Telegraph Landing Treasurer’s Report 03/16/05

Home

Finance Index

 

        January ‘05 Operational Spending vs. Budget

    Values in K$

    Jan

    Budget

    Variance

    Net Operating Revenue

    120.0

    123.9

    -3.9

     

     

     

     

    Expenses

     

     

     

    Administration

    19.2

    16.2

    -3

    Repair and Maintenance

    50.2

    27.3

    -23.0

    Equipment Maintenance

    9.1

    7.3

    -1.8

    Grounds Repairs and Maintenance

    13.3

    6.5

    -6.8

    Security

    12.9

    19.1

    6.2

    Utilities

    66.1

    53.3

    -12.8

    Total Expenses

    170.9

    130.0

    40.9

    Net Income

    -51.0

    -6.1

    -44.8

     

    Comments on January spending (I do not yet have the February month end spending)

     

    Spending in January was above budget, but not a trend.

     

    Administrative expenses were high due to legal and professional fees of $6.9k vs. budget of $1.2K.  I don’t see this on the check reconciliation list, and need to check.

     

    A $24.5K in payment for  ‘waterproofing’ drove the Repair and Maintenance expenses over budget.  This payment should be reversed and charged against the reserve account.  I’ll follow up on this.

     

    Drainage maintenance drove the Grounds Repairs expenses over budget.

     

    Expense for sewer service was $18.5K, $14K over budget.  I will investigate this.

     

    Other notes

     

    Levy and Company issued an independent auditors report indicating the 2004 Financial Accounting for Telegraph Landing was in conformance with accepted accounting procedures.  This report will be mailed to homeowners.

     

    The Helsing Group completed the 2005 Reserve Study.  The Finance Committee and several Board Members will hold their first discussion of the final report on April 12.  Adele will make copies for the Finance Committee and Board Members. Per the reserve study, Telegraph Landing is under funded and will need to raise assessments by some amount TBD.  Cash flow appears to be adequate over the next two years; however there would be a cash flow problem in year 3 without intervention by the Board.

     

    I believe steps should be taken to notify realtors that TL assessments include utilities.

     
                                                           -  B. Shiller, Treasurer