Cyrnnss Cnasn No

CoNnonnNruM No 1. AssocrATroN rNC

A}ICIAL STATEMENT
December 31,2015

CONTENTS
Accountants Report

Financial Statement
Page

Balance Sheet

Statement of Revenue

Statement of Cash Flows

Notes to Financial Statement

Accountant's Report on Su
Supplementary Information

,t

..

4-7

Information

ENT AUDITOR'S REPORT

To the Board of Directors

of

Chase North

CondominiumNo

Association, Inc:

ying frnancial statements of Cypress Chase North

We have reviewed the
Condominium No 1 Associat
which comprise the balance sheet as of December 31,
2015, and the related
of revenues, expenses, and changes in fund balance and
cash flows for the year then
and the related notes to the financial statements. A
primarily
review includes
appl ing analytical procedures to management's financial data
and making inquiries of
ion management. A review is substantially less in scope
than an audit, the objective
which is the expression of an opinion regarding the
financial statements as a who Accordingly, we do not express such an opinion.
Management's Responsi

for the Financial Statements

Management is responsible fo
statements in accordance wit
States of America; this inc
control relevant to the
free from material misstateme

the preparation and fair presentation of these financial

accounting principles generally accepted in the United
the design, implementation, and maintenance of internal
ion and fair presentation of furancial statements that are
whether due to fraud or error.

Accountant'

Responsibility

Our responsibility is to
Standards for Accounting
Review Services Committee
procedures to obtain limited
any material modifications
in accordance with accounti
America. We believe that the
conclusion.

with Statements on
Review Services promulgated by the Accounting and
f the AICPA. Those standards require us to perform
as a basis for reporting whether we are aware of
be made to the financial statements for them to be
principles generally accepted in the United States of
lts of our procedures provide a reasonable basis for our

the review engagement in accordance

Accountant's Conclusion
Based on our review, we are

aware of any material modifications that should be made

to the accompanying financial statements in order for them to be in accordance with

accounting principles generally

fre*^
Karen M Danzinger, CPA
Lighthouse Point, FL

April27,2016

in the United States of America.

Page I

CYPRESS CHASE

RTH CONDOMIMT]M NO
BALANCE SHEET

ASSOCIATION INC

December 3112015

ASSETS

CURRENT ASSETS:
Cash - checking
Cash - bad debt
Petty cash
Assessments receivable
Allow for bad debt

Operating

Replacement

Fund

Fund

$-

62,621

128,845

62,621
128,845

50

50

197,932
(103,054)

Prepaid insurance

Total Current Assets

Total

197,932
(103,054)

1,607

$278,000

278,000

10,511

AND FUND BALANCE

CURRENT LIABILITIES:
Accounts payable
Prepaid Maintenance
Deferred Cable Revenue
Accrued payroll taxes
Rental Deposits
Bad debt reserve

10,511

46,160

46,160

16,900

16,800

1,502
2,900
t04,657

1,502
2,900
t04,657

182,529

182,529

Initial capital

t8,624

18,624

Fund Balance

76,847

76,847

95,471

95,471

Total Current Liabili

FUND BALANCE:

Total Fund Balance

Total Liabilities and
Fund Balance

SEE ACCOMP

278,000

G NOTES AND ACCOUNTANTS' REPORT

278,000

Page2
CYPRESS

STATEMENT
F'OR

CONDOMINIUM NO 1 ASSOCIATION INC

F'REVENUE, EXPENSES AND F'T]ND BALAI\CE
YEAR ENDED DECEMBER 31, 2015
Operating
Fund

REVENUE

Maintenance assessments
Screening fees

Interest
Rental income
Other income

Fund

Total

s-

57

Total Revenue
EXPENSES
Janitorial
Payroll taxes
Directors fees
Cable

415,000
2,125

Replacement

TV

Insurance

Bad debt
Legal
Accounting & audit

Office expense
Licenses & fees
Screening expense

Answering service
Elevator contract
Fire extinguisher service

415,000
2,125

37,770

57
37,770

21,406

21,406

476,359

476,359

24,956

24,856

1,961

1,961

21,000
70,346
72,808

21,000
70,346
72,808

2,975
4,500
2,096
1,346
876
2,840

2,975
4,500
2,096
1,346

876
2,940
7,000

7,000
1,674

1,674

Building repairs
Building supplies

9,788

9,788
5,014

Lawn & spray, tree trimming

Exterminator
Plumbing

6,229

6,229

2,990

2,990
7,710

5,014

Electricity
Water & sewer
Trash
Elevator telephone
Roof repairs
Assoc Owned Unit expenses

Total Expenses
Revenues

0ver

Beginning Fund
Ending Fund Balance

SEE ACCOMP

) Expenses

7,710
4,164

4,164

132,774

132,774

27,319

27,319

1,959

1,858

16,577

16,577

428,591

42g,5gl

47,777

47,777

29,070

29,070

$76,847$-$76,847

NOTES AND ACCOIINTANTS' REPORT

Page 3

CYPRESS C

CONDOMINIUM NO 1 ASSOCIATION INC

STATEMENT OF CASHFLOWS
December 3112015

CASII F'LOWS FROM OPERA

0perating

Replacement

tr''und

Fund

ACTIVITTES

Member assessments collected

Screening fees
Bad debt reserve
Interest received

Misc
Cash paid for operating

OPERATING A

356,922

$-

1)<

356,922

2,125

8,064

Rental Income

NET CASH PROVID

Total

8,064

57

57

37,770

37,770
54,634

54,634
(391,797)

(391.,797)

67,774

67,774

123,741

123,741

(usED) BY

.ES

Cash and cash equivalents at

January

Cash and cash equivalents at

December 31

Reconciliation of revenues over (

to net cash provided (used) by

191,516

191,516

) expenses

expenses:

Adjustments to reconcile revenues

over expenses to net cash provided
(used) by operating activities:
Revenues over (under) expenses:
(Increase) Decrease in
Increase @ecrease) in allow for
(Increase) Decrease in prepaid i
Increase (Decrease) in accounts
Increase (Decrease) in prepaid
Increase @ecrease) in bad debt
Increase @ecrease) in accrued
Increase (Decrease) in deferred
Increase @ecrease) in rental
NET CASH PROVIDED

OPERATING ACTIWTIES

SEE ACCOMP

g
receivable
debt
yable

Il taxes
income

47,777
(37,523)
0

5,204

5,204

763

763

27,419

27,479

8,064

8,064

16,900

16,900

(733)

its

47,777

(37,523)

(733)

BY

67,774

$-

NOTES AND ACCOUNTANTS' REPORT

67,774

Page4
CYPRESS CHASE

TH CONDOMINILIM NO 1 ASSOCIATION INC

TO FINANCIAL STATEMENT
YEAR ENDED DECEMBER 31, 2015

N
FOR T

NOTE A _ NATT]RE OF' OR

TION

Cypress Chase North

association incorporated in the
responsible for the operation and

Condominium No

Association

No I Association, Inc, is a statutory condominium

of Florida on December 11, 1980. The ASsociation is
e of the cofltmon property of Cypress Chase North
Cypress Chase North CondominiumNo I Association Inc

consists of140 units, located in

NOTE B

- DATE OF MANAG

In preparing the financial

potential recognition of disc

NOTE C - SUMMARY OF SI
Fund Accounting
The Association's

financial activities. The

and presents them as
and capital replacements.

The Operating
meet the regular r
limited to those

Lakes, Florida.

NT'S REVIEW
the Association has evaluated events and transactions for
through Apri127,2016, the date of Accountants' Report.

CANT ACCOUNTING POLICMS

documents provide certain guidelines for governing its

iation prepares its financial statements on the accrual basis
te firnds based on its different funding policies for operations
reflects the operating assessments paid by unit owners to
ing costs of operation. Expenditures of this fund are
with the day-to-day operations and non-recurring

unanticipated ex
The Replacement
the regular

owned assets.
assessments were

Mernber Assessments
Association members are
percentage of common
provide funds for the
major repairs and replace
represent fees due fromu
become due; they are defl
collected when due. The
on the properties of unit
assessments at year-end
succeeding year.

is composed of assessments paid by unit owners to meet

major repairs and purchases of additional commonly
frorn this fund are restricted to those items for which
ied.

bject to monthly assessments based on each member's

ownership, as provided in the condominium documents, to
iation's operating expenses, future capital acquisitions, and
Assessments receivable at the balance sheet date
owners. Assessments are recognized as revenue when they
when collected in advance and become receivable if not
iation's policy is to retain legal counsel and to place liens
whose assessments become delinquent. Any excess
generally retained by the Association for use in the

ACCOI.]NTANTS' REPORT

Page 5

CYPRESS CHASE

N
FOR
Revenue Recognition
Revenue from
payments in advance are
Special Assessments
Special assessments are
intended. Special assess
incurred.

TH CONDOMINIUM NO 1 ASSOCIATION INC

TO FINANCIAL STATEMENT
YEAR ENDED DECEMBER 31, 2015

fees is recognized in the period to which

it applies, and

to the appropriate future period.

ized as revenue when the funds are used for the purpose
revenue is deferred ifthe expenditure has not yet been

Cash Equivalents

For purposes ofthe

demand deposits with
liquid debt instruments
equivalents.

Allocation of Expenses
The responsibility for pa
owners in accordance wi
lncome Taxes
The Association qualifies
Revenue Code Section 5
the Association is not
is the acquisition,
property. Net nonexempt
received from
the State of Florida.
The Association's tax
date, the Association's
to examination by the Int
provisions and accruals,
on current facts and ci
Property and equipment
Real property and

to such property are not

properties are owned by
Association.
Estimates
The preparation of fina
principles requires
reported amounts of
liabilities at the date of
expenses during the

of cash flows, the Association considers

certificates of deposit, money market funds and all highlyed with a maturity of three months or less to be cash

sheet and statement

of common expenses is prorated among individual unit

the percentages set forth in the governing documents.

a tax-exempt homeowners' association under Internal

for the year ended December 3L,2015. Under that Section,
on income and expenses related to its exempt purpose, which
ion, management, maintenance, and care of Association
ion income, which includes earned interest and revenues
is taxed at3lYo by the federal government andat 5.5%by

are subject to audit by various taxing authorities.

At report

income tax returns for 2012,2A13, and 2014 remain open

I Revenue Service. In evaluating the Association's tax
Association believes that its estimates are appropriate based

areas acquired from the developer and related improvements

in the Association's financial statements because those

individual unit owners in common and not by the

statements in conformity with generally accepted accounting

to make estirnates and assumptions that affect the
and liabilities and disclosure ofcontingent assets and
financial statements and the reported amounts of revenues and
period, Actual results could differ from those estimates.

ACCOTNTANTS' REPORT

Page 6

CYPRESS CHASE NI )RTH CONDOMINIUM NO 1 ASSOCIATION INC

NOI ]S TO FINANCIAL STATEMENT
FOR THI YEAR ENDED DECEMBER 3I, 2015

NOTED-UNINSUREDCASII BALANCES
The Association maintains its cas L balances at Bank United and CitiBank. Accounts located at
commercial bani<s are secured by :he Federal Deposit Insurance Corporation up to $250,000.
From time to time, the Associatio r may have cash in financial institutions in excess of federally
insured limits. As of the fiscal yez r end, the Association had no cash in excess of FDIC limits.

NOTE E _ FUTURE MAJOR R IPAIRS AND REPLACEMENTS

The Association's governing docr
future major repairs and replacem
not limited to roof replacement, b
common properfy for which futur
unless waived by a vote of the ma
Association. The Association, by
such purposes.

In the absence of accumulating

for
nts of certain components of common property including, but
iilding painting, pavement resurfacing and other items of
ments and state statutes require funds to be accumulated

maintenance expense or replacement cost exceed $10,000,

ority of members present at a duly called meeting of the

a majority vote of the mernbers, does not accumulate funds for

fil

rds for future major repairs and replacements, the Association

has the righrt, subject to member a rproval, to increase regular assessments, levy special
assessments or delay major repair and replacements until funds are available.

Member's equlty designated for fi ture major repairs and replacements has been allocated by the
board of directors to the comoone Lts of common property as follows:
Outside
Painting

Paving

Elevators

Total

Balance,

t2t31n4
Additions

0
0
0
0

Interest
Transfers
Expe.nses

0
0
0

0
0
0

0
0

0
0
0

0
0

Balance,

tzt3t/t5
NOTE F - INSURANCE
The Association maintains the foll
officers, boiler & machinery, auto:
Information on any of these poli;i,

Proyider
American
Coastal

Lloyds of
London
Great
American

Item

ring types of policies: property, wind, crime, directors

rbile, workers compensation, and an umbrella policy.
is available from the management office.
)overage

Period

Coverage Amount

Deductible
5% wind

&

Premium

Properfy/Wind

t4lt5-16

$i I,197,000

Liability

L2/15-t6

$1,000,000 /
$2,000,000

7,452

Umbrella

t2/15-t6

$5,000,000

nla

1,743

E ACCOUNTANTS' REPORT

$5000 other

55,836

PageT
CYPRESS CHASE N RTH CONDOMINIUM NO 1 ASSOCIATION INC
NOT
TO FINANCIAL STATEMENT
FOR
YEAR ENDED DECEMBER 31, 2015
$1,000,000

t2lts-16

Liberty

i Fidelity Bond
Insurance ! (Crime)
Travelers i Boiler &
Casualtv i Mac

/
I

Worker's Comp

L2ns-t6
',i;
;,

;::,,,i:;,

;-; - ji--- sp oiias; $2 ;000-Property $1 1,197,000

5

12/15-16

l/15-16

500,000 i

nla

1,539

NOTEG_BADDEBT
Associations are now facing an
market. Florida stafutes current
required to pay the Association
original mortgage note, whic
absorbed by the Association.
losses. In the event of a sipmi
approval, to increase regular
following year's budget.

NOTEH_LONGTERM
ln the course ofconducting
maintenance of the building and
Association did sign a contract wi
the contract is available in the ma

risk of bad debt write-offs due to the foreclosure

that in the event ofa bank foreclosure, the bank is
equivalent of six months regular maintenance or l%o of the
is less. The remaining balance rmrst be written off and
bre, bad debt provisions may not be sufficient to cover these
shortfall, the Association has the right, subject to member
ments, levy special assessments, or add the shortfall to the

CTS
management has entered into a number of contracts for the
assets. While most are for a period of one year or less, the
Comcast in April 2015 for a seven year period. Details on
gement office.

ACCOLNTANTS' REPORT

IND
ONS
To The Board of Directors and
Cypress Chase North

NDENT AUDITOR'S REPORT

PLEMENTARY INFORMATION

No

Association Inc.

o the basic financial statements of Cypress Chase North

Condominium No 1 Associati
for 20t5 appears before page 1. The objective of that
review was to perform
to obtain limited assurance as a basis for reporting
whether we were aware of y material modifications that should be made to the
financial statements in order r them to be in accordance with accounting principles
generally accepted in the
States of America. The supplementary information on
future major repairs and rep
ments on page 8 is presented for purposes of additional
analysis and is not a required
of the basic financial statements. The information is the
representation of
We have compiled the supplementary information in
accordance with Statements on Standards for Accounting and Review Services
promulgated by the Accounti
and Review Services Committee of the AICPA. We have
not audited or reviewed the pplementary information and, accordingiy, we do not
express an opinion, a conclusi
nor provide any form of assurance on it.

Our report on our review

fr,4r
Karen M Danzinger, CPA
Lighthouse Point, Florida

April27,2016

Page 8

CYPRESS CI{ASE

SUPPLEMENTARY
AND

RTH CONDOMINTUM NO 1 ASSOCIATION INC

RMATION ON FUTURE MAIOR REPAIRS

LACEMENTS (UNAUDIDTED)
DECEMBER 31, 2015

The Board of Dilectors

a study in October 2015 to estimate the remaining useful lives
and the replacement costs of the
of common property. Replacement costs were
based on the estimated costs to
or replace the common property components at the date of
study. Estimated current rep
t costs have not even revised since that date and do not take
into account the effects of i
between the date of the study and the date that the
components will require repair or
ement.
The following information is ba
on the study and presents significant information about the
components of common property amounts rounded to the nearest dollar).
Estimated
R.eplacement
Costs

Roofing

$3s0,

Painting

$65,

Elevators
Paving

$100,

Estimated
Useful
Life (Years)

Estimated
Remaining Usefutr Cash Balance

Life

(Years)

31-Dec-14

Amount Req'd
to Fully
Fund Reserves

15

40

65,000

25

100,000

116,667

(maintained

by POA)

Total Reserves

$s1s,

282,667

E ACCOLINTANTS' REPORT