Treasurer gives GRF budget a report card
MESSAGE FROM THE GRF TREASURER
by Nick Massetti
GRF Treasurer
Previously it was explained that the GRF monthly assessments are determined by the annual budget process, involving GRF staff and directors and any residents who choose to participate (via their GRF Director, email, handwritten note or during member comments during a meeting). Now we continue with how well GRF adhered to the 2024 budget, with a report card on the rest of the budget categories.
Besides the Human Resources and Facilities categories, which both ended up coming in on budget, the Recreation and Communications categories also significantly impact services to residents. The Recreation Department signed up to deliver $67,500 in income, while keeping expenses below $392,800.
The 2024 financials show the Recreation Department ended the year positive to the budget by $51,000, after providing a host of events and library services. The Communications Department, which publishes the newspaper and manages various specialty publications and advertising opportunities, signed up for $650,000 in income and to keep expenses below $232,000. The Communication Department ended the year with a $15,000 surplus. That’s a good review for both departments.
So far, 80% of planned income and 80% of planned expenses ended up on target in 2024. What did not meet plan were the expense sides of the Operations and Administration categories.
The Operations category income is dominated by Stock Transfer and Escrow operations. It delivered $632,000 in income, which was $109,000 more than the plan. However, the category related expenses, which were dominated by computer maintenance and software, was $147,000 over its planned $568,000 expense target. That overage resulted from reassigning software charges that had been buried in other departments and not fully accounted for in the budget.
Where expenses really fell off the rails was in the Administration category. On the income side, this category includes rental income from Optum and a portion of residential sales from On-Site Sales. That income exceeded the planned $1.5 million by a whopping $463,000. On the expense side the wheels fell off, as has already been reported.
The 2024 budget process had to be completed by November 2023, and the best guess for the insurance budget was entered at $934,000. The GRF and Mutual assessments were determined, and letters sent notifying residents. But the insurance premium came in much higher on Dec. 1, 2023, causing the Administration expenses to exceed budget on that line item by $1.6 million.
Because of the way the insurance premium is allocated between GRF and the Mutuals, the GRF budget absorbed the lion’s share of the surprise increase. Fortunately, there was also a surprise on the income side. The Trust Property Use Fee, which was previously called the Amenities Fee, came in $789,000 over expectation. That was welcomed relief.
All totaled, in the end GRF managed a budget that planned for $24 million in spending and for $7.1 million in income to a net loss of $317,000. That’s a financial scorecard win and a clear demonstration of capable stewardship.
