Hidden Valley Lake Finance Committee
December 20, 2016
Members Present: John Reiniger, Kyle Packer, Jennifer Reuter, Mary Anna Taylor, and Bonnie Starks
Members Absent: Linda Hartmann
Board Liaison: Bob Starks
Guests: Bruce Keller
Approval of the October Finance Committee Minutes
- Motion by: Kyle Packer
- Second by: Mary Anna Taylor
- Voting record: All in favor, (subject to inclusion of J. Reiniger questions as an addendum)
Review and Approval of the October and November 2016 Financial Reports (questions in Appendices)
- Motion by: Mary Anna Taylor
- Second by: Bonnie Starks
- Voting record: All in favor
Report from Bruce Keller – We will not be getting around to finishing the work on Crystal Lake this year because the DNR is imposing more requirements that will increase the cost estimates, but the total should still be $45,000 or less.
John R. asked if we have acted on the 2015 internal control issues noted by our auditor including independent checkbook reconciliations, handing out of payroll checks, and golf course controls. Bruce agree to review these in December to make sure that we have complied with all suggestions.
Report from Bob Starks – Concerning updates to the Operational Manual, the following wording is being proposed (paraphrased): New amenities or new land use process – New amenities costing an excess of $10,000 and/or permanent new use for any existing community greenspace, regardless of cost, must first be approved by the HVL Board of Directors. All requests for a new projects must be accompanied by a fully completed HVL Project Request Form. If a discretionary project meets board approval, it will be included in a survey to residents asking for input. If approved, the funds will be added to the escrow planning process and completed on a timeline as agreed. Maintenance and replacement items costing an excess of $10,000 will usually require a project form to be completed to ensure a thorough investigation of the expenditure. Projects that are usual and customary such as paving, road salt, etc. will only require the three-bid process.
Bob plans on publishing this and bringing it to the February BOD meeting for approval.
Old Business: none
Regarding the $75,000 credit balance on the cash flow report, John suggested that the amount does not need to be shown on that report as funds held because it is more of an accrual than a liability. Jennifer brought up the point that these prepayments should then not be included as revenue in the current year. She also stated that it should be retained in the cash flow calculations because the monies are earmarked and not available for other consideration or allocation to escrow accounts. John conceded that Jenny had a good point (much laughter).
Motion to Adjourn
- Motion by: Bonnie Starks
- Second by: Jennifer Reuter
- Voting record: All in Favor
Meeting adjourned at 6:25 p.m.
NEXT MEETING TO BE (tentatively) HELD ON TUESDAY, February 21, 2017 at 6:00
Appendix A – Questions on October Financials
Questions – John R. Is the EOY cash balance correct?
Consider this. It shows a balance of $89,000 but should not the non-payment of the liability insurance be deducted or added to General future expenses? As I see it from afar, the budget for the last two months is $136,000 by taking the yearly budget of $812,200 and subtracting the 10 months budget of $676,200. And yet the cash report shows as estimated $125,000 for future expenses. So I guess the payment for liability insurance is not in future expenses????
Another observation, if you take the $89,000 EOY cash, less the $27,800 budgeted insurance not paid by October 31, 2016, the ending cash would be $61,200.
Response – Moe M. Yes, I think I estimated the General Expense a little low. If we add in the insurance (and it appears that we just got a legal bill for $6000) we may be on the low side. Other factors that will effect that number are the additional expense of equipping one of the security vehicle.
I am sure there will be funds at the end of the year at this point maybe around $50K .
Appendix B – Questions on November Financials
Questions – John R. For the marine/lake repair rip rap on lakes, we are over budget YTD by $15,600. Did we miss something during the budget process since the 2016 YTD budget is the total for 2016?
Security wages are down since a deputy went to part time and yet hospitalization insurance is over budget due to unexpected additions. Since we now have a part time deputy, wouldn’t insurance be down? Also, did we consider the part time deputy as a reduction of wages for 2017?
I see tree management is over budget by $700, but does this qualify as an exception since the amount is less than $1,000?
Finally, I noticed on the 2016 EOY cash report you still have in funds help the credit dues for 2017 of $75,000. I sent out an email dated November 17th indicating this should not be included since it is an accrual item rather than a cash item with an explanation of how cash would be the same due to the new resident picking up the balance due/prepaid. Therefore the revised cash balance should be $139,594????
Questions – Linda H. and Responses – Moe M.
Minor detail – column headers on Exception Report (p. 13) read 2015. Will correct. Thanks
Escrow report – Dam, Lake, Docks… section
Should there be a projected outflow of $9800 in 2017 based on the comment on floating docks at Mueller park? I have not updated all outflows for 2017 yet. I do need to remove the $10,000 for the fitness center. We may add one machine but that would be much less than the $10,000. The dredging is accurate for 2017, as we will be paying the bills accumulated in December and pay them out in January.
Should the $3000 from Cincinnati State be shown as a reduction to 2016 paid out with a corresponding paid out deduction when the bridge is scheduled to be completed? No, that money is being held in account 4051 as a current liability as those funds are earmarked for the gate. As we receive more funds those will be tracked in that account. I have not listed this item in the escrow sheet at this time. Don’t believe we even have an estimate on cost at this time.
I still do not understand the $45,000 for Crystal Lake and the comment on 2016 budget payout of $40,000. Where does this show as “paid out”? This will be updated at the end of December – because the estimate may change along with it needs to be moved to 2017. I will remove the note on the side about the $40,000 to be paid out that was a reminder for me.
Escrow report – Maintenance vehicles/equipment section
I notice that the future monies for the chipper/shredder have been deleted. Is this an oversight? Monies for the shredder is still listed under security cameras, natural resources equipment. Not purchased when anticipated still note.
Question – Bonnie Starks (during meeting) Why do the internet expenditures vary so widely from month to month?
Response – Bruce Keller to check with Moe when she returns.