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| SUN LAKES LIFESTYLES | MAY 2017 | 7 Treasurer's Report By John Clark TOP Summary: Income for the month exceeded expense recorded by $14,401 more than was projected. The Association now has, for the three months, a positive variance to the plan of $143,620. NON-OPERATIONS Summary: Home sales lag with eight recorded in March and now, 37 for the three months. The plan had anticipated 56 by this point. The small inventory of houses on the market in Sun Lakes (25 according to one report), is undoubtedly a contributing factor. Separately, interest income from the Association's investments is tracking very close to the plan. INCOME: Income for the month exceeded the plan by $56,171, with contributions from all three major segments of the Association. However, the $21,972 from HOA operation is illusionary. An accounting issue, related to the sub- associations and the $60 credit issued to homeowners in March, erroneously created a positive variance to the plan of $26,924. This will be reversed in April. Golf operations were up $15,843 due to a significant increase in daily green fees (both homeowners and guests) and sales of hard and soft goods in the Pro Shop. The $18,357 excess over plan for the Food & Beverage operation was generated from increased revenue (relative to plan) in all facets of the operation, including the Lounge. EXPENSE: Salary and employee benefit expense, in total, is tracking nicely with the plan for the first three months. It is interesting to note that at the end of March 2016 this expense category was approximately $76,000 less than what the 2016 plan projected for the first three months of 2016. Irrigation expense was $11,500 over plan for the month but still under plan for the three months (by $69,000). Cost of Food expense was $22,600 in excess of plan for the month and $36,300 for the three months. Portions of this overage can be attributed to stocking up on new menu items and revenue running ahead of plan. However, there is little doubt that meeting the Cost of Food budget for the year will be challenging. Associa PCM, at both local and regional headquarters, are working to improve the processes for estimating and recording monthly expense accruals. FUNDS: Total Funds declined by $137,271 during the month of March. Principal reason was the $60 credit ($199,620 in total) issued to all homeowners against their monthly assessment. DELINQUENCIES: The total of all homeowner assessment delinquencies (30 days or more) is $125,553, a decrease of $25,782 from February. Approximately $14,000 of this decrease was due to a Board decision to write off a number of accounts as uncollectable. Delinquent properties total 72 (2.2 percent of all homes), a decrease of 61 from last month. The average individual outstanding balance of all delinquencies is currently $1,743.79. Note: This report is not intended to be an 'accounting' report per se. The focus is on presenting homeowners an overview of the Association's current financial status. As such it does not necessarily use formal accounting standards for data presentation. Comments to John Clark at jdclark@dc.rr. com.

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