The financial statements provide an overview of the financial position of The Pavilion Condominium Association of Miami Beach as of December 31, 2014. Key details include total assets of $15.4 million including $1.6 million in cash and $13.1 million in special assessment receivables. Total liabilities were $14.4 million including $4.6 million in deferred special assessments and $9.3 million in notes payable. For the year ended December 31, 2014 the Association reported total revenues of $6.5 million and expenses of $6.1 million resulting in an excess of revenues over expenses of $369,829.

1. THE PAVILION CONDOMINIUM
ASSOCATION OF MIAMI BEACH, INC
FINANCIAL STATEMENTS
DECEMBER 31, 2014

2. 1
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
The Pavilion Condominium Association of Miami Beach, Inc.
Miami Beach, FL
Report on the Financial Statements
We were engaged to audit the accompanying financial statements of The Pavilion Condominium Association
of Miami Beach, Inc. which comprise the balance sheet as of December 31, 2014, and the related statement of
revenues, expenses, and changes in fund balance and cash flows for the year then ended, and the related notes
to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America. Because of
the matters described in the Basis for Disclaimer of Opinion paragraph, however, we were not able to obtain
sufficient appropriate audit evidence to provide a basis for an audit opinion.
.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as
well as evaluating the overall presentation of the financial statements.

3. 2
To the Board of Directors
The Pavilion Condominium Association of Miami Beach, Inc.
.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of The Pavilion Condominium Association of Miami Beach, Inc.The Pavilion
Condominium Association of Miami Beach, Inc. as of December 31, 2014, and the results of its
operations and its cash flows for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
Disclaimer of Opinion on Supplementary Information
Our audit was conducted for the purpose of forming an opinion on the financial statements as a whole.
The schedule of changes in replacement fund, which is the responsibility of the Association’s
management, is presented for purposes of additional analysis and is not a required part of the financial
statements. Such information has not been subjected to the auditing procedures applied in the audit of
the financial statements and, accordingly, we do not express an opinion or provide anyassurance on it.
Other Matter
As discussed in the note on future major repairs and replacements, the Association has not estimated
the remaining lives and replacement costs of the common property and, therefore, has not presented
information about the estimates of future costs of major repairs and replacements that will be
required in the future that the Financial Accounting Standards Board has determined is required to
supplement, although not required to be a part of, the basic financial statements.
BASHOR & LEGENDRE, LLP
Certified Public Accountants
December 21, 2015

4. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
BALANCE SHEET
AS OF DECEMBER 31, 2014
The accompanying notes are an integral part of these financial statements.
3
OPERATING REPLACEMENT
FUND FUND TOTAL
ASSETS
Cash and cash equivalents 1,451,564$ 192,051$ 1,643,615$
Assessments receivable-net 420,186 - 420,186
Special assessment receivable-net - 13,106,086 13,106,086
Prepaid expenses 200,723 - 200,723
Interfund balances (1,116,549) 1,116,549 -
Deposits 77,795 - 77,795
Total Assets 1,033,719$ 14,414,686$ 15,448,405$
LIABILITIES AND FUND BALANCES
Accounts payable 296,727$ 32,442$ 329,169$
Prepaid assessments 100,310 - 100,310
Security deposits 550 - 550
Deferred special assessment - 4,630,678 4,630,678
Note payable 159,912 9,150,034 9,309,946
Total Liabilities 557,499 13,813,154 14,370,653
Fund Balances 476,220 601,532 1,077,752
Total Liabilities and Fund Balances 1,033,719$ 14,414,686$ 15,448,405$

5. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCES
FOR THE YEAR ENDED DECEMBER 31, 2014
The accompanying notes are an integral part of these financial statements.
4
OPERATING REPLACEMENT
FUND FUND TOTAL
REVENUES
Regular assessments 2,579,756$ -$ 2,579,756$
Special assessment income - 3,322,940 3,322,940
Other income 163,030 437,581 600,611
Interest income 210 13,534 13,744
Total Revenues 2,742,996 3,774,055 6,517,051
EXPENSES
Bad debt 18,011 - 18,011
Cable 132,704 - 132,704
General and administrative 158,783 - 158,783
Insurance 591,670 - 591,670
Interest 3,463 602,017 605,480
Master association dues 359,555 - 359,555
Repairs and maintenance 605,342 - 605,342
Security 235,893 - 235,893
Special assessment expense - 2,720,923 2,720,923
Trash 36,249 - 36,249
Utilities 682,612 - 682,612
Total Expenses 2,824,282 3,322,940 6,147,222
EXCESS/(DEFICIT) OF REVENUES
OVER EXPENSES (81,286) 451,115 369,829
BEGINNING FUND BALANCES 557,506 150,417 707,923
ENDING FUND BALANCES 476,220$ 601,532$ 1,077,752$

6. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2014
The accompanying notes are an integral part of these financial statements.
5
OPERATING REPLACEMENT
FUND FUND TOTAL
CASH FLOWS FROM OPERATING
ACTIVITIES
Excess/(Deficit) of Revenues over Expenses (81,286)$ 451,115$ 369,829$
Adjustments to reconcile excess (deficit) of
revenues over expenses to net cash from
operating activities:
Provision for doubtful accounts 18,011 (51,503) (33,492)
(Increase) Decrease in:
Assessments receivable (67,748) - (67,748)
Special assessment receivable - 894,385 894,385
Prepaid expenses 533,888 - 533,888
Deposits (170) - (170)
Increase (Decrease) in:
Accounts payable 129,338 32,442 161,780
Prepaid assessments (27,457) - (27,457)
Deferred special assessment income - (3,322,941) (3,322,941)
Net Cash from Operating
Activities 504,576 (1,996,502) (1,491,926)

7. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2014
The accompanying notes are an integral part of these financial statements.
6
OPERATING REPLACEMENT
FUND FUND TOTAL
CASH FLOWS FROM FINANCING
ACTIVITIES
Principal payments on notes (520,070) (349,966) (870,036)
Proceeds from borrowings on notes - 3,173,854 3,173,854
Interfund balances 696,637 (696,637) -
Net Cash from Financing
Activities 176,567 2,127,251 2,303,818
NET INCREASE/(DECREASE) IN CASH
AND CASH EQUIVALENTS 681,143 130,749 811,892
CASH AND CASH EQUIVALENTS
AT BEGINNING OF YEAR 770,421 61,302 831,723
CASH AND CASH EQUIVALENTS
AT END OF YEAR 1,451,564$ 192,051$ 1,643,615$
605,480$
529,153$
Less: Note payable balance 159,912
Principal payments on note 369,241$
Cash paid during the year for interest
Insurance premiums financed through note payable
Noncash financing activities:
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

8. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
7
NOTE 1 - NATURE OF ORGANIZATION
Description of Business
The Pavilion Condominium Association of Miami Beach, Inc. (“Association”) was incorporated on
March 14, 1994 as a corporation, not-for-profit, under the terms and provisions of Chapter 617,
Florida Statutes. The Association, which operates under Florida Statute 718, is responsible for the
operation and maintenance of the common property within the development. The development
consists of 350 residential units and 58 commercial units (primarily utility and storage units) located
in Miami Beach, FL.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Fund Accounting
The Association uses fund accounting, which requires that funds, such as operating funds and funds
designated for future major repairs and replacements, be classified separately for accounting and
reporting purposes. Disbursements from the operating fund are generallyat the discretion of the Board
of Directors (“Board”). Disbursements from the replacement fund generally may be made only for
designated purposes.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Association considers all highly liquid investments
available for current use with an initial maturity of three months or less to be cash equivalents.
Recognition of Assets and Depreciation Policy
Real property and common areas acquired from the developer and related improvements to such
property are not reflected on the Association's financial statements. Those properties are owned bythe
individual unit owners in common and not by the Association. The Association recognizes personal
property assets at cost. The property is depreciated over its estimated useful life using the accelerated
method of depreciation.

9. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
8
Member Assessments
Association members are subject to monthly assessments to provide funds for the Association's
operating expenses, future capital acquisitions, and major repairs and replacements. Assessments
receivable at the balance sheet date represent fees due from unit owners. The Association's policyis to
retain legal counsel and place liens on the properties of homeowners whose assessments are seriously
delinquent. Any excess assessments at year end are retained by the Association for use in future years.
Interest Earned
The Association's policy is to allocate interest earned to the operating and replacement fund in
proportion to the interest bearing deposits of each fund.
Fair Value of Financial Instruments
The Association’s financial instruments consist primarily of cash and cash equivalents, assessments
receivable, special assessments receivable, deposits, accounts payable, security deposits and notes
payable. The carrying amounts of such financial instruments approximate their respective estimated
fair values due to the short-term maturities and approximate market interest rates of these instruments.
The estimated fair values are not necessarily indicative of the amounts the Association would realize
in a current market exchange or from future earnings or cash flows.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Subsequent Events
The date to which events occurring after the balance sheet date have been evaluated for possible
adjustment to the financial statements or disclosure is December 21, 2015 which is the date on which
the financial statements were available to be issued.

10. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
9
NOTE 3 - ASSESSMENTS RECEIVABLE
The Association's policy is to retain legal counsel and place liens on the properties of homeowners
whose assessments are seriously delinquent. As of December 31, 2014, the Association had net
assessments receivable of $420,186. It is the opinion of the Board that an allowance for doubtful
accounts of $363,004 is needed at December 31, 2014 to cover anticipated losses from doubtful
accounts.
NOTE 4 - SPECIAL ASSESSMENTS RECEIVABLE
The Association's policy is to retain legal counsel and place liens on the properties of homeowners
whose assessments are seriously delinquent. As of December 31, 2014, the Association had net
assessments receivable of $13,106,086. It is the opinion of the Board that an allowance for doubtful
accounts of $229,258is needed at December 31, 2014 to cover anticipated losses from doubtful
accounts.
NOTE 5 - NOTES PAYABLE
In May 2014, the Association obtained a loan of $529,153 to finance insurance premiums. The loan
bears interest at 1.6%. Principal and interest of approximately $53,304 are due monthly through
March 2015. As of December 31, 2014, total interest expense amounted to $3,463 with an ending
balance on the loan of $159,912.
In February 2013, the Association obtained a non-revolving line of credit converting to a Term Loan
of $9,500,000 as part of the 2013 Special Assessment. The loan bears interest at 6.5%. Principal and
interest of approximately $83,222 are due monthly through March 2029. As of December 31, 2014,
total interest expense amounted to $602,017 with an ending balance on the loan of $159,912

11. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
10
The related future minimum principal payments projected by year are as follows at December 31:
2015 574,437$
2016 442,286
2017 471,907
2018 503,511
2019 537,232
Thereafter 6,780,573
9,309,946$
NOTE 6 - FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Association's governing documents provide certain guidelines for governing its financial
activities. The Association maintains an operating fund available for general operations and a
replacement fund designated for future major repair and replacements. Replacement funds are held in
separate bank accounts and generally are not available for expenditures for normal operations.
The Association has not conducted a study to determine the remaining useful lives of the components
of common property and current estimates of costs of major repairs and replacements that may be
required in the future. The Association has also not developed a plan to fund those needs. When
replacement funds are needed to meet future major repairs and replacements, the Association has the
right to increase regular assessments, pass special assessments, or delay major repairs and
replacements until funds are available. The effect on future assessments has not been determined at
this time.
The Association has collected funds for various deferred maintenance items. The balance in this
account was $13,534 at December 31, 2014 and is reflected as an appropriated fund balance in the
financial statements.
NOTE 7 - OWNERS’ ASSESSMENTS
Monthly assessments to residential owners ranged from approximately $432 to $1,850 per unit, based
on each units percent of ownership, for 2014. Monthlyassessments for commercial unites ranged from
approximately $10 to $258 based on each units percent of ownership. None of these amount were
designated for the replacement fund.

12. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
11
The annual budget and assessments of owners are determined by the Board. The Association retains
excess operating funds at the end of the operating year, if any, for use in future operating periods.
NOTE 8 - SPECIAL ASSESSMENTS
In June 2010, the Board approved a special assessment in the amount of $5,385,000 for Elevator
modernization, concrete restoration/painting, lawsuit settlement, electrical repairs, interior
improvements, roof repairs, delinquent debt coverage and the 2010 budget shortfall. The special
assessment was due in 36 monthly payments beginning August 1, 2010. Approximately $44,670 of
the expenses were made during 2014. The remaining balance of $116,757 has been reported as
deferred special assessments and will be recognized as revenue when the related expenses have been
incurred.
In January 2013, the Board approved a special assessment in the amount of $14,300,000 in order to
fund approximately $9,500,000 of the forty year recertification work and $4,800,000 to fund the cost
of the mandated building improvements. The special assessment is due or as follows:
For the $9,500,000 – 194 monthly payments beginning August 1, 2013 and ranging from
approximately $2 to $421 according to each unit’s allocated share of common property.
For the $4,800,000 – 70 monthly installments beginning August 1, 2013 and ranging from
approximately $3 to $590 according to each unit’s allocated share of common property.
Approximately 3,278,270 of the expenses were made during 2014. The remaining balance of
$10,066,801 has been reported as deferred special assessments and will be recognized as revenue
when the related expenses have been incurred.
NOTE 9 - INCOME TAXES
Condominium associations may be taxed either as homeowners associations or as regular
corporations. For the year ended December 31, 2014, the Association elected to be taxed as a
homeowners association. Under that election, the Association is taxed on its nonexempt function
income, such as interest earnings. Exempt function income, which consists primarily of member
assessments, is not taxable.

13. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED DECEMBER 31, 2014
12
The Association’s federal tax returns filed within the past three years remain open to examination by
the Internal Revenue Service. The Association has evaluated its tax provisions and believes that no
accruals are necessary at December 31, 2014.
NOTE 10 - CONCENTRATION OF CREDIT RISK
The Association maintains accounts with financial institutions. Accounts at each institution are
insured subject to FDIC limits. At December 31, 2014, the Association’s uninsured cash balances total
$1,165,093.

14. SUPPLEMENTARY INFORMATION

15. THE PAVILION CONDOMINIUM ASSOCATION OF MIAMI BEACH, INC
SCHEDULE OF CHANGES IN REPLACEMENT FUND
FOR THE YEAR ENDED DECEMBER 31, 2014
(unaudited)
13
The balances of the components of the replacement fund at December 31, 2014 are as follows:
Balance Additions Charges Balance
Components 01/01/14 to Fund to Fund Transfers 12/31/14
Interest 150,417$ 451,115$ -$ -$ 601,532$
150,417$ 451,115$ -$ -$ 601,532$