Finance Advisory Committee – July 2020

By Bill Wethe
Finance Advisory Committee Chair

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.