By: Jan M. Ek
Financial Report:
While RCSC ended January 2012 well within its operating budget, there is some interesting information that I would like to share with you. We budgeted privilege card income quite conservatively in 2012 as we do not have enough history with the new short-term privilege cards to know the overall financial effects; however, in January we sold almost $65k more than was budgeted. As has become common practice, we have $288k in budgeted, but uncompleted repairs and maintenance projects for January 2012. As has also become customary, unfortunately, all divisions have ended January 2012 within their operating budget except the golf division. We had a misstep with our 2012 budget because of the electricity for pumping the water on our golf courses, creating more than a $6k deficit for January. Additionally, we experienced an almost $6k decline in green fees for RCSC Cardholder guests and another $4k decline in public play from last year. Brian has done a good job of controlling expenses wherever possible to make up for these financial shortcomings.
Bowling Centers:
There has been an improvement in scoring at both RCSC Bowling Centers since the new Kustodian Walker Lane Machines were placed into service in late January. The machines were purchased primarily with customer safety in mind, having the ability to keep the first foot of the lane dry helping to prevent the slips and falls for those who accidentally cross the line. In addition, machine lifts were installed at both RCSC Bowling Centers to assist Mechanics and Pinchasers in lifting the machines in order to prevent injuries from lifting.
RCSC’s bowling management team has been in discussions with a group of bowlers trying to organize a new 32 team league for the fall of 2012. The league is in the early development stage but is beginning to look promising. The league will consist of Cardholders and guests from all over the valley who will bowl in divisions at both RCSC Bowling Centers at 8:00pm on Thursdays.
Cardholder Services:
Payments made by property owners in outside collections rose slightly to $11,211 in January with payments from 28 property owners. During January our internal collector processed payments from past due property owners totaling $68,000 and property related transfer fees totaling $124,173. This is a good start for the new year as the non-transfer amount collected by our internal collector was greater than any month in 2011.
Even with these collections successes, the overall past due balances rose 2.8% and was impacted greatest by the increase in over 30 day balances. This correlates to the year-end report where the under-30 day balance total was greater than the prior year end. January is historically a very active month for privilege card activity in the Cardholder Services Office. This January was consistent with historical trends with significant privilege card sales. Most notably was the volume of short-term privilege cards. The short-term privilege card was introduced in 2011 and the majority of sales occur in the first several months of the year with January leading the pack.
Property trustee sale notices on Sun City properties dropped by 12% in January and now stands at 88. The number of properties owned by lending institutions at the end of January rose slightly to 102.
The Preservation and Improvement Fees collected in January were $386,300, or 53%, over budget. While RCSC has consistently seen Preservation and Improvement Fees over budget, property sales and transfers are outside the control of RCSC so we conservatively budget for Preservation and Improvement Fees for the year.
Human Resources:
The IRS code allows flexible benefit plans to be designed in a manner that saves the employee and the employer tax dollars. To comply with regulations set by the IRS, plans must be tested to eliminate any top heaviness similar to Pension Plans. A preliminary testing of RCSC’s Employee Flexible Benefit Plan has been conducted and the Plan has passed all 3 tests to conform to Section 125 of the IRS code.
To ensure compliance with U.S. Immigration and Custom Enforcement (ICE) requirements, the HR department has conducted an internal audit of its I-9 forms. IRS form I-9’s are required for all employees to verify identity and right to work in the U.S. The recent audit assures RCSC is in compliance and could pass an ICE audit.
HR has completed and distributed the Occupational Safety & Health Act (OSHA) Form 300A to all work locations to be posted from February 1 through April 30 as required by the Act. The form contains a summary of work-related injuries and illness that occurred in RCSC workplaces during the 2010 calendar year, as well as employment information regarding the annual average number of employees and the total number of hours worked by all employees in that year. Posted information shows average number of employees at 270 with 363,602 total hours worked.
General:
For those who may not be aware, the monthly management reports are available on our website www.sunaz.com under the Corporate tab. Also, if you have not done so already, please sign up on the RCSC email list where you can designate topics of interest and stay in the loop with RCSC news alert emails!