i kl n - sully station ii community...

Principals Howard A. Goldklang, CPA, MBA Donald E. Harris, CPA Anne M. Sheehan, CPA S. Gail Moore, CPA

August 30, 2016

Board of Trustees

I kl n CPAs, P.C.

1801 Robert Fulton Drive, Suite 200

Reston, VA 20191

Sully Station II Community Association

Dear Board Members:

® p Associate Principals

Jeremy W. Powell, CPA Renee L. Watson, CPA

Managers Allison A. Day, CPA

MatthewT. Stiefvater, CPA Sheila M. Lewis, CPA

Enclosed, please find the draft audit for Sully Station II Community Association for the years ended December 31, 2015 and 2014.

• Please date and sign the enclosed representation letter. The letter needs to be signed by either the President or Treasurer of the Association and the management agent representative. This letter needs to be returned to our office before the audit can be finalized.

• Please send the Association's most recent financial statements (which should include the balance sheet and income statement) to our office with the signed representation letter. We are requesting this information to comply with auditing standards.

• Please return the signed letter and most recent financial statements to our office within 60 days from the date of this letter. This information can be mailed, faxed or emailed to our office. Our email address is [email protected].

If we do not receive the above information within 60 days from the date of this letter, we may need to perform additional audit procedures to satisfy ourselves that no material events have occurred from the date that we completed our audit fieldwork through the date that we receive the signed representation letter. These additional procedures would include examining the bank statements, minutes, financial statements, general ledger and would also include inquiries of management and the board of trustees. We will bill the Association for these additional audit procedures at our hourly rates.

Please do not hesitate to contact us if there are any questions regarding the draft audit.

Sincerely,

GOLDKLANG GROUP CPAs, P.C.

phone 703 3919003 fax 703 391 9004 www.GGroupCPAs.com

Principals Howard A Goldklang, CPA, MBA Donald E. Harris, CPA Anne M. Sheehan, CPA S. Gail Moore, CPA

To the Board of Trustees of

1801 Robert Fulton Drive, Suite 200 Reston, VA 20191

Independent Auditor's Report

Sully Station II Community Association

Report on the Financial Statements

Associate Principals Jeremy W. Powell, CPA Renee L. Watson, CPA

Managers Allison A Day, CPA

Matthew T. Stiefvater, CPA Sheila M. Lewis, CPA

We have audited the accompanying financial statements of Sully Station II Community Association, which comprise the balance sheets as of December 31, 2015 and 2014, and the related statements of income, members' equity and cash flows for the years then ended, and the related notes to the financial statements .

. : . , .. ~ ... ~~.~::::~;-o;·'"O"._'.•-·C -·-c·'•?'~'"'.:-''' ~'(',:"'=~"'- .;:·:'·'-' ·._,,t;~·· .::· -<_..._

Manageme~.t~'S. Resp'o·n~ihllity for the Financial Statements ~l -~i ·-:,. ·- ~;,~: ~

Management i$ res~onsibl~ for ~pe-~rep~f~tigp ap.cf~~i;"pres .• ent&tt,on qftll~~e fiti·afibal statements in accordance with ~ccounfing ~rinc}ple~- generally~wqypteq in the U~ited ~tat~s of America; this includes the ~esigp, in:plen;yntatipn,

1and m~int~pa~ce ,of i11:ternti-l c~p.trql relevant to the

preparation ~nd fafrp_JJ~se11tation o(finai1~ial stat~men._tsithatflre Jree {rom :qiate:ri~d misstatement, whether due-;lO·''-ff8iia(··:oi~~·-'-error. .,, .... ~·~,,~-··· l'r~·-:~ ,~, ..... ~-_._,.,,. ____ .,.,.,~.\-:-~,:~::~-~

Auditor's Responsibility

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 audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

phone 703 3919003 fax 703 3919004 www.GGroupCPAs.com

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Sully Station II Community Association as of December 31, 2015 and 2014, 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.

Disclaimer of Opinion on Required Supplementary Information

Accounting principles generally accepted in the United States of America require that information on future major repairs and replacements on page 12 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Financial Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Reston,

2

SULLY STATION II COMMUNITY ASSOCIATION BALANCE SHEETS

DECEMBER 3_L 201_5 AND 2014

Cash and Cash Equivalents

Interest-Bearing Deposits

Assessments Receivable - Net

Accounts Receivable - Other

Income Taxes Receivable

Prepaid Expenses

Total Assets

e•·-'O:-o',>;'",'-.";-':·~:-.;.'i•.;-:-.;_.-;:o:';{.~

;t~.~'

ASSETS

. .

. , .. :·'·""- -\

2015

$ 1,496,649

176,877

22,999

75

15,564

$ 1,712, 164

""'. I ':'"-;:.,~.- '·-

2014

$ 1,173,295

174,455

45,959

1,867

13,573

$ 1,409,149

_,.

Accounts Payable ?6,5p7

, ,, 1P3,638

~ $ 34,237 ( :..~

Prepaiq' AssJ .. s,s,~~~t~ -' -; . .-,,;:-:<·

·,c-~'·'··· · r01irn;l,ilities ·······

General Reserves

Townhome Reserves

Estates Reserves

Unappropriated Members' Equity

Total Members' Equity

Total Liabilities

and Members' Equity

See Accompanying Notes to Financial Statements 3

., ,,.,, ... ·~

::• 96,292

··$,' f36J45 _.t:C.'

$'''· . 130,529

$ 424,308 $ 313,186

751,010 675,680

242,668 210,488

164,033 79,266

$ 1,582,019 $ 1,278,620

$ 1,712,164 $ 1,409,149

SULLY STATION II COMMUNITY ASSOCIATION - .. . .. . . . . .

STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31., 2015 AND 2014

INCOME:

General Assessments

Townhome Assessments

Single Family Assessments

Estate Assessments

Interest

Late and Legal Fees

Bad Debt Recovery

Other

Total Income

EXPENSES:

Management Fees

Lega1~,~Au<l\f;J;11i~~/I'~~~Preparation Insurapce ·\

Payrol) and.'Relate~ Costs

Administrative

Comrqunit)" Acti~jties . / Utilities

";'~~~~.;.·._. h , • ····-··: ·. :~: ·:: • ·.:~ .. ~~~;.:;., . .,_-.>-:::.'"'·-·,\>CC._,,

Trash Removal

Snow Removal

Common Area Maintenance

Landscaping

Clubhouse

Pool

Income Taxes

Total Expenses

Net Income before Contribution

to Reserves

Contribution to Reserves

Net Income


$

$

$

$

$

$

2015 2014

929,745 $ 933,745

342,528 324,998

103,530 102,361

52,826 52,320

7,478 4,504

41,956 46,192

4,614 7,736

21,987 17,464

I 1,504,664 $ 1,489,320

80,820 $ 78,980 57 ·329"'', _,/, <!'_,E 76,726 24 166·0-' 23,688 ' ' '

0 210 965 96,919 ' :·

55,8~4 51,087

?3,0?0 25,454

) 6,7~] 6,245

261,424 250,963

71,506 46,724

22,346 25,354

190,635 206,984

17, 156 21,469

93,884 76,515

525

1,126,397 $ 1,087,108

378,267 $ 402,212

(293,500) (315,730)

84, 767 $ 86,482 =======

Balance as of December 31, 2013

Additions: Contribution to Reserves Net Income

Deductions: Bathhouse Remodeling HVAC Fence Gazebo Roof Guard House Painting Snow Removal


Additions: Contribution to Reserves Net Income

Deductions: Pool Reserve Study Tree Removal Turf Renovations Windows


SULLY STATION II COMMUNITY ASSOCIATION STATEMENTS OF MEMBERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

~;~;, >i,;i\

General ;\.,. -· ··· ·Townhome/,iti • Estates Reserves.: Reserves '' Reserves

I

'., ... ,.. r,,-·.--:·:r',::r-.:o"::'.n:<.'::J.rt r~~; -i~~)

$ 21 l,14f \_ $ 598,048 f /"" ,i)/

$ 179,074 .. -, .. ~}/ -.-;-~_:,_,,,_ ' _.;

.-1 }

181,520 •·' _JJ)2,796 31,414

(6,375) (8,500),, (1,800)

(85Q) ': ... ,. :·:;-.~.,--

,-~;·:r:,

{6,259}\ •' ' . ' f2?,164)

$ 313,186<,:'' •"'"$ .. ''675,680 $ 210,488

32,180

--~.'"·f,'

(35 158}'., ,,,,,,,,,, ,. ,,,, ' "\._''''.,. -~- 'i

(5,3ooy· ··" (17,800) (15,658)

(952)

$ 424,308 $ 751,010 '$ 242,668


Unappropriated Members' Total

Equity Members' {Deficit) Equity

$ (7,216) $ 981,048

315,730 86,482 86,482

(55,692) (6,375) {8,500) (1,800)

(850) (31,423)

$ 79,266 $ 1,278,620

293,500 84,767 84,767

{35, 158) (5,300)

(17,800) (15,658)

(952)

$ 164,033 $ 1,582,019

SULLY STATION II COMMUNITY ASSOCIATION STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014

CASH FLOWS FROM OPERATING ACTIVITIES:

Net Income

Adjustments to Reconcile Net Income to

Net Cash Provided by Operating Activities:

Bad Debt Expense (Recovery)

Decrease (Increase) in: Assessments Receivable

Accounts Receivable - Other

Easement Receivable

Ip.9om.~ T<,l:xes Receivable .. , .... Prepai.~·"ExR"etrses

:._: ;, .. ,_\

Inc~ease fDecre\se) ih: i\.cco~nts Payable

~ _•; ~

Prepaiµ Asse~smeiits

. J(:!t.ca§hFIS~s .. , .. ,: .,,-,~-·, 0.'"C''.'O·"•".' "'"·" •,;'

CASH FLOWS FROM INVESTING ACTIVITIES:

Received from Assessments (Reserves)

Disbursed for Reserve Expenditures

Received from Interest-Bearing Deposits

Disbursed for Interest-Bearing Deposits

Net Cash Flows from Investing Activities

Net Change in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Year

Cash and Cash Equivalents at End of Year

2015 2014

$ 84, 767 $ 86,482

(4,614)

27,574 1,867

(7,736)

(4,266) (295)

7,822

252

(223)

-· ~ o... - . - - ;

··6,boy}·'· ..

" $1 107,'144

$ 293,500

(74,868)

(2,422)

$ 216,210

$ 323,354

1,173,295

$1,496,649

8,801

14,629

$ 105,466

$ 315,730

(104,640)

152,258

(45,274)

$ 318,074

$ 423,540

749,755

$1,173,295

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash Paid for Income Taxes


$ 600 $ ====

SULLY STATION II COMMUNITY ASSOCIATION NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2015 AND 2014

NOTE 1 - NATURE OF OPERATIONS:

The Association is a nonprofit non-stock corporation organized under the laws of the Commonwealth of Virginia for the purpose of maintaining and preserving the common property of the community. The Association is located in Centreville, Virginia and consists of 1,318 townhomes and single-family homes. The Association administers the operations of the community.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES:

A) Method of Accounting - The financial statements are presented on the accrual method of accounting in which revenues are recognized when earned and expenses recognized when incurred, not necessarily when received or paid.

B) Member Assessments - Association members are subject to assessments to pro¥i~e.fo?~§.~f9.E: t~e·.Association's operating expenses, fu~9'",g~pital acquisitions, and majo~ rep~irs'-~d>T~placements. Assessments receivabie .. ;a( !§e \?~lance sheet date represent fees di\e fro~ ~QfilyO'Y1JeX.8.· ~~~.·~~§~Ociat~,q9's pplfo~·"is ,.tp ~ssess late and interept charges ap-d to.\ retain l~.~at.s9rursel\~an\1 pl~ce li~ns ~n>tht)l prop.erties of owners whosz assrssments arerdelinquynt. Any·e~s~.~·f as~essm~nts ~t yecr--eD,d are retained by the Association ~or use in future year. The'.Associaiion utilizes thci allowance method of ac9gJfutingJ9r;h~g .. debt. ' ·· , ..

''·:...,..,., __ .,,.

C) Common Property - Real property and common areas acquired from the declarant and related improvements to such property are not recorded in the Association's financial statements since the property cannot be disposed of at the discretion of the Board of Trustees. Common property includes, but is not limited to, land, recreational facilities and site improvements.

D) Depreciation - Fixed assets are carried at cost. Depreciation was computed on a straight-line basis over the estimated useful lives of the assets. Items capitalized were depreciated through the statement of income.

E) Estimates - The preparation of financial statements, in conformity with generally accepted accounting principles, requires management to make estimates and assumptions. Such estimates affect the reported amounts of assets and liabilities. They also affect the disclosure of contingent assets and liabilities, at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F) Cash Equivalents - For purposes of the statement of cash flows, the Association considers all highly liquid investments and interest-bearing deposits with an original maturity date of three months or less to be cash equivalents.

7


DECEMBER 31, 2015 AND 2014 (CONTINUED)

NOTE 3 - REPLACEMENT RESERVES:

The Association's governing documents require that funds be accumulated for future major repairs and replacements. Accumulated funds held are generally not available for expenditures for normal operations.

The Association had a replacement reserve study conducted by PM+ during 2012. The Association had an updated reserve study conducted by PM+ during 2016. The table included in the Supplementary Information on Future Maj or Repairs and Replacements is based on the updated study.

For 2015, the PM+ 2012 study recommends a contribution to general reserves of $185,990, a contribution to townhome reserves of $105,330 and a contribution to estates reserves of $32,180. For 2015, the Association budgeted to contribute $185,990 to general reserves, $75,330 to townhome reserves, and $32,180 to estates reserves.

c~ ~,~ Ft~a§::'.¥e·'l>,~ing accumulated in replacement r,~§e~~~~~ §as~d, on estimates of futurei ne~cls for't.repa~r ~s~\9:,, .. ,!yP~.~c~!Ilent 8f::9Qpuno17~···prop~~·.,9dinppnents. Actual expenditur,es may~. vary\from thc;,e,5t~atyd f~tm:e ex,pendi,ture~ filrdfhe yaY:iations may be material; t~erefore, ampunts ac9limul~ted i~'!li~ reptacem;ent teserv:es ll}ay or may not be adequate tp meeyan ~1ture pee4s for m~jor''7epairs 2fild replacemenfs. 1,f additional funds ar~,.1t~:~:~'~·:·1~~,:,·J?smrd of,,:r111st~~s, on t~ehal~;'~?f t~~· ~~socfation ~:ma;f jncrease regular as~essirients;"· pas~ speciaf assessments, · or delay· ni~j or< repairs and .. replacements until funds are available.

As of December 31, 2015, the Association had designated the following for replacement reserves:

General Townhome Estates Reserves Reserves Reserves

Repair/Replacement $ 424,308 $ 751,010 $ 235,383

Snow Removal 7~285

$ 424~308 $ 751~010 $ 242~668

As of December 31, 2014, the Association had designated the following for replacement reserves:

8


DECEMBER31, 2015 AND 2014 (CONTINUED)

NOTE 3 - REPLACEMENT RESERVES: (CONTINUED)

Repair/Replacement

Snow Removal

General Reserves

$ 313,186

$ 313.186

Townhome Reserves

$ 675.680

$ 675.680

Estates Reserves

$ 203,203

7)85 $ 210A88

These designated reserves were funded by cash and interest bearing deposits as of December 31, 2015 and 2014.

NOTE 4 - INCOME,TAXES:·

:. Fd,r inccitne taf P}lmQ§fS}JhyAs8,?~~~~ipn.may.yJ~ct ~~~llf.~p ~le either as an exempt hcnneown,ers afsocjatia~·QE .§is cm'assc~ciatlon -t~xable·''as·: .. ·f cofiio1~ation. As an exempt h9meowiiers rsso9iati9n, the As~?,S~~tion's net· assyssmtjnt iµcome would be exempt fr9m in5,om~,Jax, but i~s intere~t· iilcor:ne 'Yould .;be ~axed.~ Elf cting to file as a comprat~?~'~e'!\~so.ciati~~ i~ t~ed On\~ts ns~:it1C01?1~ ~9m ~11 SOll,fCeSl~t,_g the extent not capitalized ot Clef~rred) atti:otnralcorporate rates afte; corporate exei11ptioil, subject to the limitation that operating expenses are deductible only to the extent of income from members. For 2015 and 2014, the Association's income taxes were calculated using the corporate and exempt methods, respectively.

The Association's policy is to recognize any tax penalties and interest as an expense when incurred. For the years ended December 31, 2015 and 2014, the Association did not incur any penalties and interest related to income taxes. The Association's federal and state tax returns for the past three years remain subject to examination by the Internal Revenue Service and the Commonwealth of Virginia.

NOTE 5 - CASH AND INTEREST-BEARING DEPOSITS:

As of December 31, 2015, the Association maintained its funds in the following manner:

9


DECEMBER 31, 2015 AND 2014 (CONTINUED)

NOTE 5 - CASH AND INTEREST-BEARING DEPOSITS: (CONTINUED)

Institution Type

Account

Cash and Cash

Equivalents

InterestBearing Deposits

Bank United Checking $ 1,476 200,667

7,273

$ NCB Checking Wells Fargo Checking (2) Wells Fargo Savings Alliance Association Money Market Bofl Federal Money Market CIT Money Market Congressional Money Market Customers Money Market Union Bank,;, .. ~:; - _ -~·-.-- ·. Money Market

88,996 100,323 248,116 206,922 248,033 247,832 147,011 ,,-,--

Xenith , r"'"'·-,,,_,~:,''""'€e,rtificate of Deposit First VA CohnnUnity Certifjca~~~.ofD~posit (2) ':·.:::- __ _

- - -- - c-Total$_-:-. -- c, -$;: 1.496.64?

- -"' 42;756 .-t34h21

'. $"1761877

Total

$ 1,476 200,667

7,273 88,996

100,323 248,116 206,922 248,033 247,832 147,011 42,756

134,121 $ 1.673.526

~b Ass~bia~ph ha~ tubas m~tain~if }n a~onJy fllha at\UB~. Although the va~u~.' p~~ ~~~e"?fJhis ac~.p~tL~as not~~~~~P~ s~9e J!.J~.as_~peny~ ~~~its goal is to malhtain- a-pef'share value·-of-$1, this ·accoluit 'is' subj~cr rO';-market fl~ctuation risk. Therefore, the balance that was subject to market fluctuation risk as of December 31, 2015 and 2014 was $0 and $221,360, respectively.

NOTE 6 - ASSESSMENTS RECEIVABLE - NET:

The Association utilizes the allowance method of accounting for bad debt. Individual receivables are written off as a loss when a determination is made that they are uncollectible. Under the allowance method, collection efforts may continue and recovery of amounts previously written off are recognized as income in the year of collection.

Assessments Receivable Less: Allowance for Doubtful Assessments Assessments Receivable - Net

10

2015 2014

$ 40,632 (17,633)

$ 22.999

$ 80,259 ( 34,300)

$ 45.959


DECEMBER31, 2015 AND 2014 (CONTINUED)

NOTE 7 - VEHICLE - NET:

During 2004, the Association purchased a truck. This vehicle was depreciated using the straight-line method over an estimated life of 5 years. The vehicle is fully depreciated.

Vehicle Less: Accumulated Depreciation Vehicle - Net

NOTE 8 - RELATED PARTY TRANSACTIONS:

2015 2014

$ 19,000 (19,000)

$

$ 19,000 (19,000)

$

The Association is professionally managed by FirstService Residential DC Metro, LLC, which utilizes a central management payroll system, whereby payroll ret\1Jns~"w~r,~·:-fi~~~: under the management agent's nan;~c'~nc! federal identification numper. [ti'cad<litior.ito the payment of management fer( tJ1¢ ~~sogi~tion reimbursed FirstServ~ce Re;sidei1tia,t,~.US .. Metro, .. ~~~~_,,J?r 'k,(:lges, ,tl?ayr.oli ~t[l~es, workers' comi,Jens21.tion apd h·~ali~ inspta}:?9~ .foi-S:,entpfo-yees·, jhat,rpeff9rmyd-o·-work for the Assqciatipn duri~1g 2QJ5 and ~014. .

In preparing these financial statements, the Association has evaluated events and transactions for potential recognition or disclosure through [date to be inserted upon finalization], the date the financial statements were available to be issued.

Subsequent to year-end, the Association entered into a contract for tennis court repairs for approximately $102,000. The Association also entered into a contact for asphalt repairs for approximately $181, 000. These contracts will be funded through replacement reserves. In addition, the Association incurred additional replacement reserve expenditures of approximately $7 6, 000.

During 2016 the Association incurred approximately $71,000 of general snow removal expenses. For 2016, the Association budgeted $17,000 for general snow removal expenses.

11

SULLY ST A TI ON II COMMUNITY ASSOCIATION SUPPLEMENTARY INFORMATION ON FUTURE MAJOR

REP AIRS AND REPLACEMENTS DECEMBER 31, 2015

(UNAUDITED)

The Association had a reserve study conducted by PM+ during 2016 to estimate the remaining useful lives and the replacement costs of the components of common property. Replacement costs were based on the estimated costs to repair or replace the common property components at the date of the study. The estimated replacement costs presented below do not take into account the effects of inflation between the date of the study and the date the components will require repair or replacement; however, the Association's replacement reserve study does take inflation into consideration when evaluating future expenditures and recommended contributions to reserves.

The following has been extracted from the Association's replacement reserve study and presents significant information about the components of common property.

,··F.;:. -;;~::;-:.;-.-.~-:··~ .... -::~_

Component

Gen~ral R..eserv~s: " ·

Community Center. Pool Complex Courts and Tot Lots Other Property Features Annual Allowances Future Reserve Study Updates

Townhome Reserves:

Pavements Annual Allowances

Estates Reserves:

Pavements Other Property Features Annual Allowances

2016 Estimated Remaining

Useful 1,ff€'.':"°-. ,. \

(Years)

12

1-32 1-39 1-15 1-37

1 3

1-12 1

1-5 16 1

', "s~

'->.- .....

2016' J ... __ ,E~tini'~ted ,,Repl~cerp.ertt

Costi

:! ~-- . ' .. -~·,--,, ·.:-- ;, ::;:~~''.:·~~

$ 260,220 882,390 551,510 435,480

57,350 5,300

1,309,240 4,890

410,420 9,000 1,000

4763-Al5 SULLY STATION II COMMUNITY ASSOCIATION Prepared by __

08/29/2016 Adjusted Trial Balance Reviewed by __

03:10 PM for the period ended December 31, 2015 Page

Prior Period Unadjusted Adjusted

(Adjusted) Balance Adjustments Balance Workpaper

Account # I Description 12/31/2014 Dr (Cr) Ref# Dr (Cr) Dr (Cr) Reference

1012-000 Bank United Checking 137,525.52 1,475.65 1,475.65 B-1

1012-001 Wells Fargo Checking 5,088.31 4,334.25 4,334.25 B-4

1012-002 Debit Card 4,531.84 3,255.88 AJE-4 (317.58) 2,938.30 B-5

1012-003 N CB Checking 200,667.08 200,667.08 B-lA

1015-000 Wells Fargo Savings 88,924.37 88,995.53 88,995.53 B-2

1020-000 BOFIMM 241,600.74 248,116.35 248,116.35 B-2

1020-001 Customers MM 231,398.00 247,832.43 247,832.43 B-2

1020-002 One West MM 242,866.24 206,922.01 206,922.01 B-2

1020-003 Alliance MM 100,323.64 100,323.64 B-2

1020-004 Congressional MM 248,033.39 248,033.39 B-2

1020-005 UBOCMM 147,011.46 147,011.46 B-2

1030-066 First VA CD 66,178.82 66, 178.82 AJE-1 736.37 66,915.19 B-3

1030-067 First VA CD 66,024.53 66,024.53 AJE-1 1,181.31 67,205.84 B-3

1030-068 Xenith Bank CD 42,250.95 42,755.98 42,755.98 B-3

1041-000 UBS Account 221,359.51

1100-000 AIR Residential Assessments 52,890.06 23,326.30 23,326.30 E-1

1100-500 AIR Resale Disclosures 1,008.70 660.89 660.89 E-1

1101-000 Townhouse Assessments Receivable 13,089.85 8,141.13 8,141.13 E-1

1102-000 S/F Assessments Receivable 2,060.85 997.80 997.80 E-1

1107-700 AIR Estate Assessment 630.70 1,164.20 1,164.20 E-1

1160-000 Violations Receivable 385.00 27.85 27.85 E-1

1190-000 Allowance for Doubtful Accounts (34,300.38) (26,310.90) AJE-7 8,678.23 (17,632.67) F-1

1200-000 Interest Receivable 1,938.92 AJE-1 (1,938.92)

1301-000 AIR Taxes AJE-2 75.00 75.00 T-1

1310-000 Late/Admin Fees Receivable 9,975.03 5,822.87 5,822.87 E-1

4763-Al5 SULLY ST A TION II COMMUNITY ASSOCIATION Prepared by __


03:10PM for the period ended December 31, 2015 Page 2




1312-500 AIR HIO Interest 16.81 36.14 36.14 E-1

1315-000 NSF Fees Receivable 25.00 45.29 45.29 E-1

1320-000 Legal Charges Receivable 175.64 409.59 409.59 E-1

1490-000 AIR Other 1,866.64

1500-000 Prepaid Expense 7,535.86 7,696.67 AJE-11 1,690.82 9,387.49 G-2

1501-000 Prepaid Insurance 6,036.57 6,177.28 6,177.28 G-1

1820-000 Vehicle 19,000.00 19,000.00 19,000.00 I-1

1910-100 Accumulated Depreciation (19,000.00) (19,000.00) (19,000.00) I-1

2020-000 Accrued Expenses (34,237.03) (74,062.44) AJE-3 48,910.00 (26,507.45) N-1

AJE-10 (1,355.01)

2200-000 Prepaid Residential Assessments (96,292.33) (103,637.79) (103,637.79) E-2

3050-000 Prior Year Owner's Equity 7,214.57 (79,261.36) (79,261.36) ***

3800-100 RR Reserve Beginning Balance (313, 186.23) (313, 186.23) AJE-3 (112,074.00) (424,308.23) R-1

AJE-4 481.00

AJE-5 471.00

3800-200 Repair/Replacement Reserves Contrib (152,490.00) AJE-3 152,490.00

3800-300 Reserve Expenditures 71,416.00 AJE-3 (71,416.00)

3965-000 TH Reserves (675,680.07) (738,460.07) AJE-3 (12,550.00) (751,010.07) R-1

3966-000 Single Family Reserve Beginning Balance (203,203.14) (230,023 .14) AJE-3 (5,360.00) (235,383.14) R-1

3966-100 Estate Snow Beginning Balance (7,285.00) (7,285.00) (7,285.00) R-1

(Profit) Loss (86,475.93) (75,071.00) (9,702.22) (84,773.22)

0.00 0.00 0.00 0.00



03:10 PM for the period ended December 31, 2015 Page 3



Account # I Description 12/3112014 Dr (Cr) Ref# Dr (Cr) Dr (Cr) Reference

4100-000 General Assessments (933,744.63) (929,745.02) (929,745.02) Y-1

4101-000 Townhouse Assessments (324,997.53) (342,528.41) (342,528.41) Y-1

4102-000 Single Family Assessments (102,360.72) (104,932.50) AJE-6 1,402.50 (103,530.00) Y-1

4107-700 Estate Assessments (52,319.52) (51,423.90) AJE-6 (1,402.50) (52,826.40) Y-1

4200-000 Interest Income (4,504.46) (7,499.31) AJE-1 21.24 (7,478.07) Y-2

4200-300 Homeowner Interest (427.70) (415.77) (415.77)

4300-100 Miscellaneous Income (486.30) (2,249.00) (2,249.00)

4300-600 Violations Income (210.00) (210.00)

4310-000 Late Fees (26,902.10) (21,071.81) (21,071.81) Y-3

4310-600 Cost of Collection Fees (225.00)

4315-000 NSF Fee Income (425.00)

4320-000 Legal Charge Income (18,640.07) (20,883.96) (20,883.96) Y-3

4325-000 Parking Income (870.00) (700.00) (700.00)

4345-000 Pool Pass Income (2,439.50) (3,371.50) (3,371.50)

4350-000 Clubhouse/Pool Rental Income (5,150.00) (4,230.00) (4,230.00)

4360-000 Key Income (120.00) (320.00) (320.00)

4400-000 Bad Debt Recovery (7,735.59) (5, 176.12) AJE-7 561.74 (4,614.38) F-1

4950-000 Resale Fees (7,969.95) (10,489.95) (10,489.95)

5000-000 Management Fees 78,980.00 80,820.00 80,820.00 X-1

5020-000 Insurance 23,687.87 24,165.85 24,165.85 G-1

5030-100 Legal Fees 21,546.00 23,918.64 23,918.64 X-1

5030-200 Legal Fees - Collections 49,930.39 28,360.33 28,360.33 X-1

5040-000 Audit/Tax Returns 5,250.00 5,050.00 5,050.00 X-1

5060-000 Bad Debt 10,811.97 AJE-7 (9,239.97)

AJE-8 (1,572.00)

5070-000 Bank Charges 400.00 853.20 853.20







5080-000 Coupon Book 6,489.60 6,838.72 6,838.72

5100-000 Printing/Copying 4,279.62 2,501.58 2,501.58

5101-000 Postage 5,463.87 8,983.82 AJE-4 (109.98) 8,873.84

5104-000 Misc Admin 11,046.16 6,394.35 AJE-4 (64.85) 5,941.50

AJE-8 1,572.00

AJE-9 (1,960.00)

5110-000 Office Expenses 241.98 241.98 X-1

5110-300 Office Supplies 5,479.22 3,239.05 AJE-4 (63.59) 3,175.46

5120-000 Dues/Subscriptions 2,064.55 2,132.20 2,132.20 X-1

5135-000 Annual Meeting 5,963.07 9,394.12 9,394.12 X-1

5200-000 Salaries 196,643.88 210,359.07 210,359.07 X-2

5270-000 Mileage Reimbursement 274.74 589.88 AJE-10 16.05 605.93

5291-000 Casual Labor 450.00 171.20 171.20

5310-100 Electric TH 2,196.12 2,464.62 AJE-10 (96.63) 2,367.99

5340-000 Telephone 3,764.37 4,010.68 4,010.68

5340-400 Electric Entrance 285.03 385.61 AJE-10 2.44 388.05

5420-500 Landscpaing Enhancements 45,928.00 19,134.00 19,134.00 X-1

5485-000 General Maintenance Supplies 6,595.03 6,115.57 AJE-10 144.00 6,259.57

5620-000 Pest Control 440.00 660.00 660.00

5652-700 TH General Repair & Maintenance 1,140.48 2,591.52 AJE-5 (471.00) 2,392.99

AJE-10 272.47

5680-000 Maintenance Vehicles R&M 1,855.39 1,380.34 1,380.34

5700-000 Trash Removal 16,326.08 17,692.62 17,692.62 X-1

5700-100 TH Trash Removal 134,577.42 140,686.68 140,686.68 X-1

5700-200 Single Family Trash Removal 100,059.64 104,734.38 AJE-11 (1,690.82) 103,043.56 X-1

5710-000 Snow Removal Contract 11,376.25 16,830.00 16,830.00 X-1

5710-200 TH Snow Removal 32,056.45 50,344.00 50,344.00 X-1

4763-A15 SULLY ST A TION II COMMUNITY ASSOCIATION Prepared by __






5712-500 Estate Snow Removal 3,291.90 4,331.60 4,331.60 X-1

5725-000 Landscape Maintenance Contract 93,680.00 97,239.00 97,239.00 X-1

5725-200 TH Landscaping 55,866.00 61,272.00 61,272.00 X-1

5735-000 Pool Management Contract 70,950.00 73,587.00 AJE-10 1,026.00 74,613.00 X-1

5760-000 Security Contract 1,152.99 1,169.12 1, 169.12

5763-000 Pond Maint Contract 11,510.00 12,990.00 12,990.00 X-1

5801-000 Federal Income Taxes 450.00 AJE-2 (82.00) 368.00 T-1

5802-000 State Income Taxes 150.00 AJE-2 7.00 157.00 T-1

5804-000 Personal Property Taxes 357.90 345.33 345.33

5900-000 Misc Admin Collections 15,510.00 12,485.00 AJE-9 1,960.00 14,445.00 X-1

5901-000 Pool Supplies 3,001.72 3,898.35 3,898.35

5902-000 Pool Repair & Maintenance 2,412.53 10,868.05 AJE-10 971.73 11,839.78 X-1

5905-500 Pool Administration 150.00 810.00 810.00 X-1

5912-000 Clubouse Maintenance 3,748.01 2,210.39 AJE-4 75.00 2,285.39

5914-000 Clubhouse Water/Sewer 3,847.72 2,617.13 AJE-10 (513.54) 2,103.59 X-1

5915-000 Clubhouse Electricity 13,872.65 13,235.00 AJE-10 ( 467.51) 12,767.49 X-1

5930-500 Swim Team Contribution 6,700.00 8,040.00 8,040.00 X-1

5933-000 Tot Lot Maintenance 3,500.00 31.41 31.41

5942-000 Activities 10,514.96 13,773.86 13,773.86 X-1

5950-000 Resales Disclosures 10,489.95 10,489.95 X-1

5960-000 Committees/BOD Expenses 1,822.31 1,822.31 X-1

5960-500 Neighborhood Watch 2,276.02

5980-000 Pool Water 2,723.17 2,723.17 X-1

6520-100 TH Street Reserves 102,800.00 75,330.00 75,330.00 R-1

6520-300 Estate Street Reserves 31,410.00 32,180.00 32,180.00 R-1

4763-A15 SULLY ST A TION II COMMUNITY ASSOCIATION Prepared by __

08/29/2016 Adjusted Trial Balance Reviewed by __ 03:10 PM for the period ended December 31, 2015 Page 6




6800-000 Repair/Repl Reserves 181,520.00 185,990.00 185,990.00 R-1

7520-000 Special Project Expense 10,220.51 10,281.60 10,281.60 X-1

(Profit) Loss (86,475.93) (75,071.00) (9,702.22) (84, 773 .22)

4763-A15

08/29/2016

03:10 PM

Account#

12/31/2015

1030-066

1030-067

4200-000

1200-000

SULLY STATION II COMMUNITY ASSOCIATION

Adjusting Journal Entries

for the period ended December 31, 2015

Account Name I Description

First VA CD

First VA CD

Interest Income

Interest Receivable

AJE

Debits

736.37

1,181.31

21.24

To record interest income per 1099s.

12/31 /2015 AJE 2

AIR Taxes 75.00

Credits

1,938.92

1301-000

5801-000

5802-000

Federal Income Taxes 82.00

State Income Taxes 7.00

To record current year income taxes.

12/31/2015 AJE 3

2020-000 Accrued Expenses

3966-000 Single Family Reserve Beginning Balance

3965-000 TH Reserves

3800-100 RR Reserve Beginning Balance

3800-200 Repair/Replacement Reserves Contrib

3800-300 Reserve Expenditures

To adjust replacement reserve balances.

12/31/2015

3800-100

1012-002

5912-000

5110-300

5101-000

5104-000

RR Reserve Beginning Balance

Debit Card

Clubouse Maintenance

Office Supplies

Postage

MiscAdmin

AJE 4

To reverse client entries. These were reveresed by management after year end.

12/31/2015 AJE 5

48,910.00

152,490.00

481.00

75.00

RR Reserve Beginning Balance 471.00

5,360.00

12,550.00

112,074.00

71,416.00

317.58

63.59

109.98

64.85

3800-100

5652-700 TH General Repair & Maintenance 471.00

To reclassify client entry.

Page

4763-A15 SULLY STATION II COMMUNITY ASSOCIATION

08/29/2016 Adjusting Journal Entries 03:10 PM for the period ended December 31, 2015 Page 2

Account# Account Name I Description Debits Credits

12/31/2015 AJE 6

4102-000 Single Family Assessments 1,402.50

4107-700 Estate Assessments 1,402.50

To reclassify to tie to budget.

12/31/2015 AJE 7

1190-000 Allowance for Doubtful Accounts 8,678.23

4400-000 Bad Debt Recovery 561.74

5060-000 Bad Debt 9,239.97

To adjust allowance for doubful assessments.

12/31/2015 AJE 8

5104-000 MiscAdmin 1,572.00

5060-000 Bad Debt 1,572.00

To reclassify write off of prior year receivable.

12/31/2015 AJE 9

5900-000 Misc Admin Collections 1,960.00

5104-000 MiscAdmin 1,960.00

To reclassify client entry.

12/31/2015 AJE 10

5270-000 Mileage Reimbursement 16.05

5340-400 Electric Entrance 2.44

5310-100 Electric TH 96.63

5485-000 General Maintenance Supplies 144.00

5652-700 TH General Repair & Maintenance 272.47

5902-000 Pool Repair & Maintenance 971.73

5735-000 Pool Management Contract 1,026.00

5914-000 Clubhouse Water/Sewer 513.54

5915-000 Clubhouse Electricity 467.51

2020-000 Accrued Expenses 1,355.01

To adjust accrued expenses per auditor search.

12/31/2015 AJE 11

1500-000 Prepaid Expense 1,690.82

5700-200 Single Family Trash Removal 1,690.82

4763-A15

08/29/2016

03:10 PM

SULLY STATION II COMMUNITY ASSOCIATION

Adjusting Journal Entries

for the period ended December 31, 2015

Account# Account Name I Description

To adjust prepaid expense per auditor search.

Totals

Page 3

Debits Credits

222,745.90 222,745.90

i kl n - sully station ii community...

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