2/26/2021
January 2021
Treasurer’s Financial Report
UNAUDITED CCHOA RESULTS:
The unaudited month ending results for the CCHOA through January 2021 and the 7th month of the 2020/2021 year are enclosed for your review. The combined balance is $7,690,700.21. The reserve balance is slightly less than the balance for December 2020 which was $7,718,176.92. The reserve balance for January 2020 was $7,502,941.24. The reserve balance for 2019 was $7,405,331.90. The reserve balance for 2018 was $5,931,161.58. The General Manager and Directors are continuing to review all reserve categories in order to bring up to date values to each of the components. In addition, each of the reserve components will have a realistic “reserve life” attached with a better understanding regarding the various components. The CCHOA intends to avoid deferred maintenance whenever possible.
INDIVIDUAL VILLAGE RESULTS:
Currently Jamaica village, Antigua village, Bahama village, Montego village and Mardi Gras Village had expenses within their budgeted amounts. Additionally, 5 Villages and common administration had higher expenses than that which was budgeted. As mentioned in previous Treasurer’s reports, individual villages and common make every effort to stay in the budgeted amounts but at times emergencies or non-negotiable expenses occur and the funds must be allocated whether they are within the budget or not. During most of the pandemic two pools were kept open to be shared by the 8 villages with pools. Recently the Mardi Gras pool was closed due to very little use and the significant expense of having a required monitor available and the regular sanitizing of the pool facility. The expense for these requirements was not budgeted in the 2020/2021 budget. For individual results, please contact the CCHOA office (619-423-4353) after the February 25, 2021 Board meeting and request an electronic copy of the CCHOA financial report.
The below list highlights the significant expenses over the budgeted amount:
Common- consultants (Walters Management), administrative salaries, and admin employee burden.
Green Turtle-sprinkler parts and water usage.
Trinidad-sprinkler parts and pool monitoring services.
Kingston-maintenance wages/personal leave, general maintenance supplies, outside plumbing, water, pool monitoring services, pest control, termite work, and earthquake policy.
Blue Anchor-sprinkler parts and water.
Port Royale-maintenance wages/supplies, sprinkler parts, water, and pool monitoring service.
INVESTMENT PLANNING:
The CCHOA Board, General Manager and Finance Committee regularly monitor investment rates in an effort to find the most secure rates available to the CCHOA. Wells Fargo Advisors regularly advises the CCHOA on the most appropriate investment opportunities available to the CCHOA considering safety first with yield second. Currently the CCHOA invests in CDs, T-Bills, Notes, Government oriented securities and Municipal Bonds (rated AAA by Moodys and Standard & Poors). An investment ladder is maintained so that maturing investment funds are available for reserve expenses. At the recent Finance committee meeting various investment opportunities were discussed and the committee decided to delay a recommendation to the Board until after the reserve study is concluded. Safety remains as a top priority. There are other investment opportunities available to the CCHOA, such as ETFs, bond mutual funds, various interest paying equities, but they can all move up and down in value potentially causing the CCHOA to lose reserve value. This would not be a desirable outcome. Rates currently available to the CCHOA, when considering government insurance, are currently paying .03% to .30%. At times, there are higher CD rates advertised but these CDs are generally not available to the CCHOA. The Prime Rate remains at 3.25% with the Feds taking no action at their last meeting
| January | January | % | January | January | % | ||
| COMPILATION | Actual | Actual | change | Actual | Budget | change | |
| Cash | 173,020.36 | 528,305.23 | 205.34% | ||||
| Revenue | 2,389,794.80 | 2,399,186.49 | 0.39% | 2,399,186.49 | 2,369,370.50 | 1.26% | |
| Expense | 2,298,172.13 | 2,361,545.39 | 2.76% | 2,361,545.39 | 2,369,371.27 | -0.33% | |
| Net Income | 91,622.67 | 37,641.10 | -58.92% | ||||
| Reserves | 7,502,941.24 | 7,690,700.21 | 2.50% | ||||
| January | January | % | January | January | % | ||
| COMMON | Actual | Actual | change | Actual | Budget | change | |
| Revenue | 1,176,923.02 | 1,195,713.42 | 1.60% | 1,195,713.42 | 1,171,883.02 | 2.03% | |
| Expense | 1,204,632.93 | 1,176,769.93 | -2.31% | 1,176,769.93 | 1,171,883.09 | 0.42% | |
| Net Income | -27,709.91 | 18,943.49 | 168.36% | ||||
| Reserves | 1,654,863.33 | 1,882,091.40 | 13.73% |
Respectfully,
Bob Rood, CCHOA Treasurer1