MASTER ANNUAL REPORT

Frenchman’s Creek, Inc. and Subsidiary

Notes to Consolidated Financial Statements ______________________________________________________________________________________________________________

Note 4. Property and Equipment The major classifications of property and equipment, as of April 30, 2018 and 2017, are:

2018

2017

Land and improvements

19,803,677 $

19,814,511 $

Buildings and improvements Furniture, fixtures and equipment

47,712,342 19,753,102 87,269,121 46,291,365 40,977,756

45,983,409 18,900,181 84,698,101 42,288,608 42,409,493

Subtotal

Less accumulated depreciation

Subtotal

Construction in progress

302,746

279,477

Total

41,280,502 $

42,688,970 $

Loss on disposal of property and equipment: During the year ended April 30, 2018, the Association wrote off and disposed of property and equipment with a cost and accumulated depreciation of $448,648 and $407,931, respectively. Proceeds received from the total dispositions amounted to $2,000, resulting in total loss of $38,717 recognized in the consolidated statement of revenues and expenses and changes in fund balances for the year ended April 30, 2018. During the year ended April 30, 2017, the Association wrote off and disposed of property and equipment with a cost and accumulated depreciation of $748,123 and $726,026, respectively. Proceeds received from the total dispositions amounted to $5,650, resulting in total loss of $16,447 recognized in the consolidated statement of revenues and expenses and changes in fund balances for the year ended April 30, 2017. Capital projects: In April 2016, the membership approved a $5,335,000 renovation of the Porte Cochere and Sports Bar areas. The project was paid for with funds from the capital improvement fund, cash flow and using a portion of the Association’s lines of credit. The Porte Cochere was enhanced with architectural and landscape design, provide a wider automobile and golf cart arrival area, indoor climate controlled member waiting area and remediate water damage issues affecting the Clubhouse. The Sports Bar was upgraded with new decor, a louvered roof and satellite kitchen. Notes 5. Future Major Repairs and Replacements The Association’s Board of Governors requires that funds be accumulated for certain future major repairs and replacements. The funds are being accumulated in the Replacement Fund based on estimates of fu- ture needs for repairs and replacements of common property components. Actual expenditures may vary from the estimated future expenditures and the variations may be material. If additional funds are needed, the Association has the right, subject to board approval, to increase regular assessments, pass emergency assessments or delay major repairs and replacements until funds are avail- able. The effect on future assessments has not been determined at this time. The Porte Cochere was completed at a cost of $1,508,800 as of April 2018. The Sports Bar project was completed with a cost of $3,998,000 as of April 2017.

2018/2019 Annual Report Page 39