Summary of Finance Committee Meeting of 6 February 2007
Present:
Finance Committee: Phyllis Benaman, Sanya Ham, Don Horan, John Lynch, Jean Strub
Board of Directors (BoD): Mal Malo, Toni Brown
2007 Mason & Mason Report: The 2007 Condition Assessment and Reserve Fund Plan Update prepared by Capital Reserve Analysts, Inc. (Mason & Mason) was discussed. The 2007 report appears to include the components that were excluded from the 2005 report, primarily the streets, streetlights, gutters, driveway aprons, and mailboxes in the Villa area, and the modular block retaining walls throughout Falls Run. Several minor questions about the report were noted and will be forwarded to Mason and Mason so they can bring answers when they attend the BoD working session on 21 February. The following major questions will also be forwarded for their response on 21 February: How did Mason & Mason identify the correct contribution to the replacement reserve for 2008? What do they look for in the other numbers on Table 3 to tell them when they have found the correct 2008 contribution? Why is a lower number not acceptable?
Contracts: The BoD had asked the Finance Committee to revise the contracting guidelines to take advantage of the contracting support offered by Armstrong Management. A draft version was discussed and found acceptable with minor revisions, and reformatting to have the steps flow along a timeline. These changes will be made.
BoD Requested Information: On 17 January, the BoD asked for the following information from each committee:
A list of our long-range goals based on our long-range planning. We will respond that the Finance Committee has a well-defined role which is underway and we have no long-range goals.
A list of “what’s coming” to warn the BoD of our plans: We do not plan any significant changes.
A “wish list”: We have no “wish list.”
These responses will be forwarded to the BoD.
Monitor Community Center Account: Phyllis Benaman has been periodically examining the Activity Director’s Community Center account and this task has been completed through the end of 2006. A statement will be sent to the BoD assuring them that the account has been reconciled for 2006, and examination has shown that the account is in good condition.
The purchase of computer application Quickbooks Pro has not yet occurred. The purchase is being held up until Armstrong Management can determine if there is a better product available. The Finance Committee is eager to upgrade the software because of shortcomings in the present software, and will push to get the question resolved and the purchase made.
Monitor FRCA Account: For some time there has been an effort to compare the Visa debit card statements with the Activity Director’s receipts for the debit card transactions. This task had been accomplished through the end of August 2006, but Visa statements beyond that date had not been forthcoming from Koger Management. An attempt was made to obtain copies of the recent statements directly from the bank, but that was not successful either. Since the comparison with the bank statements only enabled the assignment of expenditures to their proper accounting category, and since the debit card was canceled in December 2006, it was decided that failure to accomplish this was of little significance overall. Therefore, the Activity Director’s receipts will be examined to verify that all usage of the card was legitimate and effort on this task will end.
The transition from Koger Management to Armstrong Management is going well. A major delivery of records from Koger to Armstrong occurred recently and Armstrong is still sorting through the documents. Armstrong Management has shown initiative in finding workarounds when essential information was not available in time. Also, Armstrong Management has been quite responsive to questions and issues that have arisen. Although transfer of FRCA funds from Koger Management has not yet been completed, income from the January and February 2007 assessments has been adequate to easily pay our bills. Jean Strub has been working with Sylva Southwell, Armstrong Management’s on-site manager, to review coding of invoices, and this effort will continue for awhile.
The 2005 audit still has not been completed. Representatives of Goldklang, et al. also have been sorting through the documents recently delivered to Armstrong Management seeking information needed to progress with the 2005 and 2006 audits.
Investment Status: On 25 January one of FRCA’s replacement reserve CDs matured. Armstrong Management was able to prevent automatic renewal of the CD and the funds from the CD were deposited in FRCA’s money market account. As soon as full control of these accounts is transferred to FRCA/Armstrong Management, additional CDs will be purchased to provide a higher interest rate, with FDIC protection, on our replacement reserve funds.