Results of 2012 Financial Operations
AGENDA
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Introduction
Cash, Receivables, Equity
Capital Assets/Reserve Accounts
Income & Expenditures
Budget Performance
Proposed 2013 Budgets
Insurance
Annual Fee Assessment
Publication of Annual Report
Summary
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Schedules:
Balance Sheet
Income Statement
Budget Performance
Proposed 2013 Operating Budget
Proposed 2013 Capital Budget
Fixed Assets Amortization Schedule
Budgeted Expenditures Chart
INTRODUCTION
To the BCHA Board of Directors:
This report is prepared in accordance with the established BCHA policy on reporting and audit
of BCHA financial operations, which is to be completed within 60 days of year end.
BCHA Financial Operations involves the following steps:
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Billing members for association fees on an annual basis and mailing out monthly reminder
statements.
Collecting members' payments and vendor statements sent to the P. O. Box (bimonthly)
Recording collections and depositing checks in the Regions Bank.
Issuing/recording checks in payment of vendor invoices and sundry reimbursement
requests.
Filing Federal local tax returns.
Issuing information statements related to property sales.
Reconciling sundry bank accounts.
Maintaining Property Amortization Schedule
Printing financial reports from QuickBooks Accounting.
Preparing package in support of annual audit.
Reporting financial status to the Board and Members at year end meetings.
The following paragraphs represent the results of BCHA operations for 2011 and BCHA's financial
condition as of December 31, 2012. (See accompanying financial statements).
AGENDA
CASH/RECEIVABLES/EQUITY
See: Balance Sheet
 Cash in the Operating and Reserve Accounts at 12/31/2012 was
$64,087. There were no significant anticipated accounts payables.
 Petty Cash at 12/31/2012 was $300. There were no unreimbursed Petty
Cash vouchers.
 Accounts Receivables: Total account Accounts Receivable at year end
were $1,356 (5% of total collections).
 Year-end 2012 Lot owner’s Equity per lot is $3,489, ($160,496 / 46
lots), slightly less than the previous period.
AGENDA
Capital Assets/Reserve Accounts
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(See Amortization Schedule)
 BCHA accumulates sufficient reserve funds to effect major
renovation or replacements of its capital assets throughout their
useful lives. (Recent examples include the resurfacing of both
swimming pool and tennis courts in 2010). The underlying
calculations are performed on an Amortization Schedule, that
determines the reserve requirements and allocated reserve funds
according to asset. (See: Amortization Schedule as of 12/31/2012),
 The year-end balance in reserve accounts totals $56,872 ($33,227 in
the Regions Bank Deposit Account, and $23,645 in a CapitalOne
Bank Certificate of Deposit.
 The estimated reserve requirements are $56,872 thousand,
indicating an excess of $3,788. (Within 7% of target).
AGENDA
2012 Income & Expenditures
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(See: Income Statement)
 2012 Income from operations (primarily
Association Fees) were $25,584, including $115 of
late charges and $89 of reserve interest income,
about the same as the prior year.
 Operating Expenditures were $14,329, (exclusive of
$5,082 of Reserve Fund additions) about 8% less
than the prior year.
 Net Income for the year was $11,255, which was
$2,546 (0r 29%) higher than the prior year. See:
Budget Performance for the explanations.
AGENDA
2012 Budget Performance
 See: Budget Performance
 BCHA Expenditures for 2012 were $14,329 or 1% over the
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budget of $14,156.
Uncollectable Accounts of $0 was under the $500, due to
the absence of any foreclosures during the period.
Landscaping cost was $1,240 or 26% under budget due to a
delay in replacing the prior landscaper who unexpectedly
quit.
Repairs & Maintenance was $795 under the $2,900 budget.
Special Functions was $454 over the $400 budget
To the good, most expenditures, including Pool Service,
Utilities, Insurance, Federal Income Taxes and others, came
in at or under budget. AGENDA
Proposed 2013Budget
(See: 2013 Budget Proposal
 The Proposed 2013 Budget is based essentially on 2012 actuals,
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adapted for known changes.
Budgeted Income from all sources is $25,600.
Budgeted Expenditures are $16,635, prior to allocation of $1,294 for
funding future reserve expenditures, and the 2013 Capital Budget
of $4,171 (per Attachment C).
This results in a modest predicted increase in surplus for the
year, assuming that operating expenditures remain fairly
constant, and capital expenditures are accomplished in
accordance with programmed replacements per the amortization
schedule.
The Board will continue their efforts to offset escalating costs by
various means, including:
 Sponsoring the Annual Cleanup Day,
 Competitively bidding of service contracts,
 Use of low cost local labor for maintenance, and
 Performing accounting in house (via a member’s volunteer
services.
AGENDA
Insurance
 BCHA carries a policy with State Farm Insurance
for $1 million per incident in Liability Insurance,
$2.1 million in aggregate, as well as $1 million of
Directors and Officers coverage and other typical
coverage’s.
 This coverage, which includes an umbrella
coverage, would appear to be adequate for most
contingencies.
AGENDA
PUBLICATION OF ANNUAL FINANCIAL REPORT
 This report will be submitted to the BCHA
Secretary, and emailed to each BCHA Board
Member.
 Copies of this report and attachments will be
available via email, upon request to the BCHA
Secretary.
 The Operating Budget and Report Summary is
available on the BCHA Website.
"thebaycolony.com“
AGENDA
ANNUAL FEE ASSESSMENT
 Continuing higher cost were essentially offset (for now) by
careful planning , monitoring and control of expenditures.
(e.g., Budget Coordinators, etc)
 The Board continues to pursue savings in major
expenditures by sponsoring the Annual Cleanup Day,
competitively bidding of service contracts, use of low
cost local labor for maintenance, and performing
accounting in house (via a member’s volunteer services).
As a consequence - the annual fee assessment will remain the
same for 2013.
AGENDA
SUMMARY
 Based upon the aforementioned facts and
circumstances, it would appear that the Association
(BCHA) is financially sound and should continue to be
so, as long as conditions remain essentially the same.
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AGENDA
Balance Sheet
Checking/Savings
Operating Account -Regions Bank
7,215
3,842
3,373
87.8%
300
300
0
0.0%
Reserve Fund - CapitalOne
23,645
23,562
83
0.4%
Reserve Fund - Regions Bank
33,227
28,139
5,088
18.1%
64,387
55,843
8,544
15.3%
1,356
3,130
-1,774
-56.7%
-302
0
-302
65,441
58,973
6,468
Buildings - operating (990 line 57a)
26,409
26,409
0
Buildings/Tennis Courts/Pool/Wa
9,100
9,100
0
18,565
18,289
276
Kiosk Renovation (2002)
6,857
6,857
0
Resurface Pool 2010
9,500
9,500
0
Resurface Tennis Courts 2010
5,018
5,018
0
Tennis Court Lawn Renovation
4,345
4,000
345
Tennis Court Lawn Sprinklers
1,565
0
1,565
Water Line to Entrance 2010
500
500
0
1,957
0
1,957
Petty cash (990 line 45)
Total Checking/Savings
Accounts Receivable -Homeowners
Accounts Receivable Pump A/C
Total Current Assets
11.0%
Fixed Assets
Capital Improvements
Prior 2002
1/3 Share of ne Water Pump 2012
1.5%
8.6%
Income Statement
%
Jan - Dec 12
Jan - Dec 11$ Change Change
Ordinary Income/Expense
Income
Association Dues
Interest Income
Misc. Income
Late Fees
Total Income
Gross Profit
25,381
25,392
-11
0.0%
88
128
-40
-31.3%
1
100.0%
115
440
-325
-73.9%
25,584
25,960
-376
-1.4%
25,584
25,960
-376
-1.4%
45
130
-85
-65.4%
0
821
-821
-100.0%
1,218
1,190
28
2.4%
1
Expense
Administrative
Bad/Uncollectable Accounts
Insurance
InterAccount Transfers
0
0
0
0.0%
3,560
4,625
-1,065
-23.0%
Legal & Professional Services
254
300
-47
-15.5%
Miscellaneous
255
119
136
115.0%
2,334
2,443
-109
-4.5%
41
0
41
100.0%
188
1,789
-1,601
-89.5%
Landscaping Service
Pool Service
Postage & Shipping
Repairs & Maintenance
R&M - Facilities
Budget Performance
Jan - Dec 12
Budget
$ Over
Budget
% of
Budget
Ordinary Incom e/Expense
Incom e
Association Dues
Interest Incom e
Late Fees
Total Incom e
Gross Profit
-19
99.9%
100
-12
87.9%
28.7%
25,381
25,400
88
115
400
-285
25,584
25,900
-317
98.8%
25,584
25,900
-317
98.8%
45
130
-85
34.6%
0
500
-500
0.0%
1,218
1,200
18
101.5%
4,800
-1,240
74.2%
100
155
254.8%
2,500
-2,312
7.5%
-17
95.8%
Expense
Adm inistrative
Bad/Uncollectable Accounts
Insurance
InterAccount Transfers
Landscaping Service
0
3,560
Legal & Professional Services 254
Miscellaneous
Pool Service
Postage & Shipping
255
2,334
41
Repairs & Maintenance
R&M - Facilities
188
R&M -Landscaping Replm
383 nts/Addns
400
Proposed 2013 Capital Budget
2012 Capital Budget
Item
Amount
Tennis Court Personalized Fence Netting
1,200
Erosion Control Landscaping
2,500
Replacement of Lost Hostas and Ferns @ Tennis Court Labdscape
Other TBD
Total
400
71
4,171
Amortization Schedule
BUDGET ITEM
REPLMT
COST
ENTRY KIOSK
TOTAL
LIFE
ANNUAL REMAIN TARGET % TL
COST
ING LIFE RESERVE PROJN
ACTUAL
RESVD
EXC/DEF
10,000
20
500
17
1,500
0.028
1,607
STONE WALL - ENTRANCE
3,000
20
150
17
450
0.008
482
POOL AREA PICNIC STRUCTURES
3,600
20
180
17
540
0.010
579
39
13,900
40
348
34
2,085
0.039
2,234
149
6,200
20
310
8
3,720
0.070
3,985
265
177
PARKING LOT BLOCK WALL
BOAT DOCK - GUEST/FLOTATION
FISHING DOCK
6,200
35
42,900
-
SWIMMING POOL - RESURFACING
8,000
SWIMMING POOL - PUMP/FILTER
1,000
SWIMMING POOL - COVER/FURNITURE
SWIMMING POOL FURNITURE - 2011
OUTSTRUCTURES - TOTAL
SWIMMING POOL - TOTAL
107
10
4,429
0.083
4,745
316
1,665
-
12,724
0.240
13,632
908
10
800
7
2,400
0.045
2,571
171
8
125
5
375
0.007
402
27
1,500
10
150
5
750
0.014
804
54
1,177
8
147
6
294
0.006
315
21
11,677
-
1,075
-
3,525
0.066
3,777
252
TENNIS COURT RESURFACING
7,000
5
1,400
4
1,400
0.026
1,500
100
TENNIS COURT FENCING
2,500
40
63
10
1,875
0.035
2,009
134
TENNIS COURT NETS/BENCHES
1,400
5
280
3
560
0.011
600
40
PARKING LOT RESURFACING
2,500
7
357
0
2,500
0.047
2,678
178
13,400
-
1,743
-
3,835
0.072
4,109
274
9,000
99
0
99
0
0.000
0
0
WATER SYSTEM - TANKS
3,000
90
0
99
0
0.000
0
0
WATER SYSTEM - TOTAL
12,000
-
0
-
0
0.000
0
0
TENNIS COURT - TOTAL
WATER SYSTEM - PUMPS/WIRING
2013 Budgeted Expenditures Chart
Total Income
25,600
Expenditures
Landscaping Service
4,800
Proposed Capital Budget
4,171
Utilities
3,775
Repairs & Maintenance
2,600
Pool Service
2,500
Insurance
1,300
Reserve Fund Contribution
1,294
Special Functions
900
Miscellaneous
400
Administrative
130
Office Supplies
100
Taxes
80
Postage & Shipping
50
Total Expense
Net Excess/(Deficit)
22,100
3,500
Landscaping Service
Proposed Capital Budget
Utilities
Repairs & Maintenance
Pool Service
Insurance