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| SUN LAKES LIFESTYLES | APRIL 2023 | 9 Narrative for January 2023 Financials HOA total operations for the month of January resulted in income of $54,986 and was $39, 751 below Budget. As can be seen from the accompanying Consolidated Budget to Actual Chart, all major departments, with the exception of Food & Beverage, were positive with respect to budget for the month. HOA departmental operations were positive primarily due to Increased Special Events Revenue, lower labor costs, and lower water expenses. Golf course results also were positive primarily due to reduced water and labor expenses. Food and Beverage (F&B) results were $10,106 worse than Budget and consisted of revenue deficiencies of $7,389 and merchandise (F&B) overrun of $2,683. Achieving F&B budget expectations is the current primary financial issue for the Association. The Board and management are collectively addressing this issue with a F&B analysis/audit committee consisting of board members, committee members, and operating staff. The purpose of this committee is to develop a comprehensive business plan for F&B that is intended to increase revenues and control costs to allow for F&B operations to operate within budget. There were no reserve and Capital Improvement Project (CIP) expenses for January and thereby increased reserve and CIP funds by $153,586 to a total of $11,635,676 and $2,090,691 respectively in January. Balance Sheet for January remained strong with total assets increasing to $15,178,040 and consisting primarily of cash and investments of $14,208,575. Total liabilities were $1,994,795, of which about $1,103,000 consists of deferred revenues, prepaids, and deposits that will not become actual payables. Month ending HOA operating funds and accounts receivable were $962,419 with current liabilities and accrued payroll of about $566,493. Of significance was the reduction in January of $354,000 in accrued payroll. SLCC BALANCE SHEET

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