Reston Association Budget Variance Analysis For May 2013 The variance analysis is intended to provide a narrative explanation of the difference between the year-to-date budgeted revenues and expenses compared to the year-to-date actual revenues recognized and expenses incurred.

Revenues Annual Assessment: The Annual Assessment Revenues exceed budget by $9,561; however, we are projecting by year-end that this revenue source will be under budget by approximately $26,000. This is due to setting the tax relief credit at $330.00 or $70 per Member more than we budgeted in 2013. The 2013 budget includes $260 as the tax relief credit amount for Members who are eligible.

Tennis: Tennis revenues exceed budget by $16,250. This is primarily in Junior GroupTennis Lessons which have increased due to the introduction of the junior courts and Tennis League Fees because RA is hosting two additional tournaments.

Community Buildings: Building Rentals are ahead by $19,086; approximately $3,400 is from rental of the conference center, which was not budgeted in 2013. The remaining dollars are from the Glade Room and Browns Chapel.

Member Services, Events, Seniors Programs, and P&R Administration: Senior Events revenues exceed budget by $8,000. This is primarily a timing difference. Income from shipping fees for Pool & Tennis Passes exceeds budget by $1,666.

Late Fees, Collection Fees & Finance Charges: Collection revenues are over budget by $30,430. Demand letters are $45,000 below budget. There were approximately 600 fewer delinquent accounts than last year at this time. Also, there is an accrual reversal of $103,000 of 2012 income to be received in 2013. This adjustment is based on fees charged by our collections firm and will be adjusted in December 2013. In addition, we have billed $91,000 of prior year revenue in 2013.

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Revenues continued Covenant Administration: The sale of POAA documents exceeds budget by $25,500, and Covenant Department revenues for Judgments and Notice of Violations (NOV) exceed budget by $14,000.

Interest Income: Income from investments is under budget due to lower than expected capital gains and lower than expected interest rates. We are projecting income from investments to be $40,000 below budget at year-end.

Expenses: Covenants Administration: Is under budget by $46,637. The largest variances are printing which is under budget by $10,000 and wages which are under budget by $7,500. There are many other small favorable variances of $5,000 or less that total approximately $23,000. Community Buildings: Is under budget by $7,068. This is comprised of Liability Insurance and Salaries and Benefits due to vacant positions. Corporate & Board: Is over budget by $71,420. Community Projects is over by $90,335. This is comprised of the Reston Story contribution of $20,000 and $21,900 for the community survey and $50,000 for the artificial turf at South Lakes High School. These items were not budgeted in 2013 are permanent variance. Legal: Is over budget by $29,074. Fiscal Services will be sending fewer accounts to collections this year and expect the legal fees to be less than 2012. We are projecting Legal Fee to be over budget by $70,000 by year-end.

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Expenses continued Management Services Is over budget by $114,143 which is comprised of following variances: •

IT has exceeded its budget by $65,892 with Software Licensing over by $19,520 and Professional & Technical Support by $52,410.

•

Administration and Member Services has exceeded its budget by $11,731 with Incidental Labor over by $12,350, Printing by $4,226, and Wages over by $5,863. The remaining accounts are under budget by $10,708.

•

Management Services has exceeded its budget by $5,577 with Professional & Technical (Recruitment of a new CEO) over budget by $13.500. The remaining accounts are under budget by $7,923.

•

Human Resources is under budget by 16,882.

•

Operations has exceeded the budget by $39,496 with Bank Credit Card Fees over by $31,270 the remaining accounts are over by $8,226.

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RESTON ASSOCIATION FINANCIAL DATA SUMMARY FOR THE PERIOD ENDING May 31, 2013 MODIFIED CASH BASIS UNAUDITED

Operations Data: 2013 YTD May

Revenue

Assessments Open Space Community Pools Late Fees, Collection Fees, etc. Interest Income Capital Gains All Other

Expenses

Covenant Administration Open Space Community Pools Finance Management Services HQ Rent All Other Total Expenses Excess (Deficit) Revenues over Expenses

$

12,059,387 518,218 485,973 332,209 15,803 (9,913) 314,294 13,715,972

$

Budget

Vs Curr YTD Budget F/(U)

2012 YTD May

%

$ 12,049,826 531,199 522,814 301,779 61,878 ‐ 233,987 13,701,483

$

9,561 (12,982) (36,841) 30,430 (46,075) (9,913) 80,308 14,489

0.1% ‐2.4% ‐7.0% 10.1% ‐74.5% 0.0% 34.3% 0.1%

$

11,533,463 510,814 538,363 355,567 98,789 ‐ 269,738 13,306,734

$

454,199 1,431,075 404,098 434,064 795,198 361,569 990,388 4,870,592 $ 8,830,891

$

$

46,636.74 65,849 (5,233) 12,991 (114,143) 8,326 (96,517) (82,090) (67,601)

10.3% 4.6% ‐1.3% 3.0% ‐14.4% 2.3% ‐9.7% ‐1.7% ‐0.8%

$

$

407,563 1,365,226 409,331 421,073 909,341 353,243 1,086,905 4,952,682 8,763,290

$

412,321 1,430,318 426,954 410,570 836,341 343,789 1,023,160 4,883,452 8,423,281

$

191,573

$

$

191,777

50.0%

$

173,056

2013 vs 2012 F/(U) % $

$

2013 Forecast

Budget

Vs Annual Budget F/(U)

525,925 7,404 (52,390) (23,358) (82,986) (9,913) 44,556 409,238

4.6% 1.4% ‐9.7% ‐6.6% ‐84.0% 0.0% 16.5% 3.1%

$

12,023,826 707,251 798,168 709,364 82,000 15,000 512,375 14,847,983

$ 12,049,826 664,198 835,234 757,975 126,178 ‐ 517,735 14,951,146

4,758 65,092 17,623 (10,503) (73,000) (9,454) (63,746) (69,229) 340,009

1.2% 4.6% 4.1% ‐2.6% ‐8.7% 0.0% ‐6.2% ‐1.4% 4.0%

$

$

1,065,713 4,017,338 1,629,785 1,092,501 2,047,750 871,098 2,504,227 13,228,413 1,619,570

$ 1,070,189 4,098,830 1,658,902 1,095,790 1,989,209 871,098 2,409,377 13,193,395 $ 1,757,751

(18,517)

‐10.7%

$

1,629,563

$ 1,623,250

$

%

(26,000) 43,053 (37,066) (48,611) (44,178) 15,000 (5,360) (103,163)

‐0.2% 6.5% ‐4.4% ‐6.4% ‐35.0% 0.0% ‐1.0% ‐0.7%

$

4,476 81,492 29,117 3,289 (58,541) (0) (94,850) (35,018) (138,181)

0.4% 2.0% 1.8% 0.3% ‐2.9% 0.0% ‐3.9% ‐0.3% ‐7.9%

$

(6,313)

‐0.4%

Other Key Performance Indicators Capital Expenditures

383,350

Balance Sheet Data Operations

Cash and Investments

Cash Money Market Ultra Short Term Bond Fund (SIGVX) Realized Capital Gains/(Losses) Unrealized Capital Gains/(Losses) Other Assets Liabilities

Staffing

Accounts Receivable, net Accounts Payable Accrued Salaries and Taxes Payroll Withholdings Deferred Obligations

Regular Full Time Regular Part Time Seasonal

$

$

276,717 7,188,632 1,500,000 ‐ (2,970) 8,962,379

May 2013 Total

R&R $

‐ 2,203,912 3,500,000 ‐ (6,942) $ 5,696,970

$

276,717 9,392,544 5,000,000 ‐ (9,913) $ 14,659,348

$

May 2012 Total $

221,209 3,729,218 10,500,000 ‐ 34,281 $ 14,484,707

1,543,544 258,857 560,843 70,720 2,834,872

1 $ 1,479,586 146,462 698,181 87,659 2,849,935

76 2 278 356

78 4 200 282

Assessment Revenue and Accounts Receivable are being carried on a modified accrual basis. Collection Fees and Legal Fees are being recognized when legal counsel settles each account and a year end accrua

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Reston Association Statement of RRRF & CAARF Balances As of May 31, 2013 UNAUDITED Repair and Replacement Reserves Fund Fund Balance 01-01-13 Transfer 2012 Carry Forwards Transfer 2013 Capital Budget Funding Board Designated Transfers Transfers (to)/from CAARF Transfers (to)/from Operating Fund Return on Investment Available Funds

4,019,419 308,822 1,623,250 3,979 5,955,470

Capital Asset Acquisition Reserve Fund -

-

Expenditures Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Total Expenditures

65,039 14,047 89,777 29,027 60,610

258,501

-

Fund Balance as of 05-31-2013

5,696,970

-

Break Down of Funds 2012 Carry Forwards 2013 Capital Projected Remaining Funds Minimum Balance Available for future capital expenditures Fund Balance as of 05-31-2013

242,869 1,431,677 2,500,000 1,522,423 5,696,970

-

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RESTON ASSOCIATION CAPITAL EXPENDITURES FOR THE MONTH ENDING May 31, 2013 UNAUDITED YTD Actual

YTD Budget

YTD Variance

Percentage Variance

Approved Budget

Remaining Budget

Year End Projection

2013 Capital Categories Pathways Tennis Community Buildings and CSF Lakes, Ponds and Dams Recreational and Natural Areas Aquatics Administration

Total Capital

$

$

63,673 $ 6,313 24,039 74,108 23,440 191,573

$

100,800 20,000 173,550 63,000 26,000

$

(37,127) 6,313 (20,000) (149,511) 11,108 (2,560)

-37% 100% 0% -100% -86% 18% -10%

$

383,350

$

(191,777)

-50.03%

$

(6,323) (2,000) (28,683) (20,000) (30,745) (2,500) (2,300) (6,000) (30,000) (14,900) 975 ($142,475)

-100% -100% -32% 0% -100% -89% -100% -100% -100% -100% -100% 0% 0% 0% 100% -68%

$

$

308,822

(334,252)

-56%

$

1,932,072

321,550 $ 90,000 520,000 346,300 226,400 119,000

1,623,250

257,877 $ (6,313) 90,000 520,000 322,261 152,292 95,560

$ 1,431,677

321,550 6,313 90,000 520,000 346,300 226,400 119,000

$ 1,629,563

2012 Carry Forwards $0 62,090 3,863 $975 $66,928

Twin Branches Sidewalk Glade Room Stair Renovation Dogwood Pool Renovation (Carry Forward) Spillway Maintenance Lake Anne Capacity Design BC 2 Minor Site Plan/Design Bordeaux Color Coat Ivy Oak Color Coat North Hills Trellis Repair Uplands Spray Park Ridge Heights Retaining Wall North Shore Front Entrance Renovation Website Refresh Great Plains Licensing Conversion

Mobile Ready Website

Grand Total

$

258,501

$6,323 2,000 90,773 20,000 34,607 2,500 2,300 6,000 30,000 14,900 $209,403 $

592,753

$

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6,323 $ 2,000 90,773 20,000 20,000 34,607 2,500 2,300 6,000 30,000 14,900 42,019 27,400 10,000 $

6,323 $ 2,000 28,683 20,000 20,000 30,745 2,500 2,300 6,000 30,000 14,900 42,019 27,400 10,000 242,869

$ 1,674,546

$

6,323 2,000 90,773 20,000 20,000 34,607 2,500 2,300 6,000 30,000 14,900 42,019 27,400 10,000 308,822

$ 1,938,385

6/18/2013 9:07 AM RESTON ASSOCIATION STATEMENT OF REVENUES AND EXPENSES FOR THE MONTH ENDING MAY 31, 2013 MODIFIED CASH BASIS UNAUDITED Y-T-D Y-T-D 2013 Over R&R Total Y-T-D (Under) Fund Budget Budget

Y-T-D Operating Fund REVENUES Assessments Open Space Community Pools Tennis Community Buildings Member Srv, Events, Senior Pgms, P&R Admin Late Fees, Collection Fees, Finance Charges, & Misc. Covenants Administration Interest Income Capital Gains

$10,043,050 $ 2,016,338 518,218 485,973 138,163 38,800 20,975 332,209 116,357 15,803 (9,913)

$ 12,059,387 518,218 485,973 138,163 38,800 20,975 332,209 116,357 15,803 (9,913)

$ 12,049,826 $ 531,199 $ 522,814 $ 121,913 $ 19,713 $ 15,645 $ 301,779 $ 76,715 $ 61,878 $ -

9,561 (12,982) (36,841) 16,250 19,086 5,330 30,430 39,642 (46,075) (9,913)

Total Revenues

$11,699,634

$ 2,016,338

$ 13,715,972

$ 13,701,483

14,489

$

407,563 1,365,226 44,432 409,331 175,528 52,664 125,142 269,971 222,631 353,243 421,073 187,584 909,341 8,954

$

$

Total Expenses

$ 4,952,682

$

Excess (Deficit) of Revenues Over Expenses *

$ 6,746,952

$ 2,016,338

EXPENSES Covenants Administration Open Space Community Buildings Community Pools Tennis Events & Senior Programs P&R and Capital Administration Communications Corporate & Board HQ Rent Finance Legal Management Services (Gain) Loss on Sale of Assets

-

407,563 $ 454,199 1,365,226 1,431,075 44,432 51,500 409,331 404,098 175,528 163,955 52,664 50,251 125,142 138,474 269,971 276,488 222,631 151,210 353,243 361,569 421,073 434,064 187,584 158,510 909,341 795,198 8,954 -

- $ 4,952,682 $ 8,763,290

Assessment Revenue and Accounts Receivable are being carried on a modified accrual basis. Collection Fees and Legal Fees are being recognized when legal counsel settles each account. 4 of 9

2012 Y-T-D Actual

Percent Change

0.1% -2.4% -7.0% 13.3% 96.8% 34.1% 10.1% 51.7% -74.5% 0.0%

$11,533,463 510,814 538,363 118,625 36,925 15,399 355,567 98,789 98,789 -

0.1%

$13,306,734

$

'13 Over (Under) '12 Actual

525,925 7,404 (52,390) 19,538 1,875 5,575 (23,358) 17,568 (82,986) (9,913) $

412,321 1,430,318 44,800 426,954 160,910 59,874 147,011 280,047 129,365 343,789 410,570 201,153 836,341 -

409,238

(4,758) (65,092) (367) (17,623) 14,617 (7,209) (21,869) (10,075) 93,265 9,454 10,503 (13,570) 73,000 8,954

2013 Annual Budget

Percent Change

4.6% 1.4% -9.7% 16.5% 5.1% 36.2% -6.6% 17.8% -84.0% 0.0%

$ 12,049,826 664,198 835,234 246,900 67,235 32,600 757,975 171,000 126,178 -

3.1%

$ 14,951,146

(46,637) (65,849) (7,068) 5,233 11,572 2,414 (13,332) (6,517) 71,420 (8,326) (12,991) 29,074 114,143 8,954

-10.3% -4.6% -13.7% 1.3% 7.1% 4.8% -9.6% -2.4% 47.2% -2.3% -3.0% 18.3% 14.4% 0.0%

-1.2% -4.6% -0.8% -4.1% 9.1% -12.0% -14.9% -3.6% 72.1% 2.7% 2.6% -6.7% 8.7% 0.0%

$ 4,870,592

82,090

1.7%

$ 4,883,452

$

69,229

1.4%

$ 8,830,891

(67,601)

-0.8%

$ 8,423,281

$

340,009

4.0%

$

1,070,189 4,098,831 124,712 1,658,902 415,572 161,815 371,677 689,351 193,441 871,098 1,095,790 452,809 1,989,209 13,193,395

$

1,757,751

6/18/2013

9:12 AM

RESTON ASSOCIATION INVESTMENT PORTFOLIO As of May 31, 2013 UNAUDITED

Maturity Date

Investment Description STI Classic Fund Money Market .01% @ $1 per unit US Government Ultra Short Term Bond Fund 0.80% Weekly Yield Realized Capital Gains/(Losses) NAV = $10.16 Unrealized Capital Gains/(Losses) NAV = $10.15

N/A N/A

Total Market Value

Operating Fund $ $ $ $

7,188,632 1,500,000 (2,970)

$

8,685,662

NOTE: Allocations between Operating and R&R Funds are estimated until the 2013 audit is complete.

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Summary

Repair & Replacement Fund

Total

$ $ $ $

9,392,544 5,000,000 (9,913)

2,203,912 $ 3,500,000 $ (6,942)

5,696,970

$ 14,382,631

RESTON ASSOCIATION Balance Sheet Modified Accrual Basis For the Months Ending May 31st UNAUDITED 2013

2012

Assets Current Assets Cash Investments Operations Investment R&R Short-Term Investments Accounts Receivable Allowance for Bad Debts Prepaid Expenses

$

Total Current Assets

276,717 8,685,662 5,696,970 404,563 1,640,000 (96,455) 141,337

$

221,209 10,431,405 3,832,093 297,169 1,530,202 (50,615) 82,288

16,748,792

16,343,750

37,092,641 1,763,993 (19,517,454)

36,229,864 1,102,845 (18,338,896)

19,339,180

18,993,814

Fixed Assets Property & Equipment Improvement in Progress Accumulated Depreciation

Total Fixed Assets Total Assets

$

36,087,972

$

35,337,564

$

146,462 698,181 87,659 932,301

Liabilities Current Liabilities Accounts Payable Accrued Salaries & Taxes Payroll Withholdings Current Portion of Capital Leases Total Current Liabilities

$

258,857 560,843 70,720 7,411 897,830

Long-Term Liabilities Deferred Obligations Long-term Portion of Capital Leases Total Long-term Liabilities

Total Liabilities

2,834,872 23,675 2,858,547

$

3,756,378

2,849,935 2,849,934

$

3,782,236

Equity Equity--Fund Balance Equity--Land & Improvements Equity--Facilities Net Income Year-To-Date Total Operating Fund

$

Repair & Replacement Fund

Total Liabilities & Equity

$

1,965,798 8,901,671 9,330,032 8,114,675

2,206,397 8,690,974 8,888,603 7,803,313

28,312,176

27,589,288

4,019,419

3,966,040

36,087,972

$

35,337,564

Assessment Revenue and Accounts Receivable are being carried on a modified accrual basis. Collection Fees and Legal Fees are being recognized when legal counsel settles each account.

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