Okaloosa County BOCC — August 18, 2015 — Exhibit B - Proposal — reading text

liability corporation that provides non- emergency medical transportation and professional assistance for ambulatory, wheelchair and stretcher clients. N o te B - Signifi cant Accounting P olicies The financial statements are prepared in accordance with accounting principles generally accepted in the. United Sta~es of America. Basis o f Presenta tio n The accompanying fmancial statements have been prepared on the accrual basis of accounting in accordance with generally accepted accounting principles. Certifica te of D ep osits Certificate o f deposits have a maturity date of less than 12 months. Accounts Receiva ble lvlanagement evaluates specific uade rece.ivables outstanding greater th an ninety days, makes an estimate of losses to be sus tained, and includes this amount in the allowance fot doub tful accounts. Uncollectible amountS are charged against the allowance account when management determines, after unsuccessful collectio n attempts, the possibility of collection is remme. No [eSelVe was reguired as of December 3 1, 2013 and 2012. Property and E quipm ent Pl'Operty and eguipment are recorded at cost. Depreciation is calculated using the straight-line method over (he es timated useful lives of the assets as follows: Furniture and eguipment s - 15 years Vehicles .) vears Revenue and C os t Reco gnition Revenue is recognized when transportation SeIYICeS are provided. T Ills medlOd is used because management considers it to be the best available measure o f progress on these contracts. Contract costs include all direct labor costs and those indirect costs related to contract performance. Selling, general and administrative cos ts are charged to expense as incurred. JI,if" 16  Maruti Fleet & Management, LLC Notes to Financial Statem ents D ecember 31, 2013 and 2012 Note B - Significant Accounting Polici es (continu ed) Concentratio n of Credit Risk The Company had three customers and two custom,ers dm"ing the rears ended December 31, 2013 and 2012, respectively that made up the majority of its revenues. Federal Income Taxes The Company, with the consent of its member, has eJected to be taxed under sections of federal and state income tax law, which provide that, in lieu of corporation income faxes, the member separately accounts for [heir share of the Conlpany's items of income, deductions, losses and credits. As a result of this election, no income taxes have been recognized in the accompanying ftnancial statements. The Company periodically assesses whether .it has incurred income tax expense or related interest or penalties in accordance for unce.rtain income tax posirions. No such amounts were recognized. The Company evaluated irs tax positions and determined that it has no uncertain tax positions as of December 31, 2013. The Compau)"s 20 10 through 2013 tax years are open for examination for federal and state taxing authorities. Use of Estimates The preparation of fInancial statements in conformity with generally accepted accounting principles regtilles management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, aerual results could differ from those estimates. Note C - Property and E quipment Property and equipment consisted of the following as of D ecember 31: 2013 2012 Office Eguipment 23,194 $ 23,194 Veludes 535,844 476,884 559,038 500,078 Less - Accwnulated depreciation (219,222) (120,732) $ 339,816 $ 379,346 Depreciation expense was $103,993 and 89,774 for the years ended D ecember 31,20 13 and 2012, respectively. " , ~, I 7 Maruti Fleet & Management, LLC Notes to Financial Statements Decembe r 31, 2013 and 2012 Note D - Related Party During 2013 and 2012, the Company supported a related party wid1 accounting, finance and human resource management services. The Company charged a management fee for the noted services of approximately $63,000 and $102,000 during the years ended December 31, 2013 and 2012, respectively, which is included in revenues on the accompanying financial statements for dle years ended December 31, 2013 and 2012. The Company had a receivable balance of ap proximately $0 and $21,000 as of December 31, 2013 and 2012, respectively. During 2013 and 2012, a related party utilized vehicles owned by the Company. The Company charged the related party for the related payments for those vehicles some o f which are included in the balances noted i.n Note E and Note F. The Company recorded approximately $141,000 and $76,000, re spectively, of lease income associated with these transactions, which is included 1n rhe accompanying statements of income and member's equity. Note E - Notes Payab le The Company had an outstanding ootes payable as of December 31, 2013 and 2012 in the amount of $0 and $9,278, respectively. Interest is charged on the notes at a rate of prime plus 1Ufo. The note matured in 2013. The Company has outstanding notes payables forvelucles as of December 3 1. 2013 and 2012 in the amou nt of $ 176,238 and $ 152,032, respectively. The notes are collateralized by the vehicles. Interest is charged on the notes at a range from 4.9%-11.5%. Principal matucities on the notes parables are as follows as of December 31,2013: Year Ending December 31, Amount 2014 $ 6~,001 2015 53,885 2016 44,394 2017 13,958 $ 176,238 Maruti Fleet & Management, LLC N otes to Financial Statements D ec ember 31, 2013 and 2012 N ote F - Capital Lease Oblig ati on The C0111pany leases vehicles under non-cancelable lease agreements. Per the lease agreements, the Company has the right to purchase the leased assets at the end of the leases for $1. Dec elube r 31, 2013 2012 Vehicles $ 129,306 $ 192,927 Total 129,306 192,927 Less: current portion (65,122) (63,477) Capital leases-long term $ 64,184 129,450 The future minimum payments on the capital lease obligations at December 31, 2013 axe as follows: Amount 2014 $ 76,588 2015 60,211 2016 9,638 Total capira11ease payments 146,437 Less: interest e..-..:pense (17,131 ) Total capital lease obligations 129,306 Less : current portion (65,122) Capital lease obligations - long term $ 64,184 N ot e G - Owner Distributions Owner distributions were made up of the folo'IJ.ri.ng as of December 31: 2013 2012 Owner rusuibutions $ 242,138 $ 273,494 Owner investments in mher entities 74,802 287,678 Total distributions 316,940 $ 561,172 ;1 I P I I9 Maruti Fleet & M anagement, LLC N otes to Financial Statem ents D ecember 31, 2013 and 2012 N ote H - Contingencies The Company has a non-cancellable operating .leases for a veh.icles, Furore rnlrWllU111 rental payments under the non-cancellable operating lease (with initial or remaining lease terms in excess of one year) for each of the five years subsequent to December 31, 2013 are: 2014 $ 420,000 2015 420,000 2016 35,000 $ 875,000 Total rent expense associated with the operating leases amounted to approximatley 462,000 and $463,000 for the years ended December 31,2013 and 2012, respectively. Note I - Subsequ ent Events Subsequem events have been evaluated tluough June 19 ,20 14 which is the date me fmancial statements were available to be issued. I' " L 1 10