Finance Committee Meeting Minutes

August 19, 2008

Present: Finance Committee (FC) present:  Jean Strub, Nancy Garner, Sanya Ham, and Dan Owens

    FRCA Board Members (BoD) present:  Toni Brown, Jake Bernard and Don Horan

1.                  Investments Funds Transfer Procedures – Discussed procedures to manage requests to transfer funds from the FRCA operating and replacement reserve accounts to Smith Barney for investment while insuring adequate internal controls and record of BoD approvals.  Villa procedures of two board members signing paper check and mailing to investment firm would not work for the FRCA since wire transfers of funds are accomplished in lieu of paper checks.  Don Horan will walk through the process to see what works best then draft procedures for BoD approval.

2.                  Replacement Reserve Disbursements Procedure – A draft procedure was discussed to insure BoD approval in advance and written authorized for our management company.  After some minor changes Don Horan will finalize for BoD approval.

3.                  2009 Replacement Reserve Budget – Discussed anticipated disbursements from Replacement Reserve in up coming years.  Some requirements held over from 2007 may not be necessary.  Some assets need to be replaced earlier than projected in the Mason & Mason Replacement Reserve Study of 2007.  Each individual request will require prior BoD approval.

4.                  2009 Operating Budget – The Budget subcommittee, Dan Owens and Jean Strub along with Don Horan developed a preliminary budget for review.  The approach was a modified form of zero based budgeting where a “bare bones” baseline budget was developed to determine the increase in monthly assessments needed to maintain the basic necessities.  Budget requests submitted to the Finance Committee were reviewed and recommendations made on what should be added to the 2009 Budget and the additional cost to the home owners for these additions. 

a.      A preliminary 2009 budget recommendation was finalized for submission for the BoD for their review and changes.   An electronic copy will be provided by the Finance Committee Chair to all BoD members. 

b.      All who submitted budget requests to the Finance Committee will receive electronic summaries of the Finance Committee’s recommendations.  This should provide requestors with an opportunity to present their own rebuttals to the BoD on any items not recommended for inclusion in the 2009 budget.

Prepared by:

Jean Strub

August 20, 2008