At yesterday’s board meeting (August 19, 2020), Treasurer Wayne Foltz clarified the end of year operating cash.
.Wayne Foltz: “I just want to address the cash flow estimates of operating cash at the end of the year that we had in the work session. And it’s unfortunate that a simple discussion of an estimated year operating cash could turn out to be such a media disaster. So that the membership and the media will know, we are continuously estimating the cash balance of each remaining month and at the year-end. To clarify, we still anticipate operating cash at the end of the year to be around 2.2, and that’s operating cash. And there is another 5.8 million in designated reserves and investments for a total of 8 million dollars. I just think that’s important that we get that out. And I am sorry that that happened. It’s out of my control, but that’s what happens sometimes when people don’t have the handouts.”
Lloyd Sherman: “For clarification, Wayne, as I understand it, our cash flow at the end 12-31-19 would have been seven million, thirty-seven thousand dollars. And currently the projection at year end, including all cash and cash equivalents will be around eight million.”
Wayne Foltz: “That’s correct.”
year-end-cash-projection-clarification* * *
Transcribed by Cheryl Dowden, August 20, 2020
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Tom Blakeman
08/20/2020 — 5:14 pm
Clarification? Maybe. Sorry but I’m still confused and tired of trying to dig, read between the lines and examine the tea leaves. Or maybe I’m just slow.
Shouldn’t this clarification also show how we would be had the COVID ‘grant’ not come our way? Let’s see, Operating Cash: + $2,220,000 -$3,000,000 = Negative $780,000. Yes? No? Maybe?
We spend about $36,000,000 per year, half of which is a fixed burden, i.e., salaries and benefits. The grand projected year end total of $8,000,000 ‘cash and investments’ (portions of which we can’t touch for various reasons) seems pretty small to me.
So are we really good or really bad? What should we have? What’s our confidence index that we now really have all our accounting straight?
Linda Anderson
08/23/2020 — 2:30 pm
Tom, you were not the only one that was confused about the $3 Mil. which was only to be used for payroll ( administration personnel ) for a few months and should not be spent for anything else otherwise it becomes a loan with an additional fee of $44,000. So the only conclusion is that the $ 3 Mil was included in the accounting estimate which shows that HSV has a lot of money to spend on maintenance issues like the Balboa Club House and the Woodlands. This can’t be right. Is there 2 separate accounting estimates? Also, there should have been a separate disclaimer to remind the Board of how many months are left before this $3Mil. is exhausted and what that means for HSV’s financial outlook.
What happened to the ” Golf Reserve Fund ” ? This was to be based on $2.00 per round added and was to be separated to pay for future maintenance of Golf Courses & Club Houses.
Let’s face it, most people don’t understand financials so at the end of any financial review simply disclosing the annual revenue coming in and expenses going out would be helpful. In April 2019, Nalley stated that the annual revenue was $37 Mil.. On 8/12/20 Board member mentioned $39 Mil.. Knowing the correct annual revenue is required. Then the Board could take a closer look at the divisions of the administration. Frank Leeming did an excellent review of the divisions – profit and loss in 2018.
With our GM continuing to cut costs to strengthen the balance sheet and bring solutions to huge issues like unsold lot’s and maintenance of our Golf Courses & Club Houses, there is a lot of work ahead.
Minn Daly
08/24/2020 — 9:26 am
Tom & Linda, thank you for your articles. Both are so correct. Members need to see the AUDIT that was supposed to be done. If it was completed let’s see it. If it is not finished then let the BOD get it completed & show it to membership. Putting numbers out that does not add up is a process that does NOT build TRUST. We as members need to know the financial condition of our community. Minn Daly