Our December financials from PCM/Associa are not on the website as they were not approved by the Board at the January meeting. They were not received in time for the Finance Advisory Committee to review them. We did receive the golf financials and F&B financials from Western Golf in time, they were reviewed, approved by the Board and are on the website.
When the Treasurer receives these reports, the Treasurer consolidates all 3 financial reports from our 2 vendors taking contractual specifications into account and presents a summary report to the community. This is part of the Treasurers function. Not everyone is expected to know accounting or contracts, not everyone has the time or the inclination to review them – that is why you elect members to the Board who do have backgrounds in contracts and finance. Homeowners who have the qualifications and background to:
• understand our contracts
• know how to best negotiate contracts
• understand, review and prepare our financials
are on our Finance Advisory Committee and our Board. They review our financials each month.
At the end of the year, our Board hires the independent, well respected Certified Public Accounting firm of Brabo and Carslen to provide the Board with an Annual Audit. The auditor must also be knowledgeable of our contracts in order to audit us properly.
Our community is very strong financially. We have the lowest dues of any Golf HOA in the Coachella Valley. Our Reserves are strong at 95.3%. Our general and administrative costs are lower than either SCPD or Heritage Palms. Our dues will remain at $217 next year.
For those of you who have questions I have prepared the Consolidated Summary for December -- but it is very important to note that this has not been reviewed by the Finance Advisory Committee nor approved by the Board.
I put this Summary out to help residents understand we did not have a $1 million loss in 2015. If you look at the report, we had a $561,730 deficit - meaning we had $561,730 in expenses we had not budgeted for -- but $500,000 of this was funds we transferred from our operating fund to our reserve fund because we want our reserve fund to be well funded and because it reduced our our tax liability.
If you look at the Balance sheet, you will see we had $1,498,949 on hand in operating cash.