ROTONDA WEST ASSOCIATION, INC.
Budget & Finance Committee
Minutes - March 29, 2007

Present: Bruce Miller, Chair, Claudette Romano, Hank Artz, Lois Burger, John Carroll, Bud Nill, Fred Warner

Management: Norene Kugler, Assistant Manager

Other Members/Visitors Present: Nick and Kathy Gizzi, George and Donna Krabbe, Joe Romano

Call to Order

Chair Bruce Miller called the meeting to order at 2:00 PM with a quorum present.

The minutes of the March 8, 2007 Budget & Finance Committee meeting were approved as presented.

Mr. Miller expressed his thanks to Claudette Romano for keeping the Budget & Finance Committee going and to the tons of people for their concern for “me and my family” through his surgeries and recovery.

Bud Nill and Hank Artz suggested that Budget & Finance Sub-Committees could channel the expertise of committee members and perhaps save time for the committee as a whole. Discussion ensued as to the validity or need of a sub-committee

It was agreed by the committee that the number of individuals authorized to contact Englewood Bank should be limited. Chair Bruce Miller suggested only the Treasurer and Claudette Romano (Director & Officer) be authorized to contact the Englewood Bank relative to inquiries on investment accounts. The Committee agreed.

Claudette Romano read a report of the Money Market and Checking accounts balances at First Community Bank and Englewood Bank as of 1:30 PM March 29, 2007.

It was suggested that after receiving the March bank statements from First Community Bank, the balance in both the Money Market and Checking accounts  be transferred to Englewood Bank.

Since John Piepmeier was not able to attend the meeting, he expressed some of his concerns by email to some of the Budget & Finance Committee members. (Email attached)

Since the Committee is dealing with a data integrity problem with Century 21, the Committee agreed that any non-budgeted expense must be approved by the Board of Directors. A motion will be forthcoming to the Board, that will generally outline the intent of holding down non-budgeted expenses.

Chair Bruce Miller asked the committee to think about establishing a legal (litigation) fund using the current budgeted savings from the former manager’s salary. Any expenses that can be attributed to the past actions of the former manager would be taken from this fund. i.e. Resolving the General Ledger problems which requires labor and wages, possible technical support, etc.

A long discussion was held as to finding a consultant to help the office in resolving the Century 21 situation. While former manager, Nancy Leighton, was probably the most qualified, the committee agreed, under the circumstances, that was not a viable option and that the committee needs to look at other alternatives.

Chair Bruce Miller advised the committee that he was asked to write a Description and Duties of the Budget and Finance Committee article for the RWA website as requested by Wayne Mengel. After minor changes by the committee, the article now reads as follows:

Description and Duties of the Budget and Finance Committee

This committee is chaired by the Treasurer/Officer of the Rotonda West Association’s Board of Directors. Members of the committee generally have a background in finances, banking, CPA and Accounting and a strong corporate business focus.

The committee is responsible for developing a yearly budget that financially manages the RWA’s revenue and expenses throughout the year. Proposed budget must be approved by the Board of Directors. Revenue sources are Assessments, Interest, Transfer Fees, Fines, and Residential Modification Application Fees.

Additionally, the committee is responsible for the following:

• Recommend a Per Lot Assessment based on total budget divided by 8,006 lots. Requires Board approval.
• Treasurer reports on the monthly financial status of the budget at the monthly Board meetings
• Review monthly income and expense report
• Prepare and monitor Capital Improvement & Maintenance Reserves report
• Continually review and monitor investment programs, primarily CD’s and Money Market accounts.
• Manage month to month budget activity by insuring funds are available to cover expenses. Requires the management of CD’s.
• Conduct a complete yearly review of the RWA’s banking relationship. Continually demand the greatest return on investments.
• Continually work to improve the RWA’s financial accounting and reporting process.
• Review yearly audit provided by the RWA’s CPA.

John Carroll presented a monthly timeline report. He stated that the committee needs to start thinking of cutting down on expenses and working on a timeline to do so.

It was suggested that an agenda items for the next Budget & Finance Committee meeting should be -  The definition of money in the reserves.

The next meeting is scheduled for Thursday, April 26, 2007 at 2 PM.

The meeting adjourned at  4:20 PM.   

Norene Kugler
Assistant Manager