ROTONDA WEST ASSOCIATION, INC.
Budget & Finance Committee
Minutes - January 25, 2007

PRESENT: Bruce Miller, Chair, Hank Artz, Lois Burger, Bud Nill, Fred Warner

OTHERS: Joe & Claudette Romano, George Krabbe, Nick Gizzi, Dick Wasserman, John Eisele, Wayne Mengal, Derek Gilbert, John Carroll, Tom Madsen, RWA Manager

Chair Bruce Miller called the meeting to order at 9:00 AM. A quorum was present.

Minutes from the November 13 meeting were reviewed. Hank Artz moved that they be approved. Motion seconded by Bud Nill and approved unanimously.

The Committee reviewed the proposed layout change on the Reserves report, which explicitly documented where the reserve shortfall was applied, and approved the changes.

The Committee reviewed the suggested spread of the approved annual budget into monthly increments. The Chair asked all committee members to examine this at home and suggest changes if they had any.

The Committee reviewed the proposed new Income over Expense report form and approved it without modification.

The Manager reported that it had been necessary to prematurely cash one of the Association's CD's in the CDERS program in order to provide sufficient cash to meet expenses. The cash received from this CD was $50,872.34. The premature cashing resulted in a loss to current value of $1,060.27.

The Chair indicated that the Committee must conduct a complete review of the Association's Banking relationship and CD practices. The Manager was asked to schedule a meeting at the Community Center between the Committee, accountant Geoff Lorah and representatives of the First Community Bank.

The Manager was asked to begin providing a monthly and YTD report to the Budget and Finance Committee showing Revenue accounts and Expense accounts. The Expense accounts should further be broken out by major vendor(s) to show who is receiving payments from this account.

Chair Bruce Miller indicated that the Board had asked each Committee to submit a 5 year plan to the Board showing things that the Committee would like to achieve. Among items discussed were:

1) The possibility of changing the Association from an accrual reporting basis to a cash reporting basis, and 2) Beginning a budgeting process for the following year and the year after that and continuously refining the budget proposals based on input from the current year's results.

Next month's agenda should contain an item asking the Committee to discuss what types

of planning functions should be undertaken by the Budget and Finance Committee

The next meeting will be Thursday February 22 at 2:00 PM

The meeting adjourned at 10:30 AM