Waterford Owners Association

This web author does not currently have personal time to extract this summary of financial results from the monthly account statements. The sample still visible below is from about a year ago.

The year-old results had an unusual short term variance in billing for security patrol services. Billing returned to the expected schedule after the tables below were last edited. Results from later in the year would require interpretation of a relatively large expense for replacement of about half of our boundary fencing on Lakehills Drive. Our tentative plan for additional replacement of aging redwood fencing is to replace the fence on Francisco Drive this year and the remaining section of fencing on Lakehills Drive next year.

As this is written (May 20, 2006) our year to date net income is about $5,000.better than budgeted, with a total annual budget set at about $192,000. The budgeted amount is always near zero because the HOA is a nonprofit corporation. One reason for performance better than budget appears to be savings resulting from our recent switch in the HOA accounting contract, moving the accounting to the same company that performs our property management.

Total members' equity, 6/30/2005
	Current year	Prior year
Replacement fund balance	$114,339.22	$105,762.53
Operating fund balance	$40,399.95	$48,944.77
Combined funds excess revenue	$3,037.68	$196.17

Combined funds net excess revenue (loss)
Date	Current Month			Year to Date
	Actual	Budget	Variance	Actual	Budget	Variance
6/30/2005	($708.13)	$1,240.34	($1,948.47)	$3,037.68	$6,242.00	($3,204.32)
5/31/2005	($1,135.79)	$1,240.33	($2,376.12)	$3,745.81	$5,001.66	($1,255.85)
4/30/2005	($403.84)	$1,240.33	($1,644.17)	$4,881.60	$3,761.33	$1,120.27
3/31/2005	$1,262.61	$40.34	$1,222.27	$5,285.44	$2,521.00	$2,764.44

General Notes

On a monthly basis the board reviews a more comprehensive summary report, typically 6 pages, and a larger General Ledger detail report. The more detailed reports clarify reasons for variance from budget.

Variance is positive relative to budget if not parenthesized, negative if parenthesized. Cash flow relative to budget can vary by several hundred dollars, sometimes even more, depending on timing of receipt of large bills and timing of the corresponding payments. Long term (year to date) results tend to be more significant than the bottom line summaries for any given month.

A current discrepancy: Security patrol billing

At this time we have an unusual situation that appears to be doubled billing for the larger of our two security patrol service accounts, costing about $2,000 per month. We expect that correction of this error will return Waterford's financial results to a level at least consistent with the budget. Remedying the apparent discrepancies would in fact return our actual results to a level better than budgeted.

Reserve funding: Boundary fence replacement

The replacement fund is a legally required reserve for replacement of common property owned and maintained by the Association. The major upcoming expense is replacement of boundary fencing, mainly on Lakehills Drive. In connection with this the board is planning to replace wooden 4x4 timbers with steel posts to reduce long term maintenance and replacement costs.

The boundary fences are now about 17 to 18 years old and we need to begin their first replacement cycle. This year, beginning in August, we will replace the section on Lakehills Drive from Cromwell Court to the northern edge of Waterford. The Association solicited competitive bids and was able to secure a contract for the job at an amount very substantially less than our reserve study had forcast to be needed. Savings relative to the forcast and relative to the highest bid are on the order of a few tens of thousands of dollars.

Lots 315 - 322	Lots 306 - 314

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President	*Paul Raveling*
Vice President	*Dave Costantini*
CFO	*Paul Matloff*
Secretary	*Chris Murphy*
Director	*Merri Francis*