Finance Advisory Committee – December 2019

By Bill Wethe
Finance Advisory Commitee Chair

Work Completed

Yes! The 2020 Budget and the 2020 Reserve Study are complete, and the Board approved them on October 28, 2019. A BIG “thank you” to all those responsible including:

  • the DRM management team.
  • the Troon management team.
  • the members of FAC and the FAC Subcommittee.
  • our Board of Directors.

The FAC continues to work with the Board as well as with DRM and Troon management to:

  • review and recommend Board approval of the unaudited October 2019 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 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 the variance analysis prepared by the Controller on the 2019 Operating Fund revenues and expenses to assess the impact, if any, on the 2019 Forecast
  • review variance analysis prepared by the Controller on the 2019 Replacement Fund expenses and interfund transfers to the Operating Fund to assess the impact, if any, on:
    • the 2019 Replacement Fund annual cash flow forecast
    • The 2019 Replacement Fund liquidity and investments
  • review the 2019 Forecast (10+2) of the Operating Fund and Replacement Fund as compared to the 2019 Budget and the 2019 Forecast (9+3) prepared by the Controller
  • hold a regular FAC meeting on November 15
  • prepare the FAC monthly written report to the Board for its meeting on November 18
  • review October 2019 bank statements, bank reconciliations, and Replacement Fund investment account statements
  • prepare articles posted on the Association website with information about:
    • depreciation expense recorded in the financial statements of the Operating Fund
    • services provided by Troon in the management of the Association’s golf and F&B operations
    • services provided by DRM in the management of all other Association operations.

Work in Process

The FAC has several initiatives in process including reviewing and proposing revisions for the Board to consider on the:

  • Association’s Investment Policy
  • Association’s Procurement Policy
  • Charter and Mission for the FAC
  • Charter and Mission for the FAC Subcommittee on the Replacement Fund and Reserve Study

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, John Deshaw, 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.