 2018 and the related statements of income and changes in Association equity,
and cash flows for the years then ended and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States of
America; this includes the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in 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 from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
2
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects,
the financial position of Crooked River Ranch Club and Maintenance Association as of April 30,
2019 and 2018 and the results of its operations and its cash flows for the years then ended in
accordance with accounting principles generally accepted in the United States of America.
Report on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a
whole. The supplementary information is presented for purposes of additional analysis and is
not a required part of the financial statements. Such information, except for the portion marked
“unaudited”, is the responsibility of the Association’s management and was derived from and
relates directly to the underlying accounting and other records used to prepare the financial
statements. The information has been subjected to the auditing procedures applied in the audit
of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the information is fairly stated in all material respects in relation to
the financial statements as a whole. The information marked “unaudited” has not been
subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we do not express an opinion or provide any assurance on it.
Omission of Required Supplementary Information about Future Major Repairs and
Replacements
As discussed in Note 8 and as allowed by Oregon Revised Statute 94.783, management has
elected to omit the Supplementary Information of Future Major Repairs and Replacements that
accounting principles generally accepted in the United States of America require to be
presented to supplement the basic financial statements. Such missing information, although not
a part of the basic financial statements, is required by the Financial Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economical, or historical context. Our
opinion on the basic financial statements is not affected by the missing information.
Capstone Certified Public Accountants, L.L.C.
Bend, Oregon
July 31, 2019
The accompanying notes are an integral part of the financial statements. 3
CROOKED RIVER RANCH CLUB AND MAINTENANCE
ASSOCIATION (A Not-For-Profit Corporation)
BALANCE SHEETS (See Independent Auditors’ Report)
April 30, 2019 2018
Current assets:
Cash and cash equivalents (Notes 1 and 6):
Operating cash, on hand in checking and investment accounts 556,928 $ 626,697 $
Capital reserve plan cash in checking interest bearing accounts
and certificates of deposit 1,092,466 988,720
Total cash and cash equivalents 1,649,394 1,615,417
Dues receivable (Note 2) 252,918 303,332
Less allowance for uncollectible dues 91,241 104,369
Net dues receivable 161,677 198,963
Prepaid expense - 543
Inventories (Note 3) 117,801 103,201
Total current assets 1,928,872 1,918,124
Property and equipment - at cost (Note 4) 6,383,656 5,737,512
Less accumulated depreciation 4,237,896 4,176,114
Net property and equipment 2,145,760 1,561,398
Total assets 4,074,632 $ 3,479,522 $
ASSETS
The accompanying notes are an integral part of the financial statements. 4
CROOKED RIVER RANCH CLUB AND MAINTENANCE
ASSOCIATION (A Not-For-Profit Corporation)
BALANCE SHEETS (See Independent Auditors’ Report)
April 30, 2019 2018
Current liabilities:
Accounts payable 114,493 $ 71,571 $
Deferred dues revenue (Note 1) 127,214 139,123
Unredeemed gift certificates / golf credit book 41,178 39,214
Other current liabilities (Note 1) 140,609 125,875
Current portion of long-term debt (Note 6) 21,668 -
Total current liabilities 445,162 375,783
Long-term debt, net of current portion (Note 6) 229,423 -
Total liabilities 674,585 375,783
Association equity:
Undesignated for operations 2,307,581 2,115,019
Designated for capital reserve plan 1,092,466 988,720
Total association equity 3,400,047 3,103,739
Total liabilities and association equity 4,074,632 $ 3,479,522 $
LIABILITIES AND ASSOCIATION EQUITY
The accompanying notes are an integral part of the financial statements. 5
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
STATEMENTS OF INCOME AND CHANGES IN ASSOCIATION EQUITY (See Independent Auditors’ Report)
For the Years Ended April 30, 2019 2018
Revenues:
Membership dues 1,393,641 $ 1,335,143 $
Fee income 1,187,629 1,200,929
Merchandise sales 206,057 222,582
Rental income 60,252 54,427
Interest income 6,157 2,710
Loss on dispositions of assets 375)( -
Miscellaneous 8,309)( 15,466
Total revenues 2,845,052 2,831,257
Less cost of goods sold 117,422 130,874
Gross profit 2,727,630 2,700,383
Expenses:
Bank charges 32,461 29,839
Community relations 45,959 43,952
Cleaning 8,615 8,604
Interest expense 55 -
Legal services 29,295 37,986
Office and insurance 119,916 114,438
Personnel 1,181,910 1,197,355
Repair and maintenance 268,545 264,960
Road materials 202,836 189,254
Professional services 62,621 61,431
Federal, state and local taxes 71,195 82,260
Utilities 219,877 210,842
Operating leases 63,630 63,630
Depreciation 124,407 113,876
Total expenses 2,431,322 2,418,427
Net income from operations 296,308 281,956
Association equity, beginning of year 3,103,739 2,821,783
Association equity, end of year 3,400,047 $ 3,103,739 $
The accompanying notes are an integral part of the financial statements. 6
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS (See Independent Auditors’ Report)
For the Years Ended April 30, 2019 2018
Operating activities:
Membership dues 1,430,927 $ 1,348,915 $
Fee income 1,069,894 1,214,082
Merchandise sales 206,057 222,582
Rental income 60,252 54,427
Interest income 6,157 2,710
Miscellaneous (8,309) 15,466
Cost of goods sold (132,022) (128,175)
Bank charges (32,461) (29,839)
Community relations (45,959) (43,952)
Cleaning (8,615) (8,604)
Interest (55) - Legal services (29,295) (37,986)
Office and insurance 3,151 (86,380)
Personnel (1,181,910) (1,197,355)
Repair and maintenance (225,623) (297,795)
Road materials (202,836) (189,254)
Professional services (62,621) (61,431)
Local and state taxes (71,195) (82,260)
Utilities (219,877) (210,842)
Operating leases (63,630) (63,630)
Net cash provided by operating activities 492,030 420,679
Investing activities:
Acquistion of property and equipment (709,144) (297,731)
Cash used in investing activities (709,144) (297,731)
(217,114) 122,948
The accompanying notes are an integral part of the financial statements. 7
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
STATEMENTS OF CASH FLOWS - Continued (See Independent Auditors’ Report)
For the Years Ended April 30, 2019 2018
Total from previous page (217,114) 122,948
Financing activities:
Proceeds from long-term debt 251,091 -
Cash used in financing activities 251,091 -
Net increase in cash and cash equivalents 33,977 122,948
Cash and cash equivalents, beginning of year 1,615,417 1,492,469
Cash and cash equivalents, end of year 1,649,394 $ 1,615,417 $
Reconciliation of net income to cash provided
by operating activities:
Net income from operations 296,308 $ 281,956 $
Adjustments to reconcile change in net assets to
net cash flows from operating activities:
Depreciation 124,407 113,876
Allowance for doubtful accounts adjustment (13,128) (3,660)
Loss on disposal of assets 375 -
Changes in operating assets and liabilities
Decrease (Increase) in current assets:
Dues receivable 50,414 17,432
Prepaid expense 543 (543)
Inventories (14,600) 2,699
(Decrease) increase in current liabilities:
Accounts payable 42,922 (32,835)
Deferred dues revenues (11,909) 10,909
Unredeemed gift certificates / golf credit book 1,964 2,244
Other current liabilities 14,734 28,601
Net cash provided by operating activities 492,030 $ 420,679 $
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS (See Independent Auditors’ Report)
1 - Significant Accounting Policies
Organization and nature of activities
The Crooked River Ranch Club and Maintenance Association (the Association) was
incorporated May 4, 1972 as a domestic not-for-profit corporation under the applicable laws of
the State of Oregon. Its members are property owners of Crooked River Ranch, an
unincorporated area in Oregon. The Association’s Board of Directors is the local governing and
reviewing authority for the Association’s activities. The development consists of 2,646
residential units and 6 commercial units on approximately 12,000 acres located in both Jefferson
and Deschutes counties. The Association owns, operates, and maintains the common properties
and facilities of the Association.
The Association also conducts unrelated business operations not originally included with the
incorporation of the Association. The unrelated activities include an 18-hole golf course and
pro shop, which serves members to the golf course and is open to the general public for
recreational use. The Association also leases common area real estate and structures to local
merchants and maintains a recreational vehicle park.
Use of 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. Actual results could differ from those estimates.
Basis of accounting
The Association prepares its financial statements on the accrual basis.
Association equity represents the Association’s accumulated resources of cash and cash
equivalents, investment in land, buildings, and equipment net of liabilities. The Association
equity may be “designated” by the Board of Directors at any time. Board designated funds
were $1,092,466 and $988,721 for the years ending April 30, 2019 and 2018 respectively.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS (See Independent Auditors’ Report)
1 - Significant Accounting Policies - continued
Revenue recognition
Revenues are reported as increases in unrestricted net assets unless use of the related assets is
limited by donor-imposed restrictions. There were no donor contributions for the years ended
April 30, 2019 and 2018.
Membership dues revenue are recognized when assessed and earned.
Expenses are reported as decreases in Association equity. Gains and losses on assets or
liabilities are reported as increases or decreases in Association equity unless explicit donor
stipulation or law restricts their use. Expirations of temporary restrictions on Association
equity are reported as equity released from restrictions. For the years ended April 30, 2019 and
2018 there were no donor restricted and law restricted gains and losses or liabilities.
Budgetary reporting
The budget is prepared for the Association and the individual respective departments on the
accrual basis of accounting and approved annually by the Board of Directors prior to the
commencement of a new operating year. Line item adjustments and modifications may occur
following the initial adoption of the budget by approved Board action which does not impact
the overall operating budget expectations as initially adopted.
Cash equivalents
The Association considers all liquid interest-earning investments with maturity of three to
eighteen months or less at the date of purchase to be cash equivalents.
Cash on hand and in banks 940,247 $ 910,632 $
Certificates of deposit 709,147 704,785
1,649,394 $ 1,615,417 $
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS - Continued (See Independent Auditors’ Report)
1 - Significant Accounting Policies - continued
Dues receivable
Under the Association bylaws, the Board of Directors is authorized to assess dues to the
property owners for management, maintenance and improvements of the Ranch. Dues are as
assessed and payable semi-annually and the Association is authorized to file liens against the
real property of the owner for any unpaid dues assessed. Dues receivables are stated at the
amount management expect to collect from outstanding balances. Management provides for
probable uncollectible amounts through a charge to earnings and a credit to a valuation
allowance based on its assessment of the current status of individual accounts. Balances that
are still outstanding after management has used reasonable collection efforts are written off
through a charge to the valuation allowance and a credit to dues receivable. Any recoveries of
accounts previously deemed uncollectible are adjusted through current bad debt expense.
Inventories
Inventory, consisting of resale items in the golf pro shop and fuel inventory, are carried at the
lower of cost or market value with cost determined principally by use of the first-in, first-out
(FIFO) method.
Property and equipment
Property and equipment purchased is stated at historical cost, while contributed property is
stated at the fair market value of the property at the date of the contribution. Additions,
renewals, and betterments exceeding $5,000 are capitalized whereas expenditures for
maintenance and repairs are charged to expense as incurred. Gains and losses on the
disposition of fixed assets are recorded as income or loss at the difference between the gross
proceeds received and remaining net book value. Depreciation expense includes amortization
for equipment purchased with a capital lease. Depreciation and amortization are computed for
financial reporting purposes using the straight-line method over the estimated useful lives.
Management evaluated the Association’s property and equipment during the fiscal year ending
April 30, 2019. There were no impairment losses recorded for the respective year ends. The
property, equipment and improvements are tracked in-house using the QuickBooks Fixed Asset
Management accounting program. Depreciation expense is also calculated using accounting
software, over the estimated useful lives of such assets on a straight line basis.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS - Continued (See Independent Auditors’ Report)
1 - Significant Accounting Policies - continued
Donated goods and services
The Association receives a substantial amount of services donated by its members and directors
in carrying out the Association’s community services and administration. No amounts have
been reflected in the financial statements for those services since they do not meet the criteria
for recognition under ASC 958-605-15, Accounting for Contributions Received and Contributions
Made.
Deferred dues revenue
Deferred dues revenue consists of Association and golf course membership dues collected in
the current period and which relate to the subsequent fiscal year of the Association. These are
included in other current liabilities.
Income taxes
The Association is exempt from income taxes under section 501(c)(4) of the Internal Revenue
Code. Therefore, no provision for federal income taxes on the income generated by the
Association’s activity has been recorded in the accompanying financial statements. In addition,
the Internal Revenue Service has determined that the Association is not a private foundation
within the meaning of Section 509(a) of the Internal Revenue Code. The Association also
operates a golf course and recreational vehicle park that generates rental and operating income.
For income tax purposes, this income is considered unrelated business income and may
generate income taxes. For the years ending April 30, 2019 and 2018, these activities did
generate taxable income due to a net operating income and, in turn, income taxes have been
reported and paid.
Departmental allocation of expenses
The cost of providing the Association’s various program and supporting services have been
summarized on a departmental basis. Accordingly, certain costs have been allocated among the
programs and supporting services based on estimates made by management.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS - Continued (See Independent Auditors’ Report)
1 - Significant Accounting Policies - continued
Environmental costs
The Association may be subject to certain federal and state environmental laws and regulations
in connection with its various operating activities. Environment expenditures, if applicable, are
expensed or capitalized, as appropriate as they occur. Liabilities are generally recorded, on a
non-discounted basis, when assessments and/or remedial efforts are probable and the cost can
be reasonably estimated.
Compensated absences
The Association accrues a liability for accumulated vacation leave and paid time off. Vacation
earned can be carried over into the next year, but not more than one year’s accrual.
Accumulated vacation leave was $32,161 and $36,946 at April 30, 2019 and 2018, respectively.
This liability is included in other current liabilities.
Advertising costs
The Association expenses all non-direct advertising expenses as it is incurred. Advertising
expense was $26,841 and $27,638 for the years ended April 30, 2019 and 2018, respectively.
Post Retirement Benefit Plan
On January 1, 2008 the Association adopted a SIMPLE IRA Plan covering all of its employees.
The Association has agreed to match up to 3% of the employees’ salary reduction contributions.
The Association contributed $15,828 and $15,105 for the years ended April 30, 2019 and 2018,
respectively.
Date of Management’s Review
Subsequent events have been evaluated through July 31, 2019 which is the date the financial
statements were available to be issued.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS - Continued (See Independent Auditors’ Report)
2 - Dues Receivable
Aged dues receivable as of Less than Greater than
April 30, 2019 consisted of: one year old one year old Total
Dues receivable 84,601 $ 168,317 $ 252,918 $
Allowance for uncollectible dues - 91,241 91,241
Dues receivable, net 84,601 $ 77,076 $ 161,677 $
Aged dues receivable as of Less than Greater than
April 30, 2018 consisted of: one year old one year old Total
Dues receivable 108,593 $ 194,739 $ 303,332 $
Allowance for uncollectible dues - 104,369 104,369
Dues receivable, net 108,593 $ 90,370 $ 198,963 $
3 - Inventories 2019 2018
Inventories consist of the following:
Fuel inventory 4,730 $ 4,923 $
Pro Shop resale inventory 113,071 98,278
117,801 $ 103,201 $
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS - Continued (See Independent Auditors’ Report)
4 - Property and Equipment
Accumulated Net Book
2019 Cost Depreciation Value
Land 447,049$ - $ 447,049$
Buildings, equipment and improvements -
Administration 390,409 360,890 29,519
Pool 305,245 223,977 81,268
Rentals 73,332 70,053 3,279
RV Park 417,719 207,491 210,228
Pro Shop 309,641 188,830 120,811
Golf Maintenance 2,716,558 2,418,249 298,309
General Maintenance 258,021 163,123 94,898
Alternative exit easement 451,036 - 451,036
Roads 1,014,646 605,283 409,363
6,383,656$ 4,237,896$ 2,145,760$
Accumulated Net Book
2018 Cost Depreciation Value
Land 447,049$ - $ 447,049$
Buildings, equipment and improvements -
Administration 390,409 355,571 34,838
Pool 263,095 221,480 41,615
Rentals 73,332 68,955 4,377
RV Park 356,693 193,868 162,825
Pro Shop 309,641 182,367 127,274
Golf Maintenance 2,684,169 2,371,988 312,181
General Maintenance 235,478 153,924 81,554
Roads 977,646 627,961 349,685
5,737,512$ 4,176,114$ 1,561,398$
Depreciation expense was $124,407 and $113,876 for the years ended April 30, 2019 and 2018,
respectively.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS – Continued (See Independent Auditors’ Report)
5 - Lease Obligations
The Association leases office and maintenance equipment under four leases one of which
expires in May 2020. Aggregate minimum monthly payments under the leases are $6,296
through May 2020 and $993 through 2023.
Minimum lease payments as follows
for Years Ending
April 30,
2020 75,552$
2021 11,916
2022 11,916
2023 11,916
111,300$
6 - Long term debt 2019 2018
Note payable to Jefferson County for the construction
of an alternative exit off of Quail Road. Paid in annual
installments of $29,025 including interest at 2.49% per
annum, due January 31, 2029. 251,091$ -$
Less current portion 21,668 -
229,423 $ -$
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS – Continued (See Independent Auditors’ Report)
6 - Long term debt - continued
Maturities of long-term debt are as follows
for the Years Ending
April 30,
2020 21,668$
2021 23,155
2022 23,599
2023 24,193
2024 24,801
Thereafter 133,675
251,091
Less current portion 21,668
Long-term portion 229,423$
7 - Concentration of Credit Risk
Financial instruments that potentially subject the Association to credit risk consist of cash and
cash equivalents. The Association’s policy is to place its cash and cash equivalents with high
credit quality financial institutions. The Association maintains its cash in bank deposit accounts
that, at times, may exceed the federally insured limits. The balances are insured by the Federal
Deposit Insurance Corporation up to $250,000 for both noninterest and interest bearing
accounts per financial institution. The Association’s uninsured cash balances were $9,247 and
$4,885 at April 30, 2019 and 2018, respectively. The Association has not experienced any losses
in interest bearing accounts and believes it is not exposed to any significant credit risk on cash.
Cash and cash equivalents are classified as investments that mature within three to eighteen
months or less at the time of purchase.
8 - Pending Litigation
The Association is involved in various legal actions arising in the normal course of business and
other incidences. In the opinion of management and legal counsel, the resolution of such
matters that may not be favorable to the Association will not have a material effect upon the
financial position of the Association due to insurance coverage in effect at the time of any
litigation.
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
NOTES TO FINANCIAL STATEMENTS – Continued (See Independent Auditors’ Report)
9 - Future Major Repairs and Replacements of Common Property
It is implied in the Association’s by-laws that it is the responsibility of the Association for
maintaining the common areas, and define the extent of such common areas. The by-laws allow
the Board of Directors to include a provision in the annual budget for funding future repair and
replacement costs. The by-laws also allow the Board of Directors to levy special assessments
when existing funds are inadequate. Per Oregon Revised Statute (hereafter “ORS”) 94.783,
since the Association was organized prior to July 1, 1982 it is exempt from the required
provisions of ORS 94.595 “Reserve account for maintaining, repairing and replacing common property;
reserve study; maintenance plan”. The Board has conducted an informal internal study to estimate
the remaining useful lives and replacement costs of the real property common elements. Funds
are being budgeted based on the Board’s estimates of future needs for repairs and replacements.
Actual expenditures may vary from the estimated future expenditures and the variations may
be material. Therefore, amounts budgeted may not be adequate to meet all future needs for
major repairs and replacements.
10 - Alternative Exit Easement
The Association entered into an agreement with Deschutes County, Jefferson County and
Crooked River Ranch Special Road District for the construction, operation and maintenance of
the Quail Road Extension Project. The Association entered into an Oregon Transportation
Infrastructure Loan Repayment Agreement with Jefferson County in conjunction with said
agreement (See Note 6). The Association also expended $200,000 as part of the construction
agreement. The amounts are capitalized as a non-depreciable asset representing the easement
and right of way to which the Association benefits from the construction of the alternative exit.
11 - Change in Presentation
Certain amounts in the 2018 financial statements have been reclassified to conform to the 2019
presentation.
SUPPLEMENTARY FINANCIAL INFORMATION
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CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
STATEMENTS OF OPERATIONS BY DEPARTMENT (See Independent Auditors’ Report)
For the Year Ended April 30, 2019
Administration Golf RV Park Rentals Total
Revenues:
Membership dues 1,189,800 $ 203,841 $ -$ -$ 1,393,641$
Fee income 80,635 728,556 378,438 - 1,187,629
Merchandise sales 19,503 171,360 15,194 - 206,057
Rental income 5,346 3,883 - 51,023 60,252
Gain on Asset Sale 375)( - (375)
Interest income 6,157 - - - 6,157
Miscellaneous 13,924)( 5,032 117 466 (8,309)
Total revenues 1,287,142 1,112,672 393,749 51,489 2,845,052
Less cost of goods sold 8,130 105,143 4,149 - 117,422
Gross profit 1,279,012 1,007,529 389,600 51,489 2,727,630
Expenses:
Bank charges 10,167 14,288 8,006 - 32,461
Community relations 19,074 21,826 5,059 - 45,959
Cleaning 3,126 3,401 2,088 - 8,615
Interest 55 - - - 55
Legal services 29,295 - - - 29,295
Office and insurance 81,581 31,156 6,686 493 119,916
Personnel 496,397 596,772 86,239 2,502 1,181,910
Repair and maintenance 139,305 109,595 17,657 1,988 268,545
Road materials 196,052 4,893 1,891 - 202,836
Professional services 44,279 13,003 3,787 1,552 62,621
Federal, state and local taxes 13,508 27,649 21,941 8,097 71,195
Utilities 62,711 78,696 70,051 8,419 219,877
Operating leases - 63,630 - - 63,630
Depreciation 56,961 52,725 13,623 1,098 124,407
Total expenses 1,152,511 1,017,634 237,028 24,149 2,431,322
Net income from operations 126,501 $ 10,105)($ 152,572 $ 27,340 $ 296,308$
20
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
SCHEDULE OF OPERATIONS – ENTIRE RANCH
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS - UNAUDITED)
For the Year Ended April 30, 2019
Budget Variance
(unaudited) Actual (unaudited)
Revenues:
Membership dues 1,394,800 $ 1,393,641 $ 1,159)($
Fee income 1,202,750 1,187,629 15,121)(
Merchandise sales 225,000 206,057 18,943)(
Rental income 51,325 60,252 8,927
Interest income 1,200 6,157 4,957
Loss on disposition of assets - 375)( 375)(
Miscellaneous 8,750 8,309)( 17,059)(
Total revenues 2,883,825 2,845,052 38,773)(
Less cost of goods sold 135,450 117,422 18,028)(
Gross profit 2,748,375 2,727,630 20,745)(
Expenses:
Bank charges 26,500 32,461 5,961
Community relations 72,900 45,959 26,941)(
Cleaning 12,550 8,615 3,935)(
Interest expense - 55 55
Legal services 19,500 29,295 9,795
Office and insurance 130,597 119,916 10,681)(
Personnel 1,239,438 1,181,910 57,528)(
Repair and maintenance 354,580 268,545 86,035)(
Road materials 205,100 202,836 2,264)(
Professional services 72,985 62,621 10,364)(
Federal, state and local taxes 95,205 71,195 24,010)(
Utilities 206,803 219,877 13,074
Operating leases 63,630 63,630 -
Contingency - - -
Depreciation 121,500 124,407 2,907
Total expenses 2,621,288 2,431,322 189,966)(
Net income from operations 127,087 $ 296,308 $ 169,221 $
21
CROOKED RIVER RANCH CLUB
AND MAINTENANCE ASSOCIATION (A Not-For-Profit Corporation)
SCHEDULE OF HOMEOWNERS DUES COMPARED TO
ADMINISTRATION COSTS (NON-GAAP - UNAUDITED)
For the Year Ended April 30, 2019
Homeowner Dues Compared to Administration Costs for the Year Ended April 30, 2019
Number of Billable Lots 2,644
Annual Dues 450$
Total Homeowner Dues 1,189,800$
Costs:
Administration 332,350$
Pool 56,480
Snack Shack 21,617
General Maintenance 209,763
Roads 532,301
Total Administration Costs 1,152,511$
Cost per Homeowner:
Administration 126$
Pool 21
Snack Shack 8
General Maintenance 79
Roads 201 435$
Dues exceeded expenses by: 15$
29%
5%
1%
18%
46%
Administration Pool Snack Shack General Maintenance Roads