Summary of Finance Committee Meeting of 20 March 2007

Present:

            Finance Committee:  Phyllis Benaman, John Frisch, Don Horan, John Lynch, Jean Strub

            Board of Directors (BoD):  Chuck Heath

            Villas BoD:  Nancy Garner

            Villas Finance Committee:  Dottie Fields

Discussion of Draft 2005 Audit:  The draft 2005 audit was delivered on the evening of 6 March. A representative of Goldklang, Cavanaugh, and Associates will be present at a BoD meeting this evening, 20 March, to explain the audit and answer questions.  Questions from the Finance Committee concerning the audit were sent to Goldklang, et al. last week and a response to the forwarded questions is expected.  Lengthy discussion of the draft audit at this Finance Committee meeting established that the audit was generally acceptable provided that Goldklang, et al. include an explanation of why some of the balances given for 1 January 2005 in the 2005 audit do not agree with the corresponding closing balances of 31 December 2004 in the 2004 audit.

Discussion of 2007 Mason & Mason Report:  Mason & Mason will be present at the FRCA Quarterly Meeting on 21 March to explain their 2007 report and answer questions.  Questions from the Finance Committee had been sent to them several weeks ago.  Discussion of the Mason & Mason report by the Finance Committee revealed no major flaws.  The large increase in the Total Asset Base is caused by the inclusion of the streets, curbs, gutters, sidewalks, etc. in the Villas area of Falls Run and the inclusion of the modular block retaining walls throughout the community.  These items had not been included in our previous studies and reports.  The key question to Mason & Mason concerns precisely how the required annual contribution is calculated from the data presented in the report.