Villas of Falls Run, A Condo

Financial Committee Minutes

July 30, 2008

Attendance:

Dorothy Fields, Chair, Nancy Garner, Sanya Warren Ham, William Hackbarth, Mary Ann Hackbarth, Ethel Valois.

Minutes from June 25, 2008:

Reviewed and accepted.

New Items for July 30, 2008:

Sanya will send a report to Sherri Burke and to the Financial Committee members regarding proposals and contracts.  A proposal needs to be part of the contract.  An attached proposal must be signed and cited in the contract.  As in the legal contract, multiple hourly rates are included.  What ones will be abided by?  Everything must be incorporated in the contract.  The management contract or statement of work needs to be reviewed.  Our property manager should know how a contract must be written and should be assisting with this.

Sanya stated that the BB&T Reserve Bank account for June is in order.

Nancy transferred $48,000 from the money market account to Smith Barney for investment, leaving $10,000 in the account.  FDIC will redeem the Indymac CD ($30,000) which will be reinvested.  Smith Barney will purchase one CD to mature in 2010 and two CDs to mature in 2011.

The insurance check of $100,000 will be temporarily in the BB&T money market account.  In turn, a check for $58,838 will be drawn and payable to FRCA for settlement of funds due to them according to the 2006 audit. The Villas Board of Directors passed a motion to submit a letter with the $58,838 check to FRCA, stating that this amount can be verified with records for 2006.

After analysis of the May and June financial reports, Bill questioned the May ending balance and the June beginning balance on the Smith Barney general ledger.  Nancy will look into these figures and communicate with Caren about this.

The final draft of the 2007 audit should be ready this week for the Villas Board of Directors signature.

Miscellaneous balance sheet items were discussed for adjustment.

The Villas Board of Directors approved a bid from Horizon for $11,284 to paint the metal railings in the Villas.

Action List for 2008:

The newsletter (Update) requested $600 for the budget.

A $12,000 plant list was proposed for Phase I of the Villas Landscape Plan.

The cost of water is increasing.  Irrigation is now done every third day.  If necessary we may go to every fourth day.

We are presently operating with a budget surplus of $32,462

Our next meeting will primarily be considered a working budget meeting.

The next meeting of the Financial Committee will be on Wednesday August 27, 2008 at 1:00 PM.

Respectfully submitted,

Mary Ann Hackbarth