MVF Finances - January 2014

Overall results through the end of January ended ahead of budgeted projections led by greater than expected revenues from assessment collection fees as well as lower than budgeted operating expenses.

 MVF Net income for the month was $204,195 which exceeded the budget for the month ended January 2014.  Net income for the month was lower than January 2013 by $131,657.  The following summarizes MVF’s overall results for January 2014:

 -        Total revenues through January were $665,892 which exceeds the budget by 1.7% and exceeds the same period in 2013 by 2.9%.  January marks the 1st month 3 years with a higher DU assessment.

 -        Total operating expenses through January were $462K, which is 2.6% under budget and 48.4% higher than the same period last year (timing of year-end payroll accruals in 2013 vs 2014).

 -        Reserve Fund contributions through January were $79,167 as prescribed in the 2014 budget.

 -        Year to date Capital expenditures for reserve related assets total $257,085 vs. $25,561 in 2013.

 -        Capital contribution fees received through January were $8,137 vs 47,053 in 2013.

Jan vs Budget:  For the month of January 2014, the revenue budget variance is primarily due to higher than expected assessment collection fees and disclosure packet sales, but is offset slightly by lower than expected registrations for camps and classes.  Personnel costs are in line with actuals results although lower than expected full-time wages are offset by higher payroll.  This is typical for the first half of the year before various taxes reach their annual cap and eventually average out over the year.  Operating costs budget variance is primarily due to lower than budgeted business expenses, office supplies, equipment maintenance and snow removal, but is partially offset by the timing of audit fees being paid vs the budget.

Balance Sheet:  Through the end of January 2014, MVF continues to maintain very a solid financial position with over $8.5M of its $14.2M assets (59.9%) currently invested or held in checking accounts.  While using undesignated reserves the last 2 years (2012 & 2013) to keep assessments low, MVF still has nearly $1.3M 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.

Capital Spending:  As of the end of January, 2014, year to date capital expenditures totaled $245,532 of which $223,516 was Designated Users related and $22,017 was MVF.

Collections:  As noted in January, the end of 2013 had an unexpected rise in the number of active foreclosure cases, as well as an increase in the number of delinquent units (11.1%).  With these critical indicators on the rise, the Collections Manager, General Counsel and CFO are in the process of evaluating the current inventory of delinquent owner records to determine the best course of action.  From information gathered to date, MVF currently has 242 units under court ordered judgement to pay outstanding dues.  It is MVF’s counsels’ intention to begin filing oral exam notices with the court.  Once approved, the notices will require unit owners to attend a court ordered meeting with MVF personnel in order to present financial information which will assist in determining the unit owners capability of paying delinquent and current assessments.