2021-10-26T11:36:47-05:00 2020-12-31 410746749 CLIFTONLARSONALLEN LLP 20 EAST THOMAS ROAD SUITE 2300 PHOENIX AZ 85012 990 2020-01-01 860832131 SUN CITY GRAND COMMUNITY ASSOCIATION INC SUNC 6235467453 19726 N REMINGTON DRIVE SURPRISE AZ 85374 DON LOVE BOARD TREASURER 6235467453 2021-10-18 1 DON LOVE 999009999 MELISSA HANGSLEBEN P02087031 6022662248 2021-10-12 0 AAL1 IAL1 2020 2022-09-23 18:48:47Z ALAN MEYER 19726 N REMINGTON DRIVE SURPRISE AZ 85374 40169410 0 X WWW.SUNCITYGRAND.COM X 1996 AZ SUN CITY GRAND COMMUNITY ASSOCIATION, INC. HAS BEEN FORMED FOR THE PURPOSE OF OWNING, OPERATING, MAINTAINING, AND PRESERVING FACILITIES WHICH ENHANCE THE RECREATIONAL, SOCIAL, AND LEISURE INTERESTS OF THE ASSOCIATION AND THE SURROUNDING COMMUNITY. 7 7 245 200 214629 74854 0 0 28889036 24665967 727588 456301 338526 26575 29955150 25148843 0 0 0 0 10164891 9966256 0 0 0 17855075 16134708 28019966 26100964 1935184 -952121 64256149 67540516 9137843 34886082 55118306 32654434 TO ENHANCE, PRESERVE AND PROTECT THE QUALITY OF LIFE, AESTHETICS, AND ACTIVITIES OF THE COMMUNITY AND ITS HOMEOWNERS BY PROVIDING AND MAINTAINING POSITIVE, CREATIVE, COMPASSIONATE CUSTOMER SERVICE THROUGH TEAMWORK, COMMUNICATION, AND A PROGRESSIVE VISION. 0 0 21668229 0 24290031 SUN CITY GRAND (SCG) IS A UNIQUE COMMUNITY WITH RESORT-LIKE AMENITIES AND VAST FELLOWSHIP. SCG OFFERS SOCIALIZATION, RECREATION, AND EDUCATIONAL ACTIVITIES INCLUDING AWARD-WINNING CHAMPIONSHIP GOLF COURSES. SCG PROTECTS AND MAINTAINS THE QUALITY OF LIFE IN THE COMMUNITY BY MAINTENANCE OF THE LANDSCAPING, COMMON AREAS AND RECREATIONAL FACILITIES OF THE ASSOCIATION. 21668229 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 83 0 245 1 1 1 0 0 0 0 0 0 0 X 7 7 0 0 0 0 1 1 0 1 1 0 0 1 1 1 0 0 0 1 0 0 X DAVID REBER 6235467453 19726 N REMINGTON DRIVE SURPRISE AZ 85374 JEFFREY HOCHMAN DIRECTOR OF GOLF OPERATIONS 40.00 X 174192 0 6188 DAVID BERGSTROM SUPERINTENDENT 40.00 X 133757 0 5350 W DAVID TWIGGS GENERAL MANAGER 40.00 X 126043 0 5042 DAVID REBER FINANCE MANAGER 40.00 X 117548 0 4702 JEFFRY PRITCHARD SUPERINTENDENT 40.00 X 100757 0 4030 DON LOVE PRESIDENT 1.00 X X 0 0 0 ALAN MEYER VICE PRESIDENT 1.00 X X 0 0 0 STEPHANIE SLOGGET O'DELL TREASURER 1.00 X X 0 0 0 STEVE BOWEN SECRETARY 1.00 X X 0 0 0 BARBARA MINICK DIRECTOR 1.00 X 0 0 0 EARLE GREENBERG DIRECTOR 1.00 X 0 0 0 EUGENE NEIGOFF DIRECTOR 1.00 X 0 0 0 BOB AIKEN DIRECTOR (LEFT 03/20) 1.00 X 0 0 0 TERRY MURPHY PAST PRESIDENT (LEFT 03/20) 1.00 X 0 0 0 JEFF GIBBS DIRECTOR (LEFT 03/20) 1.00 X 0 0 0 652297 0 25312 5 0 1 0 GOTHIC LANDSCAPE MAINTENANCE 4235 E WINSLOW AVE PHOENIX AZ 85040 LANDSCAPE MAINTENANCE 2648846 MCI PO BOX 59986 DALLAS TX 75229 TECHNOLOGY 606325 SIMPSON NORTON CORPORATION 4144 S BULLARD AVE GOODYEAR AZ 85338 LANDSCAPE & IRRIGATION 603786 TCF EQUIPMENT FINANCE 11100 WAYZATA BLVD SUITE 801 MINNETONKA MN 55305 EQUIPMENT FINANCING 524970 UNIDINE CORPORATION 1000 WASHINGTON STREET SUITE 510 BOSTON MA 02118 CATERING 502131 5 MEMBERSHIP ASSESSMENTS 713990 14873588 14873588 GOLF RELATED REVENUES 713910 7822902 7787980 34922 CHARTERED CLUB REVENUES 713990 776384 776384 RECREATION CENTER OPERATIONS 713990 625278 455329 169949 OTHER REVENUES & FEES 713990 567815 535738 32077 24665967 503100 503100 391093 170600 220493 220493 32611 187882 13750000 13699969 96830 50031 -96830 -46799 -46799 859250 1053168 -193918 -138988 -54930 25148843 24290031 214629 644183 433716 245923 187793 7621336 6232283 1389053 154223 128606 25617 983785 793914 189871 773196 623969 149227 62976 19919 43057 189177 59837 129340 34440 34440 22450 7101 15349 1160750 802170 358580 105012 72572 32440 2064155 1897503 166652 2513907 2513907 677918 677918 UBIT 115000 115000 REPAIRS AND MAINTENANCE 3336985 3332569 4416 LANDSCAPING 2191446 2191446 OTHER OPERATING EXPENSE 1983530 1355658 627872 1676962 1390852 286110 26100964 21668229 4432735 0 2160211 2450420 4464455 7795675 170786 95751 383235 349401 323321 394985 89841685 63060882 26420447 26780803 30333694 29606414 0 67067 64256149 67540516 1064756 933444 7663218 7958629 409869 25994009 9137843 34886082 X 0 0 26420447 26780803 28697859 5873631 55118306 32654434 64256149 67540516 X -952121 -2284 1800000 -23309467 X X 0 1 X 1 0 1 1 0 7804876 7804876 70138101 56955041 13183060 11898708 6105841 5792867 26780803 OTHER LIABILITIES 104378 REPLACEMENT FUND RESERVES 21161019 CARE FUND RESERVES 4728612 25994009 X 26370327 -2284 -2284 26372611 -1223768 -1223768 25148843 27324732 1223768 1223768 26100964 0 26100964 PART X, LINE 2: THE ASSOCIATION HAS RECEIVED FROM THE INTERNAL REVENUE SERVICE (IRS) AN EXEMPTION FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(4) OF THE INTERNAL REVENUE CODE FOR EXEMPT FUNCTION INCOME EARNED DURING THE YEAR ENDED DECEMBER 31, 2020. A PROVISION IS MADE IN THE FINANCIAL STATEMENTS FOR INCOME TAX EXPENSE ON UNRELATED TRADE OR BUSINESS INCOME EARNED, WHEN REQUIRED. THE ASSOCIATION FILES IRS FORM 990-T AND AZ FORM 99T, WHICH HAVE A FLAT TAX RATE OF 21%, AND 4.9% RESPECTIVELY, THAT IS APPLIED TO NET TAXABLE INCOME. THE ASSOCIATION ACCOUNTS FOR UNCERTAIN TAX POSITIONS, IF ANY, IN ACCORDANCE WITH THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) ACCOUNTING STANDARDS CODIFICATION (ASC) SECTION 740. IN ACCORDANCE WITH THESE PROFESSIONAL STANDARDS, THE ASSOCIATION RECOGNIZES TAX POSITIONS ONLY TO THE EXTENT THAT MANAGEMENT BELIEVES IT IS "MORE LIKELY THAN NOT" THAT ITS TAX POSITIONS WILL BE SUSTAINED UPON IRS EXAMINATION. MANAGEMENT BELIEVES THAT IT HAS NO UNCERTAIN TAX POSITION FOR THE YEAR ENDING DECEMBER 31, 2020. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD MOVED FROM EXPENSES TO REVENUE -1,053,168. RENTAL EXPENSES MOVED FROM EXPENSES TO REVENUE -170,600. PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD MOVED FROM EXPENSES TO REVENUE 1,053,168. RENTAL EXPENSES MOVED FROM EXPENSES TO REVENUE 170,600. X X 0 0 0 0 0 0 0 0 0 JEFFREY HOCHMAN DIRECTOR OF GOLF OPERATIONS 174192 0 0 0 0 0 6188 0 0 0 180380 0 0 0 FORM 990, PART VI, SECTION A, LINE 1 COMMITTEES COMPRISED SOLELY OF MEMBERS OF THE BOARD MAY BE APPOINTED TO EXERCISE THE AUTHORITY OF THE BOARD. SUCH COMMITTEES SHALL BE APPOINTED UPON THE APPROVAL OF AT LEAST A MAJORITY OF THE DIRECTORS. NOTWITHSTANDING THE ABOVE, NO SUCH COMMITTEE MAY EXERCISE THE AUTHORITY OF THE BOARD IN REFERENCE TO (A) SUBMISSION TO THE MEMBERS OF ANY MATTER REQUIRING AN ACT OF THE MEMBERS; OR (B) FILLING VACANCIES ON THE BOARD OR ON ANY COMMITTEE OF THE BOARD. THE BOARD MAY, WITH OR WITHOUT CAUSE. DISSOLVE ANY SUCH COMMITTEE OR REMOVE ANY DIRECTOR FROM THE COMMITTEE AT ANY TIME. FORM 990, PART VI, SECTION A, LINE 6 EACH LOT OWNER IN GOOD STANDING MAY CAST ONE VOTE ON ALL MATTERS REQUIRING MEMBER APPROVAL. FORM 990, PART VI, SECTION A, LINE 7A EACH BOARD MEMBER IS ELECTED BY A VOTE OF THE MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE ORGANIZATION'S PUBLIC ACCOUNTING FIRM BASED ON INFORMATION PROVIDED BY MANAGEMENT. ONCE THE DRAFT IS AVAILABLE, IT IS REVIEWED BY MANAGEMENT AND ANY CHANGES INCORPORATED INTO THE FILING. ONCE THIS DETAILED REVIEW IS COMPLETE, THE DRAFT OF THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENTS PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 15A THE COMPENSATION FOR THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL IS CONDUCTED BY THE BOARD OF DIRECTORS. THEY REVIEW COMPENSATION SURVEYS AND THE COMPENSATION DECISION IS DOCUMENTED IN THE EMPLOYEE'S WRITTEN EMPLOYMENT CONTRACT. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN ACCOUNTING METHOD ADJUSTMENT-SEE SCH O EXPLANATION -23,309,467. FORM 990, PART XII, LINE 2C: THE ORGANIZATION DID NOT CHANGE ITS OVERSIGHT OR SELECTION PROCESS DURING THE TAX YEAR. FORM 990, PART XI, LINE 8, PRIOR PERIOD ADJUSTMENTS: DURING THE YEAR ENDED DECEMBER 31, 2020, THE ASSOCIATION RECONCILED PARCELS HELD AND TAXED. AFTER REVIEW, IT WAS NOTED THAT ONLY 3 OF THE 4 GOLF COURSES CONTRIBUTED BY DEL WEBB (THE DEVELOPER) WERE PREVIOUSLY ACCOUNTED FOR IN THE ASSOCIATIONS' ASSETS. THE ORGANIZATION HAS DETERMINED THE BEST ESTIMATE OF FAIR VALUE AT TIME OF TRANSFER TO BE $1,800,000. THE ORGANIZATION INCREASED ITS OPERATING FUND BALANCE AND ITS LAND FIXED ASSET ACCOUNT ON ITS BOOKS FOR GAAP FINANCIAL REPORTING PURPOSES AND IT IS REPORTED AS A RESTATEMENT OF FUND BALANCE ON THEIR 2020 FINANCIAL STATEMENTS AND AS A PRIOR PERIOD ADJUSTMENT ON THIS FORM 990. THIS LAND CONTRIBUTION WOULD HAVE BEEN REPORTED AS A CONTRIBUTION TO THE ORGANIZATION AND, AS SUCH, WOULD NOT HAVE AFFECTED ANY UNRELATED BUSINESS INCOME TAX CALCULATIONS ON THE FORM 990-T. THEREFORE, THIS PRIOR PERIOD ADJUSTMENT HAS NO INCOME TAX EFFECT. FORM 990, PART XI, LINE 9, OTHER CHANGES IN NET ASSETS: FOR GAAP FINANCIAL REPORTING AND DURING THE YEAR ENDED DECEMBER 31, 2020, THE ASSOCIATION ADOPTED FASB ASC TOPIC 606, REVENUE FROM CONTRACTS WITH CUSTOMERS. TOPIC 606 SUPERSEDES THE REVENUE RECOGNITION REQUIREMENTS IN FASB ASC 605, REVENUE RECOGNITION, AND REQUIRES THE RECOGNITION OF REVENUE WHEN PROMISED GOODS OR SERVICES ARE TRANSFERRED TO CUSTOMERS IN AN AMOUNT THAT REFLECTS THE CONSIDERATION TO WHICH AN ENTITY EXPECTS TO BE ENTITLED IN EXCHANGE FOR THOSE GOODS OR SERVICES. THIS IMPACTED THE TIMING OF REVENUE REPORTING FOR GAAP FINANCIAL STATEMENT PURPOSES FOR THE FOLLOWING TWO REVENUE STREAMS: RESERVE ASSESSMENT REVENUE - THE ASSOCIATION ALLOCATES A PORTION OF THE ASSESSMENTS TO THE RESERVE FUND FOR COMMON AREA ASSET REPAIR AND REPLACEMENT EXPENDITURES NOT ASSESSED TO THE MEMBERS BY THE REGULAR ASSESSMENTS. RESERVE FUND ASSESSMENT REVENUE IS RECOGNIZED AS THE RELATED PERFORMANCE OBLIGATIONS ARE SATISFIED AT TRANSACTION AMOUNTS EXPECTED TO BE COLLECTED. THE PERFORMANCE OBLIGATIONS RELATED TO THE RESERVE FUND ASSESSMENTS ARE SATISFIED WHEN THESE FUNDS ARE EXPENDED FOR THEIR DESIGNATED PURPOSE. UNSPENT ASSESSMENTS WILL BE PRESENTED AS A LIABILITY ON THE BALANCE SHEET. CARE FEE REVENUE - CARE FEES ARE DUE UPON BECOMING THE OWNER OF A LOT IN THE ASSOCIATION. THE CARE FEES ARE USED AS A CONTRIBUTION TO THE ASSOCIATION FOR PLANNING, DEVELOPING, OR EXPANDING NEW COMMUNITY FACILITIES OR PROGRAMS OR CAPITAL PROJECTS. CARE FEE REVENUE IS RECOGNIZED AS THE RELATED PERFORMANCE OBLIGATIONS ARE SATISFIED AT TRANSACTION AMOUNTS EXPECTED TO BE COLLECTED. THE ASSOCIATION'S PERFORMANCE OBLIGATIONS RELATED TO ITS CARE FEES ARE SATISFIED WHEN THESE FUNDS ARE EXPENDED FOR THEIR DESIGNATED PURPOSE. UNSPENT CARE FEES WILL BE PRESENTED AS A LIABILITY ON THE BALANCE SHEET. BOTH OF THESE REVENUE STREAMS ARE REPORTED UNDER THE MEMBERSHIP ASSESSMENT CATEGORY OF INCOME AND ONLY AFFECT THE TIMING OF WHEN RELATED OR EXEMPT FUNCTION REVENUE IS REPORTED. THEY DO NOT AFFECT THE TIMING OF WHEN UNRELATED BUSINESS REVENUE FROM THE ORGANIZATION'S UNRELATED BUSINESSES ARE REPORTED FOR PURPOSES OF CALCULATING TAXABLE INCOME. UNDER IRC SEC. 446(E), A TAXPAYER WHO CHANGES THE METHOD OF ACCOUNTING ON THE BASIS OF WHICH HE REGULARLY COMPUTES HIS INCOME IN KEEPING HIS BOOKS SHALL, BEFORE COMPUTING HIS TAXABLE INCOME UNDER THE NEW METHOD, SECURE THE CONSENT OF THE SECRETARY. SINCE THE NEW METHODS ABOVE DO NOT AFFECT THE COMPUTATION OF THE ORGANIZATION'S UNRELATED BUSINESS REVENUE AND, THEREFORE, DO NOT AFFECT THE COMPUTATION OF THE ORGANIZATION'S UNRELATED BUSINESS TAXABLE INCOME, NO INCOME TAX ACCOUNTING METHOD CHANGE SHOULD BE REQUIRED UNDER SEC. 446(E) AND THE ORGANIZATION HAS NOT INCURRED THE COST OF PREPARING A FORM 3115 FOR AN ACCOUNTING METHOD CHANGE THAT ONLY AFFECTS THE TIMING OF REPORTING NONTAXABLE RELATED OR EXEMPT FUNCTION INCOME.