Jim's photos -

Our cell service is surprisingly spotty inside our house.  I first tried walking around with my old phone, looking at the signal strength bars to see where the service is best, and then improved my ability to measure by using Darcie’s smart phone, which comes with a much more precise measurement  (both IPhones and Androids have this feature).

I found that my best signal was in the garage, it got a little worse in the kitchen, and progressively worse as I worked my way to the back of the house, where dropped calls are common.  I originally thought I might buy a signal booster, and so took readings in the attic, where I presumed I would put the antennae. However the signal was much worse up there – strengthening my belief that the foil insulation was a big part of the problem.
I took a trip to the Verizon store (my cell carrier), but didn’t find any helpful guidance there. However,  a bit of googling led me to a slightly different alternative.  It turns out Verizon has sold a femtocell device for a couple years now, which piggybacks on my internet connection. It essentially becomes another cell phone tower, right in my home.  List price on this little solution was $250, but lots of them were available new on Ebay for a bit over a hundred dollars, so I bought one there.

The femtocell arrived today, and I installed it in just a few minutes.  It took much longer to get through to tech support to have it activated, but once that was done, with just a few more minutes wait, the mini cell phone tower was up and running.  Signal strength looks very good everywhere except our guest bedroom, and if that becomes an issue, I can move the device closer to the middle of the house.

This particular solution only makes sense if you have Verizon as your carrier, have high speed internet already, and don’t usually download movies while talking on the phone.
So I'm wondering -
Do you get good cell phone service inside your house?
Which cell phone service do you use?

My take-away is that Pulte is still  holding on to 1.4 billion in cash to help them through challenging times.  They are losing more than last year (when tax credits improved sales), but are forecasting profitable third and fourth quarters this year.

The Del Webb brand shows "stable demand", but operations in the California market  "lost some ground ".  PulteGroup is made up of three 'brands" - Pulte, Del Webb and Centex.   Because the Centex brand struggled so badly, Del Webb brand grew to 28% of PulteGroup sales, up from 22% in the same period last year.  The stock was up about 3% on higher than usual volumes.

First, some positive coverage, from  American Banking and Market News:

Equities research analysts at Zacks upgraded shares of PulteGroup, Inc. (NYSE: PHM) from an “underperform” rating to a “neutral” rating in a research note to clients and investors on Thursday.

Separately, analysts at Barclays Capital (NYSE: BCS) cut their price target on shares of PulteGroup, Inc. from $10.00 to $9.00 in a research note to investors on Monday, December 6th. They now have an “equal weight” rating on the stock.

Pulte Homes, Inc. (Pulte Homes) is a holding company whose subsidiaries engage in the homebuilding and financial services businesses. The Company’s direct subsidiaries include Pulte Diversified Companies, Inc., Del Webb Corporation (Del Webb), Centex Corporation (Centex) and other subsidiaries engaged in the homebuilding business. The Company also has mortgage banking operations, conducted through Pulte Mortgage LLC (Pulte Mortgage), and title operations. Homebuilding, the Company’s core business, is engaged in the acquisition and development of land primarily for residential purposes within the continental United States and the construction of housing on such land targeted for first-time, first and second move-up, and active adult home buyers. It also has one reportable segment for its financial services operations, which consists principally of mortgage banking and title operations. On August 18, 2009, the Company completed the acquisition of Centex.

Shares of PulteGroup, Inc. (NYSE: PHM) traded up 1.56% during mid-day trading on Monday...

For the rest of the story, click here.

And from a distinctly different perspective:

TROY, Mich. - PulteGroup CEO Richard Dugas ran for cover.

Who can blame him when 300 trade unionists, including laborers, sheet metal workers, painters, autoworkers, steelworkers and teachers, the faith-based community and more were shouting, "We are union," and demanding to know, "Where is our 900 million?"

Michigan-based PulteGroup is the nation's largest homebuilder. It received $900 million last year from the Worker Home Ownership and Business Assistance Act of 2009. Pulte had lobbied for the bill's passage. The act was intended by Congress and President Obama to be a job-creation measure. One year later, workers in this high-unemployment state are still waiting for those Pulte jobs. And they are riled up about it.

Dugas was to be the keynote speaker at the Detroit Economic Club's luncheon here last week. However when word got out that labor and community folks were going to be there to greet him, he "ran" and the whole luncheon was canceled.

For more of this story, click here.

The courts are striped! Bright yellow. And the net is an even brighter red.

The Pickleball  net is here, and Wednesday morning (12/8/10) a few slightly damp players tried it out to see how a lower net changes the game.  The courts are now regulation sized (just a little longer than the temporary taped version), and the net is about three inches lower than the tennis net. Balls hit to the top of the net have a greater likelihood of climbing over for a shot tough to return, and balls hit into the net bounce back further making retrieval a bit easier.

Two  Pickleball courts are now ready, so there should be less waiting for an open slot.  And, since you can play when the surface is damp much more readily than tennis, we may even have a few more tennis players crossing over during the rainy season.

Pickleball is played regularly at 10:00AM on Monday, Wednesday and Fridays.  However, there are a few paddles and balls available to check out at the lodge if you want to play at other times.      All are welcome to join the group to try out this fast growing sport.

When Kent carries a green folder, it's a good sign

Kent Sherwood, our newly appointed treasurer, gave a detailed  treasurer's report at yesterday's quarterly association meeting, and provided details of the 2011 association budget.

For the first nine months of this year,  association income has exceeded budget, due to more homeowners  paying assessments, Pulte paying assessments on additional lots,  and greater lodge revenues than budgeted.  Mr. Sherwood reviewed expenses in each of our five subaccounts, explaining variances between budget and actual in each.  In  some subaccounts spending was slightly less than budget and others it was a little more. With more spending history, variances may be expected to be even less in the future. One notable cause for a variance was that we had not been billed for water until this year, and we owed a lump sum of about $4,000 when the bill finally did arrive.  Since late payment was not our fault, there were no late fees or penalties. For those wanting exact numbers, the financial statements will soon be available at Glenbrookeca.com (login required), but overall our experience compares favorably to budget for 2010.

Kent explained that Mina LaCuesta produced a preliminary budget for 2011, and board members met last week to review and adjust it. Budgeted income is conservatively estimated, and is based upon the same level of assessments for both homeowners and Pulte.  Next year's budget will be about 11% greater than the current year, and because it does not anticipate any subsidy from Pulte, contains a contingency amount of $9,500.  Non recurring items in the budget for 2011 include funds for a new reserve study and for an outside review of governing documents to bring them into line with our changing legislative environment.

At least a few contracts will receive close inspection before renewal, including pool service, where the cost of chemicals was questioned. Another area for future investigation is the way our reserves are invested. The rate of interest earned for our reserve funds has been under 1%, and Kent indicated that he would be looking to see if we can do better by better matching funds availability to expected need.

In summary, our finances look to be in good order, and our board is working to make sure they remain so.

"Friends of Madiera"  filed an amended writ of mandate on June 24th, against the City of Elk Grove and Walmart. The writ alleges that the city is guilty of prejudicial abuse of discretion in violating the city's zoning code and  failing to conduct  a supplementary environmental review, in violation of the California Environmental Quality Act (CEQA). The writ asks that the city set aside its approval of the project, suspend all activities in furtherance of the project and conduct an environmental review and otherwise comply with CEQA and state planning and zoning law in any subsequent action taken to approve the project.

In answer, Walmart has  said that the documents in question speak for themselves, or that Walmart lacks sufficient information  to admit or deny the  allegations, or simply denied the allegations. They  allege that a full environmental review was completed prior to their project submital and provided sixteen affirmative defenses, further asking that the writ be denied with prejudice, all relief requested be denied with prejudice, judgment be entered in favor of WalMart, and that Walmart be awarded its costs of suit and other relief as the court may deem just and proper.

The city's answer only contained fifteen affirmative defenses,  and asked for the same judgment as Walmart.

The next hearing on the subject is scheduled for 10:00 a.m. October 1st, 2010 in department 33.

Internal Control Questionnaire For Homeowners Associations

This questionnaire has been simplified to address the internal controls most
appropriate to a typical homeowners association. It is not intended to be comprehensive,
and may not disclose all internal control weaknesses for all associations.
A "NO" response to any question indicates a possible internal control weakness.
It should be noted that a "no" answer in itself does not necessarily constitute a significant
control weakness, because a specific weakness can often be offset by a mitigating
strength.

General controls are those that usually have only an
indirect impact on the accounting system; their contribution to
the system of internal control is to provide an environment that is
conducive to the protection of assets. They include such things
as a defined organizational structure, job descriptions for board
members, and written policy and procedures manuals. It is
easier to know what to do if it is written down somewhere!

Does the Board of Directors have a clear under standing of the
duties, responsibilities, and authority of each member of the
board?

Does the Board have written job descriptions for each member of
the Board?

Does the Board have a written manual of policies and
procedures?

Does the Board record its decisions by maintaining accurate
minutes of meetings of the Board and committees of the Board?

Does the Association have an accounting manual which
describes the items to be included in each general ledger
account?

Note: lack of an accounting manual or defined chart of accounts
can lead to inconsistent accounting treatment or misclassification
of revenue and expenses from one period to the next.
Misclassifications deter comparability from period to period,
making it difficult for the Board to comprehend financial results
and make meaningful comparisons of actual results to the
budget.

Does the Board receive prompt internal financial reports at least
quarterly?

Does the Board regularly compare actual financial results to the
budget and promptly investigate significant variations?

Does the Board regularly obtain bids for services, and document
its decision for accepting other than the lowest bid?

Does the Association have adequate security to limit access to
authorized persons? (Such security could include security
guards, locks, chain length fences, etc.)

Are physical assets, where possible, adequately sheltered to
protect against unnecessary deterioration?

Are important computer files and programs backed up at an
off-premise location?

Note: off-premise backup of important files will protect the
association from the cost of reconstruction in the event of fire,
flood or other disaster.

Does the Association have adequate insurance coverage
(including adequate fidelity bonds)?

Are bank statements reconciled by someone with no other cash
receipts and disbursements functions?

Note: "other cash functions" above include making bank deposits,
recording cash receipts, writing checks or approving checks for
payment.

Does the bank reconciler receive the bank statement unopened (to
prevent loss or alteration of reconciling items)?

Does the bank reconciler compare details of paid checks with their
entry in the cash disbursements journal?

Does the bank reconciler examine paid checks for unauthorized
signatures, alterations, or irregular endorsements?

Does the bank reconciler compare dates of deposits on bank
statements with dates of entry in the cash receipts journal?

Are checks that are outstanding for long periods of time (e.g.,
more than six months) reviewed for disposition?

Are completed bank reconciliations reviewed and approved by the
Board of Directors?

Are accounts receivable listings aged to identify seriously
delinquent accounts?

Are delinquent accounts pursued for collection in a timely
manner?

Does the Association have a written collection policy, and has it
been sent to all members?

Are liens filed in a timely manner to enhance collectibility of
overdue accounts?

Are bad debt write-offs reviewed and approved by the Board?

Are member and other checks received by the Association
restrictively endorsed (i.e., stamped "for deposit" to the
Association) immediately after the mail is opened?

Are cash receipts deposited intact, daily?

If Association is on an accrual basis for internal bookkeeping, are
subsidiary ledger accounts periodically reconciled to the general
ledger?

Does the Association use prenumbered checks and are they
issued in numerical sequence?

Are checks only prepared on the basis of a properly approved
invoice or check request?

Are invoices and bills from suppliers and vendors checked for
mathematical accuracy and proper pricing prior to payment?

Are invoices verified as to proper account classification in the
Association's general ledger?

Are invoices stamped "Paid", or perforated, or clearly marked in
some way to prevent a duplicate payment?

Do all operating checks require dual signatures, and is at least
one of these the signature of a Board Member?

Do all payments from reserve accounts require dual signatures
including either two Board Members or one Board Member and
one Officer?

Does the Board Member who signs operating checks examine
invoices or other supporting documentation at the time the checks
are signed?

Does the Board have a policy of never making checks payable to
cash?

Does the Board have a policy of never presigning blank checks?
Are signed checks mailed without allowing them to return to the
person who prepared them?

Do different people do the following:
A. Approve hours worked as recorded on time cards?
B. Prepare paychecks?
C. Distribute paychecks?

Are adequate personnel records maintained, including
employment applications, W-4 forms, performance reviews, and
approvals for pay increases?

Are written approvals required before someone can be added or
deleted from the payroll?

Are records maintained of available benefits, e.g., unused
vacation, sick days, etc?

Others are surely better informed, but based upon my review, I’d have a few specific suggestions for our management company.  I think they should use a little more care in preparing financial reports – and probably have an additional person proof read them before publication. I also think that they should do a better job with general ledger descriptions – seeing items labeled “give something back” (hundreds of them), or even labeled with just a staff person’s name, neither gives a positive impression nor helps understand what the entry is about.
I also think the treasurer’s job may entail a lot of work for an unpaid position, and it would be worthwhile to form a finance committee to assist them to ensure  we receive full value for our assessment dollars.
This brings to an end my investigation of the association’s 2009 finances, and overall I’m reassured to NOT find major problems. It's been so much fun that I'm tempted to start looking at 2010.

The pie chart above shows approximate Glenbrooke Association 2009 costs per household for full year owners. By far the largest component was for lodge staff.

Landscaping was the next largest expense, with three distinct components: the contract cost for your lot, the contract cost for common areas, and the unbudgeted expense for landscaping repairs and maintenance not under contract. Expenses in the last category were arbitrarily assigned in the same ratio as contract expenses. I note that in the 2010 budget, there is an additional contingency budget.

Our current contract with Procinda calls for weekly maintenance which includes mowing, edging, fertilizing, aerating, pruning and staking trees, grooming annuals, removing debris, and controlling weeds by hand and using chemical control. Specifically excluded from the contract is control of insects and disease.

Next largest is the "Net Lodge Expense" category, which included all expenses listed in the Budget Comparison Report's "Rec Center" category less pool expenses, offset by income generated specifically by the Lodge's activity, fitness and rental revenues.

Costs for the Riverside Management Company's contract were next largest. Their contract calls for twice monthly inspections, handling service requests, attending four board meetings per year and taking minutes, assisting with the newsletter, maintaining records, handling payments, and advising on changes in law. Services outside this list are available at additional cost, and the Riverside Management bill goes up as additional villages are available for sale.

"Other Administrative Costs" include liability insurance, equipment rental, audit costs, fees for the association web site and a variety of other miscellaneous items.

"Pool Expenses" include contract services with the Pool Doctor for maintenance, cost of chemicals for the pool, spa and fountain, repairs and estimated heating cost. Included in the service is creating a log of pool conditions which is available for staff review.

Funding our reserves was listed last, as this is intended to cover anticipated large future expenses, and may be more or less than actually needed.

The above information was derived from the 2009 auditor's report, the full year general ledger listing, and a review of selected contracts.  As always, comments and corrections from those with a better understanding are welcome.