Announcement

'Favorable Financial Outlook' - A msg from the Dir of Finance and Operational Logistics

Tuesday, July 7, 2020

The following column was part of the summer 2020 Ocean Pines Report quarterly newsletter:

Steve Phillips

Despite the unprecedented situation of COVID-19, Ocean Pines was able to produce a favorable financial report in May 2020, the most recent available as of the publication of this newsletter, and the first month of the new fiscal year.

As of May 31, we have a positive operating variance of just over $92,000. Amenity revenues were significantly affected by the pandemic, falling below budget by approximately $630,000. However, these unfavorable revenue results were more than offset by total expenses being under budget by $462,468 and the recognition of approximately $300,000 in PPP funding revenue.

SC&H Group is currently performing audit procedures on Ocean Pines’ results for fiscal 2019/2020. The UNAUDITED results that were released in early June had a positive total operating variance of $571,912. On the year, total revenues were over budget by $263,190 and total expenses were under budget by $308,722. The largest favorable variances for fiscal 2019/2020 were produced from General Maintenance ($226,363), the Yacht Club ($201,650), Public Works ($154,995), and Recreation and Parks ($68,861).

Looking ahead in fiscal 2020/2021, we continue to track and account for the negative impact the pandemic-related closures/limitations will have on budgeted revenues for the remainder of the summer. We will also work closely with each department to monitor and control expenses, update estimates based on the latest data, and produce annual cash flow projections.

Finance also continues to work closely with all departments to implement the new Northstar software, which is now being utilized by the majority of our operations. This Northstar software is now integrating these various amenity and functional operations directly into the General Ledger, and producing the monthly financial reporting available on our website.

Announcement

'Favorable Financial Outlook' - A msg from the Dir of Finance and Operational Logistics

Steve Phillips

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