The budget will be sent to every homeowner prior to the annual meeting. We encourage homeowners to look closely at two of the reports: the P&L (profit and loss) and the fund’s income statement. Both of these reports help paint a full picture of oil and gas revenues and disbursements. To help illustrate this guide, last year’s statement is used below. Note that these are not the 2023 figures that will be presented prior to the 2023 annual meeting.
When looking at this Balance Sheet, note that the “Assets” category includes the amount of cash on hand at the end of 2022 (this amount is highlighted). We also direct your attention to the highlighted amount in the “Liabilities” category—this is the amount of money that is owed by the HOA to its members and must be deducted from the total Cash on hand to determine our actual cash availability. In the case of 2022, the HOA had $1,008,812.30 cash on hand but at any moment our homeowners could take $518,777.41 leaving us with $490,034.89.
Next, it’s helpful to look at the Income Statement to review budget vs. actual expenses. Again, these figures are showing 2022 figures for illustrative purposes. This sheet is helpful in showing the amount of oil and gas revenues paid back to residents in 2022 (note highlighted section).
To see how much oil and gas money has been returned to homeowners, look at the highlighted figure on page 4 of the P&L. Note that the amount returned is much higher than the amount taken in. This is due to a decision by the current board to return more than $1.34 million since 2020 — a reversal of the previous board’s policy to hold O&G revenues due to homeowners.