TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Go to www.irs.gov/Form990 for the latest information.
OMB No. 1545-0047
2020
Open to Public
Inspection
Inspection
Name of the organization
SUN CITY GRAND COMMUNITY ASSOCIATION
INC
INC
Employer identification number
86-0832131
86-0832131
| Return Reference | Explanation |
|---|---|
| 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. |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2020
Additional Data
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