HomeMy WebLinkAboutAudit The ForumTHE FORUM
SCHEDULE OF OPERATING
REVENUE AND CERTAIN EXPENSES
FOR THE YEAR ENDED
MAY 31, 1994
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1700 Pacific Avenue, Suite 1400 Telephone 214 922 8040
Dallas, Texas 75201-4698
Price Waterhouse
Report of Independent Accountants
To the Partners of
Lodgeco Properties Limited
We have audited the accompanying schedule of operating revenue and certain expenses
of The Forum (the "Property") for the year ended May 31, 1994. This schedule is the
responsibility of the Property's management. Our responsibility is to express an opinion
on this schedule based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the schedule of operating revenue and certain expenses is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the schedule. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall schedule presentation. We believe that our audit provides a reasonable basis for
our opinion.
The accompanying schedule of operating revenue and certain expenses was prepared on
the basis described in Note 1 and is not intended to be a complete presentation of the
Property's revenues and expenses.
In our opinion, the schedule of operating revenue and certain expenses audited by us
presents fairly, in all material respects, the operating revenue and certain expenses of The
Forum, on the basis described in Note 1, for the year ended May 31, 1994, in conformity
with generally accepted accounting principles.
July 7, 1994
THE FORUM
SCHEDULE OF OPERATING REVENUE AND CERTAIN EXPENSES
FOR THE YEAR ENDED MAY 31, 1994
Operating revenue:
Rooms
Dormitory activity, processing and maintenance fees
Food and beverage
Other
Certain expenses (Note 1):
Cost of sales
General and administrative
Energy costs
Real estate taxes and insurance
Maintenance and property operations
Management fees
Operating revenue in excess of
certain expenses
The accompanying notes are an
integral part of this schedule.
PIP
$ 697,173
142,066
212,428
31,693
1,083,360
403,703
11'7 /o •o e
25,714
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101,292
- Ag -�
47,005
t9 9. )-1
136,039
5 76 H 3
y7� 23,986
737,739
$ 345,621
' THE FORUM
MAY 31,1994
' 1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
' The accompanying schedule of operating revenue and certain expenses relates to the operations
of The Forum (the "Property" or "Dormitory") located in College Station, Texas. The Property
is currently owned by Lodgeco Properties, Ltd. ("Lodgeco'). The Property was constructed in
1964, consisting of 120 rooms. Lodgeco has initiated proceedings which may ultimately
culminate in the Texas Dormitory Finance Authority, Inc. holding the debt for the Property.
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Basis of presentation
Certain expenses which may not be comparable to the expenses expected to be incurred in
the proposed future operations of the Dormitory, have been excluded under the assumption
that the potential transaction described above will be consummated. Expenses excluded
consist of depreciation of the building and improvements, interest expense on certain debt
incurred by Lodgeco to acquire and develop the property, and amortization of expenses not
directly related to the proposed future operations of the Dormitory.
Revenue and expense recognition
The accompanying schedule of operating revenue and certain expenses has been prepared
on the accrual basis of accounting.
Revenue from dorm leases is recognized over the term of the lease. Leases are operating
and are for a term of nine months. Revenue from dormitory activity, processing and
maintenance fees is recognized when received. All other revenue is recognized when
received.
2. RELATED PARTY TRANSACTIONS
For the year ended May 31, 1994, The Forum incurred $23,986 in charges from related
parties for fees related to the management of the Property.
3. FUTURE MINIMUM RENTALS UNDER OPERATING LEASES
As of July 7, 1994, the future minimum lease rental revenue under the terms of
noncancelable leases are as follows:
Rooms 8 656,275
Dormitory activity, processing, and
maintenance fees 85,050
Other 12,316
$ 753,641
THE FORUM
MAY 31, 1994
No leases have been signed for any periods beginning after May 31, 1995.
4. COMMITMENTS AND CONTINGENCIES
The Property leases certain equipment under operating leases. Future minimum lease
commitments are as follows:
1995 $ 9,027
1996 8,285
1997 7,920
1998 7,920
1999 and thereafter 3,300
$ 36,452