Sent: Tuesday, September 20, 2011 2:10 PM
To: Jack Watson; rickn@comact.com; lockettes3@aol.com; woodcharles@hughes.net
Subject: DPOA cash flow projections for rest of year
Rick, Jack, Tom & Charlie
Attached is a cash flow projection that I have prepared after some discussions with Sarah. The outlook doesn't look so good.
I have taken all of the expected cash receipts and expenses and adjusted them for seasonal declines in golf and 19th hole. I have also, taken the expenses and tried to project some improvement in the cost of sales for the 19th hole as discussed at the finance committee meeting.
The numbers in my projections are based on an average of the income and expenses reported in the actual financial statements for August, and are adjusted for seasonal activity as mentioned before. Going line by line:
Thanks for your attention to this critical issue.
John Porter
(Editor's Note: John Porter is a recently retired CPA with experience in corporate and private practice accounting. )
Attached is a cash flow projection that I have prepared after some discussions with Sarah. The outlook doesn't look so good.
I have taken all of the expected cash receipts and expenses and adjusted them for seasonal declines in golf and 19th hole. I have also, taken the expenses and tried to project some improvement in the cost of sales for the 19th hole as discussed at the finance committee meeting.
The numbers in my projections are based on an average of the income and expenses reported in the actual financial statements for August, and are adjusted for seasonal activity as mentioned before. Going line by line:
- Revenues from Monthly dues on homes and lots are good numbers according to both Sarah and the financial statements
- The Semi annual dues should be a good number for October. The $30k number for March is a projection for 2012-13 prepaid dues.
- Golf membership is a good number based on those golfers paying monthly.
- Greens fees, 19th hole and Misc Income is an average of YTD actual, adjusted seasonally
- Operating costs for the 19th hole represent cost of goods based on YTD actual figures and should get lower with improved controls in the 19th hole
- Gen and Admin expense are again based on the YTD averages and decrease seasonally with the decline in personnel. That is consistent with the budget information for those months.
- Property taxes and Fire dues are to be paid in October. Again, pretty hard numbers.
- Capital improvements are based on my understanding of signed contracts in place for Roads and Culverts. Can we get out of any of the road repairs?
Thanks for your attention to this critical issue.
John Porter
(Editor's Note: John Porter is a recently retired CPA with experience in corporate and private practice accounting. )
