Financial Review
Country Club Villa Association, Inc.
January 1, 2024 through December 31, 2024
Purpose: To assure the membership that the financial records of the organization
are accurate and complete, that they are maintained in accordance with our By-
Laws and other organizational documents, and to assist in protecting the continued
financial viability of the organization
Scope: Information presented here is based on a review of the materials furnished
by bank records and by Granite City Real Estate (CRE), the manager of the
organization.
Disclaimer by reviewer:
1. As a board member, I cannot claim total impartiality, so I cannot claim that
I do not have a conflict of interest, and yet the absence of a conflict of
interest is one of the essential elements of a valid financial review.
2. Although I am involved in most financial decisions of the organization, I am
not a designated or authorized signor on the checking account of the
organization, nor do I have access to it online.
3. I am one of two authorized signors on the Certificates of Deposit (CD's),
now with Stearns Bank, and I was an authorized signor when the CD's were
held at Sentry Bank last year. Future and past transactions as to the CD's
require two parties, so the likelihood that I could access funds alone is
negligible.
4. An employee of GCRE is a signor on the checking account, and her
activities are undertaken with the supervision of others.
5. I am not an accountant or auditor by training or experience, so my review is
limited to matters that seem appropriate to me.
Observations:
1. During the period covered by this review, monthly dues were $120 per
month per unit, so the organization's budgeted revenue should amount to
$48,960 for the year. Deposits to the bank checking account totaled
$47,939.00. I did not reconcile the difference of $1,021. Such differences in
the past were the result of dues being paid early during the prior year or paid
in advance for the succeeding year. I have not reconciled the variances.
2. GCRE keeps a record of who has paid, and their frequency of payment.
Dues are current for all members as of year end 2024.
3. The position of our checking account is summarized as follows:
Beginning Checkbook Balance, 1/1/2024
Deposits during 2024
Checks cleared during this period
Ending Checkbook Balance, 12/31/24
Checks written, not cleared
Adjusted Checkbook balance, 12/31/2024
Bank Balance on year end statement
Difference
$17,310.81
$47,939.00
$54,389.92
$10,859.89
$10,859.89
$10,824.16
$35.73
The difference amounts to $35.73, an amount that I did not resolve.
Our Savings and CD balances as of 12/31/24 is as follows:
A. TruStone Savings: $5.31
B. Sentry Bank CD #8325-1: $10,766.39
C. Sentry Bank CD #8325-2: $10,630.28
D. Sentry Bank CD #8325-3: $13,342.33
4. Total of all cash:
A. Checking: $10,824.16
B. Savings and Time Deposits: $34,744.31
C. Grand Total Cash: $45,568.47
5. Payments to others on behalf of the organization were observed in the
GCRE's journal. The largest transactions deal with lawn care, irrigation, and
management. Such transactions appear to be consistent with the contracts in
place. However, as in past years, the remittance to the American Cancer
Society in the amount of $100.00 is not supported by an invoice. That is a
payment approved by the board to make a donation on behalf of the APH
business for the use of their facility for our annual meeting
6. The bank has furnished digital copies of all checks. All checks bore the
signature of just one employee of GCRE. That is in in accordance GCRE's
operational guidelines, and GCRE has insurance covering the fidelity aspects
of their business. If this is acceptable to the board and membership, they
should adopt a Rule accepting this or amend their By-Laws. If the board or
membership choose not to make this change, they should stipulate that they
acknowledge this deviation from the organizational documents and accept the
risk associated with it.
7. Checks were paid to insurance agencies or companies for Directors and
Officers Liability Insurance, General Liability and Property Damage, and the
policies appear in force as required by the By-Laws. The premium for a
fidelity bond covering the Treasurer is due presently. The board will be
making a decision as to whether or not they want it in place as required by
our By-Laws. Since neither the Treasurer nor other board member has sole
access to the organizational funds, it does not seem necessary to the
Reviewer. Again, if this is acceptable to the board and membership, they
should adopt a change to their By-Laws. If they choose not to make this
change, they should stipulate that they acknowledge this deviation from the
organizational documents and accept the risk associated with it.
Budget and Reserves
1. Budget: A copy of the Budget for 2025 is attached.
2. Reserves: The Reserves are evidenced by the CD's we maintain at
Stearns Bank. They were held by Sentry Bank until May 2025. As to
the validity of the amount in the Reserves, the board has engaged Traut
Wells to review the condition of our well and equipment. The board
does a thorough job of managing income and expenses, predicting the
useful life of our assets and providing reserves for their repair or
replacement.
Conclusions: The financial activities of the organization appear to be timely,
sufficient to cover ongoing obligations, to fund reserves, and in accordance with the
organizational documents with two exceptions. See paragraphs #6 and #7 under the
paragraph labeled Observations, above.
Presented by Joe Mullen, October 9, 2025