YMCA – Errors Within Reserves Reports?

November 11, 2013 4:55 PM
From:  “Wayne Saunders” <wsaunders@port-orange.org>
To:  “Mark Schaefer” <mark@mark-schaefer.com> “Greg Kisela” <gkisela@port-orange.org>
Mark,
In response to your earlier email to Greg,  the total reserves for the 106 Recreation Project Fund shown in the CAFR are correct.  However, the sub-accounts titled Restricted and Assigned, as shown on p43, were not accurate as they relate to the YMCA.  The Restricted reserves are overstated and the Assigned reserves are understated but the total is correct.
The correction shown on the analysis I previously provided reduced the Restricted (Reserved) amount to the proper level and with that adjustment increased the Assigned reserves by the same amount leaving the YMCA with the same total available funds in the R & R Fund.  The Restricted (Reserved) funds are generated from the required contributions according to the agreement between the City and the YMCA and the Assigned are generated from the additional contributions from the rental revenue.
Regarding your question 1., I assume you are referring to the $34,054.06 shown as Interest Earned on the schedule I provided.   This is the fund’s proportionate share of the pooled investment earnings.  As for question 2, the expenditures shown were for A/C repair and replacement.
With regard to your question 3., I have not researched the origin of the additional contributions that are deposited into the 106 Fund reserves from the rental revenue.  I trust this answers you questions.
If you need additional information, do not hesitate to contact me.
Wayne Saunders
Finance Director
City of Port Orange
 

Greg,
If I am understanding this analysis correctly, the CAFR that was issued in June for 9-30-2012 overstated the YMCA reserve by almost $200,000.00.  Would that be the correct assumption?
We still do not have any documentation on:

1. The $35.000.00 of interest added to the reserve.
2. A few word explanation to describe the expenditures.
3. City Council resolution on the additional $2,812.50 monthly reserve for the YMCA.

 
Thanks,
Mark Schaefer
3606 Donna Street
Port Orange, Florida 32129
386-316-1206