Presentation on theme: "8/16/7Residents Voice Meeting1 “Following the Money” 8/16/2007 Conrad Grundke On the Trail....."— Presentation transcript:
8/16/7Residents Voice Meeting1 “Following the Money” 8/16/2007 Conrad Grundke On the Trail.....
8/16/7Residents Voice Meeting2 The Money Trail (Cont): The Last Episode: 2007 Update on Credit Card Data Aug 1 GRF Special Meeting Bonus & Incentive Plans This Episode: Audit – WHY/WHAT? History of LW (leisure World) Guidelines/Policies/Management Agreements The Future
8/16/7Residents Voice Meeting3 Audits Purpose of Financial Audits: 1.“Yearly” Audit is a “Balance Sheet” Audit –Ensures that Balance Sheet figures were derived from acceptable accounting standards. –These companies all passed yearly audits; GM, ULHM, Starbucks, TLHM, IBM, Enron, GRF, WorldCom, etc. 2.“Forensic” Audit is a “Detailed” Audit “creative” –It can locate “creative” bookkeeping. –Could –Could prevent such accounting problems as; Enron, WorldCom, Tyco, Global Crossing, etc.
8/16/7Residents Voice Meeting4 History – 1960’s Ross Cortese Leisure World Build LW Resales Sell PCM Maintenance
8/16/7Residents Voice Meeting5 Evolution of PCM Maintenance Land Development %OFEFFORT%OFEFFORT
8/16/7Residents Voice Meeting6 Determining Controls via Management Agreement ACTUAL Money Spent Knowing WHERE spent CONTROLS
8/16/7Residents Voice Meeting7 The Future - Guidelines, policies, & controls ACTUAL Money Spent Knowing WHERE spent CONTROLS RESULTS
8/16/7Residents Voice Meeting8 DescOne TimeAnnualYearTo Date Prop Tax1,500,000550, ,600,000 Fed Tax600,000250, ,100,000 State Tax500,00050, ,050,000 Grants400, ,000 Emerg Access Rd950, ,000 Landscape Staffing480, ,200,000 Cable TV850, ,400,000 Wrkr Comp350, ,550,000 Hi-speed Internet500, ,000,000 Composting225, ,375,000 Why would we need controls with the following savings !
8/16/7Residents Voice Meeting12 Let’s review the actual $259 3% CPI Increase 3% CPI yearly Increase! 4.2% Cost Saving! $90 mil budget and we save $3.8 mil Where should our actual be if we have a 4% cost savings per year ? What happened to the savings? Actual
8/16/7Residents Voice Meeting13 Ask Your Candidate! Support Forensic Audit? Understand Ledgers? Renegotiate Contract?
8/16/7Residents Voice Meeting14 We return to the major ingredient between the Owners & PCM? TRUST
8/16/7Residents Voice Meeting15 How do we get it? Measure & Verify
8/16/7Residents Voice Meeting16 A Success Story Beginning In 1987
8/16/7Residents Voice Meeting17 Nebraska California or Bust