Lake Forest Property Owners Association
Financial Report
For Month Ended June 30, 2003

The first six months of the year ending June 30, 2003 resulted in the following: 

Revenues                                                       Expenditures

Budget:             $1,450,882                                                     $1,076,046

Actual:              $1,380,132                                                      $1,128,291

Variance:          ($70,749) 4.87%                                             ($52,246) 4.85%

Revenues:  Were less than budget mainly due to the weather.  The golf course and food and beverage are the main reasons.  People just don’t play golf if it’s pouring rain.   

Expenditures:  Are overspent because repairs, maintenance and projects not budgeted just had to be done to preserve our amenities.  Less than 5 per cent variance is still pretty good.

Current Assets:  We finished the month with an operating account balance of $124,778. 

Accounts Receivable:  At the end of June the accounts receivables were $322,488 of which $88,870 is identified as doubtful accounts.  We are attempting to recover these.

Cash Flow:  During the month, we received $205,830.  We disbursed $261,149 leaving a cash operating account of $124,778.  The disbursements were $55,319 more than the cash received of which approximately $27,000 was approved capital expenditures.  Management is taking actions to continue our expenditures the best way possible but if things come up that require immediate attention they have little choice but to preserve our assets.

Departments: Golf remains our single biggest cash problem.  To date we have spent $72,885 more than our revenues.  As previously stated, we can’t force people to play in the rain.  Food & Beverage shows a loss for the first six months of $43,398.  The swimming pools, always a loss leader, mainly for the children, shows a $27,096 expenditure over income and tennis is short by $12,747. 

We are having a pretty good experience with our program of going after the delinquent members.  To date we have collected from the attorney approximately $55,000.  Some members have responded very well and made payment directly to Lea Ann in our office rather than face legal action.  We thank them and Lea Ann for doing an excellent job.                  

Robert W. (Bob) Underwood

Treasurer