According to IRS disclosure regulations, exempt organizations must make its three most recently filed annual Form 990 or 990-PF returns and all related supporting documents available for public inspection. The Somersett Country Club, Inc. (SGCC) falls under this category. Publicly available Form 990’s for the SGCC for fiscal years 2010 and 2011 reveal the following:
Number of Equity Owners 188 152
Total Revenue $1.990.652 $2,087,950
Total Expenses $2,550,940 $2,715,815
Net Income Loss ($560,288) ($627,865)
Financials for 2012 are not yet publicly available. However, given the $435,000 the SGCC received from SOA unit owner assessments in 2012 and the projected $60,000 from resident usage of the Sunsett Grille and Driving Range, it is expected that these will significantly offset the SGCC net income losses encountered in 2010 and 2011.
With regard to SGCC operations, under the SGCC Lease & Management Agreement, the SOA has the right to observe all meetings of the SGCC Board. At a previous SOA BOD Meeting, the Board President reported that the SGCC was apparently doing well financially, but gave no financial details citing confidentiality reasons. This is hard to understand given the public disclosure regulations for tax exempt organizations. As an association member amply stated in a previous letter to the SOA BOD:
“What is the purpose of the observation rights clause if not to: a) monitor Country Club compliance to Agreement terms, b) evaluate resident usage of the Country Club amenities, c) assess the Country Club’s financial stability given the significant monetary investment on the part of the SOA, and d) to report such findings to association members, all of which have not been accomplished in the past?”
It appears the new SOA Board of Directors has “gotten” the message about improved communications with association members, as a Lease Agreement “Informational Presentation” meeting between the SOA Board and association members has been scheduled for Thursday May 28 from 5:30 to 7:00 PM at The Club at Town Center. Perhaps this meeting will also address the issues raised in the preceding paragraph.
Please put this meeting on your calendar and attend if at all possible.