Financial Questions and Answers from January Town Hall
I would like to apologize for the delay in responding to your questions from the Town Hall last week.
The negative number on the Income and Expense (I&E) statement reflects the current cash balance of the bank account and all outstanding deposits and withdrawals. All funds received are deposited into the Operating Account and used to pay bills and write checks to deposit into the Reserves Checking Account and Recreation Checking Account. The ending balance of our checking account on 11/30/23 was $7,145.83 and $11,675.83 on 12/31/23.
Receipts for owner-billed gas are recorded into account #4107. This is an asset account. The total received in account #4107 for 2023 is $103,026.96.
Because of your questions, the board decided to do a deeper dive into the financial reports. I discovered that there have been some expenses paid out of the operating funds throughout the year when they should have been paid out of the reserves. These corrections will affect the I&E. These corrections have to be completed before PK can finish the December and end-of-year financial reports for the CPA to review. These reports also get reviewed before the February Board of Directors meeting.
In addition, it seems that rumors are going around that Foothills has lost its FHA Certification. This is NOT TRUE. The FHA Certification renewal is pending. FHA had some questions about the losses recorded for the calendar years 2021 and 2022 and is requesting a response along with a couple of additional documents. The budgets for these years were created in 2020 and 2021 before this current board was assembled. PK Management has been in constant contact with an FHA representative. We will let everyone know when the certification renewal process is complete.
If you have any questions, feel free to contact me or PK Management. Thanks, and have a great day!
Kristen Tarrell, President
916-532-7516
