Issue link: https://imageup.uberflip.com/i/85682
from the treasurer SUMMARY: August was another good month for the association. Income was up and expenses were down which added $61,125 to the bottom line and brought the year up to $215,139 better than plan (for this point in the year). NON-OPERATIONS: Eleven properties transferred ownership in August bringing the total to 112 for the year or an average of 14 per month. Through August of last year, the monthly average was a little over 11 per month. SALARY AND BENEFITS EXPENSE: These costs (for the entire PCM work force) had been averaging $8,800 under budget for the seven months ending with July. The reason, primarily, the time it takes to fill open positions. In August, with the work force fully staffed Salary and Benefit costs were only $2,300 under budget. HOA: Expense benefitted from the receipt of $7,500 as partial settlement of a lawsuit filed by the Association. Bad Debt expense was understated because an accrual of $11,700 was not booked in the month. Unless the outlook for Bad Debt changes, this will be picked up in September. GOLF: Income continues at approximately 9.5 percent less than planned. Irrigation water and power expenses were $16,000 under budget for the month but still over $93,000 for the eight months. Maintenance supplies were $10,000 under budget for the month which was primarily due to an over accrual in July. For the eight months, maintenance supplies are $11,800 under budget. RESTAURANT AND LOUNGE: Another good month with revenue beating the plan by $27,843 or almost 24 percent. All categories of income from breakfast through dinner, the Lounge and Banquets are up. With year to date revenue up by $157,203 and By John Clark, Master Board Treasurer expenses up only $89,627, the operation is better than plan for the eight months by $67,576. OPS CONTINGENCY FUNDS: August was another month with relatively little expense booked as the HOA awaits the billing for the costs of the Districts 16, 17 and 18 street refurbishment, and the just completed repatching of 100+ previously poorly patched street water utility repairs. INVESTMENTS: Periodically, questions arise regarding HOA investments and investment strategy. To review, the Association's investment policy has the following three priorities, in this order; safety of principal, liquidity sufficient to meet daily operating cash requirements and finally, return on investments. • All investments are insured (which also reduces the available return). • Cash requirements are projected out one year in detail and for five years in lesser detail. • Available funds are then invested in Certificates of Deposit with varying maturities based upon the Finance Advisory Committee's analysis of needs and their assessment of near and longer term interest rate projections. As of today, all available funds are invested at the optimum rates based upon the Association's investment philosophy. Finally, one more ad from an English newspaper: FREE PUPPIES. Mother is a Kennel Club registered German Shepherd. Father is Super Dog, able to leap tall fences in a single bound. Enuf: Comments, etc., to clarkjd@dc.rr.com. 4 | october 2012 | community news