Former Sun City Anthem
Finance Committee Member
Questions "True
Picture"
of
Association Chief Financial Officer's Report
by
Barry
Goldstein
After attending the July
27, 2017 Board meeting, I found the report given by Chief Financial Officer, Jim
Orlick, somewhat questionable in disclosing the current financial condition of
Sun City Anthem.
Trying for a fair and balanced review of the June 30, 2017 financial report presented at the July 27, 2017 board meeting, the following information was disclosed that I believe, needs further clarification.
Trying for a fair and balanced review of the June 30, 2017 financial report presented at the July 27, 2017 board meeting, the following information was disclosed that I believe, needs further clarification.
My thoughts are
based on the following information presented at that meeting.
1. The main operating fund shows a positive variance of $488,768.
2. Comments in
the report show unfilled Sun City Anthem employee positions with a savings of
$93,382.
3. The report also mentions a number of expense items that will be payable in the last half of 2017...expenses that I believe will have a probable negative affect on the positive variance presented in Mr. Orlick's financial analysis
.
3. The report also mentions a number of expense items that will be payable in the last half of 2017...expenses that I believe will have a probable negative affect on the positive variance presented in Mr. Orlick's financial analysis
.
What brings me to this
conclusion?
a. The reserve fund shows a negative variance of $542,557 with a note that the $288,290 spent to date on the Anthem center locker rooms, has been excluded from this amount.
Combining the Anthem Center locker room "excluded
amount" with the negative variance presented in the reserve account, leaves one
conclusion:
Sun City Anthem
Reserve spending is actually $830,847 over
budget.
b. There is no mention as to either how or whether this deficit will
be replenished.
According to the report, Sun City Anthem, as of
June 30, 2017, has $2,060,405 cash on hand which
includes $1,124,732 from prepaid
assessments (dues payment from owners who prepay their association
dues in a manner other than the current quarterly
payment).
The reserve fund has cash and cash equivalents of
$9,694,701.
There is no comparison from the reserve study as
to whether this is more or less than deemed necessary by the reserve
study.
There you have it.
You decide what financial position we are in for
yourself.
Maybe the ONLY consultant that should be hired is a qualified CPA to do an INDEPENDENT audit of the SCA Books?
Question:
Here is how you get voted onto the BOD at SCA and not be subject to criticism, personal attack and being humiliated?
Answer:
Do things that are in the best interest of the community while voting to spend money as if it were your own.
This can be described in simple terms-CREATIVE ACCOUNTING. They are banking on most people either not even glancing at the six month financial report and also not being bookkeepers or accountants.
If it doesn't pass the smell test then, all the more reason to change the composition of the board.
The last time I looked, 2 plus 2 still equals 4 !
Does anyone know what is done with the equipment that is replaced from our reserves?
For example; treadmills, chairs, the poker tables, the up-coming replacement of the cameras for SCA-TV that were just approved?
I would think that there are many residents who might be interested in bidding on things of this type.
Just wondering.
Some are sold as used sports equipment. I don't know about video.
In the past there have been some auctions for materials that have been replaced by new items from the reserves.
Most of it is sold off. Directly or at auction.
There is a "Reserve Asset Disposition Form" that is to be used to authorize the disposition and method of disposition of all retired reserve assets. However, the disposition of retired assets has been a source abuse for years.
FSR used to declare them obsolete and of no value and then FSR employees reportedly sold them.
SCA has also kept the assets in active service to increase its assets and circumvent the NRS capital asset acquisition rules.
At one point, the employees were given first shot at acquiring the assets at a bargain price as an employee reward.
The whole process needs transparency and oversight by the Board.
(I used to make them report the proposed disposition process in the acquisition request and report results at a public meeting.)
Stating this is an infringement of the GM's management authorizations disregards the Board's oversight and fiduciary responsibilities mandated in NRS116.