Finance Committee Minutes – March 20, 2019

Finance Committee
Meeting Minutes
March 20, 2019

 

Members Present:  Linda Hartmann, Jennifer Reuter, Mary Anna Taylor, Kyle Packer, Bonnie Starks, Lee Steczynski

Members Absent: none

Board Liaison: Bob Starks

Guests:   Bruce Keller, Ruthanne Eberhart, Bill Donlin, Pat Hawkins (by phone)

Review of the 2018 Consolidated Audit Report

Bill Donlin, independent auditor, reviewed the draft 2018 consolidated audit report for the combined HVL and HVCG financial position, cash flow, and internal controls. His stated opinion is that the statements conform to generally accepted accounting principles and fairly represent the financial statements and cash flow position. Bill also mentioned that his preparation of previous HVL/HVGC statements passed a peer review with no deficiencies noted in his procedures.

Bill reviewed the major changes in statement balances between 2017 and 2018. Linda noted that the cash outflows for principle payments on outstanding loans on the cash flow statement decreased. Upon further review, Bill confirmed that the 2017 numbers were incorrectly transferred from the amortization tables. He will update the cash flow report. Jen noted that the 2017 pre-tax net operating position for the golf course was incorrectly listed as profit.

Bill also reviewed the Report to Management and commented on control procedures that have been implemented by HVL and HVGC to safeguard cash receipts, payroll disbursements, electronic fund transfers, and HVGC liquor and pro-shop inventories.

Bill also suggested that we consider dissolving the Chalet, Inc. entity.

Pat Hawkins asked if HVL should consider having a professional risk management firm evaluate the adequacy of our reserves and available funding. Bill felt that the procedures in place for allocating funds for future anticipated major expenditures was a reasonable planning tool and that funding for unplanned catastrophic events could be handled as needed through lines of credit or emergency assessments to residents.

Jen Reuter and Bill Donlin presented proposed balance sheet/income /cash flow statements for 2018 HVGC. Bill favorably compared the cost of goods sold percentages for the pro shop and snack bar to other golf courses.

 

Approval of the 2018 Consolidated Audit Report 

Motion by: Bonnie Starks

Second by:  Mary Anna Taylor

Voting record: all in favor

Approval of the February Finance Committee Meeting Minutes 

Motion by: Jennifer Reuter

Second by:  Bonnie Starks

Voting record: all in favor

Review and Approval of December Financial Reports

Motion by:  Linda Hartmann

Second by:  Bonnie Starks

Voting record: All in favor

 

Review and Approval of January Financial Reports

Motion by:  Jennifer Reuter

Second by:  Mary Anna Taylor

Voting record: All in favor

Review and Approval of February Financial Reports– Mary Anna noted the increase in bank and credit card fees associated with automated payment of dues. Ruthanne mentioned that the decrease in past due accounts and potential bad debts has decreased since this service was introduced. Linda suggested that we set up an account or spreadsheet to accumulate cost of sale items for the sale of the lots adjacent to the golf course to make it easier to track the cost of sale items for reporting gains on the sale.

Motion by:  Linda Hartmann

Second by:  Bonnie Starks

Voting record: All in favor

Report from Bruce Keller – Bruce reviewed unplanned/emergency expenditures including a major sink hole on Hanover and other erosion issues on roadways. He also indicated that the skid loader would need to be replaced sooner than anticipated. Expenditures for the floating docks are increasing by $30,000 for a projected total of $240,000. Bruce is looking into a possible sales tax exemption on the purchase. Anticipated ditching costs will increase due to erosion control requirements from the beach parking lot. Volunteer labor to tie in the rooflines of the beach buildings will be used to reduce costs.

Report from Bob Starks – Bob and Jen reviewed the costs of the HVGC remodeling and noted that the costs incurred were significantly less than fair market value due to bartering and volunteer labor. Jen also presented a 5-year major expenditure plan for the golf course.

Old Business:  The committee conducted a preliminary review of bids for the annual mowing contract. Bruce will review the details of the top bids with a preference given to the existing contractor if their bid is competitive due to their knowledge of HVL needs and their previous willingness to address unanticipated needs.

New Business:  Two proposals were received related to the sale and development of the lots along Fairway Drive. The unsealed proposals were entrusted to Kyle Packer who will lead an independent review prior to the next committee meeting.

Motion to Adjourn

Motion by:  Jennifer Reuter

Second by:  Bonnie Starks

Voting record: All in Favor

Meeting adjourned at 6:58 p.m.

NEXT MEETING TO BE HELD ON Wednesday, April 17, 2019 at 5:00 pm

 

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