Finance Advisory Committee – March 2021

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, March 2021:

Work Completed

During the month of February 2021, the FAC and FAC Subcommittee continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited January 2021 Association financial statements including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the General Manager’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2021 Operating Fund revenues and expenses.
    • 2021 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review and recommend Board approval of the January 2021 bank statements, bank reconciliations, and investment account statements.
  • Review and recommend Board approval of a written agreement to engage a firm to provide non-judicial foreclosure services approved by Board on January 25, 2021.
  • Board approved proposed revisions to the following items on January 25, 2021:
    • FAC Charter and Mission – FAC BAF 2021 # 1.
    • FAC Subcommittee Charter and Mission – FAC BAF 2021 #2.
    • Association Procurement Policy – FAC BAF 2021 #3.
  • Special meeting of FAC held on February 3, 2021, via audio and video conference call.
  • Regular meeting of FAC held on February 19, 2021, via audio and video conference call.
  • For the Board meeting on February 22, 2021:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the General Manager’s monthly written report to the Board.

Work in Process

Review and recommendation to the Board on the:

  • 2020 audited financial statements.
  • 2020 Federal and California tax returns.

Upcoming Work

Insurance renewal in April 2021.

FAC Members

FAC has seven members, and we have Board approval for a total of nine members. So, we have two openings, and we would love to hear from you. We are looking for owners who have a background including accounting and financial reporting and an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form.

Further information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – February 2021

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, February 2021:

Work Completed

During the month of January 2021, the FAC and FAC Subcommittee continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited December 2020 financial statements of the Association including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report of the Association prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed financial information of the Association to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 annual results as compared to the 2020 Budget and the 11+1 Forecast provided to the Board.
  • Review and written recommendations on proposed BAFs for the expenditure of funds from the Replacement Fund for the replacement or major repair of real and personal property common area components identified in the Reserve Study.
  • Review and recommend Board approval of the December 2020 bank statements, bank reconciliations, and investment account statements.
  • Review of firms providing non-judicial foreclosure services, preparation of Request for Proposal (RFP), review of responses to RFP, evaluation and reference check of service firms, and written recommendation to the Board (FAC BAF 2020 # 16).
  • Written recommendation to the Board of proposed revisions to Replacement Fund Investment Policy (FAC BAF 2020 # 15).
  • Regular meeting of FAC held on January 22, 2021, via audio and video conference call.
  • For the Board meeting on January 25, 2021:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller’s monthly written report to the Board.

Work in Process

Annual review and submission of proposed revisions to the Board for review and adoption including:

  • FAC Charter and Mission – FAC BAF 2021 # 1.
  • FAC Subcommittee Charter and Mission – FAC BAF 2021 #2.
  • Association Procurement Policy – FAC BAF 2021 #3.

Upcoming Work

2020 Audit.

FAC Members

FAC now has two openings. We would love to hear from you if you have a background including accounting and financial reporting and an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

2021 Monthly Assessment (Dues)

Beginning January 1, 2021, the monthly assessment will increase to $306 per month. As a reminder, the Board approved a one-time credit in the amount of $144 per homeowner; the net amount due for January is $162. The coupon books have been mailed but there is no coupon for the month of January. If you pay by check, please be sure to include your account number on your check. If you prefer a coupon, please contact the HOA office.

If you are paying by check, the mailing address is as follows:

Sun City Shadow Hills
c/o Desert Resort Management
PO Box 601205
Los Angeles, CA 90060-1205

Finance Advisory Committee – January 2021

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, January 2021:

Work Completed

During the month of December 2020, the FAC and FAC Subcommittee continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited November 2020 financial statements of the Association including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report for the Association prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review and written recommendations on the 2020 Forecast (11+1) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 Forecast (10+2) Forecast prepared by the Controller.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 Forecast (11+1) with comparison to the prior forecast and the 2020 Budget provided to the Board.
  • Review and written recommendations on proposed BAFs for the expenditure of funds from the Replacement Fund for the replacement or major repair of real and personal property common area components identified in the Reserve Study.
  • Review and recommend Board approval of the November 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on December 18, 2020, using an audio and video conference call.
  • For the Board meeting on December 21, 2020:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller’s monthly written report to the Board.

Work in Process

  • Review of firms providing non-judicial foreclosure services, preparation of Request for Proposal (RFP), review of responses to RFP, evaluation of service firms, and written recommendation to the Board.
  • Potential revisions to Replacement Fund Investment Policy and written recommendation to the Board.

Upcoming Work

Annual review and potential revisions to the:

  • FAC Charter and Mission.
  • FAC Subcommittee Charter and Mission.
  • Association Procurement Policy.
  • 2020 Audit

FAC Members

FAC now has two openings on the Committee. We would love to hear from you if you have a background including accounting and financial reporting along with an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

What is the California HOA Fidelity Bond?

The California HOA Bond is a new type of fidelity bond requirement, which protects the homeowners in a community from various acts of fraud, or theft. California legislation, effective January 1, 2019, is now requiring that every HOA in California be required to obtain a HOA fidelity bond. The HOA is considered a private government within a community of homes that can regulate, assess, and create specific rules for the community and homeowners based on decisions of an elected board.

The California HOA fidelity bond requirements are listed below and require cooperation of management companies entrusted with the day-to-day operations of the HOA and the elected board members to ensure that the fidelity bond can be obtained. This bond will protect the HOA and homeowners from any dishonest activity that may occur with the assets in the Operating Fund and Replacement Fund of the HOA. The HOA fidelity bond will protect the HOA and its homeowners from the management companies or the directors should funds in either the Operating Fund or Replacement Fund not be disbursed in accordance with applicable law and with policies and procedures adopted by the Board of SCSHCA.

California Civil Code Section 6, 5806, states the following:

“Unless the governing documents require greater coverage amounts, the association shall maintain fidelity bond coverage for its directors, officers, and employees in an amount that is equal to or more than the combined amount of the reserves of the association and total assessments for three months. The  association’s fidelity bond shall also include computer fraud and funds transfer fraud. If the association uses a managing agent or management company, the association’s fidelity bond coverage shall additionally include dishonest acts by that person or entity and its employees.”

In the prior paragraph, the Civil Code refers to the word “reserves”. This word is synonymous with the word Replacement Fund that is utilized by SCSHCA to describe the accumulated financial resources for the major repair and replacement of common area real and personal property components as identified in the most recent Reserve Study. The most recent reserve study approved by the Board of Directors of SCSHCA is dated October 29, 2020 and is referred to as the 2021 Reserve Study.

The California HOA fidelity bond requirements rely largely on three things including: 1) managerial companies/persons, 2) separation of financial duties, and 3) annual CPA audit.

Requirement #1: Is there an independent management group running the community?

The purpose of the HOA fidelity bond is to ensure limited access to the funds in the Operating Fund and the Replacement Fund of the HOA, i.e.: a property manager should not be allowed full access to HOA funds. Underwriters will need to know exactly who all has access to the HOA funds and will require that rules be established for certain parties to protect the members of that specific community. Honesty is crucial when requesting a California HOA Bond.

Requirement #2: Separation of all Financial Responsibilities

Whoever applies for the HOA Bond must be aware of the requirement where specific financial responsibilities must be performed by different people. This is yet another way to protect the homeowners from fraudulent activities. There must be at least two different people on the HOA board to approve invoices for payment. The person who makes the bank deposits, writes checks, or completes bank withdrawals cannot be the person who keeps the books and checks the bank statements at the end of each month to ensure that all funds received and disbursed are accounted for properly in accordance with generally accepted accounting principles.

Requirement #3: Books submitted annually to CPA or Accountant

When requesting the HOA Bond, the Surety will look to ensure that the HOA applying for the fidelity bond has an independent Auditor who issues their report on the annual audited financial statements of the HOA.

The SCSHCA is served by a five-member elected Board of Directors. Day to day management of the operations of the HOA are the responsibility of Desert Resort Management, Inc. (DRM) for all operations other than golf and food and beverage (F&B) operations pursuant to a written management agreement. Day to day management of the golf and F&B operations are the responsibility of Troon Golf, L.L.C. (Troon) pursuant to a written management agreement. DRM and Troon are each responsible for employment of management and staff positions for their respective operations. DRM and Troon are each responsible for the preparation of the accounting and financial reporting for each of their operations. The Controller of SCSHCA is an employee of DRM and is responsible for the preparation of the combining and combined financial statements of SCSHCA. Monthly financial statements and other monthly financial reports are reviewed by the Finance Advisory Committee (FAC) composed of residents appointed by the Board of Directors of SCSHCA to review the financial statements and reports prepared by Troon, DRM, and the Controller and to make a recommendation to the Board of Directors of SCSHCA to accept or not accept the financial statements and financial reports. The Controller, and the Treasurer of the Board and at least one other Board member must approve invoices and payment requests for the disbursement of funds from either the Operating Fund or the Replacement Fund. The financial statements prepared by the Controller, DRM, and Troon are audited annually. The amount of the fidelity bond is computed annually by the FAC and furnished to the Board of Directors for approval.

Finance Advisory Committee – December 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, December 2020:

Work Completed

During the month of November, the FAC and FAC Subcommittee continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited October 2020 financial statements of the Association including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Association Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Conference call with Comerica Securities, Inc., the Investment Manager for the Replacement Fund, on October 23 including review of:
    • current investment yield.
    • forecasted investment yield for the next 12 months.
  • Review and written recommendations on the 2020 Forecast (10+2) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 Forecast (9+3) Forecast prepared by the Controller.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 Forecast (10+2) provided to the Board.
  • Review and written recommendations on proposed BAFs for the expenditure of funds for the replacement or major repair of real and personal property common area components identified in the Reserve Study.
  • Review and recommend Board approval of the October bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on November 20 using audio and video conference call.
  • For the Board meeting on November 23:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller monthly written report to the Board.

Work in Process

  • Review of firms providing non-judicial foreclosure services, preparation of Request for Proposal (RFP), review of responses to RFP, evaluation of service firms.
  • Potential revisions to Replacement Fund Investment Policy.

FAC members

FAC now has two openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to discuss any questions you may have and provide you important information to aid you in your decision making.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – November 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, November 2020:

FAC Members

FAC now has two openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact me if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to go over any questions you may have and provide you with important information to aid in your decision‑making.

Work Completed

During the month of October, the FAC and FAC Subcommittee continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • On the 2021 Reserve Study:
    • Review and recommend Board approval.
    • Preparation of comparative financial analysis of the Reserve Studies for the years 2013 through 2021.
  • On the 2021 Budget:
    • Written recommendations and attendance at the Board budget review meeting on October 20, 2020.
    • Preparation of comparative financial analysis of the Budget for the years 2013 through 2021.
    • Review and recommend Board approval.
  • Review and recommend Board approval of the Association’s unaudited September 2020 financial statements including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on the financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review and written recommendations on the 2020 Forecast (9+3) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 Forecast (8+4) Forecast prepared by the Controller.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 Forecast (9+3) provided to the Board.
  • Review and written recommendations on proposed BAFs for the expenditure of funds for the replacement or major repair of real and personal property common area components identified in the Reserve Study.
  • Review and recommend Board approval of the September 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on October 23, 2020, via audio and video conference call.
  • For the Board meeting on October 26, 2020:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller monthly written report to the Board.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

SCSH Board Message – 10/24/2020

Good afternoon residents,

Your HOA Board wants to provide answers to the most frequently asked questions about the proposed budget.

Our budgeted dues for 2020 were actually $281, not $273.

It was only because of a surplus from 2019 that we were able to reduce the dues for 2020 by $8 per household. Making the amount we paid $273.

With the COVID shutdown we lost significant income: Shadows restaurant closed, no fitness classes, and no golf revenue. Given the COVID issues it is possible for at least the remainder of this year, there will be very few Canadians here to play golf further compounding the problem.

What did we do to reduce our expenses?

  1. We furloughed as many employees as possible.
  2. We reduced maintenance as much as possible.
  3. We reduced maintenance of the golf courses. (The result was many complaints about the condition of both courses when they were re-opened.)

But the golf courses, sport courts, pools, and facilities do need to be maintained. You can’t just let the golf course die, pools need to be kept clean, landscaping still needs work, and all this still takes staffing. So, we are not able to cut all staff if we want to maintain the facilities, and the cost of staffing even at a minimal level increases costs more than the income shortfall.

Consequently, there is an increase in costs during a shutdown, not a savings in costs.

Initially we thought there might be a loss of $300K - $400K. Our actual loss for 2020 has been contained to $48,000. This is amazing considering the loss of income.

Inflation is about 1%. There is a mandatory increase in minimum wage of 8% for 2021.

Our contracts with our landscaping, golf and security companies have increased because they are faced with those minimum wage increases as well.

There was an increase in expenses for all the additional signage and for the purchase of sanitizing products due to COVID.

Carey Thompson did a great job of working with Troon to reduce their management fees.

We sincerely believe that our financials are the best around. We have an amazing team of Carey Thompson, Treasurer; Tyler Ingle, Controller; Bill Wethe and the Financial Advisory Committee; and DRM, our management company, who brings extensive financial experience and significant software to track every expense.

The bottom line is this:

  • 2020 Actual Dues are $281
  • 2021 Proposed Dues are $294
  • This is a $13 or 4.6% increase if the Board were to pass the proposed budget.

Again, this sounds worse than it is because people forget that dues in 2020 were reduced by $8 due to the 2019 surplus and we add the $12 for Frontier on top of the 2021 dues to make it $306. Residents will be saving money on the cable bills which will offset the cost of Frontier internet.

70% of residents voted in favor of the Frontier contract to save money, and so far, reports from those installed have said the savings is about $40-$60 per month. Given these facts, for 70% of the residents, the estimated net monthly dues cost because of the HOA Frontier contract savings means $306 minus $40 (cable savings) or a net monthly cost of $266. To be fair, you need to subtract the savings of the Frontier installation from your monthly dues rate to get to your effective net cost on monthly HOA dues. For 70% of the residents your effective monthly dues rate might go down next year.

Monday the Board will vote on the proposed budget. If you have comments, suggestions, or changes on the proposed budget please let us know.

Let us know if you have further comments or suggestions before Monday’s Board meeting. You can review the draft budget online at:

www.scshca.com/budget-worksheets

We hope this helps. Please let us know if you have any questions.

Sincerely,
Your HOA Board

Budget Meeting Video Now Available

To see more videos, visit our Videos page by clicking here.

Finance Advisory Committee – October 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, October 2020:

Work Completed

During the month of September, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited August 2020 financial statements of the Association including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on the financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review of the 2020 Forecast (8+4) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 Forecast (7+5) Forecast prepared by the Controller.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 Forecast provided to the Board.
  • Review and recommend Board approval of the August 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on September 25, 2020, using audio and video conference call.
  • For the Board meeting on September 28, 2020:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller monthly written report to the Board.

Work in Process

FAC and the FAC Subcommittee have several items we are working on including:

  • 2021 Reserve Study including preparation of financial analysis and written recommendations.
  • 2021 Budget including written recommendations and attendance at the Board budget review meetings on August 19 and September 23, 2020.
  • Review and written comments and recommendations to the Board on other potential contracts that the Association is considering.

FAC Members

FAC now has two openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to discuss any questions you may have and provide you important information to aid you in your decision making.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley.

FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – September 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, September 2020:

FAC Members

Thank you, Steve Proia, for your service to the community, FAC, and the FAC Subcommittee since December 2017. I will miss your commitment, expertise, and responsiveness. With Steve’s resignation effective August 22, 2020, FAC now has two openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to talk about any questions you may have and provide you important information to aid you in your decision-making.

Work Completed

During August, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited July 2020 Association financial statements including the:
    • financial statements and supplementary schedules prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on the financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review of the 2020 Forecast (7+5) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 Forecast (6+6) prepared by the Controller.
  • Preparation of the Management Discussion and Analysis (MD&A) of the 2020 Forecast provided to the Board.
  • Review and recommend Board approval of the July 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on August 21, 2020, using audio and video conference call.
  • For the Board meeting on August 31, 2020:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller’s monthly written report to the Board.

Work in Process

FAC and the FAC Subcommittee have several items we are working on including:

  • 2021 Reserve Study.
  • 2021 Budget.
  • Review and written comments and recommendations to the Board on the potential contract for bulk internet service with Frontier Communications of America, Inc.
  • Review and written comments and recommendations to the Board on other potential contracts that the Association is considering.

Further Information

Additional FAC Members: Larry Anderson, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Budget Meeting Video Now Available

To see more videos, visit our Videos page by clicking here.

Finance Advisory Committee – August 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, August 2020:

FAC Members

As you may already know, Carey Thompson has replaced Bruce Marley as Treasurer on the Board. Thank you, Carey, for your 2-1/4 years of service to FAC and the community!

You may also know the Board approved the recommendation to add two new members to FAC on June 29, 2020. Welcome, Mike Whelan and Bruce Marley, to the Committee! FAC now has one opening on the committee.

We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact me if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to discuss any questions you may have and provide you important information to aid you in your decision making.

Work Completed

During the month of July, the FAC continued its work with the Board as well as with DRM and Troon management, on behalf of the Association, including:

  • Review and recommend Board approval of the unaudited June 2020 Association financial statements including the:
    • financial statements prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on the HOA’s financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View.
  • Review the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review the 2020 Forecast (6+6) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 5+7 Forecast prepared by the Controller.
  • Review and recommend Board approval of the June 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on July 21, 2020, through an audio and video conference call.
  • For the Board meeting on July 27, 2020:
    • Preparation of the FAC monthly written report to the Board.
    • Review of the Controller monthly written report to the Board.

Work in Process

FAC and the FAC Subcommittee have several items we are working on including:

  • Initial work on the 2021 Reserve Study component analysis including review of estimated remaining useful life and estimated replacement cost of common area real property components.
  • Review and written comments plus recommendations on the potential contract for bulk internet service with Frontier Communications.

Further Information

Additional FAC Members: Larry Anderson, Steve Proia, Bob Giovannettone, Bob Jester, Jerry Cavoretto, Mike Whelan, and Bruce Marley. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Bruce Marley, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – July 2020

By Bill Wethe
Finance Advisory Committee Chair

As published in The View, July 2020:

Work Completed

During the month of June, the FAC continued its work with the Board as well as with DRM and Troon management including:

  • Review and recommend Board approval of the unaudited May 2020 Association financial statements including the:
    • financial statements prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and inter-fund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review of the 2020 Forecast (5+7) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 4+8 Forecast prepared by the Controller.
  • Review and recommend Board approval of the May 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on June 19, 2020, via audio and video conference call.
  • For the Board meeting on June 29, 2020:
    • preparation of the FAC monthly written report to the Board.
    • review of the Controller’s monthly written report to the Board.

Work in Process

FAC and the FAC Subcommittee have several items we are working on including:

  • Initial work on the 2021 Reserve Study component analysis including review of estimated remaining useful life and estimated replacement cost of common area real property components.
  • Initial meeting with the Reserve Consultant on the preparation of the 2021 Reserve Study on June 4, 2020.
  • Review of trends for construction cost inflation rates - materials and labor.
  • Review and written comments and recommendations on the potential contract for bulk internet service with Frontier Communications Corporation.

We would like to add more members

As you may have already read, the Board approved the recommendation to add a new member to FAC on June 3, 2020. Welcome, to the Committee, Jerry Cavoretto! FAC now has two openings. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to talk about any questions you may have and provide important information to aid in your decision-making.

Further Information

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, Bob Jester, and Jerry Cavoretto. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – June 2020

By Bill Wethe
Finance Advisory Committee Chair

Work Completed

During the month of May, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited April 2020 financial statements of the Association including the:
    • financial statements prepared by DRM/Associa, Troon and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses for the purchase and replacement of common area real property components and interfund transfers to the Operating Fund for the purchase and replacement of common area personal property and equipment components.
  • Review of the 2020 Forecast (4+8) of the Operating Fund and Replacement Fund as compared to the 2020 Budget and the 2020 3+9 Forecast prepared by the Controller.
  • Review and recommend Board approval of the April 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on May 15, 2020, via audio and video conference call.
  • For the Board meeting on May 18, 2020:
    • preparation of the FAC monthly written report to the Board.
    • eview of the Controller monthly written report to the Board.
  • Review and make a recommendation to the Board on the modification and extension of the contract with the property protection contractor.

Work in Process

FAC and the FAC Subcommittee have several items we are working on including:

  • Review and written comments and recommendation on the engagement of the Reserve Consultant for the preparation and update of the 2021 Reserve Study.
  • Initial work on the 2021 Reserve Study including review of estimated remaining useful life and estimated replacement cost of long-lived assets.
  • Review and written comments and recommendations on the potential contract for bulk internet service with Frontier Communications.

We Would Like to Add More Members

As you may have already read or heard, FAC has three openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact the author if you would like to discuss completing an Advisory Committee Interest Form. I would be pleased to talk about any questions you may have and provide you important information to aid you in your decision-making.

Further Information

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, and Bob Jester. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – May 2020

By Bill Wethe
Finance Advisory Committee Chair

We Would like to Add More Members

As you may have already read or heard, FAC has three openings on the Committee and we are interviewing one candidate at this time. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee. Please contact me at the email below if you would like to discuss completing an Advisory Committee Interest Form.

Work Completed

During the month of April, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited March 2020 financial statements of the Association including the:
    • financial statements prepared by DRM/Associa, Troon and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed HOA financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the:
    • 2020 Operating Fund revenues and expenses.
    • 2020 Replacement Fund expenses and inter-fund transfers to the Operating Fund.
  • Review of the 2020 Forecast (3+9) of the Operating Fund and Replacement Fund as compared to the 2020 Budget prepared by the Controller. For more information, please read the message from the Treasurer posted on the HOA’s website.
  • Review and recommend Board approval of the March 2020 bank statements, bank reconciliations, and investment account statements.
  • Regular meeting of FAC held on April 24, 2020.
  • For the Board meeting on April 27, 2020:
    • Prepare the FAC monthly written report to the Board.
    • Review of the Controller monthly written report to the Board.
  • Review and written recommendation to the Board on the insurance renewal effective April 22, 2020, including review of coverage, limits, sub-limits, deductibles, and pricing. The updated certificates of insurance are posted on the HOA website.
  • Review and approve the Controller memo to a unit owner on property insurance and earthquake insurance limits which has been posted on the HOA website under Finance News.
  • Review and written recommendation to the Board and Landscape Advisory Committee on the renewal and modification of the contract with the landscape maintenance contractor.

Work in Process

The FAC and the FAC Subcommittee have several items we are working on including:

  • Contract renewal for property protection.
  • Initial work on the 2021 Reserve Study including review of estimated remaining useful life and estimated replacement cost of long-lived assets.

Further Information

If you have any questions, please contact me.

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, and Bob Jester. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – April 2020

By Bill Wethe
Finance Advisory Committee Chair

2019 audit and tax returns

The audit of the Association’s financial statements is complete! The Board approved the draft report on February 24, 2020; and the final report with an unqualified opinion was issued by the auditor on February 27, 2020. Thank you to all team members responsible for this accomplishment.

FAC completed its review of the tax returns to be filed by the auditor.

FAC has a need for more members

As you may have already read or heard, FAC has three openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee for major repairs and replacements and the annual reserve study. The estimated time commitment for serving on FAC is 15 hours per month.

Work completed

During the month of March, the FAC continued its work with the Board as well as with DRM and Troon management including:

  • Review and recommend Board approval of the unaudited February 2020 Association financial statements including the:
    • financial statements prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the 2020 Operating Fund revenues and expenses.
  • Review of the year-to-date variance analysis prepared by the Controller on the 2020 Replacement Fund expenses and inter-fund transfers to the Operating Fund.
  • Review of the 2020 Forecast (2+10) of the Operating Fund and Replacement Fund as compared to the 2020 Budget prepared by the Controller.
  • Review and recommend Board approval of the February 2020 bank statements, bank reconciliations, and Replacement Fund investment account statements.
  • Regular meeting of FAC held on March 25, 2020.
  • Preparation of the FAC monthly written report to the Board for its meeting on March 30, 2020.
  • Review of the Controller monthly written report to the Board for its meeting on March 30, 2020.

Work in process and upcoming work

FAC has several items we are working on including:

  • Insurance renewal effective April 22, 2020. FAC had a conference call with the Association’s insurance broker during our regular meeting on March 25, 2020, to review the current quotations including for coverage, limits, deductibles, and pricing.
  • Contract renewals for landscape maintenance of the common areas and property protection.

Further information

If you have any questions, please contact the author.

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, and Bob Jester. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

 

Finance Advisory Committee – March 2020

By Bill Wethe
Finance Advisory Committee Chair

Welcome, Bob Jester, as a new member of FAC! Thank you, Board, for your approval of our recommendation to add Bob to the Committee on February 4, 2020. And thank you, Bob, for your interest in serving our community.

As you may have already read or heard, FAC has two openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC or on the FAC Subcommittee for major repairs and replacements and the annual reserve study. The estimated time commitment for serving on FAC is 15 hours per month.

Work Completed

During the month of February, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited January 2020 Association financial statements including the:
    • financial statements prepared by DRM/Associa, Troon and the Controller.
    • combining and combined financial statements included in the Treasurer’s report prepared by the Controller.
    • summary of financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed financial information to be published in The View magazine.
  • Review of the year-to-date variance analysis prepared by the Controller on the 2020 Operating Fund revenues and expenses.
  • Review of the year-to-date variance analysis prepared by the Controller on the 2020 Replacement Fund expenses and interfund transfers to the Operating Fund.
  • Review of the 2020 Forecast (1+11) of the Operating Fund and Replacement Fund as compared to the 2020 Budget prepared by the Controller.
  • Regular meeting of FAC held on February 19, 2020.
  • Preparation of the FAC monthly written report to the Board for its meeting on February 24, 2020.
  • Review of January 2020 bank statements, bank reconciliations, and Replacement Fund investment account statements.

Work in Process

FAC has several items we are working on including:

  • 2019 audit of the financial statements and preparation of tax returns.
  • insurance renewal.

Further Information

Please review minutes of our monthly meetings and written reports to the Board included in Board meeting packages on the Association’s website.

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, Bill Ferstenfeld, and Bob Jester. FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

Contact the author at finance@scshca.com.

Finance Advisory Committee – Introduction of Robert O. “Bob” Jester

Bob and his wife Emilie purchased their home in our community in 2014 while Bob was still practicing law full-time in Kansas City, Missouri, with his firm, Ensz and Jester, P.C. He semi-retired in 2016 and moved to Sun City Shadow Hills in December of that year, and continued to practice remotely until 2019. Bob’s law practice began in the field of insurance defense litigation in the Claims Department of the United States Fidelity and Guaranty Company while he attended law school. He went on to defend cities and counties in Missouri and Kansas. Bob subsequently became a member of the Missouri Bar, and the Federal Bars in the 8th and 10th Circuits. He was also admitted to practice before the United States Supreme Court.

As the firm’s practice expanded, Bob created and managed the business practice section which encompassed commercial litigation, contracts, real estate, employment claims, insurance issues, business entity sales and purchases, and corporate restructure and finance.

During his years of practice, Bob was also active in Sertoma International which is the third oldest civic service organization in the United States, formed in 1912 in Kansas City. He rose to the office of International President and spearheaded the organization’s charitable activities in the field of speech and hearing as well as individual areas of civic need.

Emilie and Bob have adapted quickly to their life in our community and are very active in numerous clubs. Bob would like to contribute to our community by helping to fulfill our financial and legal needs through the Finance Advisory Committee.

The Committee welcomes Bob and looks forward to his participation.

Finance Advisory Committee – February 2020

By Bill Wethe
Finance Advisory Committee Chair

As you may have already read or heard, FAC has three openings on the Committee. We would love to hear from you if you have an interest in serving on the FAC. The estimated time commitment is 15 to 20 hours per month.

Work Completed

During the month of January, the FAC continued its work with the Board as well as with DRM and Troon management on behalf of the Association including:

  • Review and recommend Board approval of the unaudited December 2019 Association financial statements including the:
    • financial statements prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the Association Treasurer’s report prepared by the Controller.
    • summary financial information on financial position and results of operations included in the Controller’s report to the Board.
    • condensed Association financial information to be published in The View magazine.
  • Review of the monthly and year-to-date variance analysis prepared by the Controller on the 2019 Operating Fund revenues and expenses.
  • Review of the year-to-date variance analysis prepared by the Controller on the 2019 Replacement Fund expenses and interfund transfers to the Operating Fund.
  • Review of the 2019 annual results of the Operating Fund and Replacement Fund as compared to the 2019 Forecast (11+1) prepared by the Controller.
  • Regular meeting of FAC on January 24, 2020.
  • Preparation of the FAC monthly written report to the Board for its meeting on January 27, 2020.
  • Review of December 2019 bank statements, bank reconciliations, and Replacement Fund investment account statements.
  • The Board approved the FAC proposed revisions to the Charter and Mission for the FAC and the Charter and Mission for the FAC Subcommittee on the Replacement Fund and Reserve Study (Subcommittee).
  • The Board approved the written recommendations from the FAC and the Subcommittee in the preparation of Board Action Forms requesting expenditures from the Replacement Fund for replacement or major repair of common area real and personal property components.
  • Conference call with Comerica Securities, the Investment Manager for the Association’s Replacement Fund, including review of the portfolio performance report as of December 31, 2019, and investment recommendations for 2020.

Work in Process

FAC has several items we are working on including:

  • The 2019 Audit is underway. Interim work was completed in December. We plan to issue the 2019 audited financial statements by Friday, February 28, 2020.
  • Interview of candidates for FAC who have prepared and submitted an Advisory Committee Interest Form.

Further Information

Please review minutes of our monthly meetings and written reports to the Board included in Board meeting packages on the Association’s website.

Additional FAC Members: Larry Anderson, Steve Proia, Carey Thompson, Bob Giovannettone, and Bill Ferstenfeld.
FAC Subcommittee Members on the Replacement Fund and Reserve Study: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.
Contact the author at finance@scshca.com.