Reserves & financial health · 5 source passages
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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 the 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 is not affected by this missing information.
Prager Metis CPAs, LLC
New York, New York
April 13, 2026 r
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current assets 1,785,752 2,175,629
Other assets
Taxes and insurance escrow 459,926 345,036
Violations and other escrow 62,542 77,000
Capital reserve fund 1,498,115 1,193,184
Interest rate swap asset - 423,858
Total other assets 2,020,583 2,039,078
Property and improvements at cost 65,411,643 65,271,296
Less: accumulated depreciation (24,261,478) (22,802,315)
Net property and improvements 41,150,165 42,468,981
Total assets 44,956,500$ 46,683,688$
Liabilities and stockholders’ equity
Liabilities
First mortgage payable – current portion 281,448$ 45,563$
Second mortgage payable – current portion 8,438 10,644
Accounts payable and accrued expenses 333,838 267,572
Tax abatements payable 12,302 -
Security deposits payable 5,500 3,500
Other payables - 2,049
Interest rate swap liabilities 1,074,329 -
Deferred revenue 44,894 1,000
Total current liabilities 1,760,749 330,328
Long-term liabilities
Mortgage payable – net of current portion
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4
Taxes and insurance escrow 459,926 345,036
Violations and other escrow 62,542 77,000
Capital reserve fund – restricted 1,498,115 1,193,184
Cash, cash equivalents and restricted cash at end of year 3,163,252$ 3,318,157$
Supplemental disclosures of cash flow information
Cash paid for interest 1,294,116$ 758,807$
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expense over the
term of the mortgage.
At the refinancing the Corporation deposited $1,186,000 from the proceeds into an interest-
bearing capital reserve fund account with Flushing Bank per the mortgage requirements. Flushing
Bank will disburse funds from the account to the Corporation to pay for certain capital
improvement addition costs, subject to the terms as defined in the mortgage documents. As of
September 30, 2024 and 2023, the balance in the capital reserve fund account with Flushing Bank
was $1,498,115 and $1,193,184, respectively.
In addition, at the refinancing, the Corporation deposited $477,999 from the refinancing proceeds
into an escrow account with Flushing Bank for the payment of the Corporation’s real estate taxes
and insurance costs. As of September 30, 2024 and 2023, the balance in this escrow account was
$459,926 and $345,036, respectively. The Corporation was also required to deposit several sums
of money with Flushing Bank to be held in escrow, whi
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19-19 24th Avenue Owners Corp.
Notes to Financial Statements
September 30, 2024 and 2023
18
Note 14 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. Although the Board of Directors has segregated funds for
future major repairs and replacements, these funds are Board designated. The Board of Directors
has not developed a formal plan to fund those needs. When replacement funds are needed to meet
future needs for major repairs and replacements, the Corporation may have 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 carrying charges or assessments
has not been determined at this time.
Note 15 Subsequent Events
Effective October 1, 2024, the