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SANDYPORT HOMEOWNERS ASSOCIATION LIMITED
NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (CONTINUED)
(Expressed in Bahamian dollars)
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16.MAINTENANCE OF COMMON AREAS
The expenses associated with the maintenance of common areas are comprised of the following balances:
17.WASTE WATER MANAGEMENT
Waste water management expenses are comprised of the following balances:
SANDYPORT HOMEOWNERS ASSOCIATION LIMITED NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2021 (CONTINUED)
(Expressed in Bahamian dollars)
18.PAINTING EXPENSES
Painting expenses are comprised of the following balances:
19.RENT and utilities
The Homeowners Association rents office space from Artech Bahamas Ltd. at $40,800 per annum, inclusive of electricity and water. The lease will expire on August 31, 2022. Based on the change in the standard for leases please see Note 10 for the presentation in accordance with IFRS 16 – Leases.
20.CONTINGENT LIABILITIES
Waste water - Waste water - Following an evaluation of the waste water treatment system in 2012, Harris Civil Engineers recommended a series of improvements and repairs. Certain of the work was completed by the end of 2014 and it is estimated that completion of the remaining work will require an expenditure of $430,000. Allen’s Environment Construction LLC, Water Treatment Specialists, commenced improvement and repair work with an estimated expenditure of $148,000 in January 2020. The Board believes that the recommended work can be completed out of budgeted income streams but will consider the need for a special assessment should this become necessary.
In addition, the waste water system is almost at its operational capacity: the preliminary budget to expand the capacity to meet anticipated future requirements is $1 million. Under the terms of an Agreement dated November 3, 2009, the cost of such expansion will be borne by the developer, Sandyport Development Association Limited (Devco). The Board continues to explore alternative cost effective and productive solutions to this issue.
