Summary of Finance Committee Meeting of 15 August 2006

 

Present:

            Finance Committee:  John Frisch, Sanya Ham, Don Horan, Paul Rankin

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

 

 Contracts:  Paul Rankin noted that the last clause in the Termination section of the proposed three-year contract for common grounds maintenance with Shenandoah Landscape Services could give Shenandoah more money than they have earned if the contract is terminated early.  This clause should be rewritten.

 The Finance Committee spent most of the meeting reviewing and discussing changes, based primarily on suggestions from other committees, to the request for proposals (RFP) for a management contract.  A second draft of the RFP was approved by the Finance Committee and will be sent to the Board of Directors for their action.

  

Monitor FRCA (Koger) Account:  On 3 August a summary of missing documentation was sent to Koger Management.  Although a thorough review of the 30 June financial reports could not be done without the missing documentation, errors identified by an incomplete review were also called to Koger Management’s attention on 3 August.  A request was again made, also on 3 August, that Koger Management provide the missing documentation and correct the errors identified.  The requested material had not been received prior to the beginning of this Finance Committee meeting.

 One of the errors noted in the 30 June financial reports was an early June payment of property tax for the Community Center.  However, the Community Center is exempt from property tax.  Stafford County has verified that the Community Center is exempt and a refund is being processed.

 The 2005 audit of the Falls Run accounts at Koger Management is still not complete.  Goldklang, et al., the auditors, say they cannot get all of the required information from Koger Management.  Koger Management, however, says they have provided everything Goldklang, et al. have requested.

  

Investment Strategy:  Four CDs reportedly were purchased by Koger Management. as requested, but we have no paperwork on them yet.

  

Budget:  The deadline for submitting a recommended 2007 budget to the BoD is 30 September.  Now that the committee’s work on the RFP for a management contract is done, attention will return to preparation of the 2007 budget.