| SUN LAKES LIFESTYLES | JULY 2020 | 7
The SLCC HOA Balance Sheet reflects
stability in our assets and equity - with
the exception of the April data.
During the audit for the 2019 Fiscal
year data/financials, the HOA was advised
that a significant change in how Reserves
must now be treated on balance sheets.
Reserves are basically to be treated as a
liability, in much the same way that we
treat "Golf Member Deferred Revenue," in
that those funds are contractually bound
to be used for the purpose described in
the Balance Sheet category/definition. As
such, Reserves are contractually bound
by laws, CC&Rs, rules, etc., to be used for
the purpose stated therein - specifically
to be used for the repair and replacement
of common area HOA assets. As can be
seen in the graph, our Reserve Equity
balance has been moved from the Equity
section to the Liability section of the
Balance Sheet. In practice, this has little
or no effect on the use of the reserves
in maintaining the facilities in the great
condition they are now.
