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| THE COLONY NEWS | MARCH 2023 | 3 From the Desk of Chuck Gordon By Chuck Gordon, Treasurer Our Finance Advisory Committee and our HOA staff recently completed the arduous task of formulating The Colony budget for the upcoming fiscal year. I thought it would be a good time to give our residents a glimpse into our budget process. There are three phases in the process of developing The Colony budget. The Development Phase, Evaluation Phase and the Final Phase. Development Phase Association department heads, Ken Knapp, Anthony Reynoso, Kimberly Evans, Colleen Morrison, and Kara Hardy interface with their assigned vendors. Contracts and cost projections for the upcoming year are discussed with each vendor. Jim Morgan reviews projected costs and contracts with each department head. On occasion and when appropriate, competitive bids are sought. Jim Morgan and the Treasurer review the preliminary findings and discuss whether projected costs are appropriate given economic factors such as inflation and labor costs. A preliminary draft is prepared for the Finance Advisory Committee for its review. Evaluation Phase The first draft is reviewed by the Finance Advisory Committee (FAC). The FAC determined whether budget units and overall performance are meeting expectations in the current fiscal year. Budget projections may be challenged and revised based on the prior performance measured against future expectations. Adjustments are made resulting in subsequent budget drafts. When the FAC is satisfied that the budget projections are appropriate, the draft is submitted to the Board of Directors (BOD) to review. Final Phase The FAC explains the proposed budget with the BOD at a Budget Workshop. The BOD evaluates the budget, asks questions and seeks clarification on various budget units. The BOD may approve the budget or seek further information or require adjustments to the budget by the FAC. The requested information is brought back to the BOD for review. The budget may be revised or approved by the BOD based on the new information. In the meantime, the proposed budget is presented to The Colony membership in a Town Hall meeting by both the FAC and BOD.

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