It must be the season - Quintess sent a letter to members 2 days ago and yesterday High Country Club sent out its first letter confirming completion of its annual audit and net asset test.
Both of these are great signs that the destination clubs are serious about the security of their members deposits.
The High Country Club letter included a link to a copy of the letter from their auditors, BKD, LLC, which said about the net asset test:
"we performed the following calculation to determine if the result of the calculation resulted in a positive amount:a. Cash and marketable securities at December 31, 2006, plus,
b. Real estate assets at cost at December 31, 2006, if acquired within a 24 month period ending on December 31, 2006, and if acquired prior to a 24 month period ending on December 31, 2006, the current appraised value, minus,
c. Debt secured by real estate assets at December 31, 2006, minus,
d. Refundable membership deposits
As a result of the procedures applied, the calculation above resulted in a positive amount."
In other words the company has positive net assets, and so the assets cover the 80% of the members deposit which would be refunded to members should a member resign. The full letter from Christian Kirschner, CEO of High Country Club is included below.
High Country Club is having its audit and net asset test done on an annual basis. We'd like to see all the clubs move to a quarterly basis for the net asset test and reporting this to members - this will further strengthen the members security.