Image Up Advertising & Design

| SUN LAKES LIFESTYLES | AUGUST 2023 | 7 The Association had a surplus in May of $7,505 and a year-to-date surplus of $377,799 (see table below). At the end of May the balance in the Operating fund checking account was $841,097. On that same date the Association had outstanding bills of $959,174 (see the graphic below). For the period 2017 through 2022 the Operating Fund had net losses of $1,997,627. These losses caused a significant reduction in the Operating Fund cash balance. In addition, the cash available to pay operating expenses has historically declined as the year progresses. For example, at the end of May last year the Operating Fund had cash and other assets totaling $1,174,509. Outstanding bills were $974,493, for a net of available cash over bills of $227,016. By the end of December 2022, the Operating Fund had an excess of bills over cash and other assets of $22,095, a decline of $249,111. For this reason, the Board should develop a plan, to be included in the 2024 budget, to increase the Operating Fund cash balance and reduce outstanding bills. As most Association Members know (see the Financial Summary below) the Restaurant and Lounge financial results have had a major negative effect on the Associations finances. Since the beginning of 2019 the Restaurant has lost in excess of $1,090,000 over the budgeted loss. The loss in the Restaurant and Lounge so far this year has been $369,627; $104,618 in excess of budget. At the open board meeting on June 28 Bob Walter announced that the Board will be, with the help of a consultant, renegotiating FirstService Residential's (FSR) contract. The Financial Advisory Committee (FAC), a number of Association Members and I have recommended the Board prepare and present to qualified management companies a Request for Proposal (RFP), an offer to bid on the opportunity to manage SLCC. This would provide a more effective approach to the negotiation with FSR. In addition, this is standard business practice and was done with our security and landscaping company in the last year. Late last year the Board created a team of individuals to review the operations of the Restaurant. The team included two board members, two members of the FAC and two members of the Restaurant and lounge committee. That groups' final report recommended the Board issue an RFP to qualified management companies. In my opinion, the Restaurant and golf course should be viewed together and proposals, through the use of an RFP, should be obtained from qualified management companies. I am aware of a management company that manages over 800 golf courses including some within a few miles of Sun Lakes. In my opinion, as well as others, negotiating with FSR without competitive proposals will not obtain the best financial result for the Association. Gary Burkel, SLCC Treasurer, CPA-Retired Treasurer's Report: May 2023 Financial Statements * THE OPERATING FUND IS USED TO MANAGE DAILY OPERATIONS OF THE HOA. IT DOES NOT INCLUDE CASH IN RESTRICTED FUNDS. THIS IS A BASIC TEST THAT MEASURES THE SUFFICIENCY OF THE CASH POSITION OF THE ORGANIZATION. SUN LAKES COUNTRY CLUB HOA OPERATING FUND CASH* Available cash (blue) compared to outstanding bills (red)

• Cover