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| SUN LAKES LIFESTYLES | JANUARY 2024 | 7 The Association had a surplus (income exceeded expenses) in October of $18,141 and a year-to-date surplus of $150,696. The Association has done better than budget in all departments except the Restaurant and Lounge (see table below). Through October, the Restaurant and Lounge has lost $680,125, which is $221,801 in excess of its 2023 budgeted loss. At the end of October, the balance in the Operating Fund checking account was $424,848. On that same date the Association had outstanding bills of $1,077,354. If accounts receivable (primarily amounts due from members house accounts) and cash are combined outstanding bills exceed cash and receivables by $213,262 (see the graphic below). As I have stated in prior reports, the Operating Fund cash balance is extremely low. The recommended Operating Fund cash balance is two months of operating expenses. The Association's monthly expenses are $1,200,000. Prior year Operating Fund losses (expenditures exceeding income), particularly in 2019 when the Operating Fund lost over $1 million, caused the deficiency in the Operating Fund cash balance. The Association cash deposits do not come in evenly each month. The largest amount of cash comes in during January when golfers pay their annual membership and some members pay a full year's dues. By October, the Association runs short of cash. Because of this, payment of some of October's bills is delayed. For example, at the end of October the Association owes FirstService Residential $556,608 for all of September's payroll. ~ Gary Burkel, SLCC Treasurer, CPA-Retired TREASURER'S REPORT * THE OPERATING FUND IN USED TO MANAGE DAILY OPERATIONS OF THE HOA. IT DOES NOT INCLUDE RESTRICTED CASH HELD IN THE RESERVE & REPLACEMENT FUND OR THE CAPITAL FUND. SUN LAKES COUNTRY CLUB HOA OPERATING FUND CASH* Available cash (blue) compared to outstanding bills (red) SUMMARY OF OCTOBER 2023 INCOME STATEMENT BY DEPARTMENT

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