ROTONDA WEST ASSOCIATION, INC.
Budget & Finance Committee Meeting
Minutes
Thursday, January 31, 2008

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

Management: Jay Lyons, Office Manager, Norene Kugler, Assistant Manager

Others: Joseph Romano, Margie Carroll, George Krabbe

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

The minutes of the November 29, 2007 Budget & Finance Committee meeting were approved as presented.

Chairman Miller announced that the RWA Board of Directors has approved hiring Gerry Townsend as a consultant, not to exceed five hours per week, at the rate of $25.00 per hour. Mrs. Townsend will stay on the Budget & Finance Committee; however she will have no vote.

Chairman Miller asked the status of the incoming assessments. Over $200,000 has been processed through January 30th.

Gerry Townsend will be working with Jay Lyons to set up the desired budget reports.

Jay Lyons presented a January 2008 Statement of Income and Budget Report from 21st Century. The report still needs some work.

Bruce Miller reported $190,000.00 in Cds will mature in February and March.

Motion by John Carroll to purchase a six month CD for $50,000.00 and a nine month CD for $150,000.00 through Englewood Bank. Seconded by Claudette Romano and approved unanimously.

Chairman Miller presented the following Draft of the “Proposed Budget & Finance Committee Areas of Responsibilities”. Corrections were made and it was approved by the committee.

Proposed Budget & Finance Committee Areas of Responsibilities

Responsibility
Planning is the primary responsibility of the Budget & Finance Committee.  The Committee is not responsible for the day to day operations of the office accounting system (21st Century).  As indicated below, the Treasurer’s is responsible.  The Manager (once CAM license is achieved) will be responsible for day to day operations.

Volunteers
The Budget & Finance Committee members are all volunteer’s as are all other committees.  While the committee does not have responsibility for updating the accounting system database, they are encouraged to help the office staff when help is needed, i.e.: annual assessment mailing, assist office staff during Jan thru Mar assessment crush, West Ways Newsletter, and any other requests that may be needed for volunteers.

Treasurer (Chair)
The Treasurer is accountable to the Board of Director’s and must report accurate recordkeeping. The RWA Documents clearly state: “The Treasurer shall keep full and accurate accounts of receipts and disbursements in books belonging to the Association and shall deposit all monies and other valuable effects in the name and to the credit of the Association in such depositories as may be designated by the Board of Directors”.

Proposed Sub-Committee’s (provide a monthly report to the full committee for discussion)

Budget Review and Planning
Obtain and Review Manager’s Monthly General Ledger Income over Expense Report, Review and Finalize Manager’s Proposed Yearly Budget, Establish Yearly per Lot Assessment providing supporting documentation, Recommend Proposed Budget and Proposed per Lot Assessment to the Committee and Board of Director’s for approval.  Prepare and Monitor Capital Improvement & Maintenance Reserves. Develop Billing/Invoice guidelines, Reserve Study

Sub-committee: Hank Artz, Lois Burger, Bud Nill, Fred Warner

Banking/Investments
Monitor monthly cash flow.  Continually review and monitor investment programs (CD’S, Cedar’s, Money Market) ensuring maximum return on investment.  Review and implement Online Banking, Online Transfers, Check Scanning, Lock Box process, Annual Bank Day. Develop Billing/Invoice guidelines

Sub-committee: Lois Burger, John Carroll, Claudette Romano,

5 Year Planning
Set achievable goals

Entire Committee

Feedback
Responsibilities – The committee should also provide an oversight function in addition to planning. It was decided the Office Manager should provide the oversight function.

Volunteer Activities – Helping out in the office should only be at the request of the Manager.  Since the Manager is responsible for day to day operations, you don’t want volunteers overstepping their bounds.

We may want to address a chain of command.  Individual committee members shouldn’t be giving office staff or the Manager directives.  The communication with the staff should come from the Budget & Finance chair.

Budget & Finance – The review of monthly revenues and expenses, and bill payments should be the function of the whole committee.  The committee can’t make informed decisions without reviewing the monthly financials.

Budget & Finance should also look at ways to achieve savings where possible.

Motion by Lois Burger that Bruce take a motion to the Board stating that if money being spent is coming out of reserves, that fact be stated as part of the motion to spend the money. Seconded by Claudette Romano and approved unanimously.

New Business:
George Krabbe reported that three bids were solicited for the Community Center building inspection and mold inspection. The three bids were discussed and are from certified mold inspectors. Jay Lyons offered that Englewood Home Inspections is American Society of Home Inspectors (ASHI) certified and that Dan Dunham does more business in the Englewood area than most of the companies combined.

Motion by John Carroll to budget $500.00 to require the services of Englewood Home Inspections. Seconded by Hank Artz and approved unanimously. Chairman Miller will take the motion to the Board of Directors.

Jay Lyons suggested establishing a $100.00 Petty Cash account for the office.

Motion by Fred Warner to establish a $100.00 Petty Cash account. Seconded by Claudette Romano and approved unanimously.

Robert Winter applied for and received approval of a grant from SWFWMD (Southwest Florida Water Management District for $2,875.00. Jay Lyons has signed up for the class that is being given by SWFWMD on February 26th in Sarasota. Grant guidelines will be discussed at the meeting. The grant issue was tabled until the next Budget & Finance Committee meeting.

The next Budget & Finance meeting is February 28, 2008 at 2:00 PM. There being no further business, the meeting was adjourned at 4:30 PM.

Norene Kugler
Assistant Manager