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September year-to-date the HOA’s financial position has improved considerably. Operating expenses are 16.3% under budget, and the treasury has benefited.
With the increase of dues and under budget spending, the financial assets have grown significantly in the past 9 months. Total cash assets are up $84,917 year to date. We have been able to make $155,020 contributions to the Capital Reserve Fund. That fund is used to pay for major repairs and improvements, such as upcoming road repairs. So far this year $33,078 has been spent on capital projects, and $1,503 interest has been earned in the Capital Reserve Fund.
| Capital Reserve Accounts | Operating Accounts | Total | |
| 31-Dec-2015 | $213,979 | $324,524 | $538,503 |
| 30-Sep-2016 | $337,424 | $285,996 | $623,420 |
| Change | $123,445 | ($38,528) | $84,917 |
The Board of Directors adopted a new Finance Committee Charter that more completely describes the duties of the committee and its composition. The committee can now include a homeowner who is not a member of the Board. See Finance Committee Charter.
The Board also adopted a comprehensive set of purchasing and contract guidelines. These cover rules for approving budgeted and unbudgeted expenses, obtaining bids, selecting a winning bid, bidding procedures, periodic rebidding, contract considerations, and more. See Purchasing and Contract Procedures and Guidelines.
Every homeowner has paid their dues. There is one household still owning a late fee.
In May we started paying invoices through Bill.com. We have been successful in getting most of our frequently used vendors to sign up for electronic payments, which have a lower administrative costs per payment and provide the vendor with funds in their bank accounts sooner. With the new bill.com payment process we have a Director and the Treasurer approving invoices online (except for utility payments that are paid by direct withdrawal).
Our biggest expenses continue to be utilities (mostly gas to heat the pools and water for pools and irrigation), landscaping, and trash collection. Those three categories make up nearly three-quarters of the $172,530 Operating expenses so far this year.
Jan-Sep 2016 Operating Expense
