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| SUN LAKES LIFESTYLES | JULY 2017 | 9 Treasurer's Report By John Clark BOTTOM LINE: (Note: Not all financial reports were available at the time of writing the article). May ended with the financial statements indicating the Association had given back $48,716 of the positive variance the Association had accumulated during the first four months of the year. Upon investigation, it has been determined there was a glitch (technical accounting term) whereby the cost of the water used to refill the ponds on the Executive course (the pond renovation project), had been charged to operating expense instead of the pond project where it was budgeted. Actual cost is being developed, but is expected to be in the range of $40,000. Taking this into consideration would mean that May, in total, was close to in line with the plan for the month. The correction will be included in June. NON-OPERATIONS: The pace of house transfers increased again in May with 17 clearing escrow versus the projection of 19. Changes to the chart of accounts to accommodate the investment of $1.2 million of Association funds (refer to last month's article) have been completed. The next step will determine timing of maturity dates to support cash flow requirements. INCOME: Golf income, which has been running ahead of plan for the last two months, took an unexpected dip in May primarily due to fewer homeowner daily green fees. On the bright side, daily green fees for guests were more than double than projected and revenue from Pro Shop merchandise sales is 24 percent ahead of projections. Restaurant and Lounge revenue was essentially on plan for the month and is currently 1.6 percent ahead for the year. The restaurant is ahead for the five months by 3+ percent but slower lounge revenue reduces the total operation. The summer months and the Main Clubhouse Veranda make for a wonderful place to stop by and enjoy a beverage and the view. EXPENSE: As discussed above, approximately $40,000 was incorrectly charged to operating expense (golf irrigation expense) during May. Without that, total expense was in line with the plan for the month. Labor expense was on plan for the month and is running about 2.5 percent less than projected for the five months (some open positions). Cost of food as a percent of restaurant revenue improved again in May (to 43.2 percent) but is still above the target of 40 percent. F & B operation expense is currently $69,098 more than the plan, year to date, with food costs accounting for $49,303 of that total. FUNDS: The total of all funds declined by approximately $11,000. LATE NOTE: Auditor has reclassified some irrigation expense recorded in 2017 (separate from the pond project referred to above), to 2016. The impact is to increase Net Income for the five months by $26,508 to $373,622 and the positive variance for the five months to $179,279. FINALLY: Evidence has been found that William Tell and his family were avid bowlers. Unfortunately, all the Swiss League records were destroyed in a fire, so we'll never know for whom the Tells bowled. Comments may be directed to John Clark at jdclark@dc.rr.com.

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