The document discusses the finances of the Leisure World Mutual Housing Corporation, including a breakdown of the $93.58 million in total assessments for 2008, how the money is collected from the various mutuals and allocated, and concerns that the current financial controls lack oversight by the individual mutual treasurers over the payments from the main mutual account. It also shows rising monthly assessment costs between 2003 and a projected 2013 that could increase basic costs by 25-35% over that time period.

1. LWV
March 27, 2008
Residents Voice
03/27/08 Residents Voice 1

2. “Following the Money”
3/27/2008
Tonight’s Subjects !
• “LWV Finances 101”
•“Is There a Problem ?”
03/27/08 Residents Voice 2

3. LWV Finance 101
C. Grundke
03/27/08 Residents Voice 3

4. How Much Are Our 2008
Total Assessments? (million dollars)
“LWV Finances 101”
$93.58
03/27/08 Residents Voice 4

5. Where Does The Money Come
From ?
United Mutual 6323 Manors
Third Mutual 6102 Manors
Towers 311 Manors
Total 12736 Manors
03/27/08 Residents Voice 5

6. What is Included in the
2008 Total $93,582,525 ?
• Taxes – United Mutual Only
• Mortgage – United Mutual Only
• Food – Towers Only
• Basic Costs (All Mutuals):
– Direct Mutual Operating (DMO) Costs
– GRF Costs
03/27/08 Residents Voice 6

7. What If We Exclude Taxes/Food/Mortgage
= 2008 Basic Costs ? (million dollars)
$13.34
$80.24
Tax & Food Basic
03/27/08 Residents Voice 7

8. 2008 Basic Costs by Mutual ?
(million dollars)
Towers Tax/Food/Loan
$3.16 $13.34
Third Mutual
$39.00
$38.08
United Mutual
Tax & Food United Third Towers
03/27/08 Residents Voice 8

9. Third Mutual United Mutual
$532.62/mo x $501.88/mo x
12mo x 6102 Personal Savings 12mo x 6323
Monthly Basic GRF Account
Assessments
$38.08M/yr Where does
it GO ?
$39.00M/yr
03/27/08 Residents Voice 9

10. What money is in this GRF Account ?
03/27/08 Residents Voice 10

11. Who Should Control Payments
From This Account ?
• The United Board – Yes !
• The Third Board – Yes !
• The Towers Board – Yes !
• The GRF Board – Yes !
03/27/08 Residents Voice 11

12. Who Does Monitor Payments
From This Account ?
• The United Mutual Treasurer – No!
• The Third Mutual Treasurer – No!
• The Towers Treasurer – No!
• The GRF Treasurer – No!
03/27/08 Residents Voice 12

13. How Did This Happen ?
Over the Past 30 years the Boards
and PCM have evolved into the
current means of Financial Control.
The Board Treasurers do not review
justification for most charges
against the mutual.
03/27/08 Residents Voice 13

14. If This Was Your Personal
Checking Account, Would YOU:
• Combine monies with multiple users into
one account ?
• Fail to Review all invoices for accuracy ?
• Not personally sign the checks ?
• Allow others to write checks on your
account ?
03/27/08 Residents Voice 14

15. How Did We Get Here ?
Where Are We Going ?
2003 vs 2013 (manor/month)
2003 2008 2013 %
Change
United Mutual $ 372 $ 501 $ 675 34.68
Third Mutual $ 387 $ 532 $ 732 37.43
Towers $ 673 $ 847 $ 1066 25.78
Tax/Fd/Mtg $ 92 $ 87 -5.64
Total w Tax/Fd/Mtg $ 479 $ 612 27.67
03/27/08 Residents Voice 15

16. 2003 – 2013 Trend of
Basic Monthly Assessments
$1,200 Towers
$1,100
$1,000
$900 United & Third
$800
$700
$600
$500
$400
$300
$200
$100
$0
2003 2008 2013
03/27/08 Residents Voice 16

17. Is There A Problem ?
YES !
03/27/08 Residents Voice 17

18. THE END
Part 2
“Is There A Solution ?”
Thursday, April 3, 2008
03/27/08 Residents Voice 18