Finance Review Committee and Management Company
The accounting team at FirstService Residential (FSR) carries out the day-to-day financial activities and FSR also provides management services for the VCA. The Finance Review Committee fulfills a critical oversight and approval role providing a monthly review, analysis, and approval of the FSR prepared financial statements and supporting materials. Additionally, as Treasurer, I am responsible to review and approve all Invoices for vendor payment. A snapshot of the financial condition is available for review in the minutes of the Finance Review Committee meetings. The VCA Treasurer’s Report and detailed VCA financial reports are emailed to members as part of the General Session Board Meeting agenda and meeting materials. Here are the fundamental financial metrics submitted to the Board of Directors each month:
- Operating Fund Balance
- Current and Foreseen Cash Needs
- The Reserve Fund Balance
- Liquidity Strength
- Accounts Receivable
- Accounts Payable
- Total Income
- Total Expenses
- Significant Financial Issues
Budget
The Finance Review Committee is responsible for overseeing the preparation of VCA’s Annual Budget. In concert with FSR professionals, the Committee prepares a projection of financial needs for the upcoming year. The Committee first approves the Budget at the Committee level before presenting it to the Board of Directors (BOD) for approval and adoption at a Fall General BOD meeting open to the membership. After the BOD approval, the Budget becomes the road map for upcoming financial matters for the year ahead.
Reserve Study
Finally, every year VCA retains the services of a Reserve Study professional who reports information regarding useful lives and replacement cost of all the VCA’s common assets. Common assets reviewed include park equipment, parking lots, playgrounds, and other amenities. Once the report is received, FSR professionals and the Finance Review Committee evaluate asset replacement needs and include a monthly contribution to the Reserve Fund in the budget. This contribution to Reserves totals $79,167 per month for the current year. The current Balance of the Reserve Fund is over $3.5 million, the bulk of which is under the investment management of Morgan Stanley and FSR professionals.
Your Finance Review Committee, the FSR Accounting Professionals, and the FSR Management Staff all work diligently and ethically to assure responsible financial management on behalf of all the members of the Vistoso Community Association.