Finance Committee Meeting Minutes

March 18, 2008

Present: Finance Committee (FC):  Jean Strub, Dottie Fields, John Frisch, Nancy Garner, Sanya Ham, John Lynch, Dan Owens and Bill Trzyna

Community Center Account: 

• February BB&T Bank statement has been reconciled to the Quick Books Pro records.

• Bill Trzyna explained that the bank deposits are supported by spreadsheets prepared by different Concierges and receipt copies.

• Reports can now be created in Quick Books Pro to show each activities income and expenses. Bill Trzyna will draft the accounting entries to support income and expenses for all activities that are complete so far in 2008.  After review these entries and supporting documentation they will be forwarded to AMS to be recorded in the FRCA accounting records.

• Some activities that took place in 2007 had expenses that were paid in 2008.  An adjustment will need to be made to the FRCA accounting records since they were not included in the initial entry to establish the Social accounts in 2008.

Contracting: 

• In February Sylva Southwell stated she would provide electronic copies of some contracts that have been renewed but not passed through the Finance Committee. Still awaiting signed final copies of the following; maintenance of exercise equipment, East Coast security alarm system monitoring and the indoor plan service contracts.

• The Finance Committee reviewed the following contracts in February and are awaiting signed copies:

1. PermaTreat – Mosquito control

2. PermaTreat – Indoor Pest Control

3. Robert B. Payne – Desert Aire Maintenance

4. Robert B. Payne – HVAC Maintenance

5. American Disposal – Dumpster

6. Verizon – phone service 540 899- 9958

• Additional contracts previously reviewed (prior to using Contract Forms) and awaiting signed copies are:

7. Douglas Aquatics – Indoor Pool

8. Douglas Aquatics – Outdoor Pool

•  An electronic copy of the signed AMS Contract was received. 

9. Sanya Ham expressed concern about paragraph 3.9(C), which states that “the Agent will not utilize fire resistant cabinets or facilities and files may be subject to accidental loss or damage as a result of fire, equipment malfunction, water intrusion or theft, for which the Agent is not responsible.” Financial Statements are maintained on the Armstrong Connect system and Adobe copies of all reports have been provided to all Board and Finance Committee members, however there is concern that invoices, payments, and other records do not have any backup. 

10. Also of concern was paragraph 10.6 that states a $10,000 fine would be imposed if in the future the FRCA hires any "Agent's manager or maintenance employees or former manager or maintenance employees who have had a significant working
    interaction with the association". It further refers to “employees of the Agent…. and any firms employing any manager or maintenance employee….”  (former or otherwise).  Sanya’s questioned how will the FRCA determine if any of our contractors, now or in the future, have hired a former AMS manager or maintenance employee.   Will the FRCA do background checks or will the BOD/FRCA be placing a statement in all contracts, asking the contractor to verify that none of his employees was previously employed by AMS?  The AMS Contract should have also stated that a sum of $10,000 will not be levied if the employment was found to be unintentional.  Any contract can be amended to delete or include additional language, as long as the amended portion is signed by both parties.

2009 Budget:

• There was a special budget strategy meeting with the FRCA Board on March 12, 2008 where the proposed strategy was unanimously and enthusiastically endorsed. 

• Dan Owens and Jean Strub will begin meeting with some of the committees to discuss the 2009 budget process and also to assist the Board in gathering projects for their priority list.

• A Request for Board Action will be completed to request the establishment of an Operating Reserve.  Nancy Garner expressed concern that there might be tax implications, so we will hold off submitting the request until discussing with the auditors.

Accounts Receivable Due from Villas: 

• Agreement was reached by the Villa and FRCA Treasurers and Finance Committee Chairs and final payment of $18,707 has been received.

Prepared by:

Jean Strub

March 19, 2008