|
FY2009-2010 Operating Budget Performance
Year–to–date financials through the end of March 2010 are summarized below. Our budget for the year included a profit/contingency of $41,298. We are essentially on target with the budget and are forecasting that at the end of the fiscal year there will be surplus revenues (’profit’) to designate toward operating reserves or other needs as determined by the Board of Directors.
This year’s budget also included the Supplemental Rent assessment of $831,929. That amount plus earned interest will be forwarded to Shelter Bay Company at the end of June 2010, for use as payment of the rent under the Master Leases.
This year has continued to be a trying year for some members due to the stressed economic climate and housing market decline. As a result, the Community’s accounts receivables remain a bit higher than normal, but still within a manageable cash flow. Many of the homes that were foreclosed on last year have been sold, with past due amounts due to the community fully recovered through the sale. As of this date, there are nine foreclosures in some stage of proceedings.
FY 2009-2010 Operating Budget Summary (through March 31, 2010)
| |
Jul 09-Mar 10 Actuals |
Jul 09-Mar 10 Budget |
Variance |
Annual Budget
July 2009 – June 2010 |
| INCOME |
1,661,500 |
1,688,600 |
Under |
27,100 |
2,245,896 |
| Operating Expense |
491,200 |
519,200 |
Under |
28,000 |
689,767 |
| Payroll Expense |
492,400 |
496,400 |
Under |
4,000 |
677,079 |
| TOTAL EXPENSE |
983,600 |
1,015,600 |
Under |
32,000 |
1,366,846 |
| NET PROFIT/(LOSS) |
677,900 |
673,000 |
Over |
4,900 |
879,050 |
| Less Supplemental Rent due to SBayCo on 6/30/10 |
625,000 |
625,000 |
|
— |
837,752 |
| NET PROFIT/(LOSS) |
52,900 |
48,000 |
Over |
4,900 |
41,298 |
Special Back Rent Assessment
Payments of the special assessment for Back Rent, levied in May of 2008, have been steadily rolling in. This revenue is to be forwarded to the Shelter Bay Company in order to make payment of the Back Rent due under the arbitration award for adjustment of rent under the master leases, going back to July 2003. The total principal amount due to the Tribe was $6,234,158, to be paid over five years, with payment in full no later than June 30, 2013.
On November 30, 2009 the Community and Shelter Bay Company temporarily allocated cash on hand to pay off in full the remaining $746,603 Back Rent due to the Tribe. Payment receipts by those members who are paying the Back Rent assessment over time are being used to replenish the funds that were temporarily used for the payoff. As of this date, $686,990 remains due from members who are paying over time.
FY 2009-2010 Capital Improvement Projects Budget Performance
Good progress has been made on capital improvement projects, with sewer line repairs being completed and the clubhouse bathroom renovation project nearing completion. The new utility billing software was implemented in February 2010, with the online bill pay feature ready for launch in the next month. A more detailed status of the various capital projects is included in the Manager’s report.
FY 2004-2005 through FY 2008-2009 Capital Budget Summary (through March 31, 2009)
| Fund |
FY 2004/05
through
FY 2009/10 Budgeted
|
Less Reserves |
Plus Re-Allocation |
Total Funds Approved |
Actual Spent |
Funds Encumbered |
Balance On Hand |
| Sewer |
265,400 |
65,000 |
-4,084 |
196,316 |
173,775 |
0 |
22,541 |
| Water |
163,000 |
50,000 |
-5,037 |
107,963 |
68,921 |
10,509 |
28,533 |
| Roads |
486,800 |
0 |
5,250 |
492,050 |
393,453 |
8,444 |
90,154 |
| Equipment |
56,300 |
0 |
1,301 |
57,601 |
57,601 |
0 |
0 |
| Ditches/Drains |
312,255 |
0 |
11,974 |
324,229 |
81,859 |
4,770 |
237,599 |
| Admin/Community |
180,500 |
0 |
15,394 |
195,894 |
144,865 |
41,973 |
9,057 |
| Recreation |
57,000 |
0 |
-8,443 |
48,557 |
44,261 |
0 |
4,296 |
| Golf Course |
56,760 |
0 |
-1,010 |
55,750 |
45,750 |
0 |
10,000 |
| Greenbelts |
99,000 |
0 |
0 |
99,000 |
83,898 |
0 |
15,102 |
| Contingency |
52,792 |
0 |
-17,361 |
35,431 |
0 |
0 |
35,431 |
| Totals |
1,729,807 |
115,000 |
-2,015 |
1,612,792 |
1,094,383 |
65,695 |
452,713 |
(Figures are rounded to the nearest $100)
Audit of Financial Records
Williams & Nulle, PLLC was engaged to perform a full audit of the Shelter Bay Community, Inc. (and Shelter Bay Company) financial records for the fiscal year ending June 30, 2009. We are pleased to advise that this firm was again able to provide a clean opinion of our financial statements, as a result of accurate record keeping and tight internal controls for financial management and accounting practices.
Cash Management
Two Certificates of Deposit are established at a variety of financial banking institutions, in order to spread the funds to mitigate financial risk of keeping all of our funds in one bank, and to maximize earned interest on the cash assets. In addition, a brokerage account exists at Citi-SmithBarney in which other funds have been placed in insured certificates of deposit with varying maturity dates to accommodate specific cash flow needs of the community.
Respectfully Submitted,
Art Young, Board Treasurer |
