Finance Advisory Committee – May 2022

By Robert “Bob” O. Jester
Finance Advisory Committee Chair

As published in The View, May 2022:

Question of the Month: How Does the Financial Review Process Happen?

Interested residents will find it helpful to know how the review of the Finance Advisory Committee (FAC) comes together each month. Within ten (10) days from the first of each month, with the assistance of their Arizona shared services section, Troon generates the financial reports for the preceding month, and those go to the FAC and Association management. Within five (5) days thereafter, Desert Resort Management’s (DRM’s) corporate office in Dallas finalizes the Association financial reports for the previous month and submits those to Tyler Ingle, our Association General Manager, for review and submittal to the FAC.  The FAC receives the financial reports before its monthly meeting so members can analyze the reports in order to have a productive meeting.

By Charter, the FAC’s mission is to review and analyze the financial reports monthly to:

  1. Ensure they are clear, concise, informative, and completed in accord with Generally Accepted Accounting Principles (“GAAP”);
  2. Ensure they are free from material misstatements, whether due to fraud or error;
  3. Advise the Board when those records have been reviewed and that they are recommended for approval by the Board;
  4. Review and recommend approval of the Treasurer’s Report;
  5. Review the monthly bank reconciliations of both the Association accounts and the investment accounts, and advise the Board if they are recommended for approval.
  6. Review numerous other financial records, including the annual forecast of revenues and expenses, bad debt reports, and variance reports, to determine if the Association is operating within its approved budget. If a significant variance is found, it would be immediately reported to the Board for appropriate action.

There are, of course, many other assigned duties in the FAC Charter but these are the principal ones that deal with the monthly financial reports issued by Troon and DRM that require FAC action monthly and FAC recommendations to the Board.

We will provide other helpful information and explanations for you in future issues of The View. If you have any specific financial questions, please contact the FAC at finance@scshca.com.

Contact the author at finance@scshca.com.