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6 | SUN LAKES LIFESTYLES | JULY 2021 | Narrative for March Financials Net Income for the month of April was $515,587 and was $561,148 better than Budget, bringing year to date Net Income to $850,617 and is $765,508 better than Budget. The HOA no longer will be recognizing revenues according to FASBI 606 and again will be recognizing both Assessment and Non-Assessment revenues as they are billed. 2021 Year-to-date Financials reflect this change. As a result, HOA Assessment Revenue is on Budget for both the month and YTD, while Non-Assessment revenue is below Budget for the month and $351, 609 below Budget YTD. Below Budget Revenues are primarily due to the Restaurant and Lounge. Lower than Budget Non-Assessment revenues were more than offset by on/or less than Budget spending in all departments along with less than Budget Reserve spending. While Restaurant and Lounge revenues continue to be significantly below Budget, expenses are also significantly below Budget and make up about 55 percent less than Budget spending for the HOA. The ramp up of the Restaurant and Lounge operations continue to be constrained by CV-19 issues and mandates, along with difficulty in attracting needed employees. Labor as a percentage of revenues continues to be a problem and the inflation of labor rates will exacerbate this problem. Efforts and programs to fully open restaurant and lounge facilities and to improve utilization continue to be monitored on a weekly basis. The Balance Sheet in April, continued strong with total assets increasing to $14,294,255 including cash and cash equivalents of $13,481,732. At month end, Current Liabilities and Accrued Payroll were $726,921 with Operating Account Funds and Receivables at $930,305. CONSOLIDATED INCOME STATEMENT - ACTUAL VS BUDGET - MONTH ENDING 4/30/21

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