agenda 03 27 08

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