Ocean Pines Association Annual Meeting Financial Report 2020
Explore the detailed financial results and operating fund performance of the Ocean Pines Association Annual Membership Meeting held on August 8, 2020. Get insights on the budget actual variances, reserve accounts, assessment increase history, and more for Fiscal Year 2020. Dive into the data and projections for the association's financial standing.
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Presentation Transcript
OCEAN PINES ASSOCIATION ANNUAL MEMBERSHIP MEETING August 8, 2020
2020 Financial Report John Viola
Summary of Operating Fund Audited Financials Results Fiscal Year 2020 Actual Compared to Budget BUDGET ACTUAL VARIANCE AQUATICS BOOK ADD'L ALLOWANCE FOR DOUBTFUL ACCOUNTS PUBLIC WORKS/GENERAL MAINTENANCE YACHT CLUB ADMIN CONTRACT SVCS, LEGAL, LIAB. INSURANCE, MISC FINANCE/PUBLIC RELATIONS RECREATION & PARKS MARINAS BEACH PARKING BEACH CLUB GOLF OPS/MAINTENANCE (INCLUDES GRILLE) OTHER $38,001 150,000 (2,513,179) (101,087) (347,135) (988,058) (517,753) 186,439 334,990 103,071 (76,178) $(8,181) 412,666 (2,131,821) 100,563 (230,007) (902,025) (448,892) 230,255 370,240 124,962 (149,481) $(46,182) (262,666) 381,358 201,650 117,128 86,033 68,861 43,816 35,250 21,891 (73,303) (3,176) TOTAL $570,660 EXCLUDES DEPRECIATION
OPERATING FUND PERFORMANCE HISTORY FY 2017 - FY 2020 AMOUNT $ 5,899 FUND BALANCE, MAY 1, 2016 OPERATING FUND SURPLUS (DEFICIT): FY 2017 FY 2018 FY 2019 FY 2020 FY 2019 RESTRICTED ASSESSMENT FUNDS TO REDUCE OPERATING DEFICIT FY 2020 RESTRICTED ASSESSMENT FUNDS TO REDUCE OPERATING DEFICIT PRIOR PERIOD ADJUSTMENT TO FUND BALANCE (369,539) (1,247,691) 115,795 570,660 600,265 252,779 (90,263) OPERATING FUND BALANCE, APRIL 30, 2020 $ (162,095)
SUMMARY OF RESERVE ACCOUNTS AT APRIL 30, 2020 AND PROJECTED AT APRIL 30, 2021 (IN THOUSANDS) FY 2020 FORECASTED ADDITIONS EXPENDITURES $1,838 PROJECTED BALANCE 4/30/2021 $4,242 BALANCE 4/30/2020 $3,486 MAJOR MAINTENANCE & REPLACEMENT $(1,082) BULKHEADS & WATERWAYS 1,649 917 (1,800) 766 ROADS/DRAINAGE 506 335 (971) (130) NEW CAPITAL - 167 (67) 100 TOTAL $5,641 $3,257 $(3,920) $4,978 Police Renovation Carryover Spend $605K Admin Siding 72 Tractor for Ditch Maintenance 110 ESTIMATED PERCENT OF FULL FUNDING 21.7% Police Vehicle 40 Racquet Sports Sidewalks 65 Aquatics Splash Pads etc. 50 ACCEPTABLE RANGE (PER B&F) 22-28% Yacht Club + Beach Club 40 Northstar 50 Other 50 $1.082
ANNUAL ASSESSMENT INCREASE HISTORY FY 2017 - FY 2021 FY 2021 ASSESSMENT FY 2017 ASSESSMENT 5-YEAR INCREASE % INCREASE - TOTAL % INCREASE - ANNUAL AVERAGE $986 $921 $65 7.1% 1.4% RECENT HISTORY 5-YEAR INCREASE NEW FY 2017 2018 2019 2020 2021 5-YEAR CUMULATIVE INCREASE AVERAGE ANNUAL INCREASE AMOUNT - - 30 35 - $ 65 $ 13 % - - 3.3% 3.7% - ASSESSMENT 921 921 951* 986* 986 * - INCREASE MAINLY DRIVEN BY COST TO REDUCE OPERATING DEFICIT
From the Auditors SC&H -Paul Schifrin (prepared by) Presented by John Viola
SC&H performed an audit of the financial statements of the Association as of and for the year ended April 30, 2020. We issued an unmodified or clean opinion on the financial statements meaning that after any audit adjustments the financial statements present fairly, in all material respects, the financial position of Ocean Pines Association, Inc. as of April 30, 2020 and 2019, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. The accounting department did a great job of having the books closed for us and were fully cooperative in providing us with all information requested. We wish to thank John Viola, Steve Phillips and their staff for their help in working with us to complete the audit.
General Managers Team Report John Viola
Management Approach The following was identified at the beginning of the year and I have implemented and continue to develop. Assess our needs Empower individuals Utilization of teams or workgroups Bench strength Build relationships Results oriented Communication Lessons learned In general, we have a team that wants to develop and do what is best for Ocean Pines. This is supported by the results I have presented today and during the year.
Operational Review Completed Major Construction Projects on time and favorable to budget Budget Actual Difference Clubhouse $1,600,000 $1,496,653 $(103,347) Cart Barn 430,000 312,183 (117,817) Police Building 1,276,000 1,162,573 (113,427) Admin. Building 220,000 101,319 (118,681) Craft Building 85,000 85,000 0 TOTAL SAVINGS $(453,272) Northstar 400,000 412,269 12,269 *Northstar total spend crosses 3 fiscal years (FY 19, 20 &21) Jump started drainage, bulkheads, dredging and roads. Also addressed the golf maintenance program and achieved major results vs. several prior years Promoted Michelle Bennett to Senior Executive Assistant, Debbie Donahue to Director of Recreation & Parks and Kathleen Cook to Director of Aquatics
Where are we today? Operational Review Successfully completed a Budget for FY 2020-21 Implemented level 1, 2 and 3 customer service Implemented work groups to achieve results Crafted a win/win food and beverage contract Covid-19 communication plan and re-opening of Ocean Pines PPP research, application, review, presentation to the Board Other initiatives completed or in progress Compensation study North Star software Board meeting audio/visual upgrade Addressed findings of forensic audit Favorable to budget $570,660 Assessment for FY 2020-2021of $986 non-water lots (representing no increase over prior year) We now have a competitive (benchmarked) compensation program A stronger management team (bench strength) for the Director level Major capital assets updated In the process of developing a strategic and long-range planning work group and initiative schedule.
