Greetings from the Board
This month we are preparing the 2026 VCA annual budget so now is a good time to provide members a sense of what goes into the workings of the VCA finances and budget process.
VCA Financial Management Process
Your Finance Review Committee, the First Service Residential (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.
The accounting team at 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 the October 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.
Click HERE to view the VCA Budget and Reserve Study webpage.
Reserve Study
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 $70,833 per month for the current year. The current Balance of the Reserve Fund is over $3.8 million, the bulk of which is under the investment management of Morgan Stanley and FSR professionals.
Finally, the monitoring of VCA financial performance throughout the budget year is performed by FSR management and is monitored by the Finance Committee and your Board of Directors monthly. The results of that review are reported to VCA membership in the form of a monthly Treasurer’s Report, and inclusion of VCA’s full financial statements in the monthly General Board meeting materials. The goal is to keep the VCA in a strong financial position through 2026 and beyond.
Joe Affinati – Treasurer