Image Up Advertising & Design

COMMUNITY NEWS | SUN LAKES LIFESTYLES | MARCH 2015 | 5 From the Treasurer By John Clark, Master Board Treasurer Operations Summary: The year started with a positive variance to the plan of $23,393. Unfortunately, each January seems to have a couple of glitches – more on this later. Revenue for the month was short of plan by $30,113 but expenses came in well under plan ($53,406) producing the positive variance. More specifics are included below. Non-Operations: Ten homes closed escrow during the month. The plan assumes 13 per month but January can be slow. Interest from the Association's investments exceeded the plan by $1,584 (13.2 percent). This is, at least in part, due to January being a longer month and the plan interest income being straight lined (i.e., the same plan amount each month). Income: HOA revenue was negative to plan in January by $14,352. Effective with the start of the year, the Association is responsible for the income and expense records for Bingo. This is a legal requirement to continue Bingo. In general terms, the books are set up so that there is no effect on the Association's finances, no tax liability, etc. There was a problem with the set up and a $9,158 net loss was recorded in January from Bingo. The accounting processes will be reviewed and corrected for February. Other Income, primarily from recreation activities, was short of plan by $4,515. This is also being reviewed. Golf revenue was $12,097 (11.4 percent) short of plan. Daily green fees, from both homeowners and guests were short of plan by $13,323. The new 50 play card (85 sold to date – both courses) could be a factor and is being reviewed. Income from the Food and Beverage operation was short of plan by $2,398. Within that number, dinner revenue was short by $3,879 (11.9 percent) and brunch was short by $3,500 (no Sunday brunch as the first Sunday was New Year's Day). Banquet revenue, however, exceeded the plan by $4,305 or 34.4 percent. Expense: The Association spent $53,406 less than planned in the month largely reflecting the fact that January typically gets off to a slow start. A number of accounts ended up under plan and it should be assumed that planned purchases will be picked up later in the year. Accounts with positive variances to plan include electricity for the common areas ($17,471 under plan). This is substantially less than plan and is being reviewed. Accounts with negative variances include irrigation water for golf and the common areas ($5,550 or 17.6 percent over plan). Irrigation power for the golf courses was $5,282 (204 percent) over plan - this is also being reviewed. Restaurant labor expense was $4,665 over plan due to the termination of two long term employees and the requirement to pay off their substantial accumulated benefits. A total of four employees were separated from the Association during the month. Despite this, total labor expense for the Association was on target for the month. Funds: The total of all funds increased by approximately $67,000 for the month with the primary reason being Association income exceeding expense by $123,130. Major reserve expenditures during the month include the purchase of headlamp tags for the new gate system ($77,890) and landscaping of the Championship golf course hole 17 ($86,602). Delinquencies: Combined delinquencies now total $94,178 as compared to $97,249 reported last month. Total delinquent properties now total 37, or 1.11 percent of all properties as compared to 38 last month. Finally, I went to a bookstore the other day and asked the saleswoman "Where's the Self-Help section?" She said if she told me it would defeat the purpose. Enuf: Comments, etc., to jdclark@dc.rr.com.

• Cover