by Jan Ek
Financial Report:
We have ended August 2012 well within our operating and capital budget year-to-date. All divisions have met their net operating budget prior to depreciation year-to-date except food service, which is solely due to the costs incurred in the required replacement of equipment and the remodeling of the café at the Lakeview Lanes. The coffee counter has been re-installed as was highly requested by Sun City residents. We are looking forward to getting this restaurant back open and operating in October 2012. Repairs and maintenance are considerably under budget which is strictly a timing issue as R&M projects will be completed throughout the remainder of 2012 and most likely into 2013 which will eliminate the current $600k positive variance year-to-date.
Bowling Centers:
USBC Lane inspections were performed at both centers over the summer. Lane inspections include measurements of lane depressions and cross tilts which must be within 40 thousandths of an inch. Also inspected are pin decks and flat gutters. Flat gutters have a tolerance of ¼ inch. Both centers are in compliance with USBC specifications for the 2012/2013 season.
Recently the bowling department renewed the premium membership for LeagueSecretary.com. This website is where all league standings are posted for both centers. The premium membership allows all RCSC bowlers to view various graphs and detailed scoring information about themselves, their league or any other RCSC leagues. Bowlers will be able view statistical information which could drastically improve their game.
Cardholder Services:
Payments made by property owners in outside collections totaled $11,209 in August with payments from 18 property owners. Larger payments from several past due property owners were collected this month. During the month our internal collector processed payments from past due property owners totaling $28,310 and property related transfer fees totaling $84,882. Both of these were lower this month as anticipated due to scheduled time off of our internal collector although staff in the Cardholder Services Office assisted during this time.
Payments on past due balances bounced back in August at 35% over the monthly average and past due balances decreased by almost 6%. July billings went past due at a 7.5% rate, which is again just under the monthly average. The rate for June balances going over 60 days past due was at 4.7%, which is right at the average rate for the last year. At the end of August, outstanding balances related to property transfers increased by 1.5% and now represent 54% of receivables due and 54% of past due balances. The net accounts receivable change was (0.44%) for August indicating that non-transfer payments increased more than the increase in property transfer related charges.
Property trustee sale notices on Sun City properties ticked up slightly to 97 at the end of August as did the number of bank owned properties to 76 owned by lenders.
Human Resources:
Woods & Dwyer, auditors for the RCSC Employee 401(k) Plan, recently completed an audit of the Plan for the 2011 calendar year. Financial statements and supplemental schedules were audited and results must be submitted to the IRS along with the Form 5500 no later than October 15, 2012. The audit found RCSC to be in compliance.
We have complied with the new disclosure rules of disclosing fees and expenses including investment performance charts to all 401(k) plan participants. Participants will receive the disclosures along with their paychecks this Friday.
The Affordable Care Act requires health insurance providers (in large markets) to spend no more than 15% of premium on administrative costs such as salaries, sales and advertising. Aetna, our provider, exceeded that amount for calendar year 2011. As a result, RCSC received a rebate check in the amount of $12,147.50. There were several options for distributing the rebate and we chose the option to allocate the funds between the corporation and the participants based on the respective proportion of the premium amounts paid by each. Participants paid 16% and RCSC paid 84% of premium resulting in $1,934.57 allocated to participants and the remaining $10,212.93 allocated to RCSC.
Although both health and dental benefits are renewing on October 1, 2012, RCSC’s health carrier, Aetna, has returned a very unfavorable renewal rate of a 20% increase. RCSC has been seeking an opportunity to change the renewal date to January 1, a date consistent with the fiscal year and the deductible year. Additionally, RCSC was notified that the highly desired Aetna plan where co-pays have counted towards annual deductibles will no longer be available after this renewal. Therefore, RCSC is in the negotiating process for new health and dental benefits as of January 2013. RCSC has recently changed their insurance broker for health and dental benefits to accommodate their needs better.
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.