Summary of Finance Committee Meeting of 21 March 2006

Present:

            Finance Committee:  Phyllis Benaman, John Frisch, Sanya Ham, Don Horan, John Lynch

            Board of Directors (BoD):  Art Gabler, Jackie Richards

Monitor Community Center Account:  John Frisch reported that Quicken was successfully and easily used to reconcile the February bank statement with the computer records.  Phyllis Benaman reported that checkbook reconciliation with the Quicken records and the bank statement has now been achieved through October 2005.  The effort to make all three financial data sets, i. e., bank, Quicken, and checkbook, agree will continue until it is up to date.  John and Phyllis suggested the possibility of having the Quicken application write checks.  This could be a time saver in that Quicken would use the manually entered data for a check, which must be done anyway, to print the necessary information onto blank checks.  The time consuming task of writing checks would be reduced to just adding the authorized signature.  Having the checks written directly from the entered data would eliminate a common source of error, which would also save time.  The only cost involved would be to purchase blank checks compatible with the Quicken application.  They will look into the cost  involved. 

Contracts:  Four proposals for the 2005 financial audit were received by Koger Management and will be presented by Koger to the FRCA Board of Directors.  Extensions for filing taxes have been requested since the audit will not be completed before the due dates for filing.  Potential contractors for the Community Center cleaning task are being interviewed.  The Board of Directors is aware of the deadline for a decision on  purchase of the fitness equipment.

Replacement Reserve:  The items included in the 2005 Mason & Mason replacement reserve report were briefly discussed.  The Finance Committee does not know whether Mason & Mason’s list of items includes everything that should be listed, or whether items listed are adequate in scope.  For example, are all of the sidewalks and roads in Falls Run included in the maintenance and restoration tasks listed?  Specific numbers of lights, signs, doors, etc. are stated in various items.  Are these stated numbers correct?  It was agreed that the list of items included in the replacement reserve be given to the Board of Directors with a request that the list be forwarded to the other FRCA committees for verification that everything is included with adequate scope.  If the Mason & Mason replacement reserve list is significantly incomplete or lacking in scope, it may be prudent to have another study done before the 5-year legal requirement.

Monitor FRCA (Koger) Account:  Jean Strub and Don Horan reviewed March invoices with Sylva Southwell of Koger Management.  More sessions will be required to better understand the process of assigning each invoice to its proper accounting category.