Finance Committee: Another Good Month

Fred Raach, Chair

In April, the positive trend in financial results continued, with this month’s bottom line being $35,000 better than planned, raising the total for the year to $176,000 better than what had been anticipated in the Budget. However, April’s revenue from Operations was actually $33,000 less than planned but more than offset by a $68,000 savings in expenses.

This month, the Lifestyle and Food and Beverage Departments missed their revenue targets. The revenue of the Administration, Spa at Kilaga Springs, and WellFit Departments exceeded expectations.

Almost half of the expense savings were attributable to lower than the budgeted cost of sales numbers in Lifestyle and Food and Beverage, associated with their reduced revenues, and Food and Beverage’s achieving a seven-point reduction in its combined food and drink cost-to-revenue ratio. Other significant differences from Budget in April were personnel expenses, which exceeded the amount budgeted by $14,000. Landscape maintenance expenditures were $17,000 less than budgeted, and maintenance, supplies, and repairs costs were $25,000 below the budgeted amount.

The chart below illustrates how each department’s results compare to what had been budgeted through the end of April.

The Administration Department continues to benefit from the increased interest income ($33,000), the reduced cost of storage space rental ($15,000), and the lower cost of the security contract ($40,000) compared to what was budgeted. Lifestyle was positive to Budget last month but low participation in certain events and trips during April caused it to be over budget at this point. The Spa at Kilaga Springs had an outstanding April, which accounted for $8,200 of its $8,500 positive income for the year. WellFit and Food and Beverage increased their positive to Budget performance again in April. Facilities and Landscape was over budget for the year through March and benefited from the savings in landscape maintenance and maintenance, supplies, and repair costs to achieve its positive result in April.

Reserve spending in April was only $89,000, causing the reserve fund to grow to $13.4 million at the end of April. Spending of Community Enhancement funds continues to be closely monitored. Through April, $45,000 has been spent, and the fund has earned almost $7,000 in interest. The unallocated balance of the fund was $384,000 at the end of April.

Detailed financial information is available as part of the agenda each month in the eNews announcement of the Finance Committee meeting and from the Resident Website.