Finance Committee Minutes, April 21, 2009

The Finance Committee of the Falls Run Homeowners’ Association met this afternoon in the Center.

Personnel in Attendance: John Frisch, Art Gabler, Nancy Garner, Sanya Ham, and Casey Naatjes. Debbie Sutton also attended.

Variance Between Reserve Fund and Reserve Assets:

We noted that two new asset accounts totaling $100,000 were incorrectly included as Reserve Investment Assets on the Balance Sheet. The Treasurer, Bill Barnes, has notified AMS of this error. We also noted that the variance had grown by $65, excluding the error just discussed, since February. Casey used this as an opportunity to describe how to use the automated (excel) version of the General Ledger Posting Journal to find errors. In this case, there were two offsetting posting errors related to posting interest incorrectly between Operating and Reserve funds. Casey will report these posting errors to AMS to assist them in reducing the overall variance.

Debbie Sutton explained that AMS had not worked on the long-standing variance in March because the auditors suggested they wait until after the audit is completed. All agreed this was the prudent action.

Contracts

Casey described the discussion from the Board/Chair Meeting that was held on April 20. The committee agreed that there was a need to refine how contracts of varying complexity are handled.

Social Check Book Balance Compared to AMS General Ledger Account Balance

John F stated that Ann Jones and he would be reconciling the checkbook on Wednesday. Casey talked to Bill T. after the meeting to arrange a session to compare the Social Check Book Balance to the AMS General Ledger Account Balance. What follows is text from a message Bill sent to Casey last night.

“The social accounts are correct per the AMS general ledger. The BB & T checking account 10120, reflects the events closed for March that resulted in a positive cash flow.

The reconstructed balance of our checking account register to the AMS GL at 02/28 has a variance of $ 2,651.21. I will review the reconstructed balance for March within the next three days. 

The Social Event Income account, 44340, Social Expense account, 59500, and the Social Activities account, 59506 are correctly stated as provided to AMS for the closed events.”

Budget Process

The committee reviewed the request form that would be used by other committees to request budget adjustments. We noted that these request forms are due to the Finance Committee on July 15^th.

The committee also agreed that we should complete and review the results by our August 18^th meeting. However, if the Board needed these results earlier, we would change our meeting date to August 11^th.

Later, Dan Owens and Bill Barnes agreed to work with Casey to prepare and baseline budget for 2010 in preparation for consideration of the committee requests.

Adjournment: 4:10 pm.

Casey Naatjes, Chair