Meeting Minutes:
Meeting Minutes:
UNAPPROVED
WITHOUT CORRECTION, ADDITIONS OR DELETIONS
FALLS RUN COMMUNITY ASSOCIATION, INC.
Minutes of the Meeting of the FRCA Board of Directors
March 12, 2008 – 6:00 PM
The Falls Run Community Association, Inc. met at the Center at 6:00PM for a Budget Strategy Meeting.
The meeting was called to order at 6:00 PM by President, Toni Brown. Board members attending were: Toni Brown, Jake Bernard, Chuck Strub, Jack Mounts, Don Horan, Harriet Schrader and Don Webb.
Members Absent: None
Toni Brown called on Jean Strub, Finance Committee Chair, to present the Review and Budget Strategy for 2009. This Review and Budget Strategy is attached as an addendum to these Minutes.
Toni Brown stated that based on discussion this evening, and the presentation by Jean Strub of her Budget Strategy Overview, we would like to make it a part of the minutes of this meeting that the Board is in support of the Strategy for 2009, and that the Board also supports information gathered from the committees for 2008, and that they will support the budgeting model for 2009.
This motion was supported by the Board. No dissenters—all agreed.
Toni stated that Jean Strub will devote time at each BOD meeting to discuss financial statements.
Jake Bernard stated that with this new model, we won’t have to suffer through wondering whether we have money or not.
Don Horan said the audit has been started and they are aiming for March 31 completion. Toni Brown said we should have it to the members by April 30, 2008. She asked Don Horan to find out if Armstrong is on target with the audit.
There being no further discussions, Don Horan moved to close the meeting. This was seconded by Jake Bernard.
The Board adjourned at 6:50PM
Submitted by:
Anna Graf
Volunteer Recording Secretary
Falls Run Community Association, Inc.
Attachment:
Addendum
2009 Budget Strategy Overview
Goal: Develop a realistic operating plan that provides efficient use of resources to meet the needs and expectations of the Falls Run Homeowners Association (HOA) to recommend to Board of Directors (BOD) for their review and approval no later than the end of September for the following year.
Basic Concepts:
Prepare a comprehensive annual balanced budget (aim toward developing longer range budget say 3-5 years out)
Keep Chart of Accounts constant during the year, only make changes at start of new year unless exceptional circumstances absolutely require tracking of a new expense or income, which requires prior approval of Finance Committee
Require justification for all expenses not just increases; exceptions would be non discretionary expenses such as Utilities, payroll, etc.
Assign budget amount for all income and expense accounts
Assign budget in the month during which the expenses are expected to be incurred
Establish in the annual budget a separate Current Contingency line item (about $15,000) for small cost overruns and BoD discretionary spending.
Provide a complete list for BoD’s review of all committee requirements not recommended for funding
Establish separate Operating Reserve (about $130,000) as a balance sheet fund for unbudgeted expenses of a serious nature such as (1) unanticipated emergency, e.g., fire, flood, etc., (2) replacement, repair or maintenance of asset considered critical to efficient operation of association and not covered by replacement reserves, (3) nondiscretionary expense greater than estimated; e.g. snow removal, electrical repairs, etc., or (4) for the protection of association property or residents.
Perform periodic analysis of actual vs budget through out the year (at least quarterly) and at end of year
Fully document procedures and sources of data for development of budget
Plan of Action:
Perform variance analysis of 2007 at end of December.
Try to determine why any expenses/incomes are over/under 5% of budget amount
How could a better estimate be developed in future?
Develop template for committee budget Requirements and Priorities submission;
What required
Why needed
What impact if not approved
Estimated cost along with how estimate was arrived at
Prioritization of requirements
Determine which expenses are directly impacted by actions/requests from which Committees
Set up meeting with each committee to discuss related expenses and impact on association resources to educate why more detail information is needed
Discuss template requirements and time line (need completed Requirements and Priorities submitted to Finance Committee no later than the end of July for the following year.
Finance Committee review committee submissions, contractual obligations (w/Site Manager) and other relevant financial data to develop DRAFT budget recommendation for BoD review and approval by end of September for the following year.
Jean Strub, Chairman, Finance Committee January 10, 200
Meeting Notes:
Notes are not to be considered minutes. Notes are not a transcript.
FALLS RUN COMMUNITY ASSOCIATION
MEETING NOTES
Date: 12 March 2008
Time: 6:00 PM
Members Present: Toni Brown, Jake Bernard, Chuck Strub, Jack Mounts, Don Horan, Harriet Schrader, Don Webb.
Members Absent: None
The meeting was called to order at 6:00 PM by Toni Brown, President.
Jean Strub presented her Budget Strategy for 2009 (attached). The Board raised various questions concerning the Basic Concepts and Plan of Action.
Toni Brown stated that the Board appreciates these types of analysis, but has some concern if Jean, who has a great knowledge of accounting matters, would leave her position that someone else might not be able to follow through. Jean stated that Dan Owens heads up the budget analysis.
Susan Manch, Armstrong Mgt., questioned the timing of budget adjustments. Armstrong uses the accrual method. In order to do statements throughout the year, they need to coordinate with FRCA. Jean said she would have everything on a spreadsheet.
Regarding the planned 2008 deficit, Jean recommends an Operating Reserve to have more control over it. She feels that there should be a written policy statement on how funds are used—would have to be a formal statement and agreement.
Don Horan pointed out we would not touch Replacement Reserve.
Jean suggested taking 10% of our Annual Assessment, about $130,000 and allocate to Operating Reserve.
Harriet Schrader asked how Jean would classify the sum of money that the Villas owe to the FRCA. Jean informed her that it is currently in Accounts Receivable because as a current asset it is expected to be paid within a year.
Susan Manch stated that it would be helpful if Jean would copy Susan when asking AMS for information by e-mail.
Jean stated there is quite a delay to find out current CD rates in order to make timely investments.
Dan Owens asked if the Board would like to start reprogramming funding of unfunded projects for 2008. Toni asked if the staff would have the time to work on this during 2008. The budget for 2008 has already been published. Jean Strub has already done the January analysis.
Jean Strub stated that she wants to go to all committee meetings with template. Don Webb said that if the Finance Committee is ready to start, then we could use this year as a model for next year. Don Horan mentioned that the rules state that we have to have a budget sixty days before you put it into effect. Maybe this year could be used as a model for 2009.
Toni asked if anyone who is here tonight to observe might be interested in becoming a Finance committee member.
Dan Owens asked if the Finance Committee should do the initial work as far as non-budgeted items are concerned. Toni agreed that this is a wonderful strategy for 2009. Jake feels that it should be left as an understanding rather than a motion. Don Horan said he supports their effort so that the Board can interact with the committees.
Jake asked if $130,000 is an expense of a serious nature. Is that going to be a Board decision—need authorization? Jean Strub will clarify in recommended policy statement.
The Board adjourned at 6:40PM
Anna M. Graf
Volunteer Recording Secretary