HomeMy WebLinkAboutUniversity Tower and Fourm Audit 99-00 The University Tower and Forum (Lodgeco)
Properties
of the
Texas Student Housing Corporation,
a Component Unit
of the
Town of Westlake, Texas
Financial Statements
For the Year Ended August 31, 2000 and 1999
Prepared by:
Charles Haynes
Certified Public Accountant
TABLE OF CONTENTS
Independent Auditor's Report I
Balance Sheet 2
Statement of Revenues and Expenses 3
Statement of Cash Flows 4
Notes to Financial Statements 5
Independent Auditor's Report on Additional Information 10
Consolidating Balance Sheet 1 I
Consolidating Statement of Revenues and Expenses 12
Calculation of Amount Due to the Texas Student Housing Corporation
Pursuant to Section 10.04 of the Installment Sale Agreement 13
Charles Haynes, CPA
Certified Public Accountant
1903 Central Drive, Suite 300
Bedford, Texas 76021
(817) 545-1300
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Texas Student Housing Corporation
We have audited the accompanying financial statements of the University Tower and Forum
(Lodgeco) of the Texas Student Housing Corporation (the "TSHC"), a component unit of the
Town of Westlake, Texas, as of and for the year ended August 31, 2000 and 1999. These
financial statements are the responsibility of the Texas Student Housing Corporation's
management. Our responsibility is to express an opinion on these financial statements 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 financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements present only the Projects and are not intended to
present fairly the financial position and results of operations of the Texas Student Housing
Corporation, in conformity with generally accepted accounting principles.
In our opinion, based on our audit the financial statements referred to above present fairly, in all
material respects, the financial position of the Projects as of August 31, 2000 and 1999, and the
changes in its net assets and cash flows for the periods then ended in conformity with generally
accepted accounting principles.
Bedford, Texas
February 25, 2001
THE UNIVERSITY TOWER and the FORUM
(LODGECO) PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Consolidated Balance Sheet
August 31, 2000 and 1999
AUGUST 31,
2000 1999
CURRENT ASSETS:
Cash and cash equivalents $ 1,095,934 $ 1,869,696
Trade accounts receivable 2,140,239 2,513,594
Interproject receivable 50,000
Other receivable-SSRS 23,674
Inventory 26,935 41,952
Prepaid and other 59,757 188,485
3,396,539 4,613,727
PROPERTY AND EQUIPMENT:
Land 2,100,000 2,100,000
Buildings and improvements 22,361,256 22,072,124
Furniture, fixtures and equipment 2,539,616 1,984,802
27,000,872 26,156,926
Less: Accumulated depreciation 5,076,427 3,881,303
21,924,445 22,275,623
TOTAL ASSETS $ 25,320,984 $ 26,889,350
CURRENT LIABILITIES:
Trade accounts payable $ 171,218 $ 769,255
Notes payable - -
Property taxes payable 112,507 274,130
Interproject payable 174,163 106,240
Scholarships awarded 32,334 90,295
Deferred income 3,997,503 4,527,444
Other 5,005 105,325
4,492,730 5,872,689
LONG-TERM LIABILITIES:
Equipment debt obligation 477,982 -
Long-term debt 24,000,000 24,000,000
Accrued interest 8,516,269 6,099,631
32,994,251 30,099,631
TOTAL LIABILITIES 37,486,981 35,972,320
NET ASSETS (LIABILITIES)-UNRESTRICTED (12,165,997) (9,082,970)
TOTAL LIABILITIES AND NET ASSETS $ 25,320,984 $ 26,889,350
2
THE UNIVERSITY TOWER AND FORUM
(LODGECO) PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Consolidated Statement of Revenues and Expenses
For the Year Ended August 31, 2000 and 1999
AUGUST 31,
2000 1999
OPERATING REVENUES:
Rents $ 5,383,855 $ 5,982,742
Daily rental - 26,556
Property activity, processing and maintenance fees 294,353 345,482
Dormitory phone service 126,339 201,643
Other 110,145 121,342
5,914,692 6,677,765
OPERATING EXPENSES:
Property management 1,123,579 1,035,567
Food cost of sales 592,547 595,613
Other food expense 543,453 528,291
Phone expense 215,672 241,717
General and administrative 314,442 341,057
Energy costs 492,171 493,410
Real estate taxes and insurance 313,61 B 274,775
Maintenance and property operations 530,424 696,942
Management fees 167,496 139,992
Depreciation 1,195,124 1,160,268
5,488,526 5,507,632
EXCESS OF REVENUE OVER (UNDER) EXPENSE
FROM OPERATIONS 426,166 1,170,133
Interest expense 3,561,013 3,298,113
Scholarship expense 32,334 53,334
EXCESS OF REVENUE OVER (UNDER) EXPENSE (3,167,181) (2,181,314)
NET ASSETS AT BEGINNING OF PERIOD (9,082,970) (6,901,656)
Prior Period Adjustment(Note 8) 84,154
NET ASSETS AT END OF PERIOD $ (12,165,997) $ (9,OB2,970)
The accompanying notes are an integral part of these financial statements
3
THE UNIVERSITY TOWER AND FORUM
(LODGECO) PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Consolidated Statement of Cash Flows
For the Year Ended August 31, 2000 and 1999
AUGUST 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Excess of revenue over(under)expense $ (3,167,181) $ (2,181,314)
Adjustments to reconcile change in
net assets to net cash provided by
operating activities:
Depreciation 1,195,124 1,160,268
Changes in operating assets and liabilities:
(Increase)decrease in accounts receivable 373,355 123,591
(Increase) decrease in intercompany receivable (50,000) (106,271)
(Increase) decrease in inventories 15,017 7,225
(Increase) decrease in other current assets 128,728 (159,114)
(Increase) decrese in other receivables (23,674)
Increase(decrease) in trade payables (598,037) 583,643
Increase(decrease) in intercompany payables 99,967 330,453
Increase (decrease) in property taxes payable 6,267 (2,670)
Increase (decrease) in scholarships awarded (57,961) 53,334
Increase (decrease) in deferred income (529,941) (1,443,795)
Increase (decrease) in other liabilities _ (100,320) 98,538
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (2,708,656) (1,536,112)
CASH FLOWS FROM INVESTING ACTIVITIES
(Purchase) of property and equipment (843,946) (853,628)
(Gain) on sale of assets
NET CASH (USED) IN INVESTING ACTIVITIES (843,946) (853,628)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase (decrease) in capital lease obligations 477,982 -
Increase(decrease) in notes payable - -
Increase in long-term debt - -
Increase (decrease) in accrued interest 2,416,638 2,615,355
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,894,620 2,615,355
Increase(decrease) in cash and cash equivalents (773,762) 225,615
Beginning cash and cash equivalents 1,869,696 1,644,081
ENDING CASH AND CASH EQUIVALENTS $ 1,095,934 $ 1,869,696
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest $ 3,561,013 $ 3,298,113
Income taxes - -
The accompanying notes are an integral part of these financial statements
4
THE UNIVERSITY TOWER AND FORUM
(LODGECO) PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Notes to Financial Statements
August 31, 2000
Note 1 —Basis of Presentation and Summary of Significant Accounting Policies
Introduction
The accompanying financial statements relate to the operation of The University Tower (the
"Tower"), and the Forum (the "Forum") located in Bryan, Texas (collectively referred to as
the "Projects"). The Projects are owned by the Texas Student Housing Corporation (the
"TSHC"), and are operated and managed under an agreement with SSRS, Inc., a professional
property management firm. The TSHC is a Component Unit of the Town of Westlake, Texas.
The Tower is comprised of two attached and fully integrated buildings. The first portion, a
two-story structure, was constructed in 1963, and refurbished in 1989 and 1990. The second
portion, a seventeen-story tower, was constructed in 1985. Together, the Tower consists of
843 dormitory units. The Forum was constructed in 1964 and consists of 236 units. Effective
January 20, 1996, the TSHC purchased the Tower, Forum and five (5) of the Other Properties
from Lodgeco Properties, Ltd. for $24,000,000.
The accompanying financial statements for the Projects reflect comparative revenues and
expenses and cash flows for the year ended August 31, 2000 and 1999.
Basis of presentation
Financial statement presentation follows the recommendations of the Financial Accounting
Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117,
Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the TSHC is
required to report information regarding its financial position and activities according to three
classes of net assets: (1) unrestricted net assets, (2) temporarily restricted net assets, and (3)
permanently restricted net assets. All of the net assets of the TSHC are unrestricted.
See independent auditor's report
5
Basis of accounting
The accompanying financial statements have been prepared using the accrual basis of
accounting and accordingly reflect all significant receivables, payables, and other assets 1
liabilities.
Revenue recognition
Revenues received in advance for housing leases, property activity fees, and maintenance fees
are deferred and recognized over the term of the leases. Dousing leases are classified as
operating and are for periods ranging from five to twelve months. Revenue from non-
refundable processing and late charge fees is recognized when received.
Daily rental revenue is recorded daily on a check-in basis. All other daily rental revenue is
recognized when earned.
Cash and cash equivalents
For purposes of the statement of cash flows, all unrestricted highly liquid investments with
initial maturities of three months or less are considered to be cash equivalents.
Accounts receivable
The accounts receivable include amounts due from tenants for leases, activity fees late charges
and maintenance fees, and are stated net of all known uncollectible accounts. The Projects
use historical experience to determine allowances for doubtful accounts. At August 3 I, 2000,
management represented that no allowances were necessary.
Income tax status
TSHC is exempt from federal income tax under the Internal Revenue Code as an entity acting
"on-behalf of a municipality of the State of Texas.
Inventory
Inventory consists of food and food related items consumed in the normal course of operation
of a dormitory establishment. It is recorded at the lower of cost or market on a first-in, first-
out basis.
Property and equipment
Property and equipment is carried at cost. Depreciation is computed using the straight-line
method over the estimated useful life. All expenditures for property and equipment greater
than or equal to $500 and has a useful life longer than two years or is an improvement to the
property which by the nature of the expenditure is not a repair or routine maintenance, are
capitalized.
See independent auditor's report
6
Use of estimates
Management of the Projects has made a number of estimates and assumptions relating to the
reporting of assets and liabilities, and the disclosure of contingent assets and liabilities to
prepare these financial statements in conformity with generally accepted accounting principles.
Actual results could differ from those estimates.
Note 2 —Related Party Transactions
During the period ended August 31, 2000, the Projects made payments and collected funds on
behalf of other properties within the Projects for various reasons, all in the ordinary course of
business. These advances to and from each property have been offset against one another and
eliminated in the accompanying consolidated balance sheet.
Note 3 —Future Minimum Rentals under Housing Leases
The Projects have entered into housing 2000 contracts with individuals which relate to contract
lease periods that extend beyond August 31, 2000. As of August 31, 2000, the future minimum
lease revenue under non-cancelable housing leases for housing within the Projects is $3,778,005.
Note 4—Property and Equipment
The Projects' property and equipment at August 31, 2000 was comprised of the following:
Buildings& Furniture& Machinery& Accumulated
Land Improvements Fixtures Equipment Depreciation Total
Tower and 5
Other Properties $1,700,000 $19,625,834 $1,607,570 $697,845 ($4,475,359) $19,372,824
Forum 400,000 2,735,423 199,248 34,953 (601,068) 2,902,799
Totals $2,100,000 $22,361,256 $1,806,818 $732,798 ($5,076,427) $21,924,445
Note 5 — Obligations under Leases
As of August 31, 2000 there are no significant obligations for future payments under
operating equipment leases.
Note 6 —Long-Term Debt
Lodgeco Installment Debt Obligation
TSHC has the following obligations for these"Projects" pursuant to Installment Sales Agreement
(the"Agreement") related to the Projects:
See independent auditor's report
7
Lod eco Pro ierties Ltd. Mart a e Payable Bearin 12% Interest
• Payable in monthly installments including interest of variable
minimum amounts, as defined in the Agreement
• Unpaid portion due January 19, 2021
• Secured by facilities, properties and net revenues of the Projects
$24,000,000
The Agreement provides for 2.5% of net operating income as therein defined to be retained by
the TSHC. The bylaws of the TSHC provide for these funds to be used to fund a student
assistance program that provides education and/or housing assistance to qualifying students.
The Agreement requires any remaining net operating income, after reduction for amounts paid
to the Reserve Replacement Fund (defined in the Agreement) and the amount due TSHC, be
applied to any outstanding and unpaid interest, and then principal. No repayment of the
principal portion of long-term debt is anticipated during the five-year period subsequent to
August 31, 2000.
The Texas Student Housing Corporation is not currently in compliance with the provisions of
the "Lodgeco" Installment Obligation Agreement, which requires certain minimum payments
to be paid each fiscal year.
In the current year ended, August 31, 2000, the minimum installment payments paid versus
the amount scheduled per the sales agreement and installment obligation were underpaid by
$1,653,440 for the Tower and $250,000 for the Forum.
As of the date of issuance of this report, the note holder's legal representative has represented
that no demand for acceleration of the note is currently being sought and as in previous years
will continue being sought and as in previous years will continue to defer interest expense
shortfalls of the minimum payments.
Equipment Debt Oblation
The equipment debt obligation consists of a form of debt known as a municipal capital lease,
between the Bank of Texas, N.A. Dallas, Texas "Lessor", and Texas Student Housing
Corporation, "Leasee". The debt obligation has a calculated principal and interest component
therefore is presented in a form that reflects balances of outstanding principal due.
The original amount of principal obligation was $500,000, which was funded on April 14,
2000. The term of the obligation is 72 months and the obligation bears interest at a rate of
7.9%, with monthly payments of$8,742,23, The final payment is due May 1, 2006.
The proceeds from this debt were used to purchase the equipment and wiring in addition to
the installation of same to create an ISP at the University Tower property. The obligation is
collateralized by the equipment that the "Lessee" holds at the Tower. Payments of the debt
See independent auditor's report
obligation are subject to a certain Subordination Agreement between the Lessee, SSRS
Management, Inc. and Lodgeco, Ltd. that calls for a specific order of payments from net
proceeds from the operations of the Tower and Forum properties.
Future Payments due Total Payments Principal Portion Interest Portion
In fiscal year ended:
2001 $ 96,164.53 $ 63,617.29 $ 32,547.24
2002 104,906.76 74,843.42 30,063.34..
2003 104,906.76 80,974.90 23,931,86
2004 104,906.76 87,608.71 17,298.05
2005 104,906.76 94,785.97 10,120.79
2006 78,680.07 76,151.21 2 528.86
Totals $594 471.64 $477 981.50 $116,490.14
Note 7 — Commitments and Continjaencies
The Tower and the Forum have entered into certain annual maintenance and monitoring
contracts in the ordinary course of business. These agreements have an element of liability
similar to many other promises to pay vendors and suppliers in the normal business
operations, therefore a quantification of their potential commitment amounts has not been
performed at year end, These agreements are on fire alarm systems, security systems,
elevators, and HVAC monitoring.
Note 8 —Prior Period Adjustment
In the current year, certain scholarships awarded in the previous year were recognized as
being "earned" through the use of Texas Student Housing Corporation's room and board
facilities, without charge to the students. These amounts of"earned" room and board were
recognized for book purposes as other revenue, since they had been recorded in the books as
scholarship expense, in the prior year of award.
However, a portion of the prior years scholarships awarded were recorded as a prior period
adjustment in the current year financial statements, since they were earned in a prior fiscal
year. These amounts are reflected as a prior period adjustment to the net assets account and
are not recognized in the current year revenues or expenditures, in order to prevent any
distortion of the current year operations.
See independent auditor's report
9
Charles Haynes, CPA
Certified Public Accountant
1903 Central Drive, Suite 304
Bedford, Texas 76021
(817) 545-1300
INDEPENDENT AUDITOR'S REPORT
ON ADDITIONAL INFORMATION
To the Board of Directors
Texas Student Housing Corporation
Our report on the accompanying financial statements of the University Tower and the Forum, (the
"Projects," more fully described in Note 1) of the Texas Student Housing Corporation (the
"TSHC"), a component unit of the Town of Westlake, Texas, as of and for the years ended
August 31, 2000 and 1999, appears on page 1. Our audit was conducted for the purpose of
forming an opinion on the basic financial statements taken as a whole. The Consolidating Balance
Sheet, Consolidating Statement of Revenues and Expenses, and the schedule entitled,
"Calculation of Amount Due to the Texas Student Housing Corporation Pursuant to Section
10.04 of the Installment Sale Agreements" are not required parts of the basic financial statements.
This information has been subjected to the auditing procedures applied in the audit of the basic
financial statements. In our opinion, this information is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
Bedford, Texas
February 25, 2001
10
F
THE UNIVERSITY TOWER AND FORUM
LODGECO PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Consolidating Balance Sheet
August 31, 2000 and 1999
2000
university Eliminations
Tower Forum DR!(CRI Combined
CURRENT ASSETS:
Cash and cash equivalents $ 1,450,572 $ (354,638) $ $ 1,095,934
Trade accounts receivable 2,046,621 93,618 - 2,140,239
Interproject receivable 347,832 - (297,832) 50,000
Other receivable-SSRS 29,674 23,674
Inventory 26,935 - 26,935
Prepaid and other 57,113 2,644 59,757
3,952,747 (258,376) (297,832) 3,396,539
PROPERTY AND EQUIPMENT:
Land 1,700,000 400,000 2,100,000
Buildings and Improvements 19,625,833 2,735,423 22,361,256
Furniture,fixtures and equipment 2,305,415 234,201 2,539,616
23,631,248 3,369,624 27,000,872
Less:Accumulated depreciation 4,475,359 601,068 5,076,427
19,155,889 2,768,556 21,924,445
TOTAL ASSETS $ 23,108,636 $ 2,510,180 $ (297,832) $ 25,320,984
CURRENT LIABILITIES:
Trade accounts payable $ 169,358 $ 1,660 $ $ 171,218
Notes payable -
Interproject payable 174,163 297,832 (297,832) 174,163
Property taxes payable 93,623 18,884 - 112,507
Scholarships awarded 32,334 - 32,334
Deferred income 3,997,503 3,997,503
Other 5,005 - 5,005
4,471,986 318, 76 (297,832) 4,492,730
LONG-TERM LIABILITIES:
Equipment debt obligation 477,982 - 477,982
Long-term debt 21,000,000 3,000,000 24,000,000
Accrued interest 7,047,854 1,468,415 8,516,269
28,525,836 4,468,415 32,994,251
TOTAL LIABILITIES 32,997,822 4,786,991 (297,832) 37,486,981
NET ASSETS(LIABILITIES)-UNRESTRICTED (9,889,186) (2,276,811) (12,165,997)
TOTAL LIABILITIES AND NET ASSETS $ 23,108,636 $ 2,510,180 $ (297,832) $ 25,320,984
The accompanying notes are an integral park of these financial statements
11
1999
University Eliminations
Tower Forum DR!(CR) Combined
$ 1,753,440 $ 116,256 $ - $ 1,869,696
2,110,126 403,468 2,513,594
117,642 - (117,642) 0
34,602 7,350 - 41,952
182,165 6,320 - 188,485
4,197,975 533,394 (117,642) 4,613,727
1,700,000 400,000 - 2,100,000
19,342,374 2,729,750 - 22,072,124
1,752,264 232,538 - 1,984,802
22,794,638 3,362,288 - 26,156,926
3,421,814 459,489 - 3,881,303
19,372,624 2,902,799 - 22,275,623
$ 23,570,799 $ 3,436,193 $ (117,642) $ 26,889,350
$ 671,842 $ 97,413 $ - $ 769,255
274,130 117,642 117,642 274,130
86,675 19,565 - 106,240
77,568 12,727 - 90,295
3,865,480 661,964 - 4,527,444
106,699 (1,374) 105,325
5,082,394 907,937 117,642 5,872,688
21,000,000 3,000,000 - 24,000,000
4,988,322 1,111,309 - 6,099,631
25,988,322 4,111,309 - 30,099,631
31,070,716 5,019,246 117,642 35,972,319
(7,499,917) (1,583,053) - (9,082,969)
$ 23,570,799 $ 3,436,193 $ 117,642 $ 26,889,350
THE UNIVERSITY TOWER AND FORUM
(LODGECO) PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Consolidating Statement of Revenues and Expenses
For the Year Ended August 31, 2000 and 1999
2000
University
Tower Forum Combined
OPERATING REVENUES:
Rents $ 4,705,211 $ 678,644 $ 5,383,855
Daily rental
Property activity,processing and
maintenance fees 294,353 - 294,353
Dormitory phone service 102,977 23,352 126,339
Other 91,804 18,341 110,145
5,194,345 720,347 5,914,692
OPERATING EXPENSES:
Property operating 948,661 174,918 1,123,579
Food cost of safes 474,722 117,825 592,547
Other food expense 413,023 130,430 543,453
Phone expense 159,233 56,439 215,672
General and administrative 283,525 3D,917 314,442
Energy costs 378,196 113,975 492,171
Real estate taxes and Insurance 264,185 49,433 313,618
Maintenance and property operations 416,446 113,978 530,424
Management fees 139,992 27,504 167,496
Depreciation 1,053,544 141,580 1,195,124
4,531,527 956,999 5,488,526
EXCESS OF REVENUE OVER(UNDER)
EXPENSE FROM OPERATIONS 662,818 (236,652) 426,168
Interest expense 3,103,907 457,106 3,561,013
Scholarship expense 32,334 - 32,334
EXCESS OF REVENUE OVER(UNDER)
EXPENSE (2,473,423) (693,758) (3,167,181)
NET ASSETS AT BEGINNING OF PERIOD (7,499,917) (1,583,053) (9,082,970)
Prior Period Adjustment(Note 8) 84,154 84,154
NET ASSETS AT END OF PERIOD $ (9,889,186) $ (2,276,811) $ (12,165,997)
The accompanying notes are an integral part of these financial statements
12
1999
University
Tower Forum Combined
$ 5,094,468 $ 888,274 $ 5,982,742
26,556 - 26,556
292,829 52,653 345,482
160,159 41,484 201,643
106,490 14,852 121,342
5,680,502 997,263 6,677,765
642,468 193,099 1,035,567
452,209 143,404 595,613
399,835 128,456 528,291
179,909 61,806 241,717
296,305 44,752 341,057
390,185 103,225 493,410
229,391 45,384 274,775
538,744 158,198 696,942
139,992 - 139,992
1,018,896 141,372 1,160,268
4,487,934 1,019,698 5,507,632
1,192,568 (22,435) 1,170,133
2,859,478 438,635 3,288,113
46,889 6,445 53,334
(1,713,799) (467,515) (2,181,314)
(5,786,118) (1,115,538) (6,901,656)
$ (7,499,917) $ (1,583,053) $ (9,082,970)
THE UNIVERSITY TOWER AND FORUM (LODGECO)
AND VARIOUS OTHER RELATED PROPERTIES OF THE
TEXAS STUDENT HOUSING CORPORATION, A COMPONENT UNIT
OF THE TOWN OF WESTLAKE, TEXAS
Calculation of Amount Due to the Texas Student Housing Corporation
Pursuant to Section 10.04 of the Installment Sale Agreements
For the Year Ended August 31, 2000
Lodgeco
Excess of revenue over(under)
expense from operations before current year scholarships $ 385,560
Add: Non-operating 1 maintenance expenses
Depreciation $ 1,195,125
1,195,125
Less: Amounts deposited into the
Replacement Reserve Fund 234,000
Scholarships Earned - Current Year 53,334
287,334
NET OPERATING INCOME AS ADJUSTED FOR SCHOLARSHIP CALCULATION $ 1,293,351
AMOUNT DUE TO THE TEXAS STUDENT
HOUSING CORPORATION (2'/2%) $ 32,334
13