WHISPERING WOODS
Treasurer’s Report
May 1, 2011
The 2010 fiscal position of Whispering Woods is detailed below:
2010 Operating Budget 271,264
2010 Income received 267,135(I unit owed 4129.00)
2010 Expenses paid 203,143
Cash balance in operating 12/31/10 37,253
Savings over expenses for ‘10 operating budget 9,767
The 2010 operating budget expenses that were over the budgeted amount were due to the pool
deck repairs and pool maintenance, pump maintenance, and contingency expense which
included necessary tree removal and pruning. After the high water and sewer bills in 2009 of
which one was actually paid in 2010, our bills for 2010 showed a drop in usage. This was due to
the repairing of leaks both condo related and owner related. Insurance costs were lower as Fred
was able to find like coverage for a lesser price. We also cut insurance costs some by paying an
upfront portion thus reducing the borrowed amount.
The 2010 Reserve fund analysis follows:
Reserve fund balance 12/31/2009 71,198
Contributions from regular budget 81,000
Contributions from excess fees for decks 57,600
Expenses for decks paid in 2010 201,225
Balance – 12/31/2010 62,291
The excess contribution for decks to condo fees, as promised in 2009, will be reduced by that
amount for 2012.
The Reserve fund Balance as of March 31, 2011:
Balance – 12/31/2010 62,291
Contributions first quarter 2011 21,250
Expenses for Decks paid through 3/31/2011 107,416
Balance 3/31/2011 10,078
After the 2010 audit was completed, the board was mailed a letter regarding the low amount of
our reserves. As owners realize, since the inception of Whispering Woods, our reserve fund has
been a “plus” such that our only actual special assessment was for the under building
restoration. Acquiring a special assessment for major capital repair and or improvements
requires a process that takes time to put in place and our owners declined that option in regard
to the decks.
For the sale of properties, loan companies (such as Freddie Mac, Fannie Mae, VA, and FHA) now
require a certain percentage of the budget to be placed in a reserve. In addition, loan officers
also are very attentive to the reserve fund balances. For that reason, our Board has maintained
a reserve fund.
Insurance:
It is most important for owners to realize exactly what the master policy covers in order to have
the correct coverage in your personal policy insuring that your coverage includes the monies
that would be an owner’s part of the master policy deductible up to $5000. In addition to
regular insurance, the association carries flood coverage but that does not include any personal
effects, interior damage, heat pumps, sheds, etc. Therefore, if an owner wants this coverage, a
personal policy must be written.
Resolution regarding Excess Funds:
As has been done every year for the past 11 years, the owners must adopt the resolution for
excess funds to be carried over to the following year.
Conclusions:
As treasurer and board member, the following are items and activities of which I was most
personally involved:
Reviewed all financials including bills, past due fees, tax information, and payments to
contractors
Continued with the Board working on budget planning
Continued the monitoring of the Whispering Woods web site which contains
announcements, archived and present newsletters and contact information for board
members
Maintained the WW e-mail database and sending of announcements to owners
Created the Whispering Woods newsletters twice a year (would owners like a late
spring/summer newsletter also?)
Maintained the 27 year budget analysis
The fiduciary responsibility of a treasurer is to consistently work for the betterment of the entire
association while putting aside personal concerns or agendas. I feel that I have done that for 27
years.
Janice (Jan) Loftus
Treasurer, Whispering Woods