Summary of Finance Committee Meeting of May 22, 2007

 

Present:

            Finance Committee (FC):  Phyllis Benaman, John Frisch, Sanya Ham, Nancy Garner and Paul Rankin.

            Board of Directors (BOD):  Mal Malo, Bill Nosal, and Dan Owens

 

Report on Community Center Account:  Phyllis Benaman and John Frisch reported on the status of the Community Center Account and all charges were in order.  A question was presented regarding the status of the new credit card and Mal indicated that it was in process and that the application had been completed.  The coding of charges on the credit card will be done as incurred so all charges should be charged to the correct account upon payment by Armstrong.  The credit card will be restricted to social events and no cost related to FRCA operations will be permitted on the card.

 

Contracts:  No contract actions were taken at the meeting.  However, there was a discussion related to getting a complete list of all current contracts so that the Finance Committee can review and use for budget planning.

 

Financials:  There was a discussion related to the transfer of reserve interest to the Equity Reserve Account and Mal would forward the questions to Armstrong for action.

 

Budget:  Dan Owens asked when the 2008 Budget process will begin.  He also requested that the Finance Committee take a look at insuring that the monthly distribution of the 2008 Budget reflect all seasonal allocations such as utilities, contracts and other payments that may be assigned to the month in which they occur.  This would give the Board of Directors a more realistic view of expenses and the resulting net income or loss each month.

 

Audit:  The audit field work has been completed and there were no major deficiencies noted other than the payment due from the Villas.  Mal also reported that Merrill Lynch had cut the replacement check for $62,635.80 and it would be deposited in the Reserve Account once received.

 

Other:  Nancy Garner reported there may be a problem with the billing of the Villa insurance.  It seems that the insurance may have been billed and paid by FRCA and the Villas.