agenda 03 27 08
DESCRIPTION
1. LWV Finances 101 2. Is there a Financial Problem?TRANSCRIPT
Residents Voice 1
LWVMarch 27, 2008Residents Voice
03/27/08
Residents Voice 203/27/08
“Following the Money”
3/27/2008
Tonight’s Subjects !
• “LWV Finances 101”
• “Is There a Problem ?”
Residents Voice 3
LWV Finance 101
C. Grundke
03/27/08
Residents Voice 403/27/08
$93.58
How Much Are Our 2008Total Assessments? (million dollars)
“LWV Finances 101”
Residents Voice 503/27/08
Where Does The Money Come From ?
United Mutual 6323 Manors
Third Mutual 6102 Manors
Towers 311 Manors
Total 12736 Manors
Residents Voice 603/27/08
What is Included in the 2008 Total $93,582,525 ?
• Taxes – United Mutual Only• Mortgage – United Mutual Only• Food – Towers Only• Basic Costs (All Mutuals):
– Direct Mutual Operating (DMO) Costs– GRF Costs
Residents Voice 703/27/08
$13.34
$80.24
Tax & Food Basic
What If We Exclude Taxes/Food/Mortgage = 2008 Basic Costs ? (million dollars)
Residents Voice 803/27/08
$13.34
$38.08
$39.00
$3.16
Tax & Food United Third Towers
2008 Basic Costs by Mutual ? (million dollars)
Third Mutual
United Mutual
Towers Tax/Food/Loan
Residents Voice 903/27/08
Personal Savings
Monthly BasicAssessments
Third Mutual United Mutual
GRF Account
$532.62/mo x12mo x 6102
$501.88/mo x12mo x 6323
$39.00M/yr
$38.08M/yr Where doesit GO ?
Residents Voice 1003/27/08
What money is in this GRF Account ?
United $$$
Third $$$
Towers $$$
GRF $$$
Residents Voice 1103/27/08
Who Should Control Payments From This Account ?
• The United Board – Yes !• The Third Board – Yes !• The Towers Board – Yes !• The GRF Board – Yes !
Residents Voice 1203/27/08
Who Does Monitor Payments From This Account ?
• The United Mutual Treasurer – No!• The Third Mutual Treasurer – No!• The Towers Treasurer – No!• The GRF Treasurer – No!
Residents Voice 1303/27/08
How Did This Happen ?
Over the Past 30 years the Boards and PCM have evolved into the current means of Financial Control.
The Board Treasurers do not review justification for most charges against the mutual.
Residents Voice 1403/27/08
If This Was Your Personal Checking Account, Would YOU:
• Combine monies with multiple users into one account ?
• Fail to Review all invoices for accuracy ?
• Not personally sign the checks ?
• Allow others to write checks on your account ?
Residents Voice 1503/27/08
How Did We Get Here ?Where Are We Going ?
2003 vs 2013 (manor/month)
2003 2008 2013 % Change
United Mutual $ 372 $ 501 $ 675 34.68
Third Mutual $ 387 $ 532 $ 732 37.43
Towers $ 673 $ 847 $ 1066 25.78
Tax/Fd/Mtg $ 92 $ 87 -5.64
Total w Tax/Fd/Mtg $ 479 $ 612 27.67
Residents Voice 1603/27/08
2003 – 2013 Trend ofBasic Monthly Assessments
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
$1,200
2003 2008 2013
United & Third
Towers
Residents Voice 1703/27/08
Is There A Problem ?
YES !
Residents Voice 1803/27/08
THE ENDPart 2
“Is There A Solution ?”Thursday, April 3, 2008