Finance Committee Meeting
December 18, 2007
Present: Finance Committee (FC): Jean Strub, Paul Rankin, John Fisch, Sanya Ham, Dan Owens, Bill Trzyna, Dottie Fields, and Nancy Garner
Board of Directors (BOD): Toni Brown, Don Horan and Jake Bernard
Community Center Social Account: Ann Jones was present for the discussion on how the FRCA financial records and the Community Center Social accounts will interact starting in 2008. The BOD requested that starting in 2008 all financial transactions resulting from the Community Center Social activities be recorded in the FRCA financial records, including the current balance in the BB&T Social Bank account. Ann Jones prepared a detailed social budget that was approved by the BOD as part of the FRCA 2008 budget.
The BB&T Social Bank account will retain $10,000 to be used as a revolving fund to pay social expenses. As Ann draws down on this balance by writing checks to pay expenses she will submit a Request for Reimbursement along with receipts to AMS, who will record the expenses in the FRCA financial records and reimburse the BB&T Social Bank account thus keeping the balance at a minimum of $10,000.
Receipts for open travel/social events at the end of 2007 will also be retained in the BB&T Social Bank account. All other funds will be transferred to the FRCA Firstrust Operating bank account. Ann Jones will continue to retain checks for travel/social events and write checks for related expenses until the event is over. She will then forward any remaining proceeds along with a detailed listing of all receipts and payments to AMS to be recorded in the FRCA financial records.
All other receipts of checks, such as for room rental fees and Gazette advertising payments, will be transferred to AMS for recording in the FRCA financial records and depositing in the FRCA Firstrust Operating bank account.
Cash receipts from coffee socials and 50/50 raffle tickets will be deposited in the BB&T Social bank account and a check written for the same amount and submitted to AMS for recording in the FRCA financial records and depositing in the FRCA Firstrust Operating bank account.
Administrative: Monthly meetings will continue to be at 3:00 pm on the Tuesday preceding the BOD’s second meeting of the month, which will normally be the 4th Tuesday. We welcomed Dan Owens and Bill Trzyna as new members of the Finance Committee. Jean Strub will submit changes for the Falls Run website as well as final Monthly meeting minutes.
AMS Accounting Issues: There was discussion around concerns with some AMS accounting/financial practices such as late payment of bills. Toni Brown, Don Horan and Jean Strub will meet with AMS in early January to discuss some of these concerns.
2006 Audit: Although the 2006 audit has been finalized there are a couple of issues that may still need to be resolved. Accounts Receivable due from the Villas arising from invoices paid by the FRCA cannot be resolved until the Villa’s final 2006 audit. Possible reinstatement of Operating Reserve balance will be a future topic for discussion with the BOD.
2007 Issues:
Status of FRCA Accounts: Jean Strub presented her review of the November 30, 2007 financial statements.
Accounting - Some prior period coding corrections have been made. A couple of accounting adjustments are still pending and one adjustment was recorded retroactively. Corrective action has been forwarded to AMS.
Some Balance Sheet accounts are understated pending accounting corrections mentioned above.
Income to date is understated because Gazette Newsletter Income is recorded at the end of each quarter as is Cox Marketing Income. These should both be current in December.
Status of Community Center Accounts: John Frisch is the lead on our Community Center Accounts subcommittee and will be assisted in the future by Bill Trzyna. John Frisch stated that Ann Jones consistently performs reconciliations with the BB&T Bank account with her Quick Books Pro records.
Investments: Paul Rankin remains the lead and basically only actual member of the Investments subcommittee. Nancy Garner offered her assistance to Paul. We have a CAB Bank CD that matures on January 31, 2008 for approximately $106,000. Don Horan will contact AMS to insure those funds are transferred to the BB&T Money Market account when the CD matures. Jean Strub will request AMS start providing bank CD rates starting mid January so we can be prepared to select the most advantageous investment instruments for reinvestment of these funds after the transfer.
Contracts: Sanya Ham will be the lead on our Contracts subcommittee with the assistance of Paul Rankin. A Contracting Alert List spreadsheet prepared by Don Horan was turned over to Sanya to maintain with new contracts in the future.
2008 Issues: Jean Strub presented a Pie Chart showing 2008 FRCA Budget with percentages for major categories of expense. She expressed a desire to restructure the Income Statement accounts into a similar structure. Toni Brown and others present agreed that it was much clearer and she was told to “go for it”. Changes of this nature are within the purview of the Finance Committee.
· A revised Chart of Accounts was presented with substantial additional expense accounts some for tracking the social activities, other to expand large general categories of expense such as General Maintenance and Landscaping in order to provide greater detail and to allow a more clear understanding of where funds are expended. Jean Strub will forward the revised Chart of Accounts to AMS to obtain new account numbers and will update Sylva Southwell on the changes.
· The 2008 Budget has been applied to the individual expense level by month with seasonal variances accounted for. Jean Strub will submit this detail budget to AMS to have uploaded into the financial system for the FRCA’s 2008 financial reports.
2009 Issues: Dan Owens, Jean Strub, John Lynch and Bill Trzyna will meet at Dan’s home on January 10th with a conference call to Paul Rankin to brain storm a strategy for our 2009 Budget Plan of Action. The end result will be a documented process for development of the 2009 Budget.
Prepared by:
Jean Strub
12/22/207