Summary of Finance Committee Meeting of 18 April 2006

Present:

            Finance Committee:  Tom Cindric, John Frisch, Sanya Ham, Don Horan, John Lynch, Jim Pierce, Paul Rankin, Jean Strub

            Board of Directors (BoD):  Mal Malo, Bill Nosal, Jackie Richards

Recommendation for 2005 Financial Audit:  Four proposals to perform the FRCA financial audit and tax preparation for 2005 were evaluated.  The four evaluated proposals were from Daly, Hamad, & Assoc., Goldklang, Cavanaugh, & Assoc., Schreiner, Legge, & Co., and Spitler, Summer, & Stephens.  The committee recommended that the proposal from Goldklang, Cavanaugh, & Assoc. be accepted because they had extensive relevant experience auditing homeowners associations, provided certification for staff to be assigned to the FRCA audit, submitted a very professional proposal, and offered the best price for the services listed.

 Monitor FRCA (Koger) Account:  Discussion of the Balance Sheet provided each month by Koger Management in the package of financial reports was continued from the last meeting.  Agreement was reached on several changes for the purpose of clarifying and improving the information presented in the Balance Sheet.  A list of the desired changes will be sent to Koger Management for implementation.  The financial reports of 31 March were discussed.  There is a general feeling in the committee that the monthly reports do not clearly show the financial status of the Falls Run Community Association.  However, the committee believes that more information is needed to precisely identify changes which would improve the reports.  Jean Strub, Jim Pierce, and Paul Rankin will make a plan to acquire the information and understanding needed to identify changes to improve the reports.

  Monitor Community Center Account:  Quicken-compatible blank checks have been ordered.  John Frisch and Phyllis Benaman will help Ann Jones automate the check writing when the blank checks arrive.  Quicken-based reconciliation with the 31 March bank statement has been accomplished.  John Frisch is working on setting up Quicken to provide a better description of items covered by reimbursements to the Community Center account from the FRCA account.

 Investment Strategy:  Funds in the Replacement Reserve must be carefully invested so they will earn adequate interest, be protected against loss of principal, and available when needed.  Paul Rankin will gather information on possible investment strategies and review how our funds are presently invested.

 Next Meeting:  The meeting scheduled for 2 May is canceled.  The next meeting of the Finance Committee will be on 16 May.