Http://es.surveymonkey.com/s/6 VXQFQ2 Monday June 3, 2013Trillium Bridge Negotiations Meeting1.
8/16/7Residents Voice Meeting1 “Following the Money” 8/16/2007 Conrad Grundke On the Trail.....
-
Upload
deborah-summerson -
Category
Documents
-
view
214 -
download
0
Transcript of 8/16/7Residents Voice Meeting1 “Following the Money” 8/16/2007 Conrad Grundke On the Trail.....
8/16/7 Residents Voice Meeting 1
“Following the Money”
8/16/2007
Conrad Grundke
On the Trail . . . . .
8/16/7 Residents Voice Meeting 2
The Money Trail (Cont):
The Last Episode:• 2007 Update on Credit Card Data• Aug 1 GRF Special Meeting• Bonus & Incentive Plans
This Episode:• Audit – WHY/WHAT?• History of LW (leisure World)• Guidelines/Policies/Management Agreements• The Future
8/16/7 Residents Voice Meeting 3
Audits
• Purpose of Financial Audits:
1. “Yearly” Audit is a “Balance Sheet” Audit– Ensures that Balance Sheet figures were derived from
acceptable accounting standards.– These companies all passed yearly audits; GM, ULHM,
Starbucks, TLHM, IBM, Enron, GRF, WorldCom, etc.
2. “Forensic” Audit is a “Detailed” Audit– It can locate “creative”“creative” bookkeeping.– CouldCould prevent such accounting problems as; Enron,
WorldCom, Tyco, Global Crossing, etc.
8/16/7 Residents Voice Meeting 4
History – 1960’s
Ross Cortese
Leisure World
Build
LW Resales
Sell
PCM
Maintenance
8/16/7 Residents Voice Meeting 5
Evolution of PCM1964 2008
Maintenance
Land Development
%
OF
EFFORT
8/16/7 Residents Voice Meeting 6
Determining Controls viaManagement Agreement
0102030405060708090
100
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ACTUAL Money Spent
Knowing WHERE spent CONTROLS
8/16/7 Residents Voice Meeting 7
The Future - Guidelines, policies, & controls
0102030405060708090
100
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
ACTUAL Money Spent
Knowing WHERE spentCONTROLSCONTROLS
RESULTS
8/16/7 Residents Voice Meeting 8
Desc One Time Annual Year To Date
Prop Tax 1,500,000 550,000 2005 2,600,000
Fed Tax 600,000 250,000 2001 2,100,000
State Tax 500,000 50,000 1996 1,050,000
Grants 400,000 2000 400,000
Emerg Access Rd 950,000 2007 950,000
Landscape Staffing 480,000 1992 7,200,000
Cable TV 850,000 2003 3,400,000
Wrkr Comp 350,000 1994 4,550,000
Hi-speed Internet 500,000 2005 1,000,000
Composting 225,000 1992 3,375,000
Why would we need controls with the following savings !
8/16/7 Residents Voice Meeting 9
PCM Cost Savings (Cont)
Desc One Time Annual Year To Date
Gate Clearance 200,000 2006 200,000
Nursery 185,000 1990 3,145,000
Recycling 130,000 1994 1,690,000
In-house Interior 70,000 2006 70,000
Total 3,950,000 3,840,000 31,730,000
8/16/7 Residents Voice Meeting 10
Let’s create a simple Budget
• Assumptions:
–No Growth
• Fixed Amount of Facilities
–No Additional Service Levels
8/16/7 Residents Voice Meeting 11
A simple projection
0
50
100
150
200
250
300
350
400
450
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
$259
3% CPI Increase
8/16/7 Residents Voice Meeting 12
Let’s review the actual
0
50
100
150
200
250
300
350
400
450
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
$259
3% CPI Increase
3% CPI yearly Increase!
4.2% Cost Saving! $90 mil budget and we save $3.8 mil
Where should our actual be if we have a 4% cost savings per year ? What happened to the savings?
Actual
8/16/7 Residents Voice Meeting 13
Ask Your Candidate!
Support Forensic
Audit?
Understand Ledgers?
Renegotiate Contract?
8/16/7 Residents Voice Meeting 14
We return to the major ingredient
between the Owners & PCM?
TRUST
8/16/7 Residents Voice Meeting 15
How do we get it?
Measure&
Verify
8/16/7 Residents Voice Meeting 16
A Success Story
Beginning
In 1987
8/16/7 Residents Voice Meeting 17
Nebraska
California or Bust
8/16/7 Residents Voice Meeting 18
Reaching Paradise
8/16/7 Residents Voice Meeting 19
Community ActivitiesUnited Board Room
Committee Rooms
8/16/7 Residents Voice Meeting 20
Business woman/editor
Jan’s
Exterminating Co.
8/16/7 Residents Voice Meeting 21
The (Ex)Terminator
The “Voice”
8/16/7 Residents Voice Meeting 22
Jan’s guaranteeJan’s guaranteeEliminate from:
•Home
•LWV Community
•Board Meetings
•LW Globe Articles
Any future :
Residents Voice
Infestation!
PCM Rodents will be protected.
8/16/7 Residents Voice Meeting 23
Jan’s Promise !Jan’s Promise !Yearly Cost for this serviceYearly Cost for this service
will be a minimal:will be a minimal:
1% of Yearly Budget
Not to exceed $900,000
8/16/7 Residents Voice Meeting 24
The End