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from the treasurer Operations Summary: December was projected to be a good month and bring the Association's Income statement back to the plus side. It turned out to be an outstanding month due to several onetime events. The final numbers for the year (unaudited at this time) have income exceeding expense by $174,576. Non-Operations: Ten property transfers were recorded in December bringing the total for the year to 206 (operator error in November showed total as 186). This is a substantial increase from the 170 recorded in 2012. For the Month: Expense was $165,481 less than the budgeted for the month. The largest item was an $89,235 reduction in the expense recorded against the Breckenridge drainage project. This represents the difference between the costs of the project and the amount awarded in the lawsuit settlement. Next in line was the (just approved by our auditor) $36,498 write-down of the liability for outstanding golf script (new policy on script). Irrigation water and power for the golf course came in $38,543 under budget. The following is a brief recap of the year: Interest income: Income totaled $153,278, virtually the same as 2012. The Association earned $292,308 in 2008. Social Member Fee Income: The budget anticipated 140 units being sold. The 206 recorded added $62,700 to income. Salary and Related: Expense for the year ($3,575,885) was over budget by $19,617. Adjusting for Food and Beverage's higher revenue (which requires more labor) then Salary and its related expenses are virtually on target. Bad Debts: Bad debt expense was $14,549 more than 2012 however the significant increase anticipated in 2013 did not By John Clark, Master Board Treasurer materialize resulting in a positive variance of $76,666 for the year. Legal expense: The HOA had anticipated heavy legal expense (court appearances, etc.) which did not materialize resulting in a $36,523 positive variance. Advertising expense: Plans were postponed saving $44,942. Utilities: Water expense of $1,171,387 ($28,814 more than 2012) was $13,433 over for the year. Golf: Fewer annual sign-ups, lower daily greens fees (some weather related) and reduced Pro Shop goods revenue resulted in a deficit of $110,775. This combined with higher expenses (some related to correcting past maintenance deficiencies) resulted in a negative variance for the year of $143,095. Food and Beverage: Ended the year with a positive variance of $22,187. The cost of food and labor (as a percentage of revenue) was under budget but, in both cases, higher than 2012. Funds: Total Funds declined by $471,708 year to year. Capital Improvement and Reserve project expenditures (Main Clubhouse exteriors, Sandwedge, lake liners for holes 1 & 2) totaled $3,147,788 resulting in a reduction, year to year, of $226,058. Home Owners' equity (the accumulated surpluses for 2013 and prior years) declined by $245,650. A portion of prior year surpluses was incorporated into the 2013 budget. Bottom line is that the Association remains in a very strong financial position. Finally a (recycled) quote from Woody Allen: You can live to be a hundred if you give up all the things that make you want to live to be a hundred. Enuf: Comments, etc., to jdclark@dc.rr.com Community news | sun lakes lifestyles | FEBRUARY 2014 | 5