As part of our May 2025 close, we have posted targeted balance sheet adjustments to align our records with actual supporting documents and the most recent audit. These updates correct differences at year-end 2024, clarify fixed-asset details, and ensure deposits, reclassifications, and taxes are properly reflected.
NOTE 1. The petty cash fund was adjusted to reflect the actual amount at the close of 2024, which is $12,000 pesos. The audit had stated that 2024 closed with $8,960 pesos.
NOTE 2. The amount established in the audit was respected. To determine the breakdown of equipment and land, a 2022 integration was recovered, followed up on, and two pieces of equipment highlighted in yellow were identified: three Suzuki motorcycles acquired in 2023 and one thermal fogger.
NOTE 3. Depreciation from the audit was respected. It only remains to integrate and update the accumulated depreciation for 2025.
NOTE 4. These deposits are those the Association has left as guarantees with certain suppliers. According to the supporting documentation provided by Associa, it was stated that at the close of 2024, the amount of these deposits was $234,666.00 pesos (no breakdown was provided), but in reality, the year closed with $84,249.99 pesos. The balance was adjusted to $129,249.99 pesos (the $84,249.99 at the end of 2024 plus $45,000 pesos deposited in February 2025 as a rental deposit for the glass office).
NOTE 5. An expense was reclassified, moving it from account 2100.2.1 “Employer Union Dues” to the correct account 6600.4 “Union Dues.” With this adjustment, account 6600.4 now correctly reflects the actual expense incurred so far this year.
NOTE 6. The audit stated that construction guarantee deposits at the end of 2024 amounted to $3,320,958 pesos. However, the actual amount of those deposits was $5,676,921.60 pesos ($2,850,000 received from Covenant and $2,826,921.60 pesos from Colonos). Therefore, an adjustment of $2,355,963.60 pesos was made to align the figures with reality.
NOTE 7. Taxes corresponding to 2025 have been properly paid. However, a review of the years 2023 and 2024 is underway due to discrepancies between the figures established in the 2024 audit and the actual amounts. This analysis should have been conducted at the time by the Associa team.
NOTE 8. The surplus at the end of 2024 changed from positive ($1,909,705 pesos) to negative (-$594,438.82 pesos) because the actual balance of guarantee deposits (see NOTE 6) had not been considered, and it was stated that the employee savings fund at the end of 2024 was zero, when in fact it already held $151,383 pesos.
ADDITIONAL NOTE. Since January 2025, initial bank balances have been corrected to reflect actual amounts and make sense, so no changes were needed in May. Accounts such as Bancomer 429 (trash) and Bancomer 641 (bracelets), which were mentioned in the audit and even showed balances, were eliminated as they were canceled in 2023. Likewise, the balance in the Actinver investment account was adjusted, as it showed a higher-than-actual balance at the end of 2024.
NOTA 10. We reclassified 2025 income to record it under the correct categories. This allows us to reflect each income item by its nature and report more accurately the amounts received in each budget category. Monthly totals and the year-to-date total DID NOT CHANGE.
Andrew James Devlyn
Treasurer 2024 - 2025