February 24, 2021
To: Board of Directors – Desert Breezes Resort Association
From: Luis Moran
Dear Board of Directors:
Enclosed please find the unaudited financial statements for the three months
ended January 31, 2021. The unaudited financial statements reflect that the
association is operating with a surplus in the amount of $46,743 and a
favorable variance to budget in the amount of $64,243 for the three-month
period.
If you have any questions or need additional information, please let me know.
Thank you,
Luis Moran
ASSETS Current Month Prior Month Incr (Decr) Current Assets
1002-00-00 1st Bank - Site Checking 3,430.04 5,328.22 (1,898.18)
1004-00-00 Petty Cash 800.00 800.00 0.00
1006-00-00 U S Bank - Operating 415,735.01 475,690.13 (59,955.12) 1007-00-00 Union Bank - Operating 38,338.93 15,341.10 22,997.83 1010-00-00 Citizens Bank - Operating 6,984.46 6,983.91 0.55 1011-00-00 Wells Fargo Advisors - Operating 820,337.78 820,330.81 6.97 1012-00-00 Wells Fargo Advisors - Operating CD 400,000.00 400,000.00 0.00
1013-00-00 Citizens Bank - Reserve 8,652.97 8,652.28 0.69
1014-00-00 Citizens Bank - Reserve CD 154,923.30 154,859.65 63.65 1015-00-00 Wells Fargo Advisors - Reserve 264,178.11 264,175.87 2.24
1016-00-00 Wells Fargo Advisors - Reserve CD 0.00 0.00 0.00
Total Current Assets 2,113,380.60 2,152,161.97 (38,781.37)
Accounts Receivable
1205-00-00 Assessments Receivable 6,034,862.43 6,109,364.10 (74,501.67) 1210-00-00 Allowance For Doubtful Accounts (3,994,313.81) (3,923,614.19) (70,699.62)
1212-00-00 Interest Receivable 34.52 17.54 16.98
1217-00-00 Due From Trading Places 403.94 6,846.40 (6,442.46)
1220-00-00 Deposit 54,000.00 54,000.00 0.00
Total Accounts Receivable 2,094,987.08 2,246,613.85 (151,626.77)
Prepaid Expenses
1301-00-00 Prepaid Expenses 3,944.97 4,621.94 (676.97)
1303-00-00 Prepaid Insurance 35,076.33 43,888.91 (8,812.58)
1310-00-00 Prepaid Taxes 11,199.00 11,199.00 0.00
1311-00-00 Prepaid Property Taxes 11,034.99 13,241.99 (2,207.00) Total Prepaid Expenses 61,255.29 72,951.84 (11,696.55) Other Assets
1803-00-00 Recreational Equipment 16,252.55 16,252.55 0.00
1809-00-00 Clubhouse Building 229,658.59 229,658.59 0.00
1810-00-00 Land 100,000.00 100,000.00 0.00
1813-00-00 A/D Recreational Equipment (16,252.00) (16,252.00) 0.00 1819-00-00 A/D Clubhouse Building (229,659.00) (229,659.00) 0.00
Total Other Assets 100,000.14 100,000.14 0.00
Total Assets 4,369,623.11 4,571,727.80 (202,104.69) Desert Breeze Resort Association
Balance Sheet January 31, 2021
Desert Breeze Resort Association Balance Sheet
January 31, 2021
LIABILITIES AND EQUITY Current Month Prior Month Incr (Decr) Current Liabilities 2001-00-00 Accounts Payable 6,081.07 9,252.97 (3,171.90) 2005-00-00 Due to TPI 1,030,613.39 1,033,893.22 (3,279.83) 2144-00-00 Accrued Expenses 24,609.70 78,718.62 (54,108.92) 2142-00-00 Accrued Payroll 140,463.08 77,119.19 63,343.89 2146-00-00 Accrued Other 11,289.70 12,183.05 (893.35)
Total Current Liabilities 1,213,056.94 1,211,167.05 1,889.89 Deferred Income
2201-00-00 Unearned Assessments 2,263,007.58 2,515,913.88 (252,906.30) 2203-00-00 Prepaid Maintenance Fees 6,795.79 4,555.65 2,240.14
Total Deferred Income 2,269,803.37 2,520,469.53 (250,666.16)
Total Liabilities 3,482,860.31 3,731,636.58 (248,776.27) Equity
3106-00-00 Current Year Earnings 46,742.81 16,714.37 30,028.44
3106-00-00 Operating Fund 341,431.63 341,431.63 0.00
3130-00-00 Replacement Fund 398,588.36 381,945.22 16,643.14
3150-00-02 Capital Fund 100,000.00 100,000.00 0.00
Total Equity 886,762.80 840,091.22 46,671.58
Total Liabilities and Equity 4,369,623.11 4,571,727.80 (202,104.69)
UNAUDITED 02/24/21
Year to Date Annual
Actual Budget Variance Account # Actual Budget Variance Budget
Income
251,445.29 252,656.63 (1,211.34) 4005-00-00 Assessment Revenue 754,628.11 757,969.89 (3,341.78) 3,031,879.55
24.50 1,000.00 (975.50) 4100-00-00 Interest Income - Operating Fund 122.25 3,000.00 (2,877.75) 12,000.00
0.00 1,313.81 (1,313.81) 4202-00-00 Late Fee Income 0.00 3,941.43 (3,941.43) 15,765.77
71.46 33,333.33 (33,261.87) 4200-00-00 Rental Revenue 28,532.29 99,999.99 (71,467.70) 400,000.00
0.00 1,000.00 (1,000.00) 4203-00-00 Upgrade Revenue 1,330.00 3,000.00 (1,670.00) 12,000.00
35.00 333.33 (298.33) 4204-00-00 Cleaning Revenue 839.00 999.99 (160.99) 4,000.00
0.00 4,866.67 (4,866.67) 4205-00-00 Resort Fee 2,675.98 14,600.01 (11,924.03) 58,400.00
0.00 66.67 (66.67) 4206-00-00 Golf Revenue 0.00 200.01 (200.01) 800.00
0.00 833.33 (833.33) 4207-00-00 Breezes Time Revenue 0.00 2,499.99 (2,499.99) 10,000.00
255.00 5,416.67 (5,161.67) 4208-00-00 Bonus Time Revenue 4,952.69 16,250.01 (11,297.32) 65,000.00
322.73 291.67 31.06 4280-00-00 Other - Miscellaneous 767.73 875.01 (107.28) 3,500.00 252,153.98 301,112.11 (48,958.13) Total Income 793,848.05 903,336.33 (109,488.28) 3,613,345.32 Operating Expenses Front Desk 5,468.75 11,919.44 6,450.69 6105-10-00 Salaries 26,334.75 35,758.32 9,423.57 143,033.28 2,290.23 2,083.33 (206.90) 6150-10-00 Group Insurance 3,290.23 6,249.99 2,959.76 25,000.00 4,733.81 2,145.50 (2,588.31) 6152-10-00 Worker's Compensation 6,771.29 6,436.50 (334.79) 25,745.99 214.10 1,132.35 918.25 6160-10-00 Payroll Taxes 2,055.99 3,397.05 1,341.06 13,588.16 223.60 119.19 (104.41) 6151-10-00 401 K 223.60 357.57 133.97 1,430.33 0.00 541.67 541.67 6825-10-00 Office Supplies 575.76 1,625.01 1,049.25 6,500.00 0.00 200.00 200.00 6507-10-00 Hospitality 20.35 600.00 579.65 2,400.00 136.30 206.67 70.37 6510-10-00 Medical Supplies 408.90 620.01 211.11 2,480.00 0.00 333.33 333.33 8285-10-00 Uniforms 181.50 999.99 818.49 4,000.00
104.47 583.33 478.86 8246-10-00 Night Answering Service 583.20 1,749.99 1,166.79 7,000.00
Desert Breezes Resort Association
Income Statement
UNAUDITED 02/24/21
Year to Date Annual
Actual Budget Variance Account # Actual Budget Variance Budget
Desert Breezes Resort Association
Income Statement
For the Three Months Ended January 31, 2021
303.24 98.00 (205.24) 8200-10-00 Security Monitoring Fee 473.24 294.00 (179.24) 1,176.00
397.85 408.32 10.47 6840-10-00 Office Equipment 1,045.05 1,224.96 179.91 4,899.84
13,872.35 19,771.13 5,898.78 Total Front Desk 41,963.86 59,313.39 17,349.53 237,253.60
Housekeeping
8,549.21 10,611.68 2,062.47 6501-11-00 Contract Services - Common Area 28,446.11 31,835.04 3,388.93 127,340.20
2,520.36 37,500.00 34,979.64 6505-11-00 Contract Services - Housekeeping 44,453.86 112,500.00 68,046.14 450,000.00
1,785.19 1,166.67 (618.52) 6525-11-00 Cleaning Supplies 3,647.51 3,500.01 (147.50) 14,000.00
0.00 1,166.67 1,166.67 6535-11-00 Linen Replacement 1,107.69 3,500.01 2,392.32 14,000.00
250.54 2,833.33 2,582.79 6540-11-00 Owner/Guest Supplies 2,664.32 8,499.99 5,835.67 34,000.00
345.00 725.00 380.00 6554-11-00 Laundry Expenses 345.00 2,175.00 1,830.00 8,700.00
274.00 137.00 (137.00) 6555-11-00 Water Softener 411.00 411.00 0.00 1,644.00
0.00 833.33 833.33 6826-11-00 Kitchen Packages/Small Appliances 1,063.44 2,499.99 1,436.55 10,000.00
13,724.30 54,973.68 41,249.38 Total Housekeeping 82,138.93 164,921.04 82,782.11 659,684.20
Repairs & Maintenance
7,930.22 18,798.35 10,868.13 6105-12-00 Salaries 44,574.35 56,395.05 11,820.70 225,580.16
4,755.76 4,125.00 (630.76) 6150-12-00 Group Insurance 5,755.76 12,375.00 6,619.24 49,500.00
2,982.79 3,007.74 24.95 6152-12-00 Worker's Comp. 4,645.16 9,023.22 4,378.06 36,092.83
562.12 1,785.84 1,223.72 6160-12-00 Payroll Taxes 3,545.68 5,357.52 1,811.84 21,430.12
352.65 187.98 (164.67) 6151-12-00 401 K 352.65 563.94 211.29 2,255.80
2,592.68 4,000.00 1,407.32 6567-12-00 Buildings-Maintenance & Repairs 11,237.68 12,000.00 762.32 48,000.00
171.28 833.33 662.05 6645-12-00 HVAC 548.23 2,499.99 1,951.76 10,000.00
501.00 440.00 (61.00) 6690-12-00 Pest Control 1,143.00 1,320.00 177.00 5,280.00
900.00 2,750.00 1,850.00 6710-12-00 Pool Repairs and Supplies 5,164.15 8,250.00 3,085.85 33,000.00
6,800.00 8,116.67 1,316.67 6715-12-00 Landscape Contract Maintenance 20,400.00 24,350.01 3,950.01 97,400.00
UNAUDITED 02/24/21
Year to Date Annual
Actual Budget Variance Account # Actual Budget Variance Budget
Desert Breezes Resort Association
Income Statement
For the Three Months Ended January 31, 2021
0.00 47.25 47.25 6815-12-00 Fire Protection 0.00 141.75 141.75 567.00
40.00 416.67 376.67 7005-12-00 Vehicle/Golf Carts Maint & Repairs 84.36 1,250.01 1,165.65 5,000.00
126.41 541.67 415.26 8285-12-00 Uniforms 630.79 1,625.01 994.22 6,500.00
28,214.91 45,550.50 17,335.59 Total Repairs & Maintenance 99,581.81 136,651.50 37,069.69 546,605.91
Utilities 1,028.01 1,320.01 292.00 6605-14-00 Cable 3,138.97 3,960.03 821.06 15,840.12 500.00 871.49 371.49 6700-14-00 Trash 2,226.32 2,614.47 388.15 10,457.92 4,761.61 12,916.67 8,155.06 6900-14-00 Electric 18,697.83 38,750.01 20,052.18 155,000.00 4,061.26 4,166.67 105.41 6905-14-00 Gas 8,238.49 12,500.01 4,261.52 50,000.00 3,807.06 5,375.00 1,567.94 6910-14-00 Water/Sewer 16,236.71 16,125.00 (111.71) 64,500.00
429.16 524.96 95.80 7080-14-00 Dedicated Service Line(DSL) 974.12 1,574.88 600.76 6,299.52
662.62 942.67 280.05 8245-14-00 Telephone 2,217.41 2,828.01 610.60 11,312.00
15,249.72 26,117.47 10,867.75 Total Utilities 51,729.85 78,352.41 26,622.56 313,409.56
General And Administration
5,988.67 6,630.00 641.33 6120-20-00 Salaries-General Mgr 18,669.83 19,890.00 1,220.17 79,560.00
1,434.65 687.50 (747.15) 6150-20-00 Group Insurance-General Mgr 2,034.65 2,062.50 27.85 8,250.00
1,216.87 1,193.40 (23.47) 6152-20-00 Workers Compensation-Gen Mgr 2,161.58 3,580.20 1,418.62 14,320.80
432.21 636.48 204.27 6160-20-00 Payroll Taxes-General Mgr 1,498.95 1,909.44 410.49 7,637.76
373.13 198.90 (174.23) 6151-20-00 401K 373.13 596.70 223.57 2,386.80
14.29 550.00 535.71 6290-20-00 Payroll Processing Fees 1,150.00 1,650.00 500.00 6,600.00
3,450.00 608.33 (2,841.67) 7000-20-00 Audit and Tax 3,450.00 1,824.99 (1,625.01) 7,300.00
UNAUDITED 02/24/21
Year to Date Annual
Actual Budget Variance Account # Actual Budget Variance Budget
Desert Breezes Resort Association
Income Statement
For the Three Months Ended January 31, 2021
75,796.99 75,796.99 0.00 7025-20-00 Assessment Bad Debt 227,390.97 227,390.97 0.00 909,563.87
0.00 185.42 185.42 7070-20-00 Foreclosure/Lien Expense 0.00 556.26 556.26 2,225.00
9,576.58 9,633.58 57.00 7075-20-00 Insurance 28,716.40 28,900.74 184.34 115,602.96
588.00 83.33 (504.67) 7086-20-00 Legal 2,588.00 249.99 (2,338.01) 1,000.00
454.34 657.17 202.83 7088-20-00 License & Fees 1,363.02 1,971.51 608.49 7,886.00
20,101.00 20,101.14 0.14 8100-20-00 Management Services 60,303.00 60,303.42 0.42 241,213.68
0.00 41.67 41.67 8120-20-00 Travel/Meetings 0.00 125.01 125.01 500.00
100.00 100.00 0.00 8121-20-00 Web Administration 300.00 300.00 0.00 1,200.00
0.00 250.00 250.00 8122-20-00 Board of Directors 0.00 750.00 750.00 3,000.00
115.00 208.33 93.33 8123-20-00 Employee & Community Relations 215.38 624.99 409.61 2,500.00
50.00 125.00 75.00 8124-20-00 Training/Recruitment 50.00 375.00 325.00 1,500.00
603.31 1,083.33 480.02 8145-20-00 Postage, Printing, Delivery 4,790.20 3,249.99 (1,540.21) 13,000.00
0.00 150.00 150.00 8160-20-00 Reserve Study 0.00 450.00 450.00 1,800.00
2,207.00 2,822.92 615.92 8165-20-00 Personal/Real Property Taxes 8,855.00 8,468.76 (386.24) 33,875.00
8,999.00 8,999.35 0.35 8300-20-00 Master Association Dues 26,998.05 26,998.05 0.00 107,992.20
0.00 2,015.42 2,015.42 8500-20-00 Federal Income Tax 0.00 6,046.26 6,046.26 24,185.00
17,774.42 17,774.42 0.00 8550-20-00 Replacement Fund 53,323.26 53,323.26 0.00 213,292.99
151,064.26 158,532.68 7,468.42 Total General and Administration 471,690.79 481,598.04 9,907.25 1,856,392.06
222,125.54 304,945.46 82,819.92 Total Operating Expenses 747,105.24 920,836.38 173,731.14 3,613,345.33
