SUN CITY SUMMERLIN COMMUNITY ASSOCIATION, INC. FINANCE COMMITTEE MEETING DESERT VISTA COMMITTEE ROOM January 25, 2018 at 2:00 PM AGENDA I. Call to Order – Establish Quorum Dick Gluch II. Introduction of Committee Members Dick Gluch III. Approval of Agenda Dick Gluch IV. Approval of Minutes from November 27, 2017 Finance Committee Meeting Dick Gluch V. Financial Overview: Ralph Gallo/ A. December 2017 Financial Statements for Operating Fund Raylene Elmore VI. Committee Reports A. Insurance Committee Jim Camburn B. Investment Committee Ken Resnik VII. Other Matters Dick Gluch VIII. Resident’s Comments Dick Gluch IX. Chairman and Committee Members Comments Dick Gluch X. Adjourn Dick Gluch Next Meeting of the Finance Committee **********Thursday February 22, 2018 at 2:00 PM********** DESERT VISTA COMMUNITY CENTER COMMITTEE ROOM Unaudited The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance. 1
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SUN CITY SUMMERLIN COMMUNITY … Sky Meadow Ave SCSCAI Representatives Mountain Shadows Administrative Office 966-1401 Mitzi Mills ... Controller Summary ..………………. .....6-7
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SUN CITY SUMMERLIN COMMUNITY ASSOCIATION, INC. FINANCE COMMITTEE MEETING
DESERT VISTA COMMITTEE ROOM January 25, 2018 at 2:00 PM
AGENDA
I. Call to Order – Establish Quorum Dick Gluch
II. Introduction of Committee Members Dick Gluch
III. Approval of Agenda Dick Gluch
IV. Approval of Minutes from November 27, 2017 Finance Committee Meeting Dick Gluch
V. Financial Overview: Ralph Gallo/
A. December 2017 Financial Statements for Operating Fund Raylene Elmore
VI. Committee Reports A. Insurance Committee Jim Camburn B. Investment Committee Ken Resnik
VII. Other Matters Dick Gluch
VIII. Resident’s Comments Dick Gluch
IX. Chairman and Committee Members Comments Dick Gluch
X. Adjourn Dick Gluch
Next Meeting of the Finance Committee **********Thursday February 22, 2018 at 2:00 PM**********
DESERT VISTA COMMUNITY CENTER COMMITTEE ROOM
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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Rev. 01/23/18
2017-2018 SCSCAI Finance Committee
RICHARD GLUCH - Chairman – 03/15 – [email protected] 362-4841 10112 Bundella Dr.
SUN CITY SUMMERLIN COMMUNITY ASSOCIATION DESERT VISTA COMMITTEE ROOM MEETING MINUTES
FINANCE COMMITTEE MEETING 2:00 P.M. – November 27, 2017
THIS MEETING IS BEING RECORDED
Present: Committee Members: Ken Resnik, Barbara Holden, Sandy Krause, Leo Crawford, Lee Fair, Sheldon Rosenberg, Fred Wagner, Bill Winchester Staff: Mitzi Mills – Executive Director, George Khalaf – Finance Director (via teleconference), Raylene Elmore - Controller, Jill Myers – Recording Secretary Absent: Committee Members: Kathleen Wagner, Melissa Blake, Richard Gluch, Jim Camburn Call to Order Ken Resnik called the meeting to order at 2:04pm and noted a quorum was present. Introduction of Committee Members Committee Members introduced themselves Approval of Agenda Fred Wagner made a motion to approve the agenda. Sandy Krause seconded. There were no objections. Approval of Minutes Fred Wagner made a motion to change the verbiage from meeting minutes to meeting notes for the October 26, 2017 meeting since a quorum was not present and to approve the minutes of the September 28, 2017 meeting. Sandy Krause seconded. There were no objections. Audit Review for the Year Ended June 30, 2017 Gary Lein of Hilburn & Lein, CPAs presented a draft of the FY2017 audit findings. Update of Tax Returns FY2017 Gary Lein gave a brief update on the FY2017 tax return and stated the Association will be receiving a refund pertaining to the fuel tax. Financial Overview Review of October 2017 Financials – George Khalaf provided an overview of the financial statements. SCSCAI closed October with a net loss of $62,322. This was below the budgeted gain of $62,846 by $125,168. Revenues for the month totaled $1,402,633 and they exceeded budget by $67,593 mainly due to a positive variance of $20,218 in golf revenues, $7,216 in food and beverage revenues and $40,159 in other revenues represented by realtors’ resale packages. For the month, expenses totaled $1,464,955 compared to budget of $1,272,914 which resulted in a negative variance of $192,761. This variance was driven by a negative variance in operating expenses of $135,469 (due to a timing difference associated with recording seeding expenses of $77,695 and recording an unbudgeted insurance deductible of $25,000), cost of goods sold of $13,065, payroll and related expenses of $34,517, utilities of $23,058 offset by positive variance in repairs and maintenance of $13,348. There was discussion regarding golf rounds and golf revenues and the Analysis of Golf Rounds reporting on the website. There was discussion regarding the golf marketing benefits. There was discussion regarding showing golf operations and golf course maintenance combined on the financial statements. There was discussion regarding shifting the focus of the Food & Beverage department to Tavern. Committee Reports Insurance Committee No report Investment Committee Ken Resnik gave a report from the November 6, 2017 meeting. Audit Committee Ken Resnik made a motion to reinstate the Audit Committee and to appoint Lee Fair as the chairman. Fred Wagner seconded. There were no objections.
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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Other Matters Raylene Elmore provided and update on the insurance proceeds received for the embezzlement. There was a $25,000 deductible and a $5,000 bill for Hilburn & Lein CPAs. The net check received was $55,634.19 of which $52,440 of NORA funds will be transferred to the reserve funds account. Ken Resnik stated he felt a board resolution would be needed in order to transfer the funds. Mitzi Mills suggested that there be a board resolution to ratify the transfer. The committee agreed. Mitzi Mills gave and update on the Reserve Study. Bill Winchester has been assisting with the process. The RFP will be going out December 1, 2017 for bids to be opened at the January 2018 board meeting. There was discussion regarding the audit timeline. Hilburn & Lein, CPAs confirmed they have 210 days per Nevada State law to complete the audit which would allow time for the audit committee to review it prior to it being presented to the audit committee. Resident’s Comments Ellen Bachman inquired about when the results of the forensic audit can be expected. Raylene Elmore stated the field work has been completed but we did not have a time frame as to when to expect the report. Chairman and Members Comments Sandy Krause brought up a safety concern regarding putting up and taking down the flags along Del Webb Blvd. Mitzi Mills will address it with that department. Motion to Adjourn Sandy Krause made a motion to adjourn the meeting. Fred Wagner seconded. The meeting was adjourned at 3:55pm.
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
Sun City Summerlin Community Association, Inc. Operating Fund
Controller Summary December 31, 2017
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Summary
SCSCAI closed December with a net gain of $115,250. This exceeded the budgeted gain of $68,674 by $46,576. Revenues for the month totaled $1,276,422 and they exceeded budget by $73,696 mainly due to a positive variance of $56,276 in golf revenues. For the month, expenses totaled $1,161,172 compared to budget of $1,134,052 which resulted in a negative variance of $27,120. This variance was driven by a negative variance in cost of goods sold of $48,797 and utilities of $12,488. Year-to-date, the net loss of $313,398 is favorable to the budgeted loss by $471,892, driven by higher revenues of $288,008.
Financial Results by Business Segment Golf Pro Shops: Revenues for December totaled $258,828 compared to budget of $202,552. This favorable variance is the result of the marketing dollars spent last fiscal year to boost revenue. In December golf rounds were 6,049 and they exceeded budget by 1,114 rounds. Expenses for December totaled $139,876 compared to budget of $139,627. Food and Beverage: Overall and including Vista Grill, food and beverage net contribution was negative $31,930 for the month which exceeded the budgeted deficit by $10,604. Catering events continue to be strong for January. Administration: For December, the department’s net contribution totaled $662,765and was slightly below budget by $12,826. Revenues for December totaled $884,164 and were slightly below budget by $7,278. For the month, expenses totaled $181,399 and they were over budget by $5,548. Included in this month’s expenses are the Forensic Audit, recruiting expenses for the Executive Director and Bylaw Election expenses. Facilities Maintenance and Landscape: For December, the net contribution totaled negative $289,251 compared to budget of $27,768. Other Departments: Other departments comprise of information technology, security, the Link, community services and fitness, please refer to the detailed income statement report for review of month end and YTD financial performance.
Balance Sheet Current Assets: Overall, total assets of $4,147,614 have increased by $232,814 compared to the prior month. The main driver of the increase includes the following significant activity:
• Total cash of $984,581 increased from the prior month by $130,542 due to a large billing month and residents making payments before year end.
• Inventory stayed consistent with prior months.
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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Sun City Summerlin Community Association, Inc. Operating Fund
Controller Summary December 31, 2017
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• Fuel in tanks decreased by $4,765 compared to the prior month due to no delivery needed in the month.
Investments: Represents investments in certificate of deposits held at local financial institutions. In accordance with the investment policy, these investments are laddered and held to maturity. As of December, 31th, investments totaled $2,240,000. These investments represent the par value of all certificates of deposit held in the operating fund. . Current Liabilities: In December, total liabilities closed the month with a balance of $3,292,649 with an increase of $117,764 compared to the prior month. This increase was driven mainly by an increase in Deferred Revenue.
• .
Reserves: As of December, 31th, the operating fund balance totaled $845,043 and has increased by $115,051 mainly due to recording the gain for December 2017.
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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Operating Reserve Fixed Assets Consolidated
Fund Fund Fund Funds
Assets
Current Assets
Cash 989,931$ 289,110 - 1,279,041$
Other Current Assets 900,882 170,806 231,284 1,302,972
Total Current Assets 1,890,813 459,916 231,284 2,582,013
Investments - Certificates of Deposit 2,240,000 14,422,823 - 16,662,823
Land, Buildings & Equipment, net - - 46,843,214 46,843,214
Other Assets 16,801 - - 16,801
Total Assets 4,147,614$ 14,882,739 47,074,498 66,104,851$
Liabilities and Fund Balances
Current Liabilities
Accounts Payable 441,860$ 10,185 - 452,045$
Deferred Income 2,343,077 - - 2,343,077
Accrued Expenses 501,112 - 345 501,457
Total Current Liabilities 3,286,049 10,185 345 3,296,579
Other Liabilities 16,522 - 16,522
Total Liabilities 3,302,571 10,185 345 3,313,101
Fund Balances 845,043 14,872,554 47,074,153 62,791,750
Total Liabilities & Fund Balances 4,147,614$ 14,882,739 47,074,498 66,104,851$
FUND BALANCE FUND BALANCE - BEGINNING 1,156,620 1,156,620 1,116,492 Due from (Due to) Other Funds 1,821 2,021 (128,880) NET PROFIT/LOSS (313,398) (428,648) (379,766) -------------- -------------- --------------TOTAL FUND BALANCE 845,043 729,992 607,846 -------------- -------------- --------------
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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SUN CITY SUMMERLIN Pg 2 Balance Sheet for Fixed Assets - December, 2017
This Last Month Month
-------------- --------------TOTAL CURRENT LIABILITIES 345 345 -------------- --------------
FUND BALANCE TRANS FROM RECON TO ASSETS 3,908,992 3,724,466 FUND BALANCE - BEGINNING 44,379,820 44,379,820 NET PROFIT/LOSS (1,214,659) (1,019,653) -------------- --------------TOTAL FUND BALANCE 47,074,153 47,084,633 -------------- --------------
-------------- --------------TOTAL LIABILITIES & FUND BALAN 47,074,499 47,084,979 -------------- --------------
===== End of Report =====
January 23,2018 12:57pm User: RAG Term: A2
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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SUN CITY SUMMERLIN Pg 1 Balance Sheet for Golf Course Reserve - December, 2017
This Last Month Month
ASSETS
CURRENT ASSETS CASH AND CASH EQUIV 14,711,933 14,660,373 A/R - INVESTMENT EARNINGS 38,184 39,476 OTHER ASSETS 132,622 199,886 -------------- --------------TOTAL CURRENT ASSETS 14,882,739 14,899,735 -------------- --------------
CURRENT LIABILITIES OTHER LIABILITIES 10,185 10,053 -------------- --------------TOTAL CURRENT LIABILITIES 10,185 10,053 -------------- --------------
FUND BALANCE FUND BALANCE - BEGINNING 17,959,600 17,959,600 CURRENT YR FUND TRANSFERS (3,935,156) (3,750,830) FUND BALANCE YEAR TO DATE 848,109 680,912 -------------- --------------TOTAL FUND BALANCE 14,872,554 14,889,682 -------------- --------------
-------------- --------------TOTAL LIABILITIES & FUND BALAN 14,882,739 14,899,735 -------------- --------------
===== End of Report =====
January 23,2018 1:16pm User: RAG Term: A2
Unaudited
The Association is in compliance with paragraph (b) of subsection 2 of NRS 116.3115 and reserve funds have not been used for daily maintenance.
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Current Last Yr Current Mo vs YTD YTD YTD Actual
Mo Mo Mo Actual Current Prior Yr Current vs
Actual Actual Budget Budget Actual Actual Budget Budget