2139-07 audit

Saba

Informations

• Publié par: Jicel
• Nombre de lectures: 16
• Langue: English

Extrait

MILLSTONE POND HOMEOWNERS
ASSOCIATION, INC.

FINANCIAL STATEMENTS

DECEMBER 31, 2007 AND 2006 z
AHLBERG & COMPANY, P.C.
Certified Public Accountants



3959 Pender Drive, Suite 112
Fairfax, VA 22030
703/934-6650 FAX [phone]
F. James Ahlberg, CPA email: [e-mail]
Mary E. Johnson, CPA website: www.ahlberg-cpa.com
INDEPENDENT ACCOUNTANT’S REPORT


Board of Directors
Millstone Pond Homeowners Association, Inc.

We have audited the accompanying balance sheets of
Millstone Pond Homeowners Association, Inc. as of December 31,
2007 and 2006, and the related statements of revenue and
expenses, members' equity, and cash flows for the years then
ended. These financial statements are the responsibility of the
Association's management. 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 audits 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 statements presentation. We believe that our audits
provide 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 Millstone Pond Homeowners Association, Inc. as of December
31, 2007 and 2006 and the results of its operations and its cash
flows for the years then ended in conformity with accounting
principles generally accepted in the United States of America.

The supplementary information on future major repairs and
replacements is not a required part of the basic financial
statements but is supplementary information required by the
American Institute of Certified Public Accountants. We have
applied certain limited procedures, which consisted principally
of reading and summarizing the repair and replacement study.
However, we did not audit the information and express no opinion
on it.




AHLBERG & COMPANY, P.C.
Certified Public Accountants

March 11, 2008 MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
BALANCE SHEETS
DECEMBER 31, 2007 AND 2006
2007 2006
ASSETS
Cash - operating $ 2,097 $ 7,286
Cash - savings 3,916 5,082
Total cash 6,013 12,368
Investments (note 1) 41,785 29,757
Prepaid insurance 190 182
Prepaid expenses - 505
TOTAL ASSETS $ 47,988 $ 42,812
LIABILITIES AND MEMBERS' EQUITY
LIABILITIES:
Income tax payable $ 634 $ 474
Total liabilities 634 474
MEMBERS' EQUITY:
Capital reserve fund (note 2) 41,785 34,944
Unappropriated members' equity 5,569 7,394
Total members' equity 47,354 42,338
TOTAL LIABILITIES AND
MEMBERS' EQUITY $ 47,988 $ 42,812
See accountant's report and notes to financial statements
1MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
STATEMENTS OF REVENUE AND EXPENSES
FOR THE YEARS ENDED
DECEMBER 31, 2007 AND 2006
2007 2006
REVENUE:
Gross assessments $ 32,085 $ 24,428
Less capital reserve fund
assessments (5,000) (5,000)
Operating assessments 27,085 19,428
Interest revenue 1,860 1,415
Less interest transferred to capital
reserve fund (1,841) (1,388)
Miscellaneous revenue 100 100
Total operating revenue 27,204 19,555
EXPENSES:
Landscaping 8,939 7,365
Snow removal 3,920 1,130
Trash removal 7,241 6,687
Electricity 202 180
Post office box rental 134 106
Insurance 296 296
Legal fees 647 647
Audit - 780
Repairs and maintenance 4,451 5,602
Reserve study 2,200 -
Miscellaneous administrative 365 63
Provision for income taxes 634 474
Total expenses 29,029 23,330
(DEFICIENCY) OF REVENUE OVER EXPENSES $ (1,825) $ (3,775)
See accountant's report and notes to financial statements
2MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
STATEMENTS OF MEMBERS' EQUITY
FOR THE YEARS ENDED
DECEMBER 31, 2007 AND 2006

Capital Unappropriated
Reserve Members' Fund Equity

Balance at December 31, 2005 $ 28,556 $ 11,169

Additions:
Capital reserve fund
assessments 5,000
Interest transferred
to capital reserve fund 1,388

Deduction:
Deficiency of revenue
over expenses (3,775)

Balance at December 31, 2006 34,944 7,394

Additions:
Capital reserve fund
assessments 5,000
Interest transferred
to capital reserve fund 1,841

Deduction:
Deficiency of revenue
over expenses (1,825)

Balance at December 31, 2007 $ 41,785 $ 5,569














See accountant's report and notes to financial statements

3
MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED
DECEMBER 31, 2007 AND 2006
2007 2006
Cash flows from operating activities:
(Deficiency) of revenue over expenses $ (1,825) $ (3,775)
Adjustments needed to reconcile (deficiency)
of revenue over expenses to net cash
provided by operating activities:
Capital reserve fund assessments 5,000 5,000
Interest transferred to capital reserve
fund 1,841 1,388
(Increase) decrease in prepaid expenses 497 (88)
Increase in income taxes payable 160 289
Net cash provided by operating activities 5,673 2,814
Cash flows from investing activities:
Purchase of investments (10,187) (5,000)
Redemption of investments - 5,000
Interest added to investments (1,841) (1,201)
Net cash (used for) investing activities (12,028)
Net increase (decrease) in cash (6,355) 1,613
Cash at beginning of year 12,368 10,755
Cash at end of year $ 6,013 $ 12,368
Income taxes paid in cash during year $ 474 $ 185
See accountant's report and notes to financial statements
4MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006

ORGANIZATION:

Millstone Pond Homeowners Association, Inc. was organized as a
non-stock, non-profit corporation in the Commonwealth of Virginia for
the purpose of administering the maintenance, preservation and
architectural control of the residence lots and common areas within
the Association. The Association consists of 31 homes and is located
in Burke, Virginia.

SIGNIFICANT ACCOUNTING POLICIES:

Method of Presentation - The presentation of financial statements
in conformity with accounting principles generally accepted in the
United States of America requires the use of the accrual method of
accounting whereby revenues are recognized when earned rather than
received and expenses are recognized when incurred rather than paid.

Investments - Investments consist of certificates of deposit in
which cost and fair value may differ due to market conditions.

Unrealized Gains and Losses - Statements of Financial Accounting
Standards No. 115 sets certain requirements for accounting for certain
investments in debt and equity securities. This standard segregates
investments into three categories and sets standards for the treatment
of unrealized gains and losses. The Association's investments fall
into the held to maturity category.

Held to maturity securities are securities that the Association
has the positive intent and ability to hold to maturity which are
reported at amortized cost and unrealized gains and losses are not
recorded.

Capital Reserve Fund –A professional engineering firm conducted a
study in 2007 to estimate the remaining useful lives and the
replacement costs of the components of common property. The estimates
were based on future estimated replacement costs. The table included
in the unaudited supplementary information on future major repairs and
replacements is based on the study.

The Board is funding for major repairs and replacements over the
remaining useful lives of the components based on the study's
estimates of current replacement costs and considering amounts
previously accumulated in the capital reserve fund.

(Continued)

5
MILLSTONE POND HOMEOWNERS ASSOCIATION, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2007 AND 2006