Finance Advisory Committee – November 2019

By Bill Wethe
Finance Advisory Committee Chair

Work Completed

Wow. September and October 2019 have been very busy months for the FAC and the FAC Subcommittee! Thanks to the members of both committees for their time, review, and discussion. The FAC continues 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 September 2019 financial statements of the Association including the:
    • financial statements prepared by DRM/Associa and Troon.
    • combining and combined financial statements included in the Treasurer’s report for the Association 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.
  • Review of the variance analysis prepared by the Controller for the 2019 Operating Fund revenues and expenses to assess impact, if any, on the 2019 Forecast.
  • Review of variance analysis prepared by the Controller for the 2019 Replacement Fund expenses and interfund transfers to the Operating Fund to assess impact, if any, on the:
    • 2019 Replacement Fund annual cash flow forecast.
    • 2019 Replacement Fund investments.
    • 2020 Reserve Study.
  • Review of the 2019 Forecast (9+3) for the Operating Fund and Replacement Fund compared to the 2019 Budget and the 2019 Forecast (8+4) prepared by the Controller.
  • Regular meeting of FAC held on October 21, including meeting with the Investment Advisor for the Replacement Fund (Comerica Securities) to review portfolio performance for the nine months ended September 30 plus investment recommendations.
  • Preparation of the FAC monthly written report to the Board for its meeting on October 28.
  • Review of September 2019 bank statements, bank reconciliations, and Replacement Fund investment account statements.

Work in Process

The FAC has several initiatives in process including:

  • Reserve Study for 2020.
  • Budget for 2020.

On the 2020 Reserve Study:

  • The FAC and the FAC Subcommittee have reviewed the third and fourth drafts of the Reserve Study prepared by the Reserve Consultant and provided input and feedback on them.
  • The FAC Subcommittee updated the financial analysis for the draft Reserve Studies.

On the 2020 Budget:

  • The FAC has reviewed copies of the draft budgets prepared by DRM management and Troon management and provided input and feedback on them.
  • The FAC attended the Board budget review meeting held on October 23 and provided input during that meeting.

Further Information

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

Additional FAC Members: Larry Anderson, John Deshaw, Steve Proia, Carey Thompson, Bob Giovannettone, and Bill Ferstenfeld.
FAC Subcommittee Members on the Reserve Study and Replacement Fund: Chris Stevens, Don Salvatore, Steve Proia, Carey Thompson, and Bill Wethe, Chair.

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