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