MVF Finances - August 2014

Treasurer’s Summary

Overall results through the end of August 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 $(285,428) which is lower than the budget but greater than August 2013. Year to date net income is $610,973 which exceeds the budget by 95.9% and August 2013 by 291.4%.

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

- Total revenues through August were $5.5M which exceeds the budget by 3.3% and exceeds the same period in 2013 by 10.3%.

- Total operating expenses through August were $4.9M, which is 2.5% under budget and 1.2% over the same period last year.

- Reserve Fund contributions through August were $633,336 as prescribed in the 2014 budget.

- Year to date expenditures for reserve related assets total $1,614,553 vs. $575,569 in 2013.

- Capital contribution fees received through August were $190,641 vs 116,343 in 2013. A lump sum payment of $110,000 was paid to MVF during February 2014 related to the sale of the Cider Mill apartment complex. Included in 2013 is a $39,600 payment related to the sale of the Avalon-Rothbury apartments.

Operations Fund

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

Budget: For the month of August 2014, the revenue budget variance is better than the budget primarily due to better than expected revenues from disclosure fees and advertising. Personnel costs variance is primarily due to a catchup in the summer season wages at the pools plus the associated payroll taxes. Operating costs budget variance is primarily due to greater than budgeted business, occupancy costs, printing and office expenses. The negative amount under Reserve/Capital shows the transfer of the remaining Apple Ridge Pavilion costs from the Operating Fund to the Reserve Fund as it was approved for funding from the Capital Contribution Fee fund.

Prior Year: For the month of August 2014 vs. August 2013, the revenue variance is due to higher assessments from the Designated User assessment increase effective January 1, 2014 as well as greater advertising revenues but offset partially by lower camp and class revenues. Personnel costs are higher than the year ago period primarily due to higher seasonal wages vs the year ago period and an adjustment due to the 2013 workers compensation audit. Operating cost variance is due to lower costs from maintenance and legal expenses but offset partially by higher printing expenses.

The results from the Foundation’s Operating Fund through the end of August, 2014:

For the year-to-date period ending August 2014, the budgeted revenue variance is primarily due to higher than budgeted assessment collection fees, advertising revenues, disclosure revenues via homewisedocs.com, rental fees 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 positions, which have now been filled, and lower than expected summer/seasonal wages, but is partially offset by higher than budgeted workers comp due to an adjustment based on the results of the 2013 salary audit. Operating cost budget variance is due to lower than expected business expenses, office supplies/expenses, equipment maintenance, legal, 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 August 31, 2014, MVF’s Balance Sheet is as follows:

Through the end of August 2014, MVF continues to maintain very a solid financial position with nearly $7.3M of its $13.9M assets (52.5%) currently invested or held in bank accounts. While using undesignated reserves the last 2 years (2012 & 2013) to keep assessments low, MVF holds just over $1.6M undesignated operating surplus which is partially allocated to maintain the MVF assessment the same for the 3rd year in a row.

Investment Activity:

No activity to report.

Capital Spending:

As of the end of August, 2014, year to date capital expenditures totaled $1,447,309 of which 1,283,718 are related to Designated Users and $163,591 is MVF.