February 27, 2025
Audited Financial Statements for the Year Ending September 30, 2024 and Financial Update
The September 30, 2024, Audited Financial Statements of Desert Horizons Owners Association (DHOA) have recently been completed. Homeowners can either pick up a hard copy from the Administration offices or access them on the DHOA website (under the My Home tab you’ll see a tab for Financial Documents). Balance Sheet at September 30, 2024 The Total Assets on the Balance Sheet at September 30, 2024 are $49,064,696 including cash and certificates of deposit of $7,370,790 and Property and Equipment net of depreciation of $40,817,930. The Total Liabilities are $25,238,732 including Notes payable of $23,188,067 and Financing leases of $734,419. The Total Fund Balances (same as retained earnings in a commercial enterprise) are $23,825,964 at September 30, 2024 compared to $21,568,128 at September 30, 2023. Renewal Project The Balance Sheet reflects that the construction in progress account relating to the Renewal Project (which achieved substantial completion at March 31, 2024) transferred $35,980,320 from construction in progress to the appropriate property and equipment categories and began depreciating. Sources of funding and uses of funding were recorded and tracked monthly in the Designated Clubhouse Renovation fund. At September 30, 2024 there is $352,719 in this fund. Sources of funding for the Renewal Project to September 30, 2024 totaled $37,662,691 including the initial assessment on July 1, 2021 of $2,500 per home owner totaling $1,275,000; monthly assessments of $300 per month from July 1, 2021 to September 30, 2024 per home owner totaling $5,967,000; special assessment in June 2023 of $12,000 per home owner totaling $6,120,000; assessments from non-resident social members totaling $190,971; interest income of $109,720; and proceeds from bank loan of $24,000,000. Uses of funding for the Renewal Project to September 30, 2024, totaled $37,309,972 including construction costs of $35,247,948; interest capitalized on bank loan to March 31, 2024 of $732,371; interest expense from April 1, 2024 to September 30, 2024 of $517,720; and principal repayments of bank loan to September 30, 2024 of $811,933. Replacement Fund (Reserve Fund) The Replacement Fund Balance at September 30, 2024 is $7,504,131 which is an increase of $1,364,593 from this balance at September 30, 2023. Residential assessments of $1,836,000; interest income of $145,341; and social and golf initiation assessments of $937,050 are all recorded as revenue in this fund. Expenditures in this fund were $1,374,483 (including large amounts for painting of home exteriors, roof repair; street asphalt and curbs, upkeep of community pools and irrigation pumps and equipment) plus another $179,315 of capital assets purchased (mostly golf course equipment) from this fund and transferred to the operating fund to be capitalized and depreciated.
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