The Residents of Brent Residences Association

Financial Highlights
January 2020

I. Statement of Financial Position

Increase
ASSETS JANUARY '20 DECEMBER '19 (Decrease)

CURRENT ASSET 10,231,139 8,306,385 1,924,753

NONCURRENT ASSET 186,400.43 192,353.43 (5,953)

TOTAL ASSET 10,417,539 8,498,739 1,918,800

LIABILITIES AND FUND BALANCE

LIABILITIES
Current Liabilities 2,691,520 877,047 1,814,473
Non-current liabilities 6,500,000 6,500,000 -

Total 9,191,520 7,377,047 1,814,473

FUND BALANCE
Fund Balance, beginning 543,743 543,743 -
Surplus 682,276 577,949 104,327
FUND BALANCE, END 1,226,019 1,121,692 104,327

TOTAL LIABILITIES AND FUND BALANCE 10,417,539 8,498,739 1,918,800

One of the factors that led to an increase in current assets is the increase in the money market fund due to the increase in the fair
value per unit from Php 125.77 to 126.15 in December 2019 and January 2020, respectively. No additional investment to money
market fund was made and the total investment to date amounts to Php 6,811,437.78.

Decrease in the non-current asset is related to the depreciation expense incurred for the month. Also, no additional non-current
assets were purchased.

The significant increase in current liabilities is due the association dues of the residents collected in advance.

II. Statement of Activities (Accrual)

JANUARY '20 DECEMBER '19
Receipts from operations 438,121.47 475,320.27
Less: Expenses 355,207.39 412,061.59
Surplus from operations 82,914.08 63,258.68
Add: Unrealized gains/losses 20,527.60 18,366.80
Surplus 103,441.68 81,625.48
Less: Provision for income tax 35,914.22 6,523.95
Net Surplus 67,527.45 75,101.53
Provision for Tax

Although a non-stock not-for-profit organization is generally exempted from income tax, the provision for tax was still presented
due to the absence of the association’s tax exemption certificate. Under the existing rules of BIR, failure to present a valid
Certificate of Tax Exemption (CTE) will make a non-stock and nonprofit organizations to be taxable. It was ruled out however in
the Court of Tax Appeals and in a BIR Ruling that a nonstock nonprofit educational institution is not mandated to secure CTEs,
there is no mention about nonstock nonprofit homeowners/ condominium owners’ association. This is subsection is also presented
to let the management of the Association plan, discuss, and strategize any income tax provision for the taxable year 2020. The
computed month-to-date provision for income tax already amounted to Php200,942.81 as at January 31, 2020, granting the
association is treated as a taxable organization.

III. Statement of Cash Flows

JANUARY '20 DECEMBER '19

CASH, BEG INNING 1,218,725.79 1,711,525.74
CASH PRO VIDED (USED) FRO M O PERATING ACTIVITIES 2,009,032.66 (470,490 .04)
CASH PRO VIDED (USED) FRO M INVESTING ACTIVITIES - ( 22,309.91)
CASH PRO VIDED (USED) FRO M FINANCING ACTIVITIES ( 50,000.00) -
CASH ENDING 3,177,758.45 1,218,725.79

The significant increase in cash is due to the advance collection of association dues mentioned in section 1. The amount included
in the financing activity amounting to Php 50,000.00 is attributed to the Construction Bond for the renovation at Hamilton Hall.

IV. Association Dues Collection Efficiency and Aging

Aging of Receivables – Association Dues

As of January 31, 2020 Current Due Past Due

Hamilton 19,980.00 29,610.00
Hacket 24,120.00 51,574.20
Forbes 34,740.00 78,720.00
Total Receivables 78,840.00 159,904.20

Collection Efficiency in Percentage (%)

THE RESIDENCES AT BRENT RESIDENTS ASSOCIATION INC.
BALANCE SHEET (UNAUDITED)
AS OF JUNE 30, 2019
(In Philippine Peso)

ASSETS