FOOTHILLS HOMEOWNERS ASSOCIATION FINANCIAL STATEMENTS BALANCE SHEET

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Allyson Lynch
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1 FOOTHILLS HOMEOWNERS ASSOCIATION FINANCIAL STATEMENTS BALANCE SHEET Years Ended December 31, ASSETS 2016 Current Assets Cash & Cash Equivalents Checking Certificates of Deposit Savings Total Cash & Cash Equivalents Accounts receivable And total current other assets TOTAL ASSETS LIABILITIES AND EQUITY Current Liabilities Other Current Liabilities Construction Deposit 1, Total Other Current Liabilities 1, Total Current Liabilities 1, Total Liabilities 1, Homeowners Equity Opening Bal Equity 32, Retained Earnings Net Income Total Homeowners Equity TOTAL LIABILITIES & HOMEOWNERS EQUITY

2 The accompanying notes are an integral part of these financial statements. 2

3 FOOTHILLS HOMEOWNERS ASSOCIATION STATEMENT OF INCOME & EXPENSE Years Ended December 31, 2016 Income Escrow Processing Fee Finance Charges Homeowner Dues Interest Income Total Income Operating Expenses Mailing Costs Web Services Irrigation Bank service fee Bad debt expense.10 Community Activities Electricity HOA misc Legal Fees Insurance Landscape / other Landscape Contract Lien Filing Fees 0.00 Newsletter 0.0 Office Supplies Rent Tax 0.00 Vandalism Water Total Expense Net Income

4 The accompanying notes are an integral part of these financial statements. FOOTHILLS HOMEOWNERS ASSOCIATION STATEMENT OF CASH FLOWS Years Ended December 31, 2016 OPERATING ACTIVITIES Net Income or loss Adjustments to reconcile Net Income to net cash provided by operations: Accounts Receivable Accounts payable 0.00 Net cash provided by Operating Activities Net cash increase or decrease for period Cash at beginning of period Cash at end of period

5 The accompanying notes are an integral part of these financial statements. 5

6 FOOTHILLS HOMEOWNERS ASSOCIATION NOTES TO FINANCIAL STATEMENTS December 31, 2016 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Association The purpose of the Foothills Homeowners Association is to carry out the duties, obligations and responsibilities imposed by the Declaration of Covenants, Conditions and Restrictions of the Foothills subdivision of Snohomish County, Washington, to maintain the zoning of the subdivision as a single-family residential zone and to maintain residentially compatible zoning in the contiguous area. The Association was formed in There are a total 210 lots, of which, 210 lots have been completed as single family residences. Method of Accounting The Association prepares its financial statements on the cash basis of accounting. Revenues and related assets are recognized when received, and expenses are recognized when paid. Therefore, receivables and payables and accrued income and expenses which would be recognized under generally accepted accounting principles, and which may be material in amount, are not recognized in the accompanying financial statements. Membership Dues Dues are collected for the calendar year. In accordance with the cash basis method of accounting, five prepaid dues have been recorded. NOTE B OWNERS ASSESSMENTS Association members are subject to annual assessments to provide funds for the Association s operating expenses, maintenance, major repairs and replacements. Annual maintenance assessments to owners were $238 per lot in The annual budget and assessments of owners are determined by the board of directors and are approved by the owners. The Association retains excess operating funds at the end of the operating year, if any, for use in future operating periods. NOTE C IMPROVEMENTS, FUTURE MAJOR REPAIRS AND REPLACEMENTS Funds are being accumulated and reserved for improvements, major repairs and replacements out of the monthly assessments. This year we repired the park along Foothills RD. NOTE D PROPERTY AND EQUIPMENT Real property and common areas acquired from the developer and related improvements to such property are not recorded in the Association s financial statements because those properties: 6

7 a. are not used to generate significant cash flows on the basis of usage from members and nonmembers. b. Cannot be sold without a majority vote of the membership. Real property and common areas consist of parks, playground structures, and greenbelts. NOTE D CASH AND CERTIFICATE OF DEPOSIT BALANCES Cash and certificates of deposit for general operations and future major repairs and replacements. As of December 31, 2016, the cash and certificates of deposit balances were as follows: Union Bank Accounts Operating Reserves Total Checking Reserve CD # Reserve CD # Reserve CD # Savings Cash listed as operating above is available for current operations and is not bound by any restriction or designation. Cash and certificates of deposit listed as reserves are designated for future major repairs and replacements and are generally not available for current operations. NOTE F INCOME TAXES The Association is a homeowners association in accordance with the Internal Revenue Code defined under Section 528 and, therefore, is not subject to tax on uniform assessments to members and other operating income. The Association is taxed at the rate of 30% on its nonexempt function income, which includes interest income. 7

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INNSBRUCK PROPERTY OWNERS ASSOCIATION, INC. FINANCIAL STATEMENTS for the years ended December 31, 2004 and December 31, 2003 INNSBRUCK PROPERTY OWNERS ASSOCIAnON, INC. Table of Contents December 31, 2004