Financials

Download LPOA By-Laws

“ARTICLE XII BOOKS AND RECORDS The books, records and papers of the Association shall, during reasonable business hours, be subject to inspection by any member provided, however, that the member give a five (5) day written notice and the member state the purpose of such inspection.

The records which shall be open to inspection shall include the Articles of Incorporation, By-laws, Resolutions of the Board of Directors relating to the rights, limitations and obligations of the members of any class or category member, the minutes of all meetings of members, minutes of all open Board meetings, and records of all changes approved by the members for the past three (3) years; all written communications to members or class members for the past (3) years, including the financial statements for the past three (3) years; a list of the names and home addresses (or business addresses) of the current officers and directors, a copy of the most recent corporate registration report filed with the State of Missouri and any other records covered by the Missouri Statutes that apply to Home Owners Associations.

All final audit reports, annual statements and quarterly financial statements shall be published and available for the members to inspect upon proper request as provided above. Certain records shall be deemed closed records including: resident files; legal correspondence; specifications and bids for competitive bidding until officially approved; published or negotiated contracts until executed; personnel files and executive session minutes.

The Board of Directors may set policies regarding reasonable charges for copying and staff time spent responding to members or resident requests.”

Download Policy #6: Financial Management

5/13/1993

This policy is to establish the budget process, budget preparation and budget monitoring procedures for the General Manager and LPOA Treasurer. This policy also establishes LPOAs cash reserve guidelines, the method for determining the recommended cash reserve and the conditions whereby the cash reserve may be used.

Download Policy #24 – LPOA Closed Records Policy

11/12/2015

After the ByLaws (above) were created, Policy No. 24 was then developed to help define specific accessibility of our individual records, still in accordance with MO Statutes. The purpose of this is to establish the policy and procedures governing access of LPOA records. Financial Statements, Including Budget/Actual, are available at the LPOA Main office, in hard copy format, after staff time/effort has been allocated to assist the resident request.

Download Transparency Report: LPOA Guide to Financial Accessibility

04/05/2017

This Report was prepared to document a summary of understanding how to request access, and to which types of documents you may have access. Many of these financial reports references have since been posted online for easy viewing or download.

The operating budget represents recurring, routine, annual expenses, including Payroll and Miscellaneous expenses. The LIP budget represents capital projects and one-time expenses as determined by the LIP budgeting process each year. All Operating Budget line items are categorized by Department: Admin Budget (10), Clubhouse Budget (15), Food/Bev Budget (20), etc.

In the Operating Budget:
There are just 2 line items where a transfer of funds happens.

• • Expense – “Annual Consolidated Budget” – 08201 | Building Lease | Admin (10) Department. This line item can also be found under the Monthly Financials, in the “Income Statement by Department” section.
  • Revenue – “Monthly Financials” – 07162 | Contract Services – Admin. This is the management fee from LHC to the LPOA for their portion of the General Manager services. This is to offset payroll that is paid in full by LPOA.

In the LIP Budget:
These line items would change annually, based on any capital projects or one-time expenses that might have been approved during a particular year. Examples would include leasehold improvements or updates completed by the LPOA to the Clubhouse.

These improvements would be approved under the triple net lease agreement between LPOA and LHC. Once expensed, these figures would be reflected in the corresponding Monthly Financials “Balance Sheet”, and also in the Annual Audit Report, under the “Assets” section.

For ease of reading, because revenue is uniquely complicated, as it represents a wide variety of line items from LPOA and all 21 Parcels. The detailed balances can be found in the Monthly Financials.

Prepared by The General Manager, for the Annual Meeting held every April:

This is created after the year-end is finished. We use this meeting to finalize the prior year, and to announce new board members. This is prepared on behalf of the Treasurer of the Board and the Finance Committee Chair. Dave Stacklehouse. The Annual Meeting is presented first, followed by the results of the Election season.

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Prepared by the Independent Auditor:

This long process begins after year-end (approximately February). (We always file a tax extension past the corporate deadline.) LPOA and LHC both work independently with the auditor.

A preliminary Audit Report is presented to the Board in August of the year at hand, along with tax returns for Board approval. It is usually finalized/approved in August Board Meeting.This is an extensive independent review of all accounting procedures, including some, but not limited to, the following types of transactions:

The Audit Selections Tax Form we receive each year may request all or some of the following:

• • Trial balances for the year
  • Detailed General Ledger reports
  • All the leases and amendments to leases
  • Select samples of expenses (usually over certain dollar amounts and/or policy limits)
  • They review expenses from specific dates early in the year (like Jan/Feb) to confirm that each approval was actually posted in the correct year
  • They verify only if we’ve closed year end – we make sure to hang onto invoices for things that come and go
  • Copies of all board minutes – checking every motion made in regard to financially related matters
  • They review all account-related write offs to match board approvals
  • Making sure all our things are approved in accordance with our policies

Once the Board approves the Audit in August, the auditor then publishes the Final Report, along with Tax Returns.

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Prepared by the Independent Auditor:

Both audits from LPOA and LHC are combined into a format to show the financial status of the combined organization. This report is crucial for banks, lenders and the board to see the overall health of the combined organizations. These are finalized in August for the previous year.

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LIP Budget (Lakewood Improvement Projects): Annual Spending & Reserve View

Prepared by the Facilities Committee and the GM, to present to the Board:

All proposed LIP projects are due to the committees in August, and they begin to work on details through their budgeting process. The recommendations are presented to the Board in November for approval. This document tracks all incoming LIP requests and ongoing projects. It includes details about whether projects are funded by reserves, dues, or are being earmarked for reserves.

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LIP Budget (Lakewood Improvement Projects): 10 Year Rolling Consolidated View

Prepared by the LPOA Accounting Supervisor:

This is a document shared with the Board and auditor in order to consolidate data around LIP projects. It tracks progress annually with a 10 year view.

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Prepared by the LPOA Accounting Supervisor and LHC Office Manager, in conjunction with the Finance Committee Chair:

This is a consolidated view of the annual budget of all departments, including both the LPOA and the LHC. All budgeting proposals are due by August of each year, and the Finance Committee works through the budgeting process to finalize recommendations. Recommendations are presented to the Board every November to be approved, and provides direction for the following year.

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Prepared by the Contracted CPA:

The monthly financial activity for LPOA includes the following:

• • Balance Sheet (about 8 pages)
  • Income/Expense Statement, Summarized (about 13 pages)
  • Income/Expense Statement by Department (about 18 pages) (departmental details began being published during mid 2022)

These are usually available about 30 days after the closing month. Beginning in 2018, these reports started being added online in PDF format. All records prior to that can be accessed via the Books & Records policy.

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Produced by the Finance Committee Chair:

Summary of the Balance Sheet and Income/Expense statements for each quarter. These are reviewed at the quarterly Finance Committee meeting, and then shared with the Board and other committees as needed. Additionally, this quarterly report is condensed to a one-page document for publicizing in the Ripples. This quarterly report is usually completed within 30 days after the close of each quarter.

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Prepared by the LPOA Accounting Supervisor:

During the year 2015, Lakewood commissioned our first professional Reserve Study, and then ordered another one in 2019.

These reserve studies examine all the property, capital projects and amenities throughout our community, and helps us to build stable and equitable multi-year funding plan that provides for the timely execution of the association’s major repair and replacement expenses.

This plan takes into account the end-of-life and replacement schedules for amenities, so we can prepare in advance for major expenses.

Things omitted from the scope of this plan includes supporting the Dam Spillway and some Lake management procedures such as desilting.

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