Treasurer's Reports --Mitch Albert
2011
2010
Treasurer’s Report: 4 Key Points
Point 1 On January 1, 2010 HP HOA changed from an accrual to a cash accounting basis. Now the financial data and reports for HP HOA should be no harder than any homeowner's personal check book. We have 11 automatic debits each month for water and electricity and maybe 5-8 checks to write to maintenance vendors and of course 6-7 deposits early in the year for dues receipts. Very few transactions to understand and balance.
Point 2 For the first time HP HOA does a forecast for each of the 12 months in the budget year. As 1 month becomes "history", it's records are locked and reconciled and the remaining months are adjusted for expected changes. Also, for the first time HP HOA has done a 5 year forecast for each cost item in the current budget year.
Point 3 Management of our finances is now simple. We manage our cash to meet an annual goal for “cash on hand” or “in the bank” for December 31 of any year. We watch what we do during the year by month and make sure the end of the year “cash on hand” forecast is close to what we approved at the beginning of the year. During the year we’re doing all of our normal maintenance, events, newsletters, etc. none of which will then change the forecast for the “cash on hand” at the end of the year.
Point 4 A new chart of accounts was developed for 2010. A chart of accounts is how a company categorizes their expenses and knows how much they spend in each category. HP had 3 tree trimming accounts that are now in 1 account and 6 sprinkler repair accounts spread everywhere which is now just 1 account.
Please call me with questions at 303-741-2556.