MVF Finances - April 2014

Overall results through the end of April continue ahead of budgeted projections led by greater than expected revenues from assessment collection fees, disclosure fees and advertising as well as lower than budgeted personnel and operating expenses.

MVF overall net income for the month is $209,745 which exceeds the budget by 53.2% and April 2013 by 26.4%.  Year to date net income is $817,326 which exceeds the budget by 74% and April 2013 by 49%. 

The following summarizes MVF’s overall results for April 2014:

-        Total revenues through April were $2.8M which exceeds the budget by 5.2% and exceeds the same period in 2013 by 10.7%.

-        Total operating expenses through April were $1.9M, which is 9.8% under budget and flat versus the same period last year.

-        Reserve Fund contributions through April were $316,668 as prescribed in the 2014 budget.

-        Year to date expenditures for reserve related assets total $570,382 vs. $69,713 in 2013.

-        Capital contribution fees received through April were $141,884 vs 71,984 in 2013.  A lump sum payment of $110,000 was paid to MVF during February related to the sale of the Cider Mill apartment complex.

Operations Fund

The results from the Foundation’s Operating Fund at the end of April, 2014:

Budget:  For the month of April 2014, the revenue budget variance is primarily due to better than expected revenues from advertising, assessment collection fees, and rental fees but offset partially by lower than expected camps/classes.  Personnel costs are favorable to the budget due to lower than budgeted full-time and temporary wages due to several open positions during the first few months of 2014.  Operating costs budget variance is primarily due to lower than budgeted business expenses, office supplies and expenses, legal fees and landscape/maintenance expenses vs budgeted in April.

 Prior Year:  For the month of April 2014 vs. April 2013, the revenue variance is due to higher assessments from the Designated User assessment increase effective January 1, 2014 as well as greater assessment collection fees and advertising revenues but offset partially by lower than expected camp/class revenues.  Personnel costs are lower than the year ago period primarily due to lower full-time wages from several vacation positions in 2014 as well as lower overall salaries in the Architectural department from several personal changes.  Operating cost variance is due to lower costs from office supplies and landscaping costs but offset partially by higher occupancy and office expense costs.  Reserve/capital costs reflect the lower operating capital costs spent vs the prior year.

 The results from the Foundation’s Operating Fund for the year-to-date period ending April, 2014:

For the year-to-date period ending April 2014, the budgeted revenue variance is primarily due to the increased Designated User Assessment, advertising revenues tracking ahead of budget, disclosure revenues via homewisedocs.com and the capital contribution fee received from the sale of the Cider Mill apartments; however these are offset partially by a significant shortfall in camp registration revenues.  Personnel costs budget variance is due to several vacant supervisory level positions, which have now been filled, but is partially offset by higher than budgeted payroll taxes (MVF budget annualizes these taxes whereas the actual payment is capped and ends half way through the year).  Operating cost budget variance is due to lower than expected business expenses, office supplies/expenses, occupancy costs, equipment maintenance and landscaping/maintenance costs.  Reserve/capital costs reflect the higher revenue received from the Cider Mill capital contribution fee being moved from the Operating Fund to the Reserve Fund.  Reserve contributions have been made pursuant to the budget.

Balance Sheet:

As of April 30, 2014, MVF’s Balance Sheet is as follows:

Through the end of April 2014, MVF continues to maintain very a solid financial position with nearly $8.8M of its $15M assets (58.5%) currently invested or held in bank accounts.  While using undesignated reserves the last 2 years (2012 & 2013) to keep assessments low, MVF still has over $1.6M undesignated operating surplus which is partially allocated to ongoing capital projects and slated to be used in 2014 to maintain the MVF assessment the same for the 3rd year in a row.

 Investment Activity:

The investment committee met in April and while there were no investment decisions made, the committee approved a draft revision for the MVF Reserve Investment Policy.  The policy will go to the Audit committee (May 20) to review for controls and then will be forwarded to the MVF Board for approval.

Capital Spending:

As of the end of April, 2014, year to date capital expenditures totaled $570,382 of which 484,123 is related to Designated Users related and $86,260 is MVF.