Summary
The August 2026 financial report was included in the October 1, 2026 board packet (pages 4–7; prepared by API on 9/14/2026, CINC Systems). It consists of a Balance Sheet (Operating, as of 8/31/2026), an Income Statement — Operating (two pages, including the reserve section) and a cover page. The manager’s report says full July and August statements were emailed to the Board and only reduced August copies were enclosed. This is the third post-reserve-study balance sheet, following financial-report-2026-03 and financial-report-2026-06.
Key Provisions
Balance Sheet Highlights (as of August 31, 2026)
| Account | Balance |
|---|---|
| Operating Checking (Barrington Bank 4181) | $83,760.76 |
| Money Market Reserve (9512) | $66,853.83 |
| CD 3330-2 (renewed 11/2/2024) | $56,715.57 |
| CD #1125 (4.85%, reinvested 5/4/2025) | $146,261.08 |
| CD #9286 (new) | $50,000.00 |
| Total Reserves (asset subtotal) | $319,830.48 |
| Accounts Receivable (gross) | $24,855.91 |
| Allowance for Bad Debt | ($4,000.00) |
| Cost Share Receivable (Related Party) | ($5,299.00) |
| Prepaid Insurance | $2,774.50 |
| Total Assets | $420,955.12 |
| Replacement Reserve Equity | $230,975.31 |
| Total Equity | $377,698.43 |
| YTD Net Income Gain/Loss | $40,274.82 |
Reconciliation of the new CD
CD #9286 ($50,000.00) is the CD funded by the Board’s July 16, 2026 motion to move $50K from the Operating account into a CD (minutes-2026-07-16). The balance sheet confirms it was a transfer into a CD, not a CD being cashed. Operating checking fell from $155,020.28 (June) to $83,760.76; Total Reserves rose from $269,698.46 (June) to $319,830.48, an increase of $50,132.02 = the $50,000 transfer + $132.02 of reserve interest posted July–August. Because $50,000 of operating-funded cash now sits inside the “Total Reserves” subtotal, that figure is no longer comparable to the $270,800 reserve balance used in reserve-study-2026-revised. Replacement Reserve equity is unchanged at $230,975.31.
Income Statement — Operating, YTD through August 31, 2026
| Line | YTD Actual | YTD Budget | Annual Budget |
|---|---|---|---|
| Owner Assessments (6101-00) | $74,800.73 | $45,582.64 | $68,374.00 |
| Total Operating Income | $82,340.12 | $56,583.17 | $81,974.17 |
| Total Operating Expense (incl. $7,799 reserve contribution) | $49,376.94 | $57,582.36 | $81,974.17 |
| Operating net | $32,963.18 | ($999.19) | $0 |
| Reserve net (contribution + interest − study) | $7,311.64 | $7,799.00 | $7,799.00 |
| Combined Net Income | $40,274.82 | $6,799.81 | $7,799.00 |
Net income is down from $59,778.72 (June) as expenses accrue, the same seasonal pattern as in prior years. The August month shows an operating loss of ($13,360.59) because the landscape contract payments of $11,740.00 (5 months × $2,348, April–August) posted all in August; none had been booked earlier in the year.
Notable YTD lines:
- Owner assessments of $74,800.73 already exceed the full-year budget of $68,374 by $6,426.73 (collections have also run above budget in prior years — $75,204.33 in 2025 per year-end-report-2025).
- Legal Fees – Owner $5,941.64 is fully offset by an identical Legal Chargeback income $5,941.64 (August: $714.00 each) — the self-financing pattern documented in assessment-collection-policy.
- Fines $675.00 YTD, of which $600.00 posted in August — the first meaningful fine income in the 2026 statements, following the July–September enforcement notices (violations-and-fines). Late interest fees YTD $386.17; administration fees $325.00.
- Lake/Pond – Dam Maintenance $421.40 YTD against a $15,900 annual budget (YTD budget $10,600) — no Hey & Associates contract billing is visible yet; see Open Questions in hey-and-associates.
- Postage, Mailings, Printing $4,331.70 YTD — already over the $4,000 annual budget.
- Cost Share – Area 1 & 2: YTD income $0 against a $5,801.17 annual budget, and Shared Landscape & Maintenance Contribution is ($2,253.42) YTD. The $5,299.00 cost-share receivable on the balance sheet is unchanged from March and June.
- Management Contract $10,511.92 YTD (annual budget $15,872); Insurance Premiums $5,114.52 YTD (annual $6,100); Social Event $1,537.57 YTD (annual $3,000).
- Reserve: the full $7,799.00 annual reserve contribution is posted YTD; reserve interest income YTD $1,712.64 (up from $1,580.62 in June; $42.94 in August); Reserve Study expense $2,200.00 (fully paid).
Topics Covered
hoa-annual-finances, reserve-study-findings, assessment-collection-policy, violations-and-fines
Notable Details
- The packet’s manager’s report says “a motion to approve the June financial and cash disbursements will be needed,” while the agenda (item 4) lists “Financials and Disbursement (August 2026).” Internal inconsistency in the packet; the enclosed statements are August. July statements were emailed but not enclosed.
- Prepaid Insurance is unchanged at $2,774.50 from the June report despite the State Farm renewal on 8/15/2026 ($3,864 per the contract log), so the renewal payment may not yet be reflected.
- Total Assets of $420,955.12 are down from $440,413.67 (June) mainly because of the operating-account outflows (landscape payments and other August disbursements), not because of any reserve loss.
- The balance sheet carries an odd line “Other Income: Cost Share Maintenance ($967.53)” within assets; its origin is not explained in the report.
- No disbursement register page was included in the enclosed excerpt.