Minutes for La Casa Finance Committee Meeting – June 24, 2019 (approved July 15, 2019)
Call To Order: Jack Pasquale, Chairman called the meeting to order at 9:00a.m.
Roll Call: Members Present: Jan Danner , Call In Members , Jack Pasquale, Rick Lynam, Dan Mahoney, Ron Long. Members Absent: Dianne Richardson, Dennis Meikle
Staff Representatives: Linda Krout, Randy Browning
HOA Board Liaison: Call In: Hank Madura, Treasurer
Agenda: The current agenda was approved.
Approval of Minutes: The May 13, 2019 minutes were approved.
Monthly Financial Statements: The Committee reviewed the following financial statements for the period ended May 31, 2019: Bank Balances, Cash Flow, Balance Sheet, May P&L, Year to Date P&L, Reserves, Transaction Detail, Asset Expenditures, General Ledger Entries, Notes on Financials, Budget Variances. Hank Madura informed the Committee that an additional hurricane deductible C.D. was purchased on June 6, 2019 for $200K for 3 years at 2.5% which puts liquid cash at 17%. Jack Pasquale will update his C.D. schedule and send it to the Committee members. Dan Mahoney asked about the transfer of $60,405 from Reserves to Capital Asset Acquisition. The transfer represents the LCRE bonus which went into Reserves but should be into the CAA fund and therefore the transfer was made. Dan Mahoney asked why Fifth/Third bank was charging a bank fee. Hank Madura stated that in October he was meeting with the banks to review activity and attempt to eliminate fees. Linda Krout explained that Other Income primarily included a transfer fee which is new fee charged on every sold property. Linda also explained that Office Expense was excessive from all the additional mailings and supplies involved with the voting on updated Bylaws, Articles of Incorporation, Proprietary Lease and new Rules and Regulations. These extraordinary items also created excessive legal fees to-date. Linda has placed additional controls on office spending for the remainder of the year.
2018 Audit Draft Recommendation: The HOA Board has accepted the audited financial statements for 2018 as recommended by the Finance Committee.
Project Updates: Randy Browning gave a project update report. This update is attached to these minutes. Dan Mahoney raised a question on the excessive cost of the roof replacement on the Administration building. The Reserve List shows an allowance of $27,615 to cover this expenditure. Randy Browning has estimated the cost at approximately $87,000. Randy stated that the Reserve allowance was based on a roof-over cost. After realizing the code requirements, it was determined that a total new roof was needed rather than just a roof-over. Randy stated that the cost of a totally new roof plus engineering and bonding cost would be approximately $87,000. The $60,000 excess will come from the Capital Asset Acquisition fund. Hank Madura stated that this issue has been thoroughly reviewed and approved by the HOA Board.
Reserve Listing Update: Randy Browning has given the approved changes in the Reserve List to our Reservist who will incorporate them into our existing List. The Finance Committee will review this updated Reserve List at the next meeting in July.
Electronic Conferencing: For our July 15th meeting we will use the new free Electronic Conferencing system. Jack Pasquale will issue user instructions to Committee members prior to the meeting.
Investment Policy Revision: In the May meeting, the Finance Committee approved the Investment Policy Revision for recommendation to the HOA Board. The Board has approved the revision as recommended. Jack Pasquale will send the revised Policy to Committee members.
Brokerage Service Provider: The Finance Committee will be exploring the possibility of replacing our current Brokerage firm, Fidelity Investments. Hank Madura and Linda Krout will document their concerns with Fidelity for the Finance Committee after the 2020 budget process is completed.
Meeting Adjourned: At 9:55 a.m.
Next Meeting: July 15, 2019 at 9:00 a.m. in the Office Board Room.
Attest: Dan Mahoney, Secretary
Attachment: Project Update
Irrigation system is installed and completed. Electrical work is 70% done with inspected to be scheduled in July. Lake fountain is installed. Landscaping is scheduled for first of July.
Finalization of the project will occur in Sept. and Oct., with aquatic planting to be done with grant assist from the county.
Office roof project is to start in July. Pending weather set back with a 2 to 3 week completion schedule.
Rec Hall Hot Tub is to be resurfaced this year. Bid process has started.