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Minutes For La Casa Finance Committee Meeting – March 18, 2019
Call To Order: Jack Pasquale, Chairman called the meeting to order at 9:00 a.m.
Roll Call: Members Present: Dan Mahoney, Diane Richardson, Ron Long , Jack Pasquale ,Rick Lynam, Jan Danner. Members Absent: Denis Meikle
HOA Board Liaison: Hank Madura, Treasurer
Guests: Nancy Thurnherr, Rich Dickson, Bucky Rogers, Don Dawson, Bill Loftus, Jack Hagopian, Ruth Meikle
Agenda: Motion to approve the agenda carried.
Minutes: Motion to approve Minutes from January 21, 2019 carried.
Review of February, 2018 Preliminary Financial Statements: The Committee reviewed the preliminary Balance Sheet, Profit & Loss Statements, Transaction Details, Asset Acquisition, and General Journal entries. Linda Krout clarified that the Sun Trust cash was not in a money market account. It remains in a checking account. Hank Madura stated that he is working on getting some interest income on the Sun Trust bank account which current pays zero interest. Diane Richardson and Dan Mahoney asked questions on the accumulation of project costs (Dog Walk, 2nd Exit, Lake Renovations) for proper separation and recording. Linda Krout stated that the costs are accumulated and separated in Work-In-Progress accounts in the Fixed Assets. Jan Danner asked about the cost for the Lake Del Hacieda renovation. Randy Browning stated that the costs for this project is very preliminary at this time; however the Reserve expenditures for 2019 include $50K for Grounds Renovation and $48K for Shoreline Restoration which could apply to this project. The Committee accepted the March, 2018 Financial Statements as presented in the meeting. The financial statements are in preliminary status since the year-end audit is not finished and there will be adjusting and closing entries to be added. Complete Financial Statements will be posted on the sales office bulletin board.
Project Update: Randy Browning gave the Committee an update on projects. His summary is attached to these minutes.
2018 Audit: Audit is scheduled for completion on March 31, 2019.
Reserve Update: Randy Browning gave an extensive update on Reserve spending changes for 2019-2022. Rich Dickson pointed out that the expenditures per year need to be more closely aligned with our actual needs for those corresponding years and smooth out the peaks and valleys in annual expenditures for 2020- 2022. This will allow for more equitable distribution of Reserve expenditures over 2020-2022 and reduce the Reserve budget shortfall in 2020. Randy will prepare a new Reserve expenditure proposal for review by the Finance Committee at the April,2019 meeting to smooth out the expenditures for the next three years. After recommendation by the Finance Committee and approval by the Board, this update will be given to the Reservist.
Five Year Plan: Linda Krout will update the Five Year Plan in July, 2019.
Finance Committee Candidates: The Finance Committee recommended Ron Long and Jan Danner to fill the two expiring terms on the Committee.
Investment Policy Revision: Dan Mahoney asked why the Policy shows a maximum of 0% allowed in the U.S. Treasury Money Market on the investment table within the Investment Policy when the Policy also allows $90,000 to accumulate in these funds. Also, since the Money Market serves as the clearing account for the C.D. transactions, there could be at times over $200,000 in these accounts. He stated that it appears that the maximum allowance of zero in the investment table conflicts with actual normal activity for these funds. Hank Madura stated that he would review the Policy regarding this issue.
Meeting Adjourned: At 11:30 a.m.
Next Meeting: April 15, 2019 at 9:00 am. in the Sales Office Board Room.
Attest: Dan Mahoney, Secretary
Attachment: Project Update
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