OUTDOOR RESORTS/PALM SPRINGS OWNERS ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020 AND 2019
NOTE 4: FUTURE MAJOR REPAIRS AND REPLACEMENTS (continued)
The Board is fund ing 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 replacement fund . Accordingly, the funding requ irement of $75 per unit per month has been included in the 2020/2021 budget. Because actual expenditures may vary from the estimated future expenditures and the variations may be material , amounts accumulated in the replacement fund may not be adequate to meet all future needs for major repairs and replacements . If additional funds are needed , the Association has the right to increase regular assessments, pass special assessments, or delay major repairs and replacements until funds are available.
NOTE 5: PROFIT SHARING PLAN
The Association maintains a qualified 401 (k) plan . The Association 's fund ing policy is to match 100% of the employee 's pre-tax contribution up to 6% of the employee's salary . The Association 's contributions to this plan for the years ended June 30, 2020 and 2019 were $33,108 and $32 ,134, respectively .
NOTE 6: INTER-FUND TRANSFERS
During the year ended June 30, 2020 , inter-fund transfers consist of $164 ,000 of excess prior year earnings transferred from the operating fund to the replacement fund and $169 ,237 of personal property and equipment purchased by the replacement fund and capitalized in the operating fund .
During the year ended June 30, 2019, inter-fund transfers consist of $53,407 of excess prior year earnings transferred from the operating fund to the replacement fund.
10
Made with FlippingBook HTML5