Information Pages

Friday, July 28, 2017

Former Sun City Anthem Finance Committee Member
Questions "True Picture"
 of
 Association Chief Financial Officer's Report

show-me-the-money.jpg (1200×628)
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.

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
. 
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. 
  1. During one of the candidates' debates during the last election, one of the candidates (I BELIEVE it was Nona Tobin) made a statement that the SCA financial statements looked like a table of random numbers.

    Maybe the ONLY consultant that should be hired is a qualified CPA to do an INDEPENDENT audit of the SCA Books?
    1. From Buddy Greenfield...to...Anthem Opinions

      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.
      1. From Marcia Kosterka...to...Anthem Opinions

        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 !
        1. From Rana Goodman...to...Anthem Opinions

          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.
          1. From Barry Goldstein...to...Anthem Opinions

            Some are sold as used sports equipment. I don't know about video.
          2. From Nelson Orth...to...Anthem Opinions

            In the past there have been some auctions for materials that have been replaced by new items from the reserves.
            ReplyDelete
          3. From Tim Stebbins...to...Anthem Opinions

            Most of it is sold off. Directly or at auction.
          4. From Jim Mayfield, former Sun City Anthem Board Director...to...Anthem Opinions

            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.

8 comments:

  1. During one of the candidates' debates during the last election, one of the candidates (I BELIEVE it was Nona Tobin) made a statement that the SCA financial statements looked like a table of random numbers.

    Maybe the ONLY consultant that should be hired is a qualified CPA to do an INDEPENDENT audit of the SCA Books?

    ReplyDelete
  2. From Buddy Greenfield...to...Anthem Opinions

    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.

    ReplyDelete
  3. From Marcia Kosterka...to...Anthem Opinions

    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!

    ReplyDelete
  4. From Rana Goodman...to...Anthem Opinions

    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.

    ReplyDelete
  5. From Barry Goldstein...to...Anthem Opinions

    Some are sold as used sports equipment. I don't know about video.

    ReplyDelete
  6. From Nelson Orth...to...Anthem Opinions

    In the past there have been some auctions for materials that have been replaced by new items from the reserves.

    ReplyDelete
  7. From Tim Stebbins...to...Anthem Opinions

    Most of it is sold off. Directly or at auction.

    ReplyDelete
  8. From Jim Mayfield, former Sun City Anthem Board Director...to...Anthem Opinions

    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.

    ReplyDelete