MVF Finances - February 2014

Overall results: Through the end of February net income continues ahead of budgeted projections led by greater than expected revenues from assessment collection fees, disclosure fees and advertising as well as lower than budgeted personnel and operating expenses.

MVF overall net income for the month was $246,207 which exceeded the budget and February 2013.  Year to date net income was $450,402 which exceeded the budget by 78% and February 2013 by 9.8%. 

The following summarizes MVF’s overall results for February 2014:

-        Total revenues through February were $1.4M which exceeds the budget by 11.7% and exceeds the same period in 2013 by 17.1%.

-        Total operating expenses through February were $959K, which is 4.9% under budget and 20.9% higher than the same period last year.

-        Reserve Fund contributions through February were $158,334 as prescribed in the 2014 budget.

-        Year to date expenditures for reserve related assets total $309,163 vs. $31,303 in 2013.

-        Capital contribution fees received through February were $124,661 vs 51,667 in 2013.  A lump sum payment of $110,000 was paid to MVF during February related to the sale of the Cider Mill apartment complex.

Profit/Loss vs. Budget Month:  For the month of February 2014, the revenue budget variance is primarily due to the lump sum capital contribution fee payment from the sale of the Cider Mill apartment complex as well as from better than expected assessment collection fees and advertising revenues but partially offset by lower than expected camp/class revenues.  Personnel costs are favorable to the budget due to lower than expected full-time wages and benefit costs due to several vacant supervisory level positions.  Operating costs budget variance is primarily due to lower than budgeted business expenses, office supplies, and expenses, but is partially offset by the timing of audit fees being paid vs the budget.

Year-to-Date vs Budget:  For the year-to-date period ending February 2014, the budgeted revenue variance is primarily due to the capital contribution fee received from the sale of the Cider Mill apartments, but is also due to the increased Designated User Assessment and advertising revenues tracking ahead of budget.  Personnel costs budget variance is due to several vacant supervisory level positions but is partially offset by higher than budgeted payroll taxes (MVF budget annualizes these taxes whereas the actual payment is capped and ends half way through the year).  Operating cost budget variance is due to lower than expected business expenses, office supplies/expenses, occupancy costs, equipment maintenance and maintenance costs.  Reserve/capital costs reflect the higher revenue received from the Cider Mill capital contribution fee being moved from the Operating Fund to the Reserve Fund.  Reserve contributions have been made pursuant to the budget.

Balance Sheet:  Through the end of February 2014, MVF continues to maintain very a solid financial position with nearly $8.3M of its $13.9M assets (59.7%) currently invested or held in bank accounts.  While using undesignated reserves the last 2 years (2012 & 2013) to keep assessments low, MVF still has nearly $1.4M undesignated which is partially allocated to ongoing capital projects and slated to be used in 2014 to maintain the MVF assessment the same for the 3rd year in a row.

Technology:

Technology Support:  With the anticipated retirement of MVF’s IT Manager, Gail Chiappone, the Dresner Group is in the process of wrapping up their transition of all MVF technology equipment and has met with staff to introduce themselves and provided a training session for everyone to know what to do in the event they encounter a technology issue.

Jenark Conversion:  Over the last several months, MVF’s property management system vendor, Jenark, has also been working with each department with a goal of moving to the newest version of the Jenark software effective March 20th.  Much work has been done to get to this point and it is anticipated that the conversion to the new system will go smoothly.  MVF is currently using a version of the software that is over 10 years old and is very limited in its functionality vs the new version.

Capital Spending:  As of the end of February, 2014, year to date capital expenditures totaled $286,783 of which $224,988 is related to Designated Users related and $61,795 is MVF.

The entire Treasurer's Report and financial statements can be found on MVF's website.