Reserves & financial health · 4 source passages
PDF page 68 · financial statements as of 2024-12-31
sible disclosure and
recognition in the financial statements. No events occurred during such time that required
disclosure.
NOTE 2 - CASH AND CASH RESERVE FUNDS
Cash and cash reserve funds in a bank consist of the following as of December 31,:
2024 2023
Cash - Operating funds 212,396$ 259,617 $
Cash - Reserve funds 97,309 107,627
Morgan Stanley 453,858 432,999
763,563$ 800,243 $
NOTE 3 - MAINTENANCE CHARGES RECEIVABLE
Maintenance charges receivables consist of maintenance fees due from tenant-shareholders,
which amounted to $12,617 and $6,294 as of December 31, 2024 and 2023, respectively.
No allowances for doubtful accounts have been provided for as management believes all
amounts are fully collectible.
In addition, the Corporation has maintenance fees received in advance in the amount of
$18,611 and $14,636 as of December 31, 2024 and 2023, respectively.
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n is fairly stated
in all material respects in relation to the financial statements as a whole.
Omission of Required Supplementary Information about Future Major Repairs and Replacements
Management has omitted information about the estimates of future costs of major repairs and replacements
that accounting principles generally accepted in the United States of America require to be presented to
supplement the basic financial statements. Such missing information, although not a part of the basic
financial statements, is required by the Financial Accounting Standards Board, which considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. Our opinion on the basic financial statements are not affected by this
missing information.
Ronkonkoma, New York
September 1, 2025
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ses are recognized when incurred. The use of “operating
funds” is generally at the discretion of the Board of Directors. Disbursements from capital
reserve funds may generally be made only for their designated purposes.
C. Revenue Recognition – In accordance with ASU 2014-09, Revenue from Contracts with
Customers (Topic 606), tenant-shareholder maintenance fees are recognized as the related
performance obligations are satisfied at transaction amounts expected to be collected. The
Corporation's performance obligations related to its operating maintenance fees are satisfied
over time on a daily pro-rata basis using the input method. The performance obligations
related to capital reserve fund maintenance fees are satisfied when these funds are expended
for their designated purpose.
D. Common Property – The Corporation’s policy for recognizing common property as assets
on its statement of assets, liabilities and stockholders’ deficit is to recognize (a) common
personal property
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mortgage types, as authorized under Section 203(b) of
the National Housing Act. O ne guideline requires the CIRA's budget to include a
replacement reserve fund for capital expenditures representing at least 10% of the budget to
be deemed adequate. Another FHA and FNMA requirement states that the number of unit
owners that are delinquent on their maintenance charges cannot exceed 15% of the total
units for more than sixty days. In addition, reserve funding must be sufficient to satisfy
annual insurance deductibles, and the CIRA must maintain certain fidelity insurance
coverage.
NOTE 12 - FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Corporation has not conducted a study to determine the remaining useful lives of the
components of common property and current estimates of costs of major repairs and
replacements that may be required in the future. When replacement funds are needed to
meet future needs for major repairs and replacements, the Corporation may have the right
to borrow,
Assessments & charge increases · 4 source passages
PDF page 71 · financial statements as of 2024-12-31
,718 for the years ended December 31, 2024 and 2023, respectively.
The Corporation increased 8.12% in maintenance fees from January 1, 2024.
NOTE 8 - SPECIAL ASSESSMENT
On December 2023, the Board approved a special assessment in the amount of $175,000 for
12 months starting from January 1, 2024, to recoup some of the costs for the Local Law 11
project as well as future capital improvement work. As of December 31, 2024, $175,003
has been collected.
NOTE 9 - RELATED PARTY TRANSACTIONS
Cooperative Boards in New York are required to issue an annual report to their tenant-
shareholders, as well as disclose any contracts entered by the Cooperative that fall within
the scope of Section 713 and 727 of the Business Corporation Law.
Section 713 requires that certain contracts in which a director has a financial interest, is void
or voidable unless the material facts of such interest, are disclosed to the board and that such
contract is approved by a sufficient vote excluding the vote of t
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2024 2023
REVENUES:
Maintenance charges 1,018,175$ 941,706$
Special assessment 175,003 -
Storage and other 60,495 23,633
Interest income 23,391 10,020
Income tax refund 7,852 -
Laundry income 7,800 7,800
Total Revenues 1,292,716 983,159
EXPENSES:
Mortgage interest 221,966 129,960
Payroll and related payroll costs 199,607 213,323
Real estate taxes 196,874 152,397
Maintenance, repairs and ground costs 139,593 115,136
Utilities 88,798 164,525
Insurance 45,193 63,729
Management fees 36,000 36,000
Professional fees 10,851 26,399
General and administrative expenses 10,826 17,568
Prepayment of loan penalty - 21,927
Income tax - 1,434
Total Expenses 949,708 942,398
NET EXCESS OF REVENUES OVER EXPENSES BEFORE DEPRECIATION
AND DEFERRED MORTGAGE COSTS 343,008 40,761
DEPRECIATION (97,452) (86,643)
DEFERRED MORTGAGE COSTS (11,513) (48,435)
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e needs for major repairs and replacements, the Corporation may have the right
to borrow, utilize available cash, increase maintenance charges, pass special assessments,
or delay repairs and replacements until the funds are available. The effect on future
assessments has not been determined at this time. The Corporation has a Reserve Fund in
the amount of $97,309, which may be used for future major repairs and replacements, when
needed.
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E
Maintenance 817,664$ 941,706$ 1,018,179$ 1,018,173$ 1,069,082$ Board approved 5% inc. effective 01/01/25
Special Assessment 99,300$ -$ -$ -$ -$
Laundry Income 7,150$ 7,800$ 7,800$ 7,800$ 7,800$
Storage Income 15,112$ 9,801$ 9,022$ 9,801$ 9,048$
Miscellaenous Income -$ 13,833$ 12,678$ 16,500$ 10,473$
TOTAL INCOME 939,226$ 973,141$ 1,047,679$ 1,052,274$ 1,096,403$
OPERATING EXPENSES
Payroll and Related 223,087$ 209,480$ 192,768$ 232,295$ 218,417$ See Supporting Schedule; In 2024 budgeted for relief
Electric and Gas 32,406$ 18,5
Resale fees & restrictions · 3 source passages
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e additional rent payable
under the Lease which at the date of this Contract is
$ ______.
1.15 The Party upon whom the Corporation imposes a
"Flip Tax" or similar transfer fee, if any, is
1.16 If Par. 19 (Financing Contingency) applies:
1.16.1 the "Loan Terms" are:
Amount Financed: $ ________ or any lower amount
applied for or acceptable to Purchaser, but not in excess
of this amount set forth herein unless specifically agreed
to in writing in advance by the Seller.
Payment Terms and Charges: The customary payment
terms (including prevailing fixed or adjustable interest
rate, prepayment provisions and maturity) and charges
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TOTAL SURPLUS (DEFICIT) (1,188)$ (64,137)$ (24,812)$ 11,483$ 2,546$
OTHER ITEMS
Flip Tax -$ -$ -$ -$ -$
Interest Income 365$ 10,020$ 13,880$ 2,000$ 10,000$
Unrealized Gain -$ -$ -$ -$ -$
Transfer to/from Investments -$ -$ 145,540$ 225,000$ -$
Capital Assessment -$ -$ 174,963$ 175,000$ 200,000$ 01/01/25 - 12/31/25
Capital Improvements (84,008)$ (83,668)$ (267,949)$ (400,000)$ -$
NET OTHER ITEMS (83,643)$ (73,648)$ 66,433$
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Miscellaneous Income 4043 -$ 2,485$ 660$ 3,985$ -$
Sublet Fee 4002 -$ 8,733$ 11,188$ 11,500$ 10,113$
TOTA MISCELLANEOUS INCOME -$ 13,833$ 12,678$ 16,500$ 10,473$
-$ 13,833$ 12,678$ 16,500$ 10,473$
Sublet Fee:
1F 107.50$ Expires 12/31/24
2E 111.25$ Expires 01/31/24
5K 74.00$ Expires 06/30/25
5M 154.00$ Expires 05/01/24
6A 163.50$ Expires 04/30/25
6B 116.25$ Expires 06/30/24
6E 116.25$ Expires 07/31/25
842.75$