By Jan Ek
Financial Report:
RCSC has ended April 2012 well within its operating and capital budget. Let me remind you that when you are looking at accounts receivable – assessments balance this year compared to last, you must also include the pre-billed assessments under liabilities as a part of your calculations, as we now book all billed accounts receivable, although it is for the future. For those of you who really delve into the financial statements, it is important for you to understand that we have approximately $600,000 in budgeted expenses which have not been completed year-to-date, therefore, our positive variance from budget is overstated as these expenses will be completed in the future. Also remember that we have just completed our two largest billing months, so our cash and investments always grows at this time of year to accommodate expenses forthcoming in the future.
Bowling Centers:
The 24th annual Sun City Open Bowling Tournament was held at Lakeview Lanes and Bell Lanes. Bowlers came from all over the state plus one team from California. The tournament was very successful; it produced approximately $4,000 over a period of two weekends.
On May 5, 2012, the liquor license was transferred from Mojoe’s Café to Lakeview Lanes. Lakeview Lanes will offer the same products as Bell Lanes and the pricing will be the same. Liquor sales and expenses were not budgeted for Lakeview Lanes. Although there were some initial unbudgeted expenses, we feel income from liquor sales will more than offset those expenses and produce an overall positive effect. As of April 30, 2012, the bowling division had a net positive variance of $23,000 when compared to budget with these unbudgeted expenses.
Cardholder Services:
Payments made by property owners in outside collections were down in April at $2,114 with payments from just 12 property owners. This amount collected was impacted by changes made in the handling of accounts by our outside agency with some of the reduction being included in the amounts collected by our internal collector. During March our internal collector processed payments from past due property owners totaling $62,228 and property related transfer fees totaling $402,847.
Even though our payments on past due balances were the highest since November, our past due totals increased by 8.75% in April. This is most significantly impacted by the large total of March assessments that were unpaid and moved into the past due category. The percentage of the March assessments that went past due was 8.5% and is slightly higher than the monthly average of 8.25% for the past 6 months. At the end of April, outstanding balances related to property transfers decreased by 13.6% and now represent 48% of receivables due and 46% of past due balances.
Property trustee sale notices on Sun City properties was increased by 10% in April and ended the month at 88. The number of bank-owned properties decreased slightly down to 81 properties owned by lenders.
The Preservation and Improvement Fees collected in April continued the volume trend in March; finishing the month just under the March high at $830,475. Year-to-date PIF fees are $1,142,875, or 79%, over budget.
Human Resources:
The National Labor Relations Boards (NLRB) rule expediting union elections has become effective. This final rule will dramatically change union representation election procedures and timelines to the disadvantage of employers. Elections now can take place as early as 14 calendar days after a petition has been filed leaving very little time for employers to communicate with employees. Once a petition for a union representation election is filed a pre-election hearing occurs no later than five working days. Unions can also seek elections in bargaining units based on smaller groups of employees, such as employees only working in a particular classification or function. As always, RCSC along with all other business groups will be taking recommended steps to remain union free. Seminars and training are being made available to H.R. managers and directors to focus on communications with employees.
The manner in which hazardous chemicals are identified, classified and labeled is being changed by the Globally Harmonized System of Classification and Labeling of Chemicals or GHS. GHS is an internationally agreed upon system, created by the United Nations. It is designed to replace the various classification and labeling standards used in different countries by using consistent criteria on a global level creating a universal standard. It will affect all businesses that use hazardous materials in the workplace. The program will be implemented in increments over a period of time. One objective is to replace chemicals that cause chronic health hazards, such as carcinogens, mutagens and reproductive toxins with less hazardous ones. H.R. is tracking the implementation for compliance.
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! We have forms available at the table in the back so you can sign up before you leave today.