From: Dan Becker, Treasurer
Subject: Treasurer Report for September 2024
Attached is Select this link (resident login required) to view the
Financial Highlight Report for September 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 $88,977 is $3,315 below December 2023’s balance of $92,292 due almost exclusively to year-to-date September’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. The balance in the reserve account is $368,189, $70,476 below December 2023’s $438,665 as monies are being spent on projects plus a one-time transfer of $43,410 was made from the reserve to the operating account. There are currently $191,482 in liquid reserve funds (funds not tied up in CD’s), $128,770 more than last month due primarily to maturing CD’s. Monies must be set aside for the painting of an additional four buildings with hardi board (see explanation under “Reserve Fund Statement” below, but a large portion of these funds will be re-invested in new FDIC insured CD’s to enhance interest income.
Operating Statement: Expenses are under budget by $13,150. Several items under budget were partially offset by a couple of items over budget. Please see attached report for details. Net operating income (loss) is favorable to budget by $19,479 because of expenses being under budget by the $13,150 and dues revenue over budget $6,329 because of cash basis accounting explained on the attached statement.
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.
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
Sincerely,
Dan Becker
