MVF Finances - December 2014

Treasurer’s Summary

The results shown below are for the year ended December, 31, 2014 and are DRAFT & UNAUDITED estimates based on managements’ work that has been completed to date. Management anticipates additional year-end adjustments and accruals will be completed and recorded before the final amounts are provided for the auditors review.

Estimated Overall Financial Results through December 31, 2014:

Operating Fixed Assets Reserve Total

Revenue $7,875,000 $0 $ 125,000 $8,000,000

-Operating Expenses 6,450,000 465,500 240,700 7,181,200

-Other/Reserve/capital 1,205,000 (2,006,000) 801,000 0

Net Income $ 175,000 $1,540,500 $ (916,700) $ 798,800

2014 Budget (1) (221,810) 444,886 203,692 426,768

(1) The 2014 budget planned to use a portion of the accumulated undesignated reserves: $221,810 from the MVF Fund.

Estimated Fund Balances 12/31/2013 Est. Income 12/31/2014

MVF/UF 945,300 97,700 1,043,000

DU 105,400 59,500 164,900

Management 60,100 17,800 77,900

Operating Fund $1,110,800 $ 175,000 $1,285,800

The following summarizes some additional financial information through December 31, 2014:

- Reserve Fund contributions were made in the amount of $950,000 as prescribed in the 2014 budget.

- Estimated year to date Reserve expenditures totaled $2,220,000 vs. $1,045.314 in 2013.

- Capital contribution fees through December were $225,154 vs. $152,970 in 2013.

Balance Sheet:

As of the end of December 2014, MVF continues to maintain a solid financial position with $7.3M of its $14.0M assets (52.3%) currently invested in marketable securities or bank/money market accounts. MVF’s undesignated operating reserves are nearly $1.4M and net reserve fund assets are $6.2M.

Investment Activity:

On October 28, 2014 the Investment Committee met to review a recommended portfolio from the Reserve advisors. The recommendation included moving MVF’s 100% fixed income portfolio to an allocation of 30% equity, 65% fixed income, and 5% in cash and real assets. The recommendation was in-line with MVF’s Reserve Investment policy and approved by the Committee. Through the end of 2014, numerous transactions have been recommended by MVF’s advisor and approved by the Committee to transition the portfolio into the new strategy. As of December 31, 2014, the portfolio allocation included:

Actual Goal

Equity 28.2% 30%

Fixed Income 70.6% 65%

Cash/Real Assets 1.3% 5%

It is anticipated that the final transactions will be made during January 2015 to achieve the strategy goal allocation. Given the short duration the holdings in the account, measurement against the policy benchmarks will begin at the end of the 1st quarter of 2015.

Q4 2014 Delinquency Report & Bad Debt Write-offs:

As of the end of December 2014, MVF had 934 delinquent units and a delinquency rate of 11.0% with homes corporations ranging from 5.1% - 16.3% delinquent. For the same period in 2013, there were 939 delinquent units with a rate of 11.1%. As of December 31, MVF had approved $45,728 in bad debt write-offs vs $70,610 in 2013.