Coylumbridge Highland Lodges Club Accounts for the year ended 31 December 2018 and Balance Sheet as at that date Clements Statutory Auditor 39 St Vincent Place Glasgow G1 2ER Coylumbridge Highland Lodges Club Income and Expenditure Account for the year ended 31 December 2018 Notes 2018 2017 £ £ £ £ Maintenance Fees Received 1f, 4 1,290,278 1,307,050 Disbursements 1 e 1,613 1,601 Operating & Management Costs Paid Under Management Agreement 596,763 574,348 598,376 575,949 691,902 731,101 Other Income Electricity 130,082 129,565 Miscellaneous 2,953 1,779 Dividend Income 2,942 2,836 Bank Interest 951 91 Pet Income 6,475 4,407 Gain on Investments 102 - Sale of Equipment - 490 143,505 139,168 835,407 870,269 Other Costs Electricity 164,086 145,805 Metered Water & Sewerage 59,946 47,713 Cleaning Materials 3,235 1,789 Contract Cleaning 132,862 130,275 Lodges Laundry 27,058 27,058 Window Cleaning 17,020 17,021 Carpet Cleaning 7,913 8,675 Refuse Collection 16,867 17,493 Insurance 18,332 17,257 Credit Card Commission 504 226 Bank Interest & Charges 740 546 Professional Fees 27,440 5,389 Committee Expenses 6 8,416 7,412 AGM 5,105 5,229 Guest Supplies 12,282 9,386 Stationery, Printing & Postage 7,044 9,631 Telephone & Mobile Phone 421 (125) Welcome Parties 2,639 3,858 Vehicle Expenses 8,442 9,128 Bad Debt Provision 19,172 8,376 General Expenses 3,378 3,605 542,902 475,747 292,505 394,522 Less: Maintenance and Replacements 5 241,902 272,112 Surplus for the year before Corporation Tax 50,603 122,410 Corporation Tax Payable 200 18 Net Surplus for the year 50,403 122,392 1 Coylumbridge Highland Lodges Club Balance Sheet as at 31 December 2018 Notes 2018 2017 £ £ Current Assets: Investments 1d, 7 132,375 132,375 Maintenance Fee Debtors Maintenance Fee Billed in Respect of 2019 1,464,567 1,491,303 One Year Overdue 31,233 28,138 Two Years Overdue 20,125 15,616 Over Two Years Overdue 35,077 27,398 Charges Levied 4,372 3,692 Bad Debt Provision 1g (78,884) (59,712) 1,476,490 1,506,435 Sundry Debtors & Prepayments Sundry Debtors 43,312 54,248 Prepayments 40,420 8,417 83,732 62,665 Cash at Bank 486,614 359,607 486,614 359,607 Total Assets 2,179,211 2,061,082 …………… ……………. Current Liabilities Deferred Income - Maintenance Fees 1f 1,328,998 1,350,808 Trade Creditors 63,140 29,942 VAT payable 188,601 211,359 Corporation Tax Creditor 200 18 Other Creditors 134,706 55,792 386,647 297,111 Total Liabilities 1,715,645 1,647,919 …………… ……………. Net Assets 463,566 413,163 Financed By Maintenance & Replacement Reserve Fund: Balance Brought Forward 413,163 290,771 Net Surplus for the year 50,403 122,392 Balance Carried Forward 463,566 413,163 2 Coylumbridge Highland Lodges Club Balance Sheet continued as at 31 December 2018 Statement of Committee Responsibilities The committee is responsible for preparing the Report of the Committee and the financial statements in accordance with the constitution. The Club's Constitution requires the committee to prepare financial statements for each year. The committee has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards). Under the Cub's Constitution the committee must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the club and of the surplus or deficit for that period. In preparing these financial statements, the committee are required to: - select suitable accounting policies and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; The committee are responsible for keeping adequate accounting records that are sufficient to show and explain the club's transactions and disclose with reasonable accuracy at any time the financial position of the club. They are also responsible for safeguarding the assets of the club and hence take reasonable steps for the prevention and detection of fraud and other irregularities. In practice a number of the club's resposibilities are delegated to Hilton Grand Vacations UK Ltd under the terms of the Management Agreeement. Statement as to Disclosure of Information to Auditors So far as the committee are aware, there is no relevant audit information of which the club's auditors are unaware, and each committee member has taken steps that he or she ought to have taken as a committee member in order to make himself or herself aware of any relevant audit information and to establish that the club's auditors are aware of that information. ON BEHALF OF THE COMMITTEE: Mr David Gray - Chairman Mr Alan J Walker - Secretary Dated: 30th May 2019 3 Coylumbridge Highland Lodges Club Notes to the Accounts for the year ended 31 December 2018 1. ACCOUNTING POLICIES The financial statements are prepared in order to give a true and fair view of the financial affairs and intromissions of the club. The particular accounting policies adopted by the club are described below: a Accounting Convention The financial statements have been prepared under the historical cost convention. Income and costs are included in the accounts net of value added tax. b Basis of Accounting The club's activities, together with the factors likely to affect its future are discussed in the Report of the Committee. The committee has a reasonable expectation that the club has adequate reserves to continue in operational existence for the foreseeable future. Accordingly it continues to adopt the going concern basis in preparing the annual report and the financial statements. c Property Legal title to the Lodges and the land on which they stand is held by an external trustee in trust for the Members. The Club acting on behalf of the trustees and the Members, maintains insurance for the property against customary risks including owners' liability and public liability. d Investments Investments are included at cost. Profits or losses arising from disposals of current asset investments are shown in the Income and Expenditure Account in the year in which they are incurred. e Disbursements: Charges billed to Owners as disbursements relate to TV Licence Costs. 2018 - £1,613, 2017 - £1,601. Charges are collected from Owners and remitted to suppliers. f Income Maintenance fees are recognised in the accounts for the period for which they are due. Maintenance Fees billed to Owners for the year following that which the accounts represent, is treated as deferred and carried forward in the Balance Sheet. Maintenance fees are shown exclusive of VAT. g Bad Debt Provison Provision is made for all debts considered to be doubtful of collection. Members who are in arrears with Maintenance Fees are denied access to their period of occupation. h Reserves The Committee has determined that the medium and long term policy of the Club should be to make provision for a Maintenance and Replacement Reserve Fund of approximately £10,000 per lodge plus an amount for significant unforseen non-lodge costs. This would suggest a Reserves target of £750,000. 2 PRINCIPAL OBJECT OF THE CLUB In accordance with the constitution, Coylumbridge Highland Lodges Club is a non profit making club, the principal object of which is to manage the Time Ownership development at Coylumbridge, Aviemore, Scotland. 3. OPERATION The Management Agreement between Coylumbridge Highland Lodges Club and Hilton Grand Vacations UK Ltd appoints the latter to act as the Management Company for the Club. The Lodges Club has reached agreement with Hilton Coylumbridge Hotel that its leisure facilities be available to members during their period of occupation in exchange for the payment of an annual fee per holiday certificate. This fee is included in the Maintenance Fees charged to Owners. 4. MAINTENANCE FEES Income comprises fees received from members at the weekly rates agreed by the committee of the Club. 5. MAINTENANCE & REPLACEMENT RESERVE FUND Expenditure in the year out of the Reserve Fund is analysed as follows: 2018 2017 £ £ Refurbishment Works - - Repairs & Renewals 241,902 272,112 241,902 272,112 4 Coylumbridge Highland Lodges Club Notes to the Accounts for the year ended 31 December 2018 6. COMMITTEE EXPENSES Committee expenses are analysed as follows: 2018 2017 £ £ £ £ Honorarium Expenses Honorarium Expenses A Black - - 312 1,087 A Walker 1,485 623 1,435 454 D Gray 1,474 1,493 1,448 1,403 D Beringer 721 454 273 336 S Cankett 932 1,234 273 391 Joint - - - - 4,612 3,804 3,741 3,671 7. INVESTMENTS Cost 2018 2017 £ £ £ Ordinary Shares Held £18,500 Treasury 2.5% Index-Linked 2020 66,860 66,860 £20,000 Treasury 2.5% Index-Linked 2024 65,515 65,515 132,375 132,375 132,375 132,375 Market Value of the Investments held at 31 December 2018 140,254 141,327 8. APB ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES In common with many other entities of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements. 5 REPORT OF THE AUDITORS TO THE MEMBERS OF COYLUMBRIDGE HIGHLAND LODGES CLUB Opinion We have audited the financial statements of Coylumbridge Highland Lodges Club (the 'club') for the year ended 31 December 2018 which comprise the Income and Expenditure Account, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. In our opinion the financial statements: - give a true and fair view of the state of the club's affairs as at 31 December 2018; and - have been prepared in accordance with the club’s constitution.