The preliminary 2020 yearend financials (click HERE) were reviewed by the committee. The Statement of Activities show that revenue for 2020 was down 5%. Decreases were mainly in the areas of class and program registrations and room rentals. Also, home sales rebounded after a sharp drop in April and May to end the year only slightly below budget.
Annual expenses were down 10%. The decrease in expenses was mainly in the areas of utilities and routine maintenance due to the limited use of many of our buildings due to covid-19 restrictions. Corporate expenses, program expenses and operational expenses were also down.
The Fiscal Affairs Committee recommended the Initiative Reserve be used as the funding source for professional architecture and design services for the Canoa Hills Clubhouse. This recommendation was forwarded to the Board of Directors.
Research is continuing on the establishment of a reserve for major capital replacements. Browning Reserve Group has been contacted for their input and for further information.
Two presentations were made to the committee. They are both lengthy and further discussion of them has been scheduled for the February FAC meeting.
1) Presentation on calculation of annual surplus (click HERE)
2) Presentation on using a loan to finance capital projects (click HERE)
Member comments are welcome. Please email firstname.lastname@example.org and enter ‘FAC comments’ in the subject line.
Next scheduled meeting:
February monthly meeting – Tuesday, Feb 16, 1:30 (Zoom)
Chair, Fiscal Affairs Committee