March Financials
April 20, 2018
Frank Hood
Unfortunately we end the first quarter with our March expense numbers at a higher rate than we would want at $65,302 versus last year at $62,258. In examining the expense numbers there are several unexpected repair bills & several non-budgeted items. To be more specific turn to page 4 & the trash removal line item where the number of $5853 is almost double the norm - $2660 can be attributed to the fire incident started by a homeowner. The next cost centerproperty management I would point out that the line item related to the Meglino contract shows the YTD number is a difference by some $22,721 from last year to this. Obviously over the year we will have to catch up that difference. I would also point out that the YTD salt expense is already over budget by $3766 with Nov. & Dec. yet to go due to the extreme winter weather.
Moving to page 5Admin OHour office expenses are at $1081 which is high but there is a repair bill for $470 for a new card reader at the gate that should not be in that line item. Our insurance line item shows a quarterly bill for $963 for the non-budgeted new employee disability policy. Also the payroll fee line item for $1025 consists of the last payment for the non-budgeted HR program of $602.
Moving to page 6 office building OHshows repairs of $2176 which includes an unexpected bill for the repair of a water pipe for $1785. Moving to the Security cost center our uniform & supplies line item includes the non-budgeted item for batons of $1073 & the $3500 non-budgetedbill for the security training program. I would also point out that we had some unexpected repair bills to the Jeep of $4144 which brings the YTD number over the budgeted number with 9 months to go. If we look at the YTD final expense line on page 7 we see that the first quarter expenses are at $170,119 versus last year at $170,265 or $146 less. That number is very deceiving in that it does not take into the consideration that there is a difference of $22,721 for the Meglino contract that will be made up by year’s end. Bottom line is that if we continue outspend our budgeted expenses our only way out is to reduce the dollars allocated for our reserves which should be at a minimum rate of $50,000 per year.
Turning to the revenue numbers on page 1 we see that our collections are on the same pace as last year with only $670 less collections in the first quarter. Edwina tells me that there are 395 properties paid in full or on a payment plan which is the same number as last year. That tells me there are about 39 properties that for a number of reasons we need to pay attention to. Unfortunately ever year is a battle to collect dues.
Looking at other income revenue on page 2 we have some good news that we received $6000 for 4 transfer fees. We budgeted that 16 homes would be sold this year & we have sold 5 this quarter. Also back dues revenue is at $6,048 with a budget number of $15,000. These 2 line items are key to budget revenue numbers. YTD other income revenue is down some $3521 which can be directly attributed to a reduction of violation revenue of $ 3540.
On page 3 we see total revenue at $19144 over last year helped by the increase in dues rates. What I would like to point out to all is the fact that the restricted revenue budget shows a building reserve of $26,400 & a total reserve of the minimum $50,000 amount. I point this out so that we all understand that for every expense dollar we exceed our expense budget we will need to reduce the reserve number by that amount. That is something we need to avoid.