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Saddlebrook Rental Pool Operation
 12 Months Ended
Dec. 31, 2018
Saddlebrook Rental Pool Operation [Member]  
Saddlebrook Rental Pool Operation
Saddlebrook Rental Pool Operation
Balance Sheets
December 31, 2018 and 2017
 
 
Distribution Fund
 
 
 
 
 
 
 
 
2018
 
 
2017
 
Assets
 
 
 
 
 
 
 
 
Receivable from Saddlebrook Resorts, Inc.
 
$
503,066
 
 
$
637,290
 
Liabilities and Participants’ Fund Balance
 
 
 
 
 
 
 
 
Due to participants for rental pool distribution
 
$
424,193
 
 
$
522,179
 
Due to maintenance escrow fund
 
 
78,873
 
 
 
115,111
 
 
 
$
503,066
 
 
$
637,290
 
Maintenance Escrow Fund
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
Cash in bank
 
$
1,864,132
 
 
$
244,558
 
Receivables
 
 
 
 
 
 
 
 
  Distribution fund
 
 
78,873
 
 
 
115,111
 
Owner payments
 
 
—
 
 
 
1,503
 
Prepaid expenses and other assets
 
 
58,710
 
 
 
51,098
 
Due from Saddlebrook Resorts, Inc.
 
 
94,547
 
 
 
—
 
Furniture inventory
 
 
39,651
 
 
 
49,747
 
 
 
$
2,135,913
 
 
$
462,017
 
Liabilities and Participants’ Fund Balance
 
 
 
 
 
 
 
 
Due to Saddlebrook Resorts, Inc.
 
$
—
 
 
$
127,625
 
Participants’ fund balance
 
 
2,135,913
 
 
 
334,392
 
 
 
$
2,135,913
 
 
$
462,017
 
Saddlebrook Rental Pool Operation
Statements of Operations
December 31, 2018 and 2017
 
 
 
Distribution Fund
 
 
 
 
 
 
 
 
2018
 
 
2017
 
Rental pool revenues
 
$
8,190,463
 
 
$
8,594,792
 
Deductions
 
 
 
 
 
 
 
 
Marketing fee
 
 
614,284
 
 
 
644,609
 
Management fee
 
 
1,023,808
 
 
 
1,074,349
 
Travel agent commissions
 
 
585,086
 
 
 
590,694
 
Bad debt expense
 
 
—
 
 
 
45,000
 
Credit card expense
 
 
246,519
 
 
 
251,976
 
 
 
 
2,469,697
 
 
 
2,606,628
 
Net rental income
 
 
5,720,766
 
 
 
5,988,164
 
Operator share of net rental income
 
 
(2,574,345
)
 
 
(2,694,673
)
Other revenues (expenses)
 
 
 
 
 
 
 
 
Complimentary room revenues
 
 
34,546
 
 
 
35,214
 
Minor repairs and replacements
 
 
(98,873
)
 
 
(106,756
)
Amounts available for distribution to participants and maintenance escrow fund
 
$
3,082,094
 
 
$
3,221,949
 
 
Saddlebrook Rental Pool Operation
Statements of Changes in Participants’ Fund Balance
Years Ended December 31, 2018 and 2017
 
 
 
Distribution Fund
 
 
 
 
 
 
 
 
2018
 
 
2017
 
Balances, beginning of year
 
$
—
 
 
$
—
 
Additions
 
 
 
 
 
 
 
 
Amounts available for distribution
 
 
3,082,094
 
 
 
3,221,949
 
Reductions
 
 
 
 
 
 
 
 
Amounts withheld for maintenance escrow fund
 
 
(507,749
)
 
 
(527,275
)
Amounts accrued or paid to participants
 
 
(2,574,345
)
 
 
(2,694,674
)
Balances, end of year
 
$
—
 
 
$
—
 
Maintenance Escrow Fund
 
 
 
 
 
 
 
 
Balances, beginning of year
 
$
334,392
 
 
$
371,247
 
Additions
 
 
 
 
 
 
 
 
Amount withheld from distribution fund
 
 
507,749
 
 
 
527,275
 
Unit owner payments
 
 
2,098,143
 
 
 
168,761
 
Interest earned
 
 
180
 
 
 
111
 
Reductions
 
 
 
 
 
 
 
 
Unit renovations
 
 
(400,280
)
 
 
(102,377
)
Refunds of excess amounts in escrow accounts
 
 
(7,148
)
 
 
(30,436
)
Maintenance charges
 
 
(260,329
)
 
 
(376,205
)
Linen expense
 
 
(136,794
)
 
 
(223,984
)
Balances, end of year
 
$
2,135,913
 
 
$
334,392
 
 
Saddlebrook Rental Pool Operation
Notes to Financial Statements
 
 
1.
Rental Pool Operations and Rental Pool Agreement
Condominium units are provided as rental (hotel) accommodations by their owners under the Rental Pool and Agency Appointment Agreement (the “Agreement”) with Saddlebrook Resorts, Inc. (collectively, the “Rental Pool”). Saddlebrook Resorts, Inc. (“Saddlebrook”) acts as operator of the Rental Pool which provides for the distribution of a percentage of net rental income, as defined, to the owners.
The Saddlebrook Rental Pool Operation consists of two funds: the Rental Pool Income Distribution Fund (“Distribution Fund”) and the Maintenance and Furniture Replacement Escrow Fund (“Maintenance Escrow Fund”). The operations of the Distribution Fund reflect the earnings of the Rental Pool. The Distribution Fund balance sheets reflect amounts due from Saddlebrook for the rental pool distribution payable to participants and amounts due to the Maintenance Escrow Fund. The amounts due from Saddlebrook are required to be distributed no later than forty-five days following the end of each calendar quarter. The Maintenance Escrow Fund reflects the accounting for escrowed assets used to maintain unit interiors and replace furniture as it becomes necessary.
Rental pool participants and Saddlebrook share rental revenues according to the provisions of the Agreement. Net Rental Income shared consists of rentals received less a marketing surcharge of 7.5%, a 12.5% management fee, travel agent commissions, credit card expense and provision for bad debts, if warranted. Saddlebrook receives 45% of Net Rental Income as operator of the Rental Pool. The remaining 55% of Net Rental Income, after adjustments for complimentary room revenues (ten percent of the normal unit rental price paid by Saddlebrook for promotional use of the unit) and certain minor repair and replacement charges, is available for distribution to the participants and maintenance escrow fund based upon each participant’s respective participation factor (computed using the value of a furnished unit and the number of days it was available to the pool). Quarterly, 45% of Net Rental Income is distributed to participants and 10%, as adjusted for complimentary room revenues and minor interior maintenance and replacement charges, is deposited in an escrow account until a maximum of 20% of the set value of the individual owner’s furniture package has been accumulated. Excess escrow balances are refunded to participants.
 
2.
Summary of Significant Accounting Policies
Basis of Accounting
The accounting records of the funds are maintained on the accrual basis of accounting.
Income Taxes
No federal or state taxes have been reflected in the accompanying financial statements as the tax effect of fund activities accrues to the rental pool participants and Saddlebrook.