FC Report – 2012-02-13

Attendees: Bud Talley and Jim Crawford

Financial Advisory Committee Meeting was called to order at 7:00 pm at Jim Crawford’s house.

  1. Continued familiarization through review of materials distributed by Todd William (reserve studies, previous audits and pending audit work.
  2. Agenda for the meeting will include drafting processes for HOA budget development, budget execution and proposed activities that may carry financial impact:
    1. Budget Development Process (2013).
      1. Information gathering from Board, Committees, and Management Team.
      2. Discussion of categories, execution, and changes for upcoming cycle.
      3. Assess current year and previous year to facilitate addressing change.
      4. Draft 2013 Budget by May FAC meeting.
      5. FAC “public” hearing at the June FAC meeting.
      6. Presention of Draft Budget to Board at July meeting.
      7. Adjudicate Board direction by August meeting.
      8. Present 2013 Budget direction by August meeting.
      9. Board approves and direction dissemination in time for Annual Meeting.
    2. Budget Execution Process (2012).
      1. Use current Monthly Income Summary Statement (with expense categories).
      2. Recommend adding columns for cumulative totals of Annual Budget to date.
      3. Define and explain all changes from the 2012 Operating Budget.
      4. Prepare comments for Treasurer at next Board Meeting.
    3. Other Activities Impacting the Finance Committee.
      1. Assessment Rate differentials among dwelling type, configuration, or other category.
      2. Define “certain Association documents” that might be made available on the HOA website. Determine the viability and relevance of making them public.
  3. Questions for the Board regarding the above:
    1. Shenandoah Landscaping Service should be ask to provide their pricing per different types of dwellings (minimum of Single Family, Town Home (end unit), and Town Home (exterior unit). Include impact of grass only back yards, completely filled in back yard with mulched beds, and other categories that must address that modify pricing.
    2. Will the board request a recommendation or comment from the Financial Advisory Committee about the possibility of separate HOA fees by dwelling type? How soon?
    3. Regarding missing portions of one or more audits, is the HOA responsible for providing additional backup material to demonstrate that no funds are missing? Is it possible to conduct an 18-month audit to fill in that gap?
    4. Should any of the above require addition report to be prepared by CMC, are these included in our current fee structure or would they be additional costs. A specific example would be the addition of “current cumulative columns” to the Income Summary.
    5. Timelines of financial reporting is of concern. If the driver is the Board meeting on the 4th Wednesday of each month, would it be wise to move our meeting to the 3rd Monday? These relatively brief statements should be available by the 3rd Monday, even if only in draft form. Changes from Draft to Final for the Board can be sent to the FAC when ready.
  4. The FAC intends to be represented at the Special Meeting on March 5th by at least Jim Crawford and Bud Talley.
  5. Summary: The FAC will proceed on a work plan to meet the budget schedule in paragraph 2.1

Minutes have been reviewed by members of the Committee and are submitted to the Treasurer and Executive Director.

Submitted by Jim Crawford, FAC Chairman