2022 Budget Process By Don Havard, Accounting Manager
What is a Budget?
A budget, also known as an annual operating budget, is a financial plan for the upcoming fiscal year. (January 1st, 2022 to December 31st, 2022). The budget is a guide for the Tahoe Keys Property Owners Association (TKPOA) Management Staff, Cove Advisors and Board of Directors to use to insure the Association’s financial goals are met by the end of the fiscal year. The budget is broken into “operating periods”, which in our case are monthly periods that are added up to give the total forecasted or anticipated revenues and expenses for the entire fiscal year. The budget contains the Association's revenue (Income), payroll, and operating expenses as well as the individual Cove/Subdivision budgets. Based on these revenues and expenses it also provides staffing guidelines for the departments.
The Finance Committee
One of the responsibilities of the Finance Committee is to assist in building and reviewing the fiscal year budget. The Finance Committee is comprised of members of the TKPOA, which are actual residents that have input on how the TKPOA money is spent. The members who serve on the Finance Committee represent a cross section of the community. Of course, there are some members willing to serve who have expertise in areas such as insurance or finance that contribute their expertise. The committee members are volunteers
Keys Breeze
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and they hold regular monthly meetings throughout the year, currently scheduled on the Tuesday after the Board of Directors Regular Board Meeting that is currently held on the third Wednesday of the month. The Finance Committee meeting is held at 10:00 am in the TKPOA Pavilion Boardroom. The TKPOA Board of Director’s Treasurer is a member of the Finance Committee. As the chair of the Finance Committee the treasurer’s job is to keep everyone on track as the budget process takes place and the new budget is prepared.
The TKPOA Management Team Role
Following the direction given the TKPOA Board of Directors and 2022 Budget Subcommittee, the TKPOA Management Team creates the “first draft” of the budget for all eight departments that comprise the Association “business units”. The Accounting Manager and General Manager work with the TKPOA Management Team on preparing their individual budgets to meet their operational needs as directed. The Accounting Manager, General Manager and Project Coordinator also will need to meet with the Cove/Subdivision advisors to develop their individual budgets. The “First Draft” of the proposed 2022 Budget will be presented to the 2022 Budget Subcommittee for review, on Tuesday, July 27th, 2021. This Subcommittee will review the budget and returned it to the General Manager and Accounting Manager for discussion and changes. The General Manager will present the “Second Draft” of the proposed 2022 Budget to the Finance Committee during an Open Meeting on Tuesday, August 10th, 2021 at 10:00 am at the TKPOA Pavilion. The Finance Committee will review the budget and returned it to the Accounting Manager for discussion and changes. This meeting is open to all TKPOA members. The General Manager will present the “Third Draft” of the proposed 2022 Budget to the Board of Directors and the Finance Committee during an Open Meeting on Wednesday, August 18th, 2021 at 5:00 pm at the TKPOA Pavilion. This meeting is open to all TKPOA members. After this process, again the Accounting Manager and General Manager and TKPOA management staff will make changes to the proposed budget, based on the Finance Committee and TKPOA Board of Directors recommendations. The Accounting Manager and General Manager plan to present the “Final” Budget to the TKPOA Board of Directors for approval at the regular TKPOA Board meeting as early as Wednesday, September 8th, 2021 at 5:00 pm at the TKPOA Pavilion. If more review is necessary, then it will again be presented on Saturday, September 29th, 2021, at a time to be determined, at the TKPOA Pavilion the meeting is open to all TKPOA members. At either of these meetings, the Board may set the assessment amounts for the 2022 fiscal year. Please Note: This schedule is subject to change. The final budget needs to be approved on a timely basis to meet the Annual Disclosure deadline, for delivery to the TKPOA members per the Bylaws, 45 days before the new fiscal year. JULY 2021
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