Page 5 - 2021-11 Courier

FROM THE TREASURER The expenses include things such as Utilities, Landscape, Admin-
istration, etc. Operating Funds can also be used to pay for Reserve
Expenses, but the Reserve Fund cannot pay for Operating Expenses
Based upon some of the questions residents have asked me, it was unless the money is paid back to the Reserve Fund Account.
suggested that a brief tutorial on the financial documents presented
in the monthly Open Meetings might be useful. The recommended minimum amount held in the Operating Fund is
equal to three months-worth of Operating Expenses. Currently our
The Dashboard:
Operating Fund contains approximately 3 ½ months of Budgeted
Every month FSR prepares a summary of our financial health. It Expenses.
compares the current month versus the prior month for our Operating Reserve Funds and Expenses
Cash and our Reserve Cash. It also provides a summary of our Cur-
rent Assessment Receivables (dues) and lists past due amounts. (It’s Reserve Expenses are the Repair and Replacement of HOA Assets,
important to note that receivable amounts for a month with 31 days Such as Furniture, Appliances, the ADA Swimming Pool Chair or
will show up in the 31-60 late category, even though they may only the Water Heater. Some repairs or replacement can be quite expen-
be one day later than the 0-30 category.) sive, such as the Air Conditioning System or Roof Material. This is
why Financial Planners recommend that HOAs keep at least 70% of
The Operating Summary contained in the Dashboard
the Reserve Funds on hand that would cover the cost of repair or re-
We currently collect $180 per household per month in assessments. placement of all our assets.
That is equal to $126,720 per month ($180 x 704). Those assess- A Reserve Fund Study is done annually to determine what the future
ments are allocated to the Operating Fund and the Reserve Fund, cost of replacement would be if our Reserve Fund was fully funded.
with $19,712 going into the Reserve Funds monthly and $107,008 We are currently waiting for the results of the 2022 Reserve Fund
going into the Operating Fund.
Study, which will give us a definitive answer as to how fully funded
In September, our Operating Expenses were $155,417, which was our Reserve Fund is. Our current best estimate puts our Fully Fund-
$39,831 more than our Operating Income. ($155,417-$115,586 = ed Reserves at approximately 35% - 40%.
$39,831).

Operating Funds and Expenses Hope this helps,
Our Operating Expenses are paid for from our Operating Cash Fund. Dick Tipton

TOY COLLECTION BARREL WILL BE AT THE RETREAT

FROM NOVEMBER 1st

to DECEMBER 18th

NEW UNWRAPPED TOYS

($10 - $25 value)

November 2021 Page 5