Norchester Maintenance Fund 2024 Preliminary Budget
Financial Data for April 2024
NMF Board Approved Budget for 2023
Financial Data for December 2023
The 2022 NMF Audited financial statement from Cox and Co. is available. Click Here.
Comments for NMF webpage regarding 2021 Audited financial statements:
Attached is a link to the Norchester Maintenance Fund, Inc. (NMF) 2021 audited financial statements. This is a full audit performed by Canady & Canady, LLC, a national firm that specializes in HOA audits with a Houston, TX office.
At year-end 2021, NMF had total cash on hand of $482,847 compared with $340,039 at yearend 2020, or an increase of $142,808. This balance consisted of $315,416 cash in our operating accounts and $167,431 in an interest-bearing savings account.
NMF had total income in 2021 of $508,210 compared with $453,066 in 2020. The majority of the income was Assessments received of 419, 862 compared with $411,206 in 2020. Rental income of our facilities increased significantly to $24,091 ($9,299 in 2020 as a result of the Clubhouse being shut down due to COVID restrictions). Budgeted income for 2021 was $370,280. As of 12/31/2021, we had sixteen (16) accounts which are 2-years of more past due totaling $60,929 compared with 17 accounts totaling $67,503 at yearend 2020. These have been referred to NMF’s attorneys for collection. Additional accounts have collection proceedings in process in preparation to referral to the attorneys if not satisfactorily resolved through payment or a payment plan.
Total expenses for 2021 were $346,302 compared with $319,405 in 2020 (See Page 5 of the Audit Report for expense details). This was $24,000 less than budgeted expenses of $370,057. The result was a surplus of revenues over expenses of $161,908. As in 2018 through 2022, we have continued to budget conservatively and we have NOT had a paid Club Manager from 2019 through 2022, in order to achieve the goal of paying off the indebtedness and building reserves necessary to ensure the future financial stability of NMF.
Starting in 2021, the Clubhouse and facilities were operated with some paid staff (except for a Club Manager). This included 3 positions: 1) Facilities Manager to oversee all our facilities, 2) Event Coordinator to solicit use of all our facilities to generate income, and 3) Pool Ambassador as an additional safety measure regarding the use of our pool. All three positions are part-time with a projected total expense of $24,000 for 2021, which approximates the expense of a Club Manager in the past, but should result in a more productive result. The Pool Ambassador position is only utilized during the summer months operations of the Pool.
Our facilities continue to be under-utilized. The total cost of our Clubhouse facilities on an annual basis is an estimated $120,000, including contributions to a Reserve for Maintenance and Repairs Fund. (A Maintenance Reserve was established in 2022 and had a balance $80,000 at yearend 2022). We have an adequate “Rainy Day” amount in our Operating Account as of year-end 2022 and in the future will focus on building the Reserve for Maintenance and Repairs as recommend by the 3rd Party Reserve Study completed in 2021. We continue to urge all homeowners to use our facilities, and refer others to use our facilities.
If you have any questions, please contact NMF Board Member Dave Richards (281-469-1928).
Download 2021 Audit (CLICK HERE).
Comments for NMF webpage regarding 2020 Audited financial statements:
Attached is a link to the Norchester Maintenance Fund, Inc.(NMF) 2020 audited financial statements. This is a full audit performed by Canady & Canady, LLC, a national firm that specializes in HOA audits with a Houston, TX office. (Click on Download to get PDF of the report.)
At year-end 2020, NMF had total cash on hand of $340,039 of which $212,622 was cash in our operating accounts and $127,417 in an interest bearing savings account. We paid off our note to Mutual of Omaha Bank in full in October 2020. This saved us approximately $16,000 in interest expense over the remaining life of the loan (5 ½ years).
NMF had total income in 2020 of $453,066, of which the majority was Assessments received of $411,206. Rental income of our facilities was down significantly to $9,299 ($31,216 in 2019) as a result of the Clubhouse being shut down due to COVID restrictions. Budgeted income for 2020 was $376,000. The excess of actual income over budged income was a result of increased collection efforts on accounts receivable. As of 12/31/2020, we had seventeen (17) accounts which are 3-years of more past due totaling $67,503 that have been referred to NMF’s attorney’s for collection. Additional accounts have collection proceedings in process in preparation to referral to the attorneys if not satisfactorily resolved through payment or a payment plan.
Total expenses were $319,405 (See Page 5 of the Audit Report for expense details). This was $22,000 less than budgeted expenses due to the Clubhouse Pool being shut down due to COVID restrictions and a savings on lifeguard and pool operations of approximately $11,000. Also, Clubhouse repairs and maintenance expenses were $20,000 under budget. The result was an excess of revenues over expenses of $133,662. This excess enabled NMF to retire the indebtedness in October 2020. As in 2018 and 2019, we have continued to budget conservatively and we have NOT had a paid Club Manager for 2019 or 2020 in order to achieve the goal of paying off the indebtedness.
Starting in 2021, the Clubhouse and facilities will be operated with paid staff. This includes 3 positions: 1) Facilities Manager to oversee all our facilities, 2) Event Coordinator to solicit use of all our facilities to generate income, and 3) Pool Ambassador as an additional safety measure regarding the use of our pool. All three positions are part-time with a projected total expense of $24,000 for 2021, which approximates the expense of a Club Manager in the past, but should result in a more productive result. The Pool Ambassador position is only utilized during the summer months operations of the Pool.
In the past we have been able to generate income of between $25-30,000 for the use of our facilities. Due to COVID lockdowns we only produced $9,299 in 2020. Our facilities were/are under-utilized. The total cost of our Clubhouse facilities on an annual basis is an estimated $120,000, including contributions to a Reserve for Maintenance and Repairs Fund (We project establishing this Reserve in early 2022). Projected income for 2021 is $19,000 resulting in a net cost to homeowners of $101,000 ($153 per homeowner). Our goal is for the Event Coordinator to generate additional income which would partially offset operating expenses and reduce the net costs of the facilities to our homeowners. We solicit all homeowners to use, and refer others to use, our facilities.
If you have any questions, please contact NMF Board Member Dave Richards (281-469-1928).
