Regarding financials and accounts payable/receivable, let's start by showing some love to key players. Marlene Ganci is the running back here at Arbor Grove. Bills are submitted by vendors or individuals in various ways to Dianne or Wayne for approval. Once verified, the bill is approved and sent to Marlene for payment. Marlene plays a vital role in the budget by correctly categorizing payments, so QuickBooks reports are accurate.   So much time and effort go into this process, and every effort is made to make things as efficient as possible. So, a huge pat-on-the-back to all who use ACH to pay your monthly HOA fee. 

 

QuickBooks reports are generated as needed. It’s what you see posted on the AG website after each board meeting and at year-end, listing every bill paid for the year. These financial reports are the basis for building the annual budget. Thanks to Mar and Dianne for keeping our information correct and available!

 

 

The real work begins long before the owners receive the budget before the annual meeting, which is shared with homeowners. In July, the committee chairs are asked to submit their budgets for the upcoming year. The committee work is highly involved and requires getting bids for painting and lawn care or estimating next year's chemical needs for the pool and pond. The committees estimate and plan maintenance work or projects for the upcoming year. This work involves committees getting estimates from various vendors and submitting RFPs (Requests For Proposals) so every effort is made to get the best price within our marketplace. 

 

Next, we review and estimate day-to-day items such as utilities, insurance, etc. Reserve items are reviewed for accuracy and future needs to ensure the monies are available when needed. Using all the information above to determine next year's expenses is the playbook for suggesting the HOA fees for the upcoming year’s budget. 

 

Here's where the Finance Committee starts their work. They review the proposed budget in detail. We frequently must return to the committees to discuss their budgets and potentially reduce some optional expenses. The Finance Committee is also the reserve's watch guard to ensure we have enough funds to keep Arbor Grove up to snuff, as it were, where we all want to live. When finished, the Finance Committee recommends a proposed budget to the Board of Directors.

 

Finally, the Board reviews the Finance Committee's recommendations and approves sending it in the annual package to all owners. The Board eventually approves the budget at the annual meeting.

 

How are we doing Financially?  

 

Our operating funds are good.  We have been able to build up some working capital from the closing fees received from the sale of units.  We do our best to estimate costs, but some things may change, like the amount of snowfall or increases in utility or insurance rates that are beyond our ability to estimate.  Operating Budget funds are not spent unless necessary or approved by the board.  Arbor Grove saves a tremendous amount of money through the volunteer work of all committee members and by not hiring a management company.

 

Every year, during the budget analysis, Rosemary and Dianne review the Reserve Projections with input from various committee members.  AG does not spend money based on what is in the reserves but rather on the necessity of the work.  Building costs increase regularly, and we try to increase our estimates as they do.  Our reserves are not fully funded.  Our goal is to contribute to the reserves every year.  At the present time, it appears the reserves will be able to cover projected expenses until 2034. 

 

           The Finance Committee includes:

 

Dianne Schaafsma & Rosemary Wieliczko
Chairpersons

Committee Members
Jack Dorn
Sandi Frenzke
Marlene Ganci
Roy Quanstrom
Sharon Schiller