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The financial report for the month of September 2021 was reviewed by the Executive Finance Committee on Oct. 20, in accordance with state law. The following analysis is based upon the review by the committee of the data shown in the report. September marks the half-way point of our fiscal year and reflects one-half of our annual operations. September revenue is below projections by approximately $4,500, mainly due to a quarterly adjustment to bad debt and less interest income from our investments. Expenses for the month were lower than projected by $70,000, with the majority of the savings coming from water costs on the golf course (currently under renovation) and contracted staffing costs due to vacancies. Over-budget items for the month include club repairs and maintenance, planting upgrades at common areas, multi- peril insurance, recreation programs, emergency tree service, gas for the clubhouse, and bus service. Most of the over-budget items are due to increased use of the clubhouse in 2021 post pandemic. Multi- peril insurance estimates from the vendor were low and resulted in the budget inequity. Year-to-date over-budget items in excess of $5,000 include multi- peril insurance costs, emergency tree and contracted tree services, electricity and natural gas costs at the clubhouse, sprinkler repair and bus service. Year-to-date, we have less income totaling $6,000 and reduced expenses of $361,000 for a difference from budget of $356,000 and an actual surplus of $169,000 compared to a budgeted loss of $187,000. Overall, our revenue is slightly shy of expectations and our expenses are 8.9 percent below our prediction year-to-date. Most of those savings, as mentioned before, are due to less water costs for irrigation, and less staffing costs due to vacancies. The financial condition of the Association is reasonably healthy at this point. The Association received a "bonus" with the implementation of the PPP loan savings to our payroll for our management company, Keystone. That loan offset some of the payroll for staff, and totaled just under $262,000. To date, the financial report reflects approximately $228,000 of the offset to payroll. This in effect increased our cumulative total equity, currently at $1,051,000 and will be helpful as we approach our budgeting process for fiscal year 2022-2023. Inflation still presents our most significant challenge to the budgeting process. Post pandemic economic recovery by most businesses will surely entail increased costs for most of our goods and services. Labor costs are rising as employers pay increased wages to retain employees and to entice new employees. All of our expenditures will be closely monitored to provide a sound basis for our budgetary process for fiscal year 2022-2023. | OHCC LIVING | DECEMBER 2021 | 5 30 September 2021 Operating Cash and Receivables $ 1,559,000 Reserves and Other $ 4,552,600 Total Assets $ 6,111,600 Reserve Obligations $ 4,451,300 Current Liabilities $ 609,400 Equity $ 1,050,900 September Fiscal Year Income $ 641,000 $ 3,866,000 Expenses 628,000 $ 3,697,000 Net (surplus) $ 13,000 $ 169,000 Treasurer's Report By Bob Fisher, OHCC Treasurer

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