John Viola

By Josh Davis, Associate Editor

(Feb. 21, 2019) Ocean Pines’ most recent financial report was optimistic, with a positive year-to-date operating fund variance of more than $150,000 and a positive December variance to the budget of $11,780, according to Treasurer John Viola.

According to the December financial report, the month is the sixth straight with a positive operating fund variance.

“Keep in mind that we still have four months when we basically have expenses and a cash drain,” Viola said, referring to the April end of the fiscal year.

Several amenities posted positive numbers in December, including the yacht club showing $47,000 and aquatics ending the month $12,000 in the black.

Golf operations were nearly flat versus budget for the month, according to the report.

In delivering a slide show report last Saturday, Viola, said total reserves as of Dec. 31 were $9.7 million, with end-of-year projections showing $8.2 million.

As of Dec. 31, the association had about $11.4 million in cash, he said, including $8.1 million in certificates of deposit and $3.3 million in a money market account.

The cash forecast for the end of the fiscal year is $14 million, Viola said, including $8.2 million in reserves and $5.6 million in cash collected for assessments, along with plus or minus $200,000 in net operating funds.

“What does that mean?” he asked. “I told you on 4/30/19 the forecast is $14 million dollars? Well, $8.2 [million] of it should be locked up in your cash accounts, earning interest and not touched unless this board, with a super majority … starts to use it for something.

“The estimated cash that’s coming in to pay for the bills of next year – next year – is $5.6 million,” Viola continued. “What happens between now and the end of the year? Well, we’re mostly using cash [and] and we’re mostly generating expenses. That’s what happens.

“Save this slide when somebody tells you that we have a lot of money in the bank. I’m not saying we don’t – we do – but make sure that you have the breakdown for it,” he said.