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6 | THE COLONY NEWS | MAY 2023 | By Chuck Gordon As you probably know, May is the first month of our fiscal year, which correlates to the beginning of our new budget. One of my esteemed colleagues on the Finance Advisory Committee (FAC) is Shirley Broz. Over the years while serving on the FAC, I have learned a great deal from Shirley. She is an accomplished CPA who oversaw a school district of 25,000 students. Shirley was also a professor for master's degree students of accounting. Shirley recently recommended that I share with you the following information. Our FAC constructs a budget based on current facts and actual data. After it is reviewed by the Board and the residents in open meetings, it becomes the road map for the upcoming year. Simply put, the budget is a plan. Our Association's monthly assessment, which coincidentally consists of about 98% of our revenue, is driven by the expected expenses for the coming year. Our goal is to arrive at a zero-bottom line at year end. In the past, you may have seen Board candidates stating that they will control the budget. Well, we don't actually "control" the budget. The budget is merely a written direction for the Board, who approves the actual expenditures as we go through the year. The budget is like a recipe and will likely turn out somewhat differently than planned. Why? Because actual spending is affected by a myriad of variables: the weather, the economy, legislation, litigations, Board decisions, natural disasters, and any other necessary unplanned spending. Preface to the Treasurer's Report