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Home My WebLink About2024-06-10 PDRFC Regular Meeting Agenda Packet PALM DESERT RECREATIONAL FACILITIES CORPORATION BOARD CITY OF PALM DESERT MEETING AGENDA Monday, June 10, 2024 11:00 a.m. Administrative Conference Room, City Hall 73-510 Fred Waring Drive Palm Desert, CA 92260 In-person access is available at this location Public comment may be provided in person at the meeting location. Written public comment may also be submitted to cityclerk@palmdesert.gov. E-mails received by 4:00 p.m. the day prior to the meeting will be distributed to the Board. Any correspondence received during or after the meeting will be distributed to the Board as soon as practicable and retained for the official record. Emails will not be read aloud except as an ADA accommodation. Pages 1.CALL TO ORDER 2.ROLL CALL 3.NON-AGENDA PUBLIC COMMENTS This time has been set aside for the public to address the Palm Desert Recreational Facilities Corporation Board on issues that are not on the agenda for up to three minutes. Speakers may utilize one of the options listed on the first page of the agenda. Because the Brown Act does not allow the Palm Desert Recreational Facilities Corporation Board to act on items not listed on the agenda, members may briefly respond or refer the matter to staff for a report and recommendation at a future meeting. 4.CONSENT CALENDAR All matters listed on the Consent Calendar are considered routine and may be approved by one motion. The public may comment on any items on the Consent Agenda within the three-minute time limit. Individual items may be removed by the Palm Desert Recreational Facilities Corporation Board for a separate discussion. RECOMMENDATION: To approve the consent calendar as presented. 4.a APPROVAL OF MINUTES 5 RECOMMENDATION: Approve the Minutes of June 12, 2023. 5.CONSENT ITEMS HELD OVER 6.ACTION CALENDAR The public may comment on individual Action Items within the three-minute time limit. Speakers may utilize one of the options listed on the first page of the agenda. 6.a RECEIVE AND FILE THE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR END JUNE 30, 2023 9 RECOMMENDATION: Receive and file the Annual Financial Report for fiscal year ended June 30, 2023. 6.b RECEIVE AND FILE THE FEDERAL AND STATE INCOME TAX RETURNS FOR THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE YEAR ENDED JUNE 30, 2023 33 RECOMMENDATION: Receive and file the Federal and State income tax returns for the year ended June 30, 2023. 6.c REVIEW AND APPROVE THE PROPOSED FINANCIAL PLAN FOR THE FISCAL YEAR 2024-2025 55 RECOMMENDATION: Review and approve the financial plan for the 2024-2025 fiscal year. 6.d ANNUAL ELECTION OF PALM DESERT RECREATIONAL FACILITIES CORPORATION CHAIR AND VICE-CHAIR RECOMMENDATION: Select Chair and Vice Chair for upcoming year. 7.INFORMATIONAL REPORTS & COMMENTS 7.a BOARD DIRECTORS 7.b CITY STAFF 8.ADJOURNMENT Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 2 9.PUBLIC NOTICES Agenda Related Materials: Pursuant to Government Code §54957.5(b)(2) the designated office for inspection of records in connection with this meeting is the Office of the City Clerk, Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert. Staff reports for all agenda items considered in open session, and documents provided to a majority of the legislative bodies are available for public inspection at City Hall and on the City’s website at www.palmdesert.gov. Americans with Disabilities Act: It is the intention of the City of Palm Desert to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need special assistance beyond what is normally provided, the City will attempt to accommodate you in every reasonable manner. Please contact the Office of the City Clerk, (760) 346-0611, at least 48 hours prior to the meeting to inform us of your needs and to determine if accommodation is feasible. AFFIDAVIT OF POSTING I hereby certify under penalty of perjury under the laws of the State of California that the foregoing agenda for the Finance Committee was posted on the City Hall bulletin board and City website not less than 72 hours prior to the meeting. /S/ Niamh M. Ortega, CMC Assistant City Clerk Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 3 4 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 City of Palm Desert Page 1 Monday, June 12, 2023 Minutes of the Regular Meeting of the Palm Desert Recreational Facilities Corporation 1. CALL TO ORDER A Regular Meeting of the Palm Desert Recreational Facilities Corporation Board was called to order by Chairperson Smith at 11:00 a.m.in the North Wing Conference Room, City Hall, located at 73-510 Fred Waring Drive, Palm Desert, California. All members of the Board were present. 2. ROLL CALL Present: Directors Kathleen Kelly, and Gina Nestande*, Vice-Chairperson Oscar Armijo, and Chairperson Phillip Smith. * Director Nestande remote participated in accordance with AB 2449. Absent: None. Also Present: President Chris Escobedo, Treasurer Veronica Chavez, Deputy Director of Finance Liberty Urban, Deputy Director of Finance John Ramont, Desert Willow Golf Resort General Manager Derek White, Desert Willow Golf Resort Controller Anthony Hernandez, and Secretary Niamh Ortega. 3. NON-AGENDA PUBLIC COMMENT: None. 4. ACTION CALENDAR A. APPROVAL OF MINUTES MOTION BY DIRECTOR KELLY, SECOND BY VICE-CHAIRPERSON ARMIJO, CARRIED 4-0, to approve the Palm Desert Recreational Facilities Corporation Regular Meeting minutes of June 13, 2022. 5 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Palm Desert Recreational Facilities Corporation Board Meeting Minutes June 12, 2023 Palm Desert Recreational Facilities Corporation Page 2 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES B. ADOPT RESOLUTION NO. PDRFC 23-16 ACKNOWLEDGING THE APPOINTMENT OF TWO OFFICERS BY THE CITY OF PALM DESERT, AND THE REMOVAL OF TWO OFFICERS OF THE CORPORATION MOTION BY DIRECTOR KELLY, SECOND BY DIRECTOR NESTANDE, CARRIED 4-0, to adopt Resolution No. PDRFC 23-16 acknowledging the appointment of President Chris Escobedo and Secretary Niamh Ortega by the City of Palm Desert, and the removal of Andy Firestine and Gloria Sanchez as Corporation Officers. C. RECEIVE AND FILE THE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR END ED JUNE 30, 2022 Deputy Director of Finance Urban presented the draft report; responded to Board inquiries; and noted amendments and corrections recommended by the Board would be included in the final report. MOTION BY VICE-CHAIRPERSON ARMIJO, SECOND BY DIRECTOR KELLY, CARRIED 4-0, to receive and file as amended the annual financial report for Fiscal Year ended June 30, 2022. D. REVIEW AND APPROVE THE PROPOSED FINANCIAL PLAN FOR FISCAL YEAR 2023- 2024 Desert Willow Golf Resort General Manager White presented the report; responded to Board inquiries; and noted updated and more relevant information would be provided to the Board as it becomes available. MOTION BY VICE-CHAIRPERSON ARMIJO, SECOND BY DIRECTOR KELLY, CARRIED 4-0, to approve the proposed Financial Plan for Fiscal Year 2023-2024. E. RECEIVE AND FILE THE FEDERAL AND STATE INCOME TAX RETURNS FOR THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE YEAR ENDED JUNE 30, 2022 MOTION BY DIRECTOR KELLY, SECOND BY VICE-CHAIRPERSON ARMIJO, CARRIED 4-0, to receive and file the Federal and State income tax returns as corrected for the year ended June 30, 2022. F. ANNUAL ELECTION OF PALM DESERT RECREATIONAL FACILITIES CORPORATION CHAIR AND VICE-CHAIR MOTION BY CHAIRPERSON SMITH, SECOND BY DIRECTOR KELLY, CARRIED 4-0, to nominate and elect Director Armijo to serve as Chair and Director Smith to serve as Vice- Chair of the Palm Desert Recreational Facilities Corporation. 6 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Palm Desert Recreational Facilities Corporation Board Meeting Minutes June 12, 2023 Palm Desert Recreational Facilities Corporation Page 3 ALL ACTIONS ARE DRAFT PENDING APPROVAL OF THE FINAL MINUTES 5. REPORTS AND REMARKS A. BOARD OF DIRECTORS None. B. BOARD PRESIDENT None. 6. ADJOURNMENT The Palm Desert Recreational Facilities Corporation Board meeting adjourned at 11:35 a.m. Respectfully submitted, Níamh M. Ortega Secretary ATTEST: Chris Escobedo President APPROVED BY PALM DESERT RECREATIONAL FACILITIES CORPORATION BOARD: __/__/2023 7 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 8 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Page 1 of 1 PALM DESERT RECREATIONAL FACILITIES CORPORATION BOARD STAFF REPORT MEETING DATE: June 10, 2024 PREPARED BY: Veronica Chavez, Chief Financial Officer Derek White, Desert Willow Golf Resort General Manager REQUEST: RECEIVE AND FILE THE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR END JUNE 30, 2023 RECOMMENDATION: Receive and file the Annual Financial Report for fiscal year ended June 30, 2023. BACKGROUND/ANALYSIS: Lance, Soll & Lunghard, LLP performed and completed the annual independent audit for the fiscal year ended June 30, 2023. In the auditor’s opinion, the basic financial statements present fairly, in all material respects, the financial position of the Palm Desert Recrea tional Facilities Corporation (PDRFC) as of June 30, 2023, and the results of its operations of the year then ended are in accordance with accounting principles generally accepted in the United States of America. In conducting the audit, the auditors are a lso required to test the PDRFC’s internal controls. Attached is the annual financial report, accompanied by the report issued by the auditors for the year ended June 30, 2023. PDRFC represents the food and beverage operations at the Desert Willow Golf Res ort Clubhouse. During Fiscal Year 2022-23, the PDRFC total net deficit increased by $82,882 from $980,429 to $1,063,311. This ongoing structural deficit is the result of the annual assessment of rent due to the golf course to keep the two operations dist inct. It is primarily an accounting requirement that is functionally/historically supported by the available balance in the Desert Willow Golf Resort fund. Should the City Council wish to address the deficit with formal action, additional options will be provided by staff and included in a future report. FINANCIAL IMPACT: There is no financial impact associated with this action. ATTACHMENTS: 1. Palm Desert Recreational Facilities Corporation Annual Financial Report for Fiscal Year ended June 30, 2023 9 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 10 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 3$/0'(6(575(&5($7,21$/)$&,/,7,(6 &25325$7,21 ),6&$/<($5(1'('-81( $118$/),1$1&,$/5(3257 :,7+5(325721$8',7%<,1'(3(1'(17 &(57,),('38%/,&$&&2817$176 11 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21 $QQXDO)LQDQFLDO5HSRUWZLWK5HSRUWRQ$XGLW %\,QGHSHQGHQW&HUWLILHG3XEOLF$FFRXQWDQWV )RUWKH<HDU(QGHG-XQH 12 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21 $QQXDO)LQDQFLDO5HSRUWZLWK5HSRUWRQ$XGLW %\,QGHSHQGHQW&HUWLILHG3XEOLF$FFRXQWDQWV )RUWKH<HDU(QGHG-XQH 7DEOHRI&RQWHQWV 3DJH 1XPEHU ,QGHSHQGHQW$XGLWRUV¶5HSRUW 0DQDJHPHQW¶V'LVFXVVLRQDQG$QDO\VLV %DVLF)LQDQFLDO6WDWHPHQWV 6WDWHPHQWRI1HW3RVLWLRQ 6WDWHPHQWRI5HYHQXHV([SHQVHVDQG&KDQJHVLQ1HW3RVLWLRQ 6WDWHPHQWRI&DVK)ORZV 1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV ,QGHSHQGHQW$XGLWRUV¶5HSRUWRQ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJDQG&RPSOLDQFHDQG2WKHU 0DWWHUV%DVHGRQDQ$XGLWRI)LQDQFLDO6WDWHPHQWV3HUIRUPHGLQ$FFRUGDQFHZLWK Government Auditing Standards 13 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 1611 E. 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)DFLOLWLHV&RUSRUDWLRQDFRPSRQHQWXQLWRIWKH&LW\RI3DOP'HVHUW,I\RXKDYHTXHVWLRQVDERXWWKLVUHSRUWRUQHHG DGGLWLRQDOILQDQFLDOLQIRUPDWLRQFRQWDFWWKH&RQWUROOHUDWWKHDGGUHVVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQDW'HVHUW:LOORZ'ULYH3DOP'HVHUW&DOLIRUQLD 8 21 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 PALM DESERT RECREATIONAL FACILITIES CORPORATION Statement of Net Position For the Year Ended June 30, 2023 ASSETS: Current: Cash and cash equivalents 1,216,690$ Accounts receivable 33,236 Inventories 75,170 Prepaid expenses 10,937 Total current assets 1,336,033 Noncurrent: Leased assets, net of accumulated amortization 2,494,164 Total noncurrent assets 2,494,164 TOTAL ASSETS 3,830,197 LIABILITIES: Current: Accounts payable 37,113 Accrued liabilities 137,002 Accrued interest payable 3,594 Advances from related party 1,998,564 Unearned revenues 188,193 Lease payable, due in one year 53,295 Total current liabilities 2,417,761 Noncurrent: Lease payable, due in more than one year 2,475,747 Total noncurrent liabilities 2,475,747 TOTAL LIABILITIES 4,893,508 NET POSITION (DEFICIT): Unrestricted (deficit)(1,063,311) TOTAL NET POSITION (DEFICIT)(1,063,311)$ See Notes to Basic Financial Statements.9 22 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 PALM DESERT RECREATIONAL FACILITIES CORPORATION Statement of Revenues, Expenses and Changes in Net Position For the Year Ended June 30, 2023 OPERATING REVENUES: Food and beverage sales 4,875,792$ TOTAL OPERATING REVENUES 4,875,792 OPERATING EXPENSES: Cost of goods sold 1,342,255 Maintenance and operations 3,325,001 General and administrative 176,625 Amortization 71,262 TOTAL OPERATING EXPENSES 4,915,143 OPERATING INCOME (39,351) NONOPERATING REVENUES (EXPENSES) Interest expense (43,531) TOTAL NONOPERATING REVENUES (EXPENSES)(43,531) CHANGE IN NET POSITION (82,882) NET POSITION (DEFICIT) - BEGINNING OF YEAR (980,429) NET POSITION (DEFICIT) - END OF YEAR (1,063,311)$ See Notes to Basic Financial Statements.10 23 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 PALM DESERT RECREATIONAL FACILITIES CORPORATION Statement of Cash Flows For the Year Ended June 30, 2023 CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 4,891,749$ Payments to suppliers (4,808,904) NET CASH PROVIDED BY OPERATING ACTIVITIES 82,845 CASH FLOWS FROM NON-CAPITAL AND RELATED FINANCING ACTIVITIES Cash advanced from other funds 383,040 NET CASH PROVIDED BY NON-CAPITAL AND RELATED FINANCING ACTIVITIES 383,040 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest paid on leases (43,531) Principal paid on leases (52,396) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (95,927) NET INCREASE IN CASH AND CASH EQUIVALENTS 369,958 CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR 846,732 CASH AND CASH EQUIVALENTS - END OF YEAR 1,216,690$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income (39,351)$ Adjustments to reconcile operating income to net cash provided by operating activities: Changes in assets and liabilities: Amortization 71,262 (Increase) decrease in receivables 71,946 (Increase) decrease in inventory (12,614) (Increase) decrease in prepaid expenses (186) Increase (decrease) in accounts payable (15,228) Increase (decrease) in accrued liabilities 63,005 Increase (decrease) in unearned revenues (55,989) NET CASH PROVIDED BY OPERATING ACTIVITIES 82,845$ See Notes to Basic Financial Statements.11 24 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 3$/0'(6(575(&5($7,21$/)$&,/,7,(6&25325$7,21 1RWHVWR%DVLF)LQDQFLDO6WDWHPHQWV )RUWKH<HDU(QGHG-XQH 127( 25*$1,=$7,21$1''(6&5,37,212)7+(5(3257,1*(17,7< 7KH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQWKH&RUSRUDWLRQLVD&RUSRUDWLRQWKDWSURYLGHVIRRGDQG EHYHUDJHVHUYLFHVH[FOXVLYHO\WRWKH'HVHUW:LOORZ*ROI5HVRUWWKH*ROI5HVRUW7KH&RUSRUDWLRQLVDFRPSRQHQW XQLWRIWKH&LW\RI3DOP'HVHUWWKH&LW\DQGLVUHSRUWHGDV DQ (QWHUSULVH )XQG LQ 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Brea Blvd, Suite 203 Brea, CA 92821 (714) 672-0022 21 Waterway Avenue, Suite 30089 The Woodlands, TX 77380 (936) 828-4587 2151 River Plaza Dr., Suite 150 Sacramento, CA 95833 (916) 503-9691 24422 Avenida de la Carlota, Suite 275 Laguna Hills, CA 92653 (949) 829-8299 www.lslcpas.com ,1'(3(1'(17$8',7256¶5(325721,17(51$/&21752/ 29(5),1$1&,$/5(3257,1*$1'21&203/,$1&($1'27+(50$77(56 %$6('21$1$8',72)),1$1&,$/67$7(0(1763(5)250(',1$&&25'$1&( :,7+GOVERNMENT AUDITING STANDARDS 7RWKH%RDUGRI'LUHFWRUV 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ 3DOP'HVHUW&DOLIRUQLD :H KDYH DXGLWHG LQ DFFRUGDQFH ZLWK WKH DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI$PHULFDDQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXGLWVFRQWDLQHGLQGovernment Auditing StandardsLVVXHGE\ WKH&RPSWUROOHU*HQHUDORIWKH8QLWHG6WDWHVWKHILQDQFLDOVWDWHPHQWVRIWKH3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV &RUSRUDWLRQWKH&RUSRUDWLRQDFRPSRQHQWXQLWRIWKH&LW\RI3DOP'HVHUW&DOLIRUQLDWKH&RUSRUDWLRQDVRIDQG IRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWRWKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH &RUSRUDWLRQ¶VEDVLFILQDQFLDOVWDWHPHQWVDQGKDYHLVVXHGRXUUHSRUWWKHUHRQGDWHG)HEUXDU\ ,QWHUQDO&RQWURORYHU)LQDQFLDO5HSRUWLQJ ,QSODQQLQJDQGSHUIRUPLQJRXUDXGLWRIWKHILQDQFLDOVWDWHPHQWVZHFRQVLGHUHGWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJLQWHUQDOFRQWURODVDEDVLVIRUGHVLJQLQJDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKH FLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJRXURSLQLRQVRQWKHILQDQFLDOVWDWHPHQWVEXWQRWIRUWKHSXUSRVHRI H[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO$FFRUGLQJO\ZHGRQRWH[SUHVVDQ RSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURO $deficiency in internal controlH[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWUROGRHVQRWDOORZPDQDJHPHQWRU HPSOR\HHV LQ WKH QRUPDO FRXUVH RI SHUIRUPLQJ WKHLU DVVLJQHG IXQFWLRQV WR SUHYHQW RU GHWHFW DQG FRUUHFW PLVVWDWHPHQWVRQDWLPHO\EDVLV$material weaknessLVDGHILFLHQF\RUDFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDO FRQWUROVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDPDWHULDOPLVVWDWHPHQWRIWKHHQWLW\¶VILQDQFLDOVWDWHPHQWV ZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQDWLPHO\EDVLV$significant deficiency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¶VILQDQFLDOVWDWHPHQWVDUHIUHHIURP PDWHULDOPLVVWDWHPHQWZHSHUIRUPHGWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWV DQGJUDQWDJUHHPHQWVQRQFRPSOLDQFHZLWKZKLFKFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQILQDQFLDOVWDWHPHQWV +RZHYHU SURYLGLQJ DQ RSLQLRQ RQ FRPSOLDQFH ZLWK WKRVH SURYLVLRQV ZDV QRW DQ REMHFWLYH RI RXU DXGLW DQG DFFRUGLQJO\ZHGRQRWH[SUHVVVXFKDQRSLQLRQ7KHUHVXOWVRIRXUWHVWVGLVFORVHGQRLQVWDQFHVRIQRQFRPSOLDQFH RURWKHUPDWWHUVWKDWDUHUHTXLUHGWREHUHSRUWHGXQGHUGovernment Auditing Standards 30 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 7RWKH%RDUGRI'LUHFWRUV 3DOP'HVHUW5HFUHDWLRQDO)DFLOLWLHV&RUSRUDWLRQ 3DOP'HVHUW&DOLIRUQLD 3XUSRVHRIWKLV5HSRUW 7KHSXUSRVHRIWKLVUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURODQGFRPSOLDQFHDQGWKH UHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURORURQ FRPSOLDQFH7KLVUHSRUWLVDQLQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWKGovernment Auditing Standards LQFRQVLGHULQJWKH&RUSRUDWLRQ¶VLQWHUQDOFRQWURODQGFRPSOLDQFH$FFRUGLQJO\WKLVFRPPXQLFDWLRQLVQRWVXLWDEOHIRU DQ\RWKHUSXUSRVH %UHD&DOLIRUQLD )HEUXDU\ 18 31 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 32 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Page 1 of 1 PALM DESERT RECREATIONAL FACILITIES CORPORATION BOARD STAFF REPORT MEETING DATE: June 10, 2024 PREPARED BY: Veronica Chavez, Chief Financial Officer Derek White, Desert Willow Golf Resort General Manager REQUEST: RECEIVE AND FILE THE FEDERAL AND STATE INCOME TAX RETURNS FOR THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE YEAR ENDED JUNE 30, 2023 RECOMMENDATION: Receive and file the Federal and State income tax returns for the year ended June 30, 2023. BACKGROUND/ANALYSIS: On an annual basis, the Palm Desert Recreational Facilities Corporation is required to file a fiscal year-end Federal and State income tax return. For the fiscal year ended June 30, 202 3, the Palm Desert Recreational Facilities Corporation filed the Federal Form 1120 (U.S. Corporation Income Tax Return) and State Form 100 (California Corporation Franchise or Income Tax Return) timely. FINANCIAL IMPACT: Taxes were reported and paid as indicated on Attachment 1. ATTACHMENTS: 1. Federal and State income tax returns for the fiscal year ended June 30, 2023 33 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 34 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 For calendar year 2022 or tax year beginning , ending Department of the Treasury Internal Revenue Service OMB No. 1545-0123 Employer identification number Date incorporated 1a b 2 Consolidated return(attach Form 851) ...... Life/nonlife consoli-dated return .............. Personal holding co.(attach Sch. PH) ........ 3 4 Personal service corp.(see instructions) ......Total assets (see instructions) Schedule M-3attached ................... Compensation of officers (attach Form 1125-E) Taxable income before net operating loss deduction and special deductions. Subtract line 27 from line 11 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true,correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.May the IRS discuss thisreturn with the preparershown below? Signature of officer Date Title Checkif self-employed DatePrint/Type preparer's name Preparer's signature PTIN Firm's name Firm's address Firm's EIN Phone no. 21160112-15-22 Go to www.irs.gov/Form1120 for instructions and the latest information. B C D A TYPE OR PRINT $ E (1)(2)(3)(4) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 a b c 1a 1b 1c 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29c Total income. Total deductions. a b c 29a 29b 30 31 32 33 34 35 36 37 Taxable income.30 31 32 33 34 35 36 37 Amount owed. Overpayment. Credited to 2023 estimated tax Tax, Refundable Credits, and PaymentsRefunded Yes No Paid Preparer Use Only For Paperwork Reduction Act Notice, see separate instructions.1120 IncomeDeductions (See instructions for limitations on deductions.)Form Check if:Name Number, street, and room or suite no. If a P.O. box, see instructions. City or town, state or province, country, and ZIP or foreign postal code Check if: Initial return Final return Name change Address change Gross receipts or sales Returns and allowances Balance. Subtract line 1b from line 1a ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Cost of goods sold (attach Form 1125-A) Gross profit. Subtract line 2 from line 1c Dividends and inclusions (Schedule C, line 23) Interest Gross rents ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Gross royalties Capital gain net income (attach Schedule D (Form 1120)) Net gain or (loss) from Form 4797, Part II, line 17 (attach Form 4797) Other income (attach statement) Add lines 3 through 10 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Salaries and wages (less employment credits) Repairs and maintenance Bad debts Rents ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Taxes and licenses Interest (see instructions) Charitable contributions Depreciation from Form 4562 not claimed on Form 1125-A or elsewhere on return (attach Form 4562) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~ Depletion Advertising Pension, profit-sharing, etc., plans Employee benefit programs Reserved for future use Other deductions (attach statement) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines 12 through 26 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ Net operating loss deduction (see instructions) Special deductions (Schedule C, line 24) Add lines 29a and 29b ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ Subtract line 29c from line 28. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~ Total tax (Schedule J, Part I, line 11) Reserved for future use ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Total payments and credits (Schedule J, Part III, line 23)~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Estimated tax penalty. See instructions. Check if Form 2220 is attached ~~~~~~~~~~~~~~~~~~ If line 33 is smaller than the total of lines 31 and 34, enter amount owed If line 33 is larger than the total of lines 31 and 34, enter amount overpaid Enter amount from line 36 you want: ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ Form (2022) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LHA Sign Here U.S. Corporation Income Tax Return1120 2022 SEE STATEMENT 1 SEE STATEMENT 2 STATEMENT 3 02/20/1997 4,779,792. 1,342,255. 3,437,537. PALM DESERT RECREATIONAL FACILITIES CORP JULY 1, 2022 JUNE 30, 2023 33-0746371 73510 FRED WARING DRIVE PALM DESERT, CA 92260 3,830,197. 3,437,537. 2,514. 32,170. 3,459,419. 3,494,103. -56,566. -56,566. 0. LANCE, SOLL & LUNGHARD, LLP 203 N BREA BLVD. SUITE #203 BREA, CA 92821 95-2700123 714-672-0022 EXTENSION GRANTED TO 03/15/24 0. TREASURER 03/14/24 P00716069 X MICHAEL C. AGRESTIMICHAEL C. AGRESTI, CPA 4,779,792. 0. 35 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Form 1120 (2022) SeeInstructions SeeInstructions 21161112-15-22 2 (a)(c) (a) (b)(b) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 65 23.3 26.7 50 65 100 100 100 100 100 100 Subtotal. a b c Total dividends and inclusions. Total special deductions. Page (see instructions) Dividends and inclusions Special deductions x % Dividends from less-than-20%-owned domestic corporations (other than debt-financed stock) Dividends from 20%-or-more-owned domestic corporations (other than debt-financed stock) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Dividends on certain debt-financed stock of domestic and foreign corporations Dividends on certain preferred stock of less-than-20%-owned public utilities Dividends on certain preferred stock of 20%-or-more-owned public utilities ~~~~~ ~~~~~~ ~~~~~~~ Dividends from less-than-20%-owned foreign corporations and certain FSCs ~~~~~~ Dividends from 20%-or-more-owned foreign corporations and certain FSCs ~~~~~~ Dividends from wholly owned foreign subsidiaries ~~~~~~~~~~~~~~~~~ Add lines 1 through 8 ~~~~~~~~~~~~~~~~~~~~~~~~~ Dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958 ~~~~~~~~~ Dividends from affiliated group members ~~~~~~~~~~~~~~~~~~~~~ Dividends from certain FSCs Foreign-source portion of dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends) (see instructions) Dividends from foreign corporations not included on line 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends) ~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ Reserved for future use ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend (attach Form(s) 5471) (see instructions) Subpart F inclusions derived from hybrid dividends of tiered corporations (attach Form(s) 5471) (see instructions) Other inclusions from CFCs under subpart F not included on line 16a, 16b, or 17 (attach Form(s) 5471) (see instructions) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ Global Intangible Low-Taxed Income (GILTI) (attach Form(s) 5471 and Form 8992) Gross-up for foreign taxes deemed paid ~~~ ~~~~~~~~~~~~~~~~~~~~~~ lC -DISC and former DISC dividends not included on line 1, 2, or 3 ~~~~~~~~~~ Other dividends ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Deduction for dividends paid on certain preferred stock of public utilities Section 250 deduction (attach Form 8993) Add column (a), lines 9 through 20. Enter here and on page 1, line 4 Add column (c), lines 9 through 22. Enter here and on page 1, line 29b ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Form (2022) Schedule C Dividends, Inclusions, and Special Deductions 1120 PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 36 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 21162112-15-22 3 1 2 2 3 4 5 3 4 6 7 8 10 11 12 13 14 15 16 17 18 19 21 22 23 a b c d e 5a 5b 5c 5d 5e 6 7 8 9 10 11 Total credits. a b c d e f g 9a 9b 9c 9d 9e 9f 9g Total. Total tax. 12 13 14 15 16 17 18 19 20 21 22 23 Total payments. a b c d 20a 20b 20c 20d Total credits. Total payments and credits. Part I - Tax Computation Part II - Reserved For Future Use Part III - Payments and Refundable Credits Form 1120 (2022)Page (see instructions) Check if the corporation is a member of a controlled group (attach Schedule O (Form 1120))~~~~~~~~~~ Income tax. See instructions Base erosion minimum tax amount (attach Form 8991) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines 2 and 3 Foreign tax credit (attach Form 1118) Credit from Form 8834 (see instructions) General business credit (attach Form 3800) ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ Credit for prior year minimum tax (attach Form 8827) Bond credits from Form 8912 ~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines 5a through 5e Subtract line 6 from line 4 Personal holding company tax (attach Schedule PH (Form 1120)) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Recapture of investment credit (attach Form 4255) Recapture of low-income housing credit (attach Form 8611) Interest due under the look-back method-completed long-term contracts (attach Form 8697) Interest due under the look-back method-income forecast method (attach Form 8866) Alternative tax on qualifying shipping activities (attach Form 8902) Interest/tax due under Section 453A(c) and/or Section 453(l) ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ ~~~~~~~~~ ~~~~~~~~~~~~ Other (see instructions - attach statement)~~~~~~~~~~~~~~~~~~~~ Add lines 9a through 9g Add lines 7, 8, and 10. Enter here and on page 1, line 31 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Reserved for future use 2021 overpayment credited to 2022 2022 estimated tax payments 2022 refund applied for on Form 4466 Combine lines 13, 14, and 15 Tax deposited with Form 7004 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~() ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Withholding (see instructions) Add lines 16, 17, and 18 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Refundable credits from: Form 2439 Form 4136 Reserved for future use Other (attach statement - see instructions) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ Add lines 20a through 20d Reserved for future use Add lines 19 and 21. Enter here and on page 1, line 33 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Form (2022) Schedule J Tax Computation and Payment 1120 0. 0. 0. PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 0. 37 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 (iv) Maximum Percentage Owned in Profit, Loss, or Capital (i) Name of Corporation (ii) Employer Identification Number (if any) (iii) Country ofIncorporation (iv) Percentage Owned in Voting Stock (i) Name of Entity (ii) Employer Identification Number (if any) (iii) Country of Organization 21163212-15-22 4 1 2 3 4 a b c Yes No a b c a b 5 Form 851, a b 6 7 8 9 10 11 12 Form 5452, (a) (b) (c) Form 5472, Form 8281, Form 1120 (2022)Page (see instructions) Check accounting method:Cash Accrual Other (specify) See the instructions and enter the: Business activity code no. Business activity Product or service Is the corporation a subsidiary in an affiliated group or a parent-subsidiary controlled group? ~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," enter name and EIN of the parent corporation At the end of the tax year: Did any foreign or domestic corporation, partnership (including any entity treated as a partnership), trust, or tax-exempt organization own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part I of Schedule G (Form 1120) (attach Schedule G)~~~~~~~~~~~~~~~~~~ Did any individual or estate own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote? If "Yes," complete Part II of Schedule G (Form 1120) (attach Schedule G)~~~~~~~~~~~ At the end of the tax year, did the corporation: Own directly 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation not included on Affiliations Schedule? For rules of constructive ownership, see instructions If "Yes," complete (i) through (iv) below. ~~~~~~ Own directly an interest of 20% or more, or own, directly or indirectly, an interest of 50% or more in any foreign or domestic partnership (including an entity treated as a partnership) or in the beneficial interest of a trust? For rules of constructive ownership, see instructions ~~~~~~ If "Yes," complete (i) through (iv) below. During this tax year, did the corporation pay dividends (other than stock dividends and distributions in exchange for stock) in excess of the corporation's current and accumulated earnings and profits? See sections 301 and 316 ~~~~~~~~~~~~~~~~~~~~~ If "Yes," file Corporate Report of Nondividend Distributions. See the instructions for Form 5452. If this is a consolidated return, answer here for the parent corporation and on Form 851 for each subsidiary. At any time during the tax year, did one foreign person own, directly or indirectly, at least 25% of the total voting power of all classes of the corporation's stock entitled to vote or at least 25% of the total value of all classes of the corporation's stock?~~~~~~~~~~~~ For rules of attribution, see section 318. If "Yes," enter: Percentage owned and Owner's country The corporation may have to file Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. Enter the number of Forms 5472 attached Check this box if the corporation issued publicly offered debt instruments with original issue discount ~~~~~~~~~~~~~~~~~ If checked, the corporation may have to file Information Return for Publicly Offered Original Issue Discount Instruments. Enter the amount of tax-exempt interest received or accrued during the tax year $ Enter the number of shareholders at the end of the tax year (if 100 or fewer) If the corporation has an NOL for the tax year and is electing to forego the carryback period, check here ~~~~~~~~~~~~~~~~ If the corporation is filing a consolidated return, the statement required by Regulations section 1.1502-21(b)(3) must be attached or the election will not be valid. Enter the available NOL carryover from prior tax years (do not reduce it by any deduction reported on page 1, line 29a.) $ Form (2022) Schedule K Other Information 1120 PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 X X X X 763,305. X 722511 CLUBHOUSE RESTAURANT FOOD & BEVERAGE X X X 38 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 21163312-15-22 5 13 14 15 16 17 18 19 20 21 22 23 24 25 26 and Yes No a b a b c (continued from page 4) Form 1120 (2022)Page Are the corporation's total receipts (page 1, line 1a, plus lines 4 through 10) for the tax year its total assets at the end of the tax year less than $250,000?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ If "Yes," the corporation is not required to complete Schedules L, M-1, and M-2. Instead, enter the total amount of cash distributions and the book value of property distributions (other than cash) made during the tax year $ Is the corporation required to file Schedule UTP (Form 1120), Uncertain Tax Position Statement? See instructions If "Yes," complete and attach Schedule UTP. ~~~~~~~~~~~~~~~ Did the corporation make any payments in 2022 that would require it to file Form(s) 1099? If "Yes," did or will the corporation file required Form(s) 1099? ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ During this tax year, did the corporation have an 80%-or-more change in ownership, including a change due to redemption of its own stock? During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the corporation receive assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million?~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ During the corporation's tax year, did the corporation make any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code?~~~~~~~~~~~~~~~~~~~~ Is the corporation operating on a cooperative basis? During the tax year, did the corporation pay or accrue any interest or royalty for which the deduction is not allowed under section 267A? See instructions If "Yes," enter the total amount of the disallowed deductions $ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Does the corporation have gross receipts of at least $500 million in any of the 3 preceding tax years? (See sections 59A(e)(2) and (3)) If "Yes," complete and attach Form 8991. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Did the corporation have an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year? See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Does the corporation satisfy one or more of the following? See instructions The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense. The corporation's aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $27 million and the corporation has business interest expense. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The corporation is a tax shelter and the corporation has business interest expense. If "Yes," complete and attach Form 8990. Is the corporation attaching Form 8996 to certify as a Qualified Opportunity Fund? If "Yes," enter amount from Form 8996, line 15 $ Since December 22, 2017, did a foreign corporation directly or indirectly acquire substantially all of the properties held directly or indirectly by the corporation, and was the ownership percentage (by vote or value) for purposes of section 7874 greater than 50% (for example, the shareholders held more than 50% of the stock of the foreign corporation)? If "Yes," list the ownership percentage by vote and by value. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Percentage: By Vote By Value Form (2022) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Schedule K Other Information 1120 X X X X X X X X PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 X X X X X X X 39 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Page Beginning of tax year End of tax year Other current assets (att. stmt.) Other investments (att. stmt.) Mortgages, notes, bonds payable in less than 1 year Other current liabilities (att. stmt.) Mortgages, notes, bonds payable in 1 year or more Retained earnings -Appropriated (attach statement) Adjustments to shareholders'equity (attach statement) Income subject to tax not recorded on books this year CharitablecontributionsCharitablecontributions Travel andentertainment 21163112-15-22 6 Balance Sheets per Books Assets (a)(b)(c)(d) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 a b ( ( ( ( ) ) ) ) ( ( ( ( ) ) ) ) a b a b a b Liabilities and Shareholders' Equity 16 17 18 19 20 21 22 23 24 25 26 27 28 a b ()() Note: 1 2 3 4 5 6 7 8 9 10 5 6 7 8 a a b b c 1 2 3 4 a b c Form 1120 (2022) Cash Trade notes and accounts receivable Less allowance for bad debts Inventories U.S. government obligations Tax-exempt securities Loans to shareholders Mortgage and real estate loans ~~~~~~~~~~~~~~~~~ ~~~ ~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~ ~~~~~~~~~ ~~~~~~~ ~~~~~~~~~ ~~~~~ ~~~~~~~~ Buildings and other depreciable assets Less accumulated depreciation Depletable assets Less accumulated depletion Land (net of any amortization) Intangible assets (amortizable only) Less accumulated amortization Other assets (att. stmt.) Total assets ~~ ~~~~~ ~~~~~~~~~~~ ~~~~~~ ~~~~~~ ~~~ ~~~~~ ~~~~~~~~ Accounts payable ~~~~~~~~~~~ Loans from shareholders Other liabilities (att. stmt.) Capital stock:Preferred stock Common stock ~~~~~ ~~~~~ Additional paid-in capital ~~~~~~~~ ~~~~~~~ Retained earnings - Unappropriated ~~~ ~~~~~~~~~~ Less cost of treasury stock Total liabilities and shareholders' equity ~~~~~~~ The corporation may be required to file Schedule M-3. See instructions. Net income (loss) per books Federal income tax per books Excess of capital losses over capital gains ~~~~~~~Income recorded on books this year not included on this return (itemize): Tax-exempt interest ~~~~~~~ ~~$ (itemize): Deductions on this return not charged against book income this year (itemize):Expenses recorded on books this year not deducted on this return (itemize):Depreciation ~~$ $$Depreciation~~~~~ $~~ ~$ Add lines 7 and 8 Income (page 1, line 28) - line 6 less line 9 ~~~~~~~~~~~~~ Add lines 1 through 5 ~~~~~~~~~~~~~~~~~Balance at beginning of year Net income (loss) per books Other increases (itemize): Add lines 1, 2, and 3 Distributions: Other decreases (itemize) : Add lines 5 and 6 Balance at end of year (line 4 less line 7) Cash Stock Property ~~~~~~~~~~~~~~~~~ ~~~~~~~~ ~~~~~~~~~~~~~ Form (2022) ~~~~~~ ~~~~~~~~ ~~~~~~~~ Schedule L Schedule M-1 Reconciliation of Income (Loss) per Books With Income per Return Schedule M-2 Analysis of Unappropriated Retained Earnings per Books (Schedule L, Line 25) 1120 STMT 4 STMT 5 STMT 6 STMT 7 STMT 8 STMT 9 SEE STATEMENT 10 -82,882. -960,750. 846,732.1,216,690. 27,116. -55,766. 800. 800. -56,566. -82,882. -1,043,632. 19,679. 19,679. -1,063,311. 19,593. 800. 105,182.33,236. 105,182.33,236. 62,556.75,170. 10,751.10,937. 2,494,164. 1,025,221.3,830,197. 29,918.37,113. 340,529.382,084. 1,615,524.4,474,311. -960,750.-1,063,311. 1,025,221.3,830,197. 7,523. PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 40 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 (Rev. November 2018) Department of the TreasuryInternal Revenue Service Name Employer Identification number 22444104-01-22 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 Total. Cost of goods sold. a b c d e f 9d For Paperwork Reduction Act Notice, see separate instructions.1125-A | Attach to Form 1120, 1120-C, 1120-F, 1120S, or 1065. | Go to www.irs.gov/Form1125A for the latest information. OMB No. 1545-0123 Form Inventory at beginning of year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Purchases ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Cost of labor ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Additional section 263A costs (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Other costs (attach schedule) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Add lines 1 through 5 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Inventory at end of year ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subtract line 7 from line 6. Enter here and on Form 1120, page 1, line 2 or the appropriate line of your tax return. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Check all methods used for valuing closing inventory: (i) (ii) (iii) Cost Lower of cost or market Other (Specify method used and attach explanation) | Check if there was a writedown of subnormal goods ~~~~~~~~~~~~~~~~~~~~~~~ Check if the LIFO inventory method was adopted this tax year for any goods (if checked, attach Form 970) ~~~~~~~~~~~~~~~~~~~~ If the LIFO inventory method was used for this tax year, enter amount of closing inventory computed under LIFO ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ | | If property is produced or acquired for resale, do the rules of Section 263A apply to the entity? See instructions ~~~~~~~~~~~~~~ Was there any change in determining quantities, cost, or valuations between opening and closing inventory? ~~~~~~~~~~~~~~~ If "Yes," attach explanation. Yes Yes No No Form (Rev. 11-2018) LHA Cost of Goods Sold1125-A 62,556. 1,354,869. 1,417,425. 75,170. 1,342,255. X X 33-0746371PALM DESERT RECREATIONAL FACILITIES CORP 41 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 1FORM 1120 TAXES AND LICENSES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} TAX & LICENSE 31,370. CALIFORNIA TAXES - BASED ON INCOME 800. }}}}}}}}}}}}}} TOTAL TO FORM 1120, LINE 17 32,170. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 2FORM 1120 OTHER DEDUCTIONS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} AMORTIZATION BANQUET SUPPLIES 138,025. CLEANING SUPPLIES 28,667. CONTRACT SERVICES 2,794,216. DISCOUNTS 124,473. DUES & SUBSCRIPTIONS 6,558. EQUIPMENTAL RENTAL 184,671. KITCHEN SUPPLIES 26,213. LAUNDRY 95,626. MEALS 7,523. MISC 19,591. OFFICE SUPPLIES 8,439. PRINTING 375. PROFESSIONAL SERVICE 4,900. UNIFORM 20,142. }}}}}}}}}}}}}} TOTAL TO FORM 1120, LINE 26 3,459,419. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 3 NET OPERATING LOSS DEDUCTION }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} LOSS PREVIOUSLY LOSS AVAILABLE TAX YEAR LOSS SUSTAINED APPLIED REMAINING THIS YEAR }}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} 06/30/20 162,354. 162,354.162,354. 06/30/21 161,652. 161,652.161,652. 06/30/22 539,898.100,599.439,299.439,299. }}}}}}}}}}}}}}}}}}}}}}}}}}}} NOL AVAILABLE THIS YEAR 763,305.763,305. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ STATEMENT(S) 1, 2, 342 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 4SCHEDULE L OTHER CURRENT ASSETS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} PREPAID INSURANCE 10,751.10,937. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO SCHEDULE L, LINE 6 10,751.10,937. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 5SCHEDULE L OTHER ASSETS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} RIGHT TO USE LEASED ASSETS, NET OF ACCUMULATED AMORTIZATION 2,494,164. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO SCHEDULE L, LINE 14 2,494,164. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 6SCHEDULE L OTHER CURRENT LIABILITIES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 340,529.328,789. LEASE PAYABLE 53,295. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO SCHEDULE L, LINE 18 340,529.382,084. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 7SCHEDULE L OTHER LIABILITIES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} DUE TO OTHER GOVERNMENT 1,195,524.1,998,564. LEASE PAYABLE 2,475,747. OTHER LIABILITIES 420,000. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO SCHEDULE L, LINE 21 1,615,524.4,474,311. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ STATEMENT(S) 4, 5, 6, 743 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 8SCHEDULE M-1 OTHER EXPENSES RECORDED ON BOOKS NOT DEDUCTED IN THIS RETURN }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} STATE TAX CURRENT YEAR 800. REMOVE NET EFFECT OF GASB 87 FOR LEASES 18,793. }}}}}}}}}}}}}} TOTAL TO SCHEDULE M-1, LINE 5 19,593. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 9SCHEDULE M-1 OTHER DEDUCTIONS IN THIS RETURN NOT CHARGED AGAINST BOOK INCOME }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} STATE TAX PRIOR YEAR 800. }}}}}}}}}}}}}} TOTAL TO SCHEDULE M-1, LINE 8 800. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 10SCHEDULE M-2 UNAPPROPRIATED RETAINED EARNINGS - OTHER DECREASES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} PY ADJUSTMENT 19,679. }}}}}}}}}}}}}} TOTAL TO SCHEDULE M-2, LINE 6 19,679. ~~~~~~~~~~~~~~ STATEMENT(S) 8, 9, 1044 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 239781 01-03-23 A B FINAL RETURN? 1. 2. 3. 4. C 1. 2. 3. (Yes requires filing of statement, penalties may apply - see instructions.) 1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 9 Side 1 00 00 00 00 00 00 00 00 00State AdjustmentsTAXABLE YEAR FORM ¥Dissolved Surrendered (withdrawn)Merged/Reorganized IRC Section 338 sale QSub election Enter date (mm/dd/yyyy)¥ ¥YesIs income included in a combined report of a unitary group?No If "Yes," indicate:Wholly within CA (R&TC 25101.15) Within and outside of CA Yes¥NoIs there a change in the members listed in Schedule R-7 from the prior year? Enter the number of members (including parent or key corporation) listed in the Schedule R-7, Part I, Section A, subject to income or franchise tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~¥ Is form FTB 3544 attached to the return?¥Yes No During this taxable year, did another person or legal entity acquire control or majority ownership (more than a 50% interest) of this corporation or any of its subsidiaries that owned California real property (i.e., land, buildings), leased such property for a term of 35 years or more, or leased such property from a government agency for any term?¥Yes No During this taxable year, did this corporation or any of its subsidiaries acquire control or majority ownership (more than a 50% interest) in another legal entity that owned California real property (i.e., land, buildings), leased such property for a term of 35 years or more, or leased such property from a government agency for any term?¥Yes No During this taxable year, has more than 50% of the voting stock of this corporation cumulatively transferred in one or more transactions after an interest in California real property (i.e., land, buildings) was transferred to it that was excluded from property tax reassessment under R&TC Section 62 (a)(2) and it was not reported on a previous year's tax return?¥Yes No Net income (loss) before state adjustments. See instructions Amount deducted for foreign or domestic tax based on income or profits from Schedule A Amount deducted for tax under the provisions of the Corporation Tax Law from Schedule A Interest on government obligations Net California capital gain from Side 6, Schedule D, line 11 ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Depreciation and amortization in excess of amount allowed under California law. Attach form FTB 3885 Net income from corporations not included in federal consolidated return. See instructions Other additions. Attach schedule(s) Total. Add line 1 through line 8 Form 100 2022 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~ ~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (continued on Side 2)Schedule Q Questions California CorporationFranchise or Income Tax Return2022 100 022 3601224 X X -56,566 800 -55,766 2002452 PALM 33-0746371 000000000000 22 TYB TYE PALM DESERT RECREATIONAL FACILITIES CORP 73510 FRED WARING DRIVE PALM DESERT CA 92260 07-01-2022 06-30-2023 X X X 45 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 23978201-03-23 10 11 12 13 14 15 10 11 12 13 14 15 16 17 16 17State Adjustments (con't)18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 19 20 21 18 22 23 27 28 29 30 35 24 25 26 Balance. Total tax. 31 32 33 34 2022 Estimated tax payments. Use tax. This is not a total line. Use tax balance. 36 37 38 39 40 41 42 43 44 37 38 39 40 41 42 Franchise or income tax due. Overpayment. Refund. 42a.42b.42c. a 43a 44 b Total amount due. D E F Do not Side 2 00 00 00 00 00 00 00 00 00 00 00 00CA Net Income00 00 00 00 00 00 00 00 00Taxes 00 00 00 00Payments 00 00 00 00 00 00 00 00 Refund or Amount Due00 00 Intercompany dividend elimination. Attach Schedule H (100) Dividends received deduction. Attach Schedule H (100) Additional depreciation allowed under CA law. Attach form FTB 3885 Capital gain from federal Form 1120, line 8 Charitable Contributions Other deductions. Attach schedule(s) ¥ ¥ ¥ ¥ ¥ ¥ Total. Add line 10 through line 15 Net income (loss) after state adjustments. Subtract line 16 from Side 1, line 9 ¥ ¥ Net income (loss) for state purposes. Complete Sch. R if apportioning or allocating income. See instructions ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Net operating loss (NOL) deduction. See instructions ¥ ¥ ¥ ¥ EZ, TTA, or LAMBRA NOL carryover deduction. See instructions Disaster loss deduction. See instructions Net income for tax purposes. Combine line 19 through line 21. Then, subtract from line 18 Tax.% x line 22 (at least minimum franchise tax, if applicable). See instructions Credit name Credit name code code ¥amount amount¥ To claim more than two credits, see instructions Add line 24 through line 26 Subtract line 27 from line 23 (at least minimum franchise tax, if applicable) Alternative minimum tax. Attach Schedule P (100). See instructions Add line 28 and line 29 Overpayment from prior year allowed as a credit See instructions 2022 Withholding (Form 592-B and/or 593). See instructions ¥ ¥ ¥ ¥ ~~~~~~~~~ Amount paid with extension of time to file tax return Total payments. Add line 31 through line 34 See instructions Payments balance. If line 35 is more than line 36, subtract line 36 from line 35 If line 36 is more than line 35, subtract line 35 from line 36 ~~~~~~~~~~~~~~ If line 30 is more than line 37, subtract line 37 from line 30 If line 37 is more than line 30, subtract line 30 from line 37 ~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ Amount of line 40 to be credited to 2023 estimated tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~ Subtract line 41 from line 40 See instructions to have the refund directly deposited. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Checking Savings ¥Routing number ¥Type ¥Account number Penalties and interest ¥ Check if estimate penalty computed using Exception B or C on form FTB 5806. See instructions. Add line 38, line 39, line 41, and line 43a. Then, subtract line 40 from the result If the corporation filed on a water's-edge basis pursuant to R&TC Sections 25110 and 25113 in previous years, enter the date the water's-edge election ended (mm/dd/yyyy)¥ Was the corporation's income included in a consolidated federal return?¥Yes No ¥Principal business activity code. ( leave blank): Business activity Product or service Form 100 2022 ~~~~~~~~~ ~~~~~~~~~~~ ~~~~~ ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~ ~~~~~~~ ~~~~~~~~~~~~~~~~~ | | ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ¥ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ (continued from Side 1) (continued on Side 3) Schedule Q Questions Schedule Q Questions 022 3602224 c c c c c c c c j 0 X 722511 CLUBHOUSE RESTAURANT FOOD & BEVERAGE -55,766 -55,766 8.8400 800 800 800 800 800 -55,766 800 46 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge andbelief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. PTIN 23979101-03-23 G H I (1)(2)(3)(4)(5) J K 1. 2. 3. L M N O (1)(2)(3) P Q R S T U (1)(2)(3) 1. 2. V W X Y Z AA BB CC 1. 2.3. Sign Here Paid Pre- parer's Use Only For Privacy Notice, get FTB 1131 EN-SP.Side 3 Date incorporated (mm/dd/yyyy):¥CountryWhere:State Date business began in California or date income was first derived from California sources ¥(mm/dd/yyyy) First return?¥Yes No If "Yes" and this corporation is a successor to a previously existing business, check the appropriate box. ¥Sole proprietorship Partnership Joint venture Corporation Other (Attach statement showing name, address, and FEIN/SSN/ITIN of previous business.) "Doing business as" name. See instructions:¥ At any time during the taxable year, was more than 50% of the voting stock: Of the corporation owned by any single interest? Of another corporation owned by this corporation? ¥ ¥ ¥ Yes Yes Yes No No NoOf this and one or more other corporations owned or controlled, directly or indirectly, by the same interests? If 1 or 3 is "Yes," enter the country of the ultimate parent If 1, 2, or 3 is "Yes," furnish a statement of ownership indicating pertinent names, addresses, and percentages of stock owned. If the owner(s) is an individual, provide the SSN/ITIN and see FTB 1131 EN-SP, for more information. ¥ Has the corporation included a reportable transaction or listed transaction within this return? (See instructions for definitions) If "Yes," complete and attach federal Form 8886 for each transaction. ¥Yes No Is this corporation apportioning or allocating income to California using Schedule R?¥Yes No How many affiliates in the combined report are claiming immunity from taxation in California under Public Law 86-272? Corporation headquarters are: ¥ ¥Within California Outside of California, within the U.S.Outside of the U.S. Location of principal accounting records: Accounting method: Does this corporation or any of its subsidiaries have a Deferred Intercompany Stock Account (DISA)? If "Yes," enter the total balance of all DISAs ¥Cash Accrual Other No¥Yes ¥$ Is this corporation or any of its subsidiaries a RIC? Is this corporation treated as a REMIC for California purposes? ¥ ¥ ¥ Yes Yes Yes No No NoIs this corporation a REIT for California purposes? If question U1 is "Yes," does the entity own any qualified REIT subsidiaries that are incorporated or qualified with the California Secretary of State? If yes, see instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~¥Yes No Is this corporation an LLC or limited partnership electing to be taxed as a corporation for federal purposes?¥Yes No If "Yes", enter the effective date of the election (mm/dd/yyyy) Is this corporation to be treated as a credit union?¥Yes Yes Yes Yes Yes Yes Yes No No No No No No No Is the corporation under audit by the IRS or has it been audited by the IRS in a prior year?¥ Have all required information returns (e.g. federal Forms 1099, 5471, 5472, 8300, 8865, etc.) been filed with the Franchise Tax Board?N/A ¥Does the taxpayer (or any corporation of the taxpayer's combined group, if applicable) own 80% or more of the stock of an insurance company? Did the corporation file the federal Schedule UTP (Form 1120)?¥ ¥ ¥ Does any member of the combined report own an SMLLC or generate/claim credits that are attributable to an SMLLC? Has this business entity previously filed an unclaimed property Holder Remit Report with the State Controller's Office? If "Yes," when was the last report filed? (mm/dd/yyyy)¥Amount last remitted $ Signature Title Date ¥Telephone of officer Officer's email address (optional) Preparer's Date ¥Check if self-signature employed | Firm's name(or yours, ifself-employed)and address Firm's FEIN¥ ¥Telephone May the FTB discuss this return with the preparer shown above? See instructions ¥Yes No Form 100 2022 ~~~~~~~~~~~~~~ ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~~~~~~~~~~~ ~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~ 022 3603224 j n = == 02/20/1997 CA UNITED STATES X X 07/01/1997 X X 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 X X X X X X X X X X X X X X X TREASURER 760-776-6344 VCHAVEZ@PALMDESERT.GOV MICHAEL C. AGRESTI, CPA 03/14/24 P00716069 LANCE, SOLL & LUNGHARD, LLP 95-2700123203 N BREA BLVD. SUITE #203 714-672-0022 BREA, CA 92821 X X X 47 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 239792 01-03-23 Taxes Deducted. (a) (b) (c) (d) Total. Computation of Net Income. 1 2 3 4 5 6 7 8 9 a) b)c) 1c 2 3 4 5a 5b 6 7 8 9 10 11 29 30 a) b) 10 11 Total income. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 12 13 14 15 16 17 18 19 21b 22 23 24 25 26b 27 28 20 21a a) b) Total deductions. Add-On Taxes and Recapture of Tax Credits. 1 2 3 4 5 6 1 2 3a 3b 4 5 6 a b Side 4 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00Income 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00Deductions 00 00 00 00 00 00 00 00 00 Use additional sheet(s) if necessary. Nature of tax Taxing authority Total amount Nondeductible amount Enter total of column (c) on Schedule F, line 17, and total of column (d) on Side 1, line 2 or line 3. If the corporation uses California computation method to compute the net income, see instructions. See instructions. Gross receipts or gross sales Less returns and allowance Balance ~~~~~~~~~~~~~~~~~~¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Cost of goods sold. Attach federal Form 1125-A (California Schedule V) Gross profit. Subtract line 2 from line 1c Total dividends. Attach federal Schedule C (California Schedule H (100)) ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ Interest on obligations of the United States and U.S. instrumentalities Other interest. Attach schedule ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Gross rents Gross royalties Capital gain net income. Attach federal Schedule D (California Schedule D) Ordinary gain (loss). Attach federal Form 4797 (California Schedule D-1) Other income (loss). Attach schedule ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Add line 3 through line 10 Compensation of officers. Attach federal Form 1125-E or equivalent schedule Salaries and wages (not deducted elsewhere) Repairs and maintenance Bad debts Rents Taxes (California Schedule A). See instructions Interest. Attach schedule Charitable Contributions. Attach schedule Depreciation. Attach fed Form 4562 & FTB 3885 ~~~¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Less depreciation claimed elsewhere on return Depletion. Attach schedule Advertising Pension, profit-sharing plans, etc. Employee benefit plans ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Total travel and entertainment Deductible amounts ~~~~~~~~~~~~~~~~~~~~~~~~~~ Other deductions. Attach schedule Specific deduction for organizations under R&TC Section 23701r or 23701t. See instr ~~~~~~~~~~~~~~~~~~~~~ Add line 12 through line 28 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Net income before state adjustments. Subtract line 29 from line 11. Enter here and on Side 1, line 1 See instructions. LIFO recapture due to S corporation election, IRC Sec. 1363(d) deferral: $ Interest computed under the look-back method for completed long-term contracts (Attach form FTB 3834) Interest on tax attributable to installment: ~~~~~~~¥ ¥ ¥ ¥ ¥ ¥ ¥ ~~~~~~~ Sales of certain timeshares and residential lots Method for nondealer installment obligations ~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ IRC Section 197(f)(9)(B)(ii) election Credit recapture name: Combine line 1 through line 5, revise Side 2, line 39 or line 40, whichever applies, by this amount. Write "Schedule J" to the left of line 39 or line 40 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Form 100 2022 ¥¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Schedule A Schedule F Schedule J 022 3604224 j j j j j j j j j j j SEE STATEMENT 1 PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 TAX & LICENSE 31,370 BASED ON INCOME CALIFORNIA 800 800 32,170 800 4,779,792 4,779,792 1,342,255 3,437,537 3,437,537 2,514 32,170 15,046 7,523 3,451,896 3,494,103 -56,566 48 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Att sch Mortgages, notes, bonds payable in less than 1 year Mortgages, notes, bonds payable in 1 year or more 239793 01-03-23 Cost of Goods Sold 1 2 3 4 5 6 7 a b 1 2 3 4a 4b 5 6 7 The corporation may not be required to complete Schedules L, M-1, and M-2. See Schedule M-1 instructions for reporting requirements. Balance Sheet Beginning of taxable year End of taxable year Assets (a)(b)(c)(d) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 a b a b a b a b Total assets Liabilities and Stockholders' Equity a b Total liabilities and stockholders' equity Side 5 00 00 00 00 00 00 00 00 Inventory at beginning of year Purchases Cost of labor Additional IRC Section 263A costs. Attach schedule Other costs. Attach schedule ¥ ¥ ¥ Total. Add line 1 through line 4b Inventory at end of year Cost of goods sold. Subtract line 6 from line 5. Enter here and on Side 4, Schedule F, line 2 Method of inventory valuation | Was there any change in determining quantities, costs of valuations between opening and closing inventory? If "Yes," attach an explanation. Enter California seller's permit number, if any | Check if the LIFO inventory method was adopted this taxable year for any goods. If checked, attach federal Form 970 Yes No If the LIFO inventory method was used for this taxable year, enter the amount of closing inventory under LIFO Do the rules of IRC Section 263A (with respect to property produced or acquired for resale) apply to the corporation?Yes No Cash ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ ¥ Trade notes and accounts receivable Less allowance for bad debts ¥ ¥ ¥ ¥ ¥ ¥ ¥ ()() Inventories Federal and state government obligations Other current assets. Attach sch(s) Loans to stockholders/officers. Mortgage and real estate loans Other investments. Attach sch(s) Buildings and other fixed depreciable assets Less accumulated depreciation Depletable assets Less accumulated depletion ()() ()() Land (net of any amortization)~~~~~~~ Intangible assets (amortizable only) Less accumulated amortization ()() Other assets. Attach sch(s) Accounts payable Other current liabilities. Att. sch(s) Loans from stockholders. Att. sch(s) Other liabilities. Attach sch(s) Capital stock:Preferred stock Common stock Paid-in or capital surplus. Attach reconciliation Retained earnings - Appropriated. Att. sch. Retained earnings - Unappropriated Adjustments to shareholders' equity. Att. sch. Less cost of treasury stock ()() Form 100 2022 ¥~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~ ~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~~~ ¥~~ ¥¥~~~~~~ ¥~~~~~~~~~~~~~~~ ¥~~ ~~~~~ ¥~~~ ¥~~~~~~ ¥~~~~~~ ¥ ¥¥~~~~~ ~~~~~~~~~~~ ¥~~~~~~ ¥ ¥~~~ ¥¥¥¥~~~~~ ¥~~~~~~~~ ¥~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~ ¥~ ¥~~~~~ ¥~~~~ ¥~ ¥~~~~~~~ ¥~~~~~ ¥¥~~~~~ ¥ ~¥¥ ~~~~¥¥ ~~~~~~~~ Schedule V Schedule L 022 3605224 j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j j STMT 2 STMT 3 STMT 4 STMT 5 PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 62,556 1,354,869 1,417,425 75,170 1,342,255 X 846,732 1,216,690 105,182 33,236 105,182 33,236 62,556 75,170 10,751 10,937 2,494,164 1,025,221 3,830,197 29,918 37,113 340,529 382,084 1,615,524 4,474,311 -960,750 -1,063,311 1,025,221 3,830,197 X 49 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Taxable income not recorded on books this year (itemize) State tax refunds Travel andentertainment Kind of property and description(Example, 100 shares of Z Co.)Date acquired(mm/dd/yyyy)Cost or other basisplus expense of sale Gain (loss)(d) less (e)Date sold(mm/dd/yyyy) 239794 01-03-23 Reconciliation of Income (Loss) per Books With Income (Loss) per Return. completed Sch M-3 (Form 1120/1120F), 1 2 3 4 5 6 7 8 9 10 a b c a b c d e a b c d Analysis of Unappropriated Retained Earnings per Books 1 2 3 4 5 6 7 8 a b c California Capital Gains and Losses Part I Short-Term Capital Gains and Losses - Assets Held One Year or Less. (a) (b) (e) (f) (c) (d) 1 2 3 4 2 3 4 6 7 8 9 10 11 Part II Long-Term Capital Gains and Losses - Assets Held More Than One Year. 5 6 7 8 9 10 11 Side 6 00 00 00 00 00 00 00 00 00 00 00 00 00 If the corporation federal see instructions. Net income per books Federal income tax Excess of capital losses over capital gains ¥ ¥ ¥ ¥ ¥ Income recorded on books this year not included in this return (itemize) Tax-exempt interest $ Other $ Total. Add line 7a and line 7b ¥ Expenses recorded on books this year not deducted in this return (itemize) Deductions in this return not charged against book income this year (itemize) Depreciation State taxes $ $ $ $ Depreciation $ $ $Other Total. Add line 8a through line 8c Other Total. Add line 5a through line 5d ¥ Total. Add line 7c and line 8d Net income per return. Subtract line 9 from line 6Total. Add line 1 through line 5e (Side 5, Schedule L, line 24) ¥ ¥ ¥ ¥ ¥ ¥ ¥ Balance at beginning of year Net income per books Other increases (itemize) Total. Add line 1 through line 3 Distributions:Cash Stock Property Other decreases (itemize) Total. Add line 5 and line 6 Balance at end of year. Subtract line 7 from line 4 Use additional sheet(s) if necessary. Gross sales price Short-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 Unused capital loss carryover from 2021 Net short-term capital gain (loss). Combine line 1 through line 3 ¥ ¥ Use additional sheet(s) if necessary. Enter gain from Schedule D-1, line 9 and/or any capital gain distributions Long-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 Net long-term capital gain (loss). Combine line 5 through line 7 Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 8) Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss (line 4) Total lines 9 and 10. Enter here and on Form 100, Side 1, line 5. If losses exceed gains, carry forward losses to 2023 Form 100 2022 ~~~~~~~~~~~ ~~~~~~~~~~~~ ~~¥ ~~~~~ ~~~~~~ ~ ~~ ¥~~~ ~~~~ ~~~~ ¥~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~ ~~~~~~~~~~ ¥ ¥~~~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~~~~~~~ ¥~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~ ~~~~~~~~ Schedule M-1 Schedule M-2 Schedule D 022 3606224 j j j j j j j j STMT 6 STATEMENT 7 STMT 8 PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 -82,882 7,523 19,593 800 800 27,116 800 -55,766 -56,566 -960,750 -82,882 19,679 19,679 -1,043,632 -1,063,311 50 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Corporation name California corporation number FEIN col. (d) minus col. (f)See instructions. 239271 12-22-22 If the corporation is included in a combined report of a unitary group, see instructions, General Information C, Combined Reporting. Part I Current year NOL. 1 2 3 4 5 6 1 2 3 4c 5 6 a b c 4a 4b Part II NOL carryover and disaster loss carryover limitations. (g) 1 3 4 Prior Year NOLs (a)(b)(c)(d)(e)(f)(h) 2 Current Year NOLs 2022 2022 2022 2022 2022 DIS * Type of NOL: Part III 2022 NOL deduction 1 2 3 1 2 3 00 00 00 00 00 00 00 00 00 00 00 TAXABLE YEAR CALIFORNIA FORM Attach to Form 100, Form 100W, Form 100S, or Form 109. During the taxable year the corporation incurred the NOL, the corporation was a(n):C corporation S corporation Exempt organization Limited liability company (electing to be taxed as a corporation) If the corporation previously filed California tax returns under another corporate name, enter the corporation name and California corporation number: If the corporation does not have a current year NOL, go to Part II. Net loss from Form 100, line 18; Form 100W, line 18; Form 100S, line 15; or Form 109, line 2. Enter as a positive number 2022 disaster loss included in line 1. Enter as a positive number Subtract line 2 from line 1. If zero or less, enter -0- and see instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~ Enter the amount of the loss incurred by a new business included in line 3 Enter the amount of the loss incurred by an eligible small business included in line 3 Add line 4a and line 4b ~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ General NOL. Subtract line 4c from line 3 Current year NOL. Add line 2, line 4c, and line 5. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ See instructions. Available balance Net income - Enter the amount from Form 100, line 18; Form 100W, line 18; Form 100S, line 15 less line 16; or Form 109, line 2; (but not less than -0-). Code - SeeinstructionsYear ofloss Type of NOL - See below Initial loss -See instructions Carryoverfrom 2021 Amount usedin 2022 Carryover to 2023col. (e) minus col. (f) General (GEN), New Business (NB), Eligible Small Business (ESB), or Disaster (DIS). Total the amounts in Part II, line 2, column (f) Enter the total amount from line 1 that represents disaster loss carryover deduction here and on Form 100, line 21; Form 100W, line 21; or Form 100S, line 19. Form 109 filers enter -0- Subtract line 2 from line 1. Enter the result here and on Form 100, line 19; Form 100W, line 19; Form 100S, line 17; or Form 109, line 7 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ FTB 3805Q 2022 ¥ ¥¥¥ ¥ ¥ ¥ ¥¥¥ ¥¥¥ ¥¥¥ ¥¥¥ ¥ ¥ Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations - Corporations * 3805Q2022 022 7521224 j j j j j j j j j j j j j j j j j j j j j PALM DESERT RECREATIONAL FACILITIES CORP 2002452 X 55,766 55,766 55,766 33-0746371 2015 437,61900437,619539,018 55,76655,766 2019 161,55400161,554161,554 2020 160,85200160,852160,852 55,766 GEN GEN GEN GEN 0 51 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 1FORM 100/100W, SCHEDULE F OTHER DEDUCTIONS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} AMORTIZATION 0. BANQUET SUPPLIES 138,025. CLEANING SUPPLIES 28,667. CONTRACT SERVICES 2,794,216. DISCOUNTS 124,473. DUES & SUBSCRIPTIONS 6,558. EQUIPMENTAL RENTAL 184,671. KITCHEN SUPPLIES 26,213. LAUNDRY 95,626. MISC 19,591. OFFICE SUPPLIES 8,439. PRINTING 375. PROFESSIONAL SERVICE 4,900. UNIFORM 20,142. }}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE F 3,451,896. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 2FORM 100/100W, SCHEDULE L OTHER CURRENT ASSETS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} PREPAID INSURANCE 10,751.10,937. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE L 10,751.10,937. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 3FORM 100/100W, SCHEDULE L OTHER ASSETS }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} RIGHT TO USE LEASED ASSETS, NET OF ACCUMULATED AMORTIZATION 2,494,164. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE L 2,494,164. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ STATEMENT(S) 1, 2, 352 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 4FORM 100/100W, SCHEDULE L OTHER CURRENT LIABILITIES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES 340,529.328,789. LEASE PAYABLE 53,295. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE L 340,529.382,084. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 5FORM 100/100W, SCHEDULE L OTHER LIABILITIES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} BEGINNING OF END OF TAX DESCRIPTION TAX YEAR YEAR }}}}}}}}}}} }}}}}}}}}}}}}} }}}}}}}}}}}}}} DUE TO OTHER GOVERNMENT 1,195,524.1,998,564. LEASE PAYABLE 2,475,747. OTHER LIABILITIES 420,000. }}}}}}}}}}}}}}}}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE L 1,615,524.4,474,311. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 6FORM 100/100W, SCHEDULE M-1 EXPENSES RECORDED ON BOOKS NOT DEDUCTED ON RETURN }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} STATE TAX CURRENT YEAR 800. REMOVE NET EFFECT OF GASB 87 FOR LEASES 18,793. }}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE M-1 19,593. ~~~~~~~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 7FORM 100/100W, SCHEDULE M-2 UNAPPROPRIATED RETAINED EARNINGS OTHER DECREASES }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} PY ADJUSTMENT 19,679. }}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE M-2 19,679. ~~~~~~~~~~~~~~ STATEMENT(S) 4, 5, 6, 753 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} }}}}}}}}}}PALM DESERT RECREATIONAL FACILITIES CORP 33-0746371 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ STATEMENT 8FORM 100/100W, SCHEDULE M-1 DEDUCTIONS IN RETURN NOT CHARGED AGAINST BOOK INCOME }}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}}} DESCRIPTION AMOUNT }}}}}}}}}}} }}}}}}}}}}}}}} STATE TAX PRIOR YEAR 800. }}}}}}}}}}}}}} TOTAL TO FORM 100/100W, SCHEDULE M-1 800. ~~~~~~~~~~~~~~ STATEMENT(S) 854 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 Page 1 of 1 PALM DESERT RECREATIONAL FACILITIES CORPORATION BOARD STAFF REPORT MEETING DATE: June 10, 2024 PREPARED BY: Veronica Chavez, Chief Financial Officer Derek White, Desert Willow Golf Resort General Manager REQUEST: REVIEW AND APPROVE THE PROPOSED FINANCIAL PLAN FOR THE FISCAL YEAR 2024-2025 RECOMMENDATION: Review and approve the financial plan for the 2024-2025 fiscal year. BACKGROUND/ANALYSIS: Presented for your consideration are the proposed Fiscal Year (FY) 2024-25 operational budgeted revenues and expenditures for the Palm Desert Recreational Facilities Corporation (PDRFC). The proposal is based on expected operational goals driven by past achievements, with consideration of the current economic climate. Kemper Sports Management Company, LLC along with City staff have reviewed the FY 2024-25 financial plan and have implemented the anticipated changes with respectful consideration of the industry as a whole and t he expectations of operations during FY 2024-25. City staff and Kemper Sports understand that the budget process is dynamic and anticipate ongoing economic issues that will require monitoring as the food and beverage operations progress through the next f iscal year. Nonetheless, the City and Kemper Sports are committed to fiscal responsibility coupled with effective resource management to provide the highest level of service while maximizing the fiscal capacity of the Desert Willow food & beverage operatio ns. FINANCIAL IMPACT: The anticipated budget indicates a net operating deficit of approximately $132,623 before rent ($96,000) and property tax expense ($25,358). After rent and property tax the budget anticipates a loss of $253,981. The proposed budget reflects the expectation of business as usual. Kemper Sports will continue to seek options to mitigate the rising costs of supplies and labor. ATTACHMENTS: 1. Palm Desert Recreational Facilities Corporation Financial Plan for FY 2024-25 55 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 56 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024 57 Palm Desert Recreational Facilities Corporation Board Meeting June 10, 2024