OCTOBER 18, 2018 - BOARD BOOK

Frenchman’s Creek Financial Overview as of September 2018

5th Month of the Fiscal Year Fiscal Year End April 30, 2019

Home sales remain active with one additional new member home closing in September, with an additional four pending new member sales. The community has a negative variance compared to budget of $84k; the club income being under budget by $285k with the POA favorable to budget by $201k. The Go Green Initiative is projected to increase the club’s costs by approximately $150k per year. The member requested shift to organic food products is estimated to increase the cost of food and amenities by about $20k.

Fiscal Year 18/19 Actual

Fiscal Year 18/19 Budget

Variance

$1,000s

Club Income/(Loss) POA Income/(Loss) Total Income/(Loss)

$607

$891

($285)

($179)

($379)

$201 ($84)

$428

$512

Department Amounts rounded to nearest thousand

Actual

Budget Last Year Var to Budget (Unfavorable)

Explanation

Higher labor costs in Golf Operations as well as housing costs for trainees added to the variance. Sports Bar revenue has been effected by the wet weather early in the year. Higher contract labor costs related to special cleaning and refurbishment projects. The cost of some operating supplies and paper products has risen due to the shift to environmentally friendly products. $45K was spent on multiple air quality tests in September. Variance was due in part to price increases of fruit, lemonade and coffee as well as the higher cost of organic produce. An increased summer Clubhouse usage also contributed to the increase in consumed amenities.

GOLF

$ (1,882) $(1,824)

$(1,818)

($58)

MAIN CLUB F&B

$ (758) $ (721)

$ (772)

($37)

HOUSEKEEPING

$ (542)

$ (433)

$ (434)

($109)

MEMBER SERVICES

$ (513)

$ (467)

$(433)

($46)

7/100