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COMMUNITY NEWS | SUN LAKES LIFESTYLES | APRIL 2015 | 5 From the Treasurer By John Clark, Master Board Treasurer OPERATIONS SUMMARY: February was a positive month with income exceeding expenses by $91,063 - the plan anticipated $88,259. As a result the HOA improved its position, relative to the plan, adding $2,804 to last month's total for a new total of $26,097. There were several significant adjustments in the month which are addressed below. NON-OPERATIONS: Only three homes closed escrow during the month bringing the two month total to 13 compared to the plan's projected average of 13 per month. Interest income for the month was slightly less than planned but the total for the two months is approximately as projected. INCOME: For the second month income generated by the three 'operations' was less than planned. HOA was negatively impacted by reduced 'Other Income' (recording income from Recreational activities is related to the timing of the events). Also Food and Beverage income was slightly less than projected (primarily brunch and banquets). Golf continues to see low daily green fees. Data is being accumulated to track the impact of the 50 play card option on daily green fee income. The February adjustments include the recording of insurance proceeds ($45,660) for the flood damage above Breckenridge (see table 'Variance - Transfers: Surplus from Prior Years'). The associated expense of $50,032 was also recorded in February. The other adjustment was modifying the methodology for recording Bingo income and expense. It is the intent that this activity has minimal effect on the Association's bottom line; however the Bingo account will carry a positive variance from month to month. February income recorded was $33,132 and expense was $31,452. EXPENSE: Salary expense, year to date, is essentially on plan; however the associated benefits are approximately 13 percent ($22,269) less than projected. The reasons are unclear at the moment and are being reviewed. Golf expenses were less than planned in February (by $4,850) but, in total, there is a negative variance to plan for the two months of $16,284. Irrigation water was over plan by $15,885 for the month (February was dry) and over plan for the two months by $17,347. Expenses for Maintenance Supplies for the two months are under plan by $31,221 due to delays in purchasing planned supplies. Virtually all of the major expense categories within the Food and Beverage operation were under budget for February and the operation posted a positive variance to the plan. However, for the first two months, the operation has a negative variance of $3,407. Electricity for the common areas was significantly under plan in January (by $17,500) and was being reviewed for errors in recording. To date, nothing untoward has been uncovered. FUNDS: Total funds increased by $78,352 due to Association income exceeding expenses for the month. Major reserve expenditures included $57,895 for work on golf course sand traps and $65,205 to initiate painting work on the perimeter walls. DELINQUENCIES: Combined delinquencies total $75,832 through February 28, 2015 (as compared to the $97,249 reported last month). Total delinquent properties total 31, or 0.93 percent of 3,327 properties (as compared to the 37 last month or 1.11 percent). RE 2014: Several changes have been incorporated into the Association's 2014 financial records as a result of the recently completed audit of the Association's books by the outside auditor. The most significant change recorded additional income for the year which increased the Association's year end surplus from $66,577 to $113,302. FINALLY, a point to ponder: If you try to fail and succeed, which have you done? Enuf: Comments, etc., to jdclark@dc.rr.com

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