Treasurer's Report for October
Posted on Nov 21st, 2024
To: Villas of Wake Forest Unit Owners
From: Dan Becker, Treasurer
Subject: Treasurer Report for October 2024
Attached is See the hyperlink below for the Financial Highlight Report for October 2024. The purpose of this report is to provide the Board with key high level performance indicators to assess the financial condition of the 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 $105,645 is $13,353 above December 2023’s balance of $92,292 due almost exclusively to year-to-date October’s net income. This income is due to timing of dues receipts and expenses. The balance in the reserve account is $370,683, $67,982 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 in order to pay insurance up-front instead of the installment basis and save interest. There are currently $133,103 in liquid reserve funds (funds not tied up in CD’s). Monies will be spent for the painting of the remaining buildings with hardi board (see explanation under “Reserve Fund Statement” below). A large portion of these funds will be re-invested in new FDIC insured CD’s to enhance interest income. $60,000 of CD monies maturing in September were sent to Fidelity Investments to be invested in FDIC insured CD’s.
Operating Statement: Expenses are under budget by $8,350. Several items under budget were partially offset by a couple of items over budget. Please see attached report for details on all the variances. Net operating income is favorable to budget by $17,429 because of expenses being under budget by the $8,350 and dues revenue being over budget $9,079 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 recently offered the Villas a 6.2% discount to paint five additional buildings this year instead of the plan to do them in 2025 and 2026. The Board approved this change.
The financial reports can be found on the "Finance" webpage of the community website (resident sign in 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
