Present:
Finance Committee: Phyllis Benaman, John Frisch, Sanya Ham, Don Horan, Paul Rankin
Board of Directors (BoD): Mal Malo, Jackie Richards
Budget: Most of this meeting was spent reviewing and modifying the first draft of the 2007 operating budget. Based on this, a second draft will be prepared for review at the next Finance Committee meeting on 19 September. It was decided that a second annual budget, a replacement reserve budget, is also needed. The content of a replacement reserve budget was discussed and a draft will be prepared for the next Finance Committee meeting.
Monitor FRCA (Koger) Account: Invoices were provided by Koger Management and a review of the 30 June financial reports was accomplished prior to the meeting. The results of this review were briefly discussed. Koger Management recently started using a new computer application to keep financial records and provide financial reports. The 30 June financial reports were generated by the old application, and the 31 July reports by the new application. There are major disconnects in the data at the transition from the old system on 30 June to the new system on 1 July. These errors will be called to the attention of Koger Management.
General ledger entries from January 2006 through May are still needed for a full understanding of the 2006 financial reports.
The 2005 audit of the Falls Run accounts at Koger Management is still not complete. Goldklang, et al., the auditors, say they still need information on a CD that was in effect during 2005.
Contracts: The request for proposals (RFP) for a management contract was sent to the BoD on 16 August for approval and distribution to potential proposers. It will be sent out on 7 September. Two members of the Finance Committee, Paul Rankin and Don Horan, will be members of the Evaluation Committee which will evaluate and rank proposals received.
It was noted that the Board of Directors has to send a letter to Koger Management before 30 September to notify them that the management contract is being rebid and will not be automatically renewed.
A proposal from Shenandoah Landscape Services for fall flowers was reviewed. It was noted that the proposal relieves Shenandoah Landscape Services of all liability for accidents. The major contract with Shenandoah for maintenance of the common grounds has an acceptable liability clause, and a contract for fall flowers should be tied to the liability clause in the maintenance contract. No other problems were found with the proposal for fall flowers.
Monitor Community Center Account: It appears that Koger Management has provided the requested list of all transactions using the Visa debit card from November 2005 to the present. These transactions will be matched to Ann Jones’ records for the Visa transactions so the purchases can be debited against the correct categories.
Investments: Statements and other information for investment accounts that were and are active in 2006 are still needed.