TREASURER REPORT – ANNUAL MEETING MARCH 2010

PRELIMINARY RESULTS FOR 2009 SHOW ASSOCIATION FINANCIAL RESULTS FINISHING WITH A DEFICIT OF $49K, ABOUT $15 K LESS THAN THE BUDGETED $64K PLANNED DEFICIT. DESPITE THE HIGH LEGAL EXPENSES INCURRED EARLIER IN THE YEAR, COST CONTROLS ON ALL OTHER EXPENSES MORE THAN OFFSET THOSE COSTS. FINAL RESULTS WILL LIKELY DIFFER BY A SMALL AMOUNT AFTER REVIEW BY OUR CPA. THIS PROCESS IS NEARING COMPLETION BUT UNFORTUNATELY, IS NOT AVAILABLE DUE TO DELAYS IN SOME CONFIRMATIONS FROM EXTERNAL SOURCES. 2009 COMPLETES OUR TWO YEAR PROGRAM TO RETURN $100K OF EXCESS OPERATING FUNDS ACCUMULATED DURING 2006 AND 2007.

YOUR ASSOCIATION REMAINS ON SOLID FINANCIAL FOOTING. RESERVES ARE SUFFICIENT TO COVER REPLACEMENT OF OUR ASSETS, WHEN REQUIRED, AND DELINQUENT ASSESSMENTS ARE ADEQUATELY RESERVED. THIS AND PREVIOUS BOARDS HAVE BEEN DILIGENT IN HAVING ADEQUATE FUNDS AVAILABLE TO PROTECT THE RESIDENTS FROM SPECIAL ASSESSMENTS.

NICK COLE

TREASURER\

3/8/2010