Finance Committee Minutes

April 20, 2010

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

Personnel in Attendance: Don Horan, Sandra Ham, Nancy Garner, John Frisch, Bill Trzyna, and Casey Naatjes.

Budget Adjustment, Contingent on Cancellation of Cox Contract

We began this discussion with some operating assumptions to make our discussion clearer. We assumed the cost of basic Cox Service was $20 per home per month and that the contract would be terminated at the end of October.

It was agreed that the Monthly Homeowners fee of $157 (should) be adjusted downward to account for the reduced expenses being incurred by the HOA. In our example, the adjusted fee would be $137. We agreed, however, that we did not want to make this change in the middle of the budget year. The two reasons for not wanting to do an adjustment in the middle of the year were that the payment coupons run through December and many residents use recurring transactions with their bank to make these payments.

The Finance Committee agreed that the Board could decide on a furthering prorate reduction to account for the $40 dollar change (two months of cancelled contract) in 2010 or the Board might wish to consider using the “dividend” to pay for the loss in revenue from the marketing agreement and/or offset some of the snow plowing costs of the winter. In essence, our major recommendation is that we not attempt to process a mid-year reduction in the $157 fee.

Center Financial Procedures:

Bill Trzyna’s reported that he and Mal Malo had met twice already to cover month-end procedures and would have an additional session very soon.

Audit Procedures for Adjustments

We noted that the audit of 2009 is in process.

Financial Report Products

Casey reported that AMS had not yet reconciled the Reserve Fund Balance. However, that evening, Casey received and distributed a report from Suzanne Allen that the reconciliation had been completed. Casey replied to the AMS message, thanking them for the effort. He also encouraged them to have completed all correcting entries in the March business.

Adjournment: 3:45 pm.

Casey Naatjes

Chair