Attached is Select the following link to view the Financial Highlight Report for August 2024.  The purpose of this report is to provide the Board with key high level performance indicators to assess the financial condition of Villas and to take corrective action if necessary.  The Board is committed to a monthly review of the financial results and to do its best to ensure adherence to the budget.

 

The Villas of Wake Forest finances are healthy.

 

Cash and Liquidity:  The operating cash account balance of $90,252 is $2,040 below December 2023’s balance of $92,292 due almost exclusively to year-to-date August’s net loss.  This loss is due to timing because the property insurance policy was paid in advance this year instead of on the installment basis.  Please see further explanation below under “Reserve Fund Statement”.  The balance in the reserve account is $352,756, $85,909 below December 2023’s $438,665 as monies are being spent on projects plus a one-time transfer of $43,410 from the reserve to the operating account as discussed below under “Reserve Fund Statement”.   There are currently $62,712 in liquid reserve funds (funds not tied up in CD’s) and an additional approximate $115,000 CD’s maturing in September.  

   

Operating Statement:  Expenses are under budget by $10,395.  Several items under budget were partially offset by a couple of items over budget.  Please see the attached report for details. 

 

Reserve Fund Statement:  Please see attached report for explanation of the spending variance.   The painting vendor has offered the Villas a 6.2% discount to paint four additional buildings this year instead of the plan to do them next year.  The Board approved this change.

 

As noted in the attached report, In August, $43,410 was transferred from the reserve fund to the general operating account in order to make a lump sum payment for the insurance policies compared to paying them over 12 months in installments.  Paying the policies up front instead of on the installment basis saved us $7,163 in interest (rate of 19.8%)-$69,206 up front (property $65,112, umbrella $1,818, director and officer $1,781 and workmen’s compensation of $495) vs $76,389 in installments.

 

The financial reports can be found on the following site (resident login required):

 

NOTE: the report is also available on the community website - resident login required:

 

Please let me know if you have any comments or questions.  The Board will respond and include any such comments/questions in its normal update to the Community.

Cc:  Villas of Wake Forest Board

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Sincerely,

Dan Becker
(Board Treasurer)