Finance Advisory Committee – January 2020

By Bill Wethe
Finance Advisory Committee Chair

The members of FAC want to thank John Deshaw for his 2-1/4 years of service to the Community and to the Committee! Well done!

FAC now has three openings. We would love to hear from you if you have an interest in serving on the FAC.

Work Completed

During the months of November and December, 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 Associaton’s unaudited November 2019 financial statements including the:
    • financial statements prepared by DRM/Associa, Troon, and the Controller.
    • combining and combined financial statements included in the HOA 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 of the variance analysis prepared by the Controller on the 2019 Operating Fund revenues and expenses to assess impact, if any, of the 2019 Forecast.
  • Review of variance analysis prepared by the Controller on the 2019 Replacement Fund expenses and inter-fund transfers to the Operating Fund.
  • Review of the 2019 Forecast (11+1) of the Operating Fund and Replacement Fund as compared to the 2019 Budget and the 2019 Forecast (10+2) prepared by the Controller.
  • Regular meeting of FAC held on December 13, 2019.
  • Preparation of the FAC monthly written report to the Board for its meeting on December 16, 2019.
  • Review of November 2019 bank statements, bank reconciliations, and Replacement Fund investment account statements.
  • The Board approved the revisions proposed by FAC on the Association’s Investment Policy for 2020.
  • The Board approved the revisions proposed by FAC on the Association’s Procurement Policy.
  • The Board approved the increase of $1 million to $16 million in the Fidelity Bond proposed by FAC as of January 1, 2020, to comply with California Civil Code Section 5806.

Work in Process

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 proposed revisions were approved by the Board for posting to allow for comments.

The FAC and Subcommittee prepared written recommendations for the Board’s review in the preparation of Board Action Forms requesting expenditures from the Replacement Fund for replacement or major repairs of common area real and personal property components.

Further Information

Please review minutes of our monthly meetings and written reports to the Board included in Board meeting packages on the HOA 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.
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