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Finance Committee representatives this year in addition
to me are: Dan Bergbauer, Mike Bickel, Joe Caparossi, Al Engmann,
Gene Geesey, Thom Lewis, Dave Nelson, and John Reiner. Scott Fagin
joined us in August. I would like to thank them all for their work
and efforts so far this year and for the work I know that they will
contribute for the remainder of the year.
As is the norm for this time of year, asset owning committees will soon
be receiving their asset inventory listing for the annual inventory
reconciliation. The committees will be asked in addition to
verifying the presence of the asset, to analyze the useful life of the
asset and make changes as appropriate so that we can update our Reserve
Model to more accurately reflect required funds in futures years.
A number of documents have been updated, re-written or drafted this year
by the committee. These include a Financial Management Document
outlining the duties and procedures for the Treasurer and accounting
personnel. We also enhanced and reformatted the Delinquent
Accounts document regarding policy and procedures for delinquent
accounts. We are currently working on providing the BOD with
recommended procedures for special projects funding and for minor
capital additions funding.
We have also developed and provided the BOD with a Reserve Funds Usage
Document outlining the procedures for using the funds from the various
reserve funds the HOA has set aside.
One of our main tasks this year was to analyze the results of the BOD
authorized study of community assets and reserves by Reserve Advisors.
Reserve Advisors came to Cypress Landing in early February and returned
a preliminary draft of their findings. As we analyzed their
report, we determined that for the assets that appeared in both our
reserve model and their reserve report were within a tolerable range of
annual funding. We did decide to add four items for new
funding beginning in 2008 which had not previously been funded for.
While the Reserve Advisors report suggested that we raise our annual
funding significantly because of current under funded balance, the Board
has decided to make up the deficit over a period of several years.
As part of our on going monitoring of the community assets, Thom Lewis
has made a number of enhancements to the Reserve Model workbook making
it easier to keep track of the status of our reserve assets and history
of changes, making changes to model inputs and a number of other
modifications.
As for the Associations investments, we continue to investigate and
invest in the best interest earning investments we can find at the time
of the investments maturity. We currently have two $100,000+ CDs
earning 5.35% interest which in itself is helping to reduce the reserve
funding deficit.
This year we started a reserve fund for the Phase 2 Sec 5/6 property
owners so that as major repairs to the ponds, dams and shoreline as well
as fountain and pump replacements are necessary, these home owners will
not be hit with a large assessment all at once.
The committee also did a study of our insurance policies and in the
interest of providing property owners with information regarding
indemnification drafted and sent out a communiqué regarding the
association’s coverage and addressing the fact that property owners
should examine their own insurance coverage for personal indemnification
regarding any unforeseen association liability issues.
We have completed eight months of in house accounting including a
revamping of the monthly financial statements. All indications are
that this has been a successful transition from outside services.
Online payment of HOA bills is being studied to save mailing and check
writing costs for many of our bills. The 2006 audit and the 2006
tax return have been completed satisfactorily.
Finally, I would like to invite any Association members who have
experience or interest in working with the Finance Committee to join us.
Our regular monthly meetings occur the 2nd Tuesday of each month at
3:30PM.
Respectfully submitted,
David Grahek
Finance Committee Chair
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