By Greg Ellison
(Oct. 3, 2019) The Ocean Pines Association balance sheets are trending positively one third into the current fiscal year, with recently released August financials indicating revenues above and expenses below estimates.
Budget and Finance Committee chairman Dick Keiling said his group reviewed the financial data with Director of Finance Steve Phillips during its meeting last Wednesday.
“We reviewed the month’s performance,” he said. “In summary form for the month of August, operating results were positive $151,000 against budget and revenues were over $105,000.”
The OPA reported a positive operating variance of more than $459,000 thus far for fiscal 2019/2020.
Keiling said estimated expenses also tracked under budget in August.
“In summary total expenses for the month were under budget $46,000,” he said.
Keiling said year to date, the budget is roughly $460,00 ahead of estimates, including being about $412,000 over in revenue and $48,000 under expenses.
“The two big players there were the Yacht Club and the golf course, which were both over in revenue against budget,” he said.
The OPA reported the Yacht Club is approximately $51,000 ahead of budget for banquet services and $48,000 in regular sales. Also, golf operations are ahead of revenue estimates by more than $23,000 during the current fiscal year.
“Most of the line item expenses were under budget [but] other costs was not,” he said. “The other costs were attributable to the costs at the Yacht Club for the higher volume variance for the increased revenues.”
Qualifying the $46,000 expense variance, Keiling said the scales could balance out during the remainder of the current fiscal year.
“Some of those are wages, which reflects the timing of some hires,” he said. “There’s some maintenance there as well that’s under budget and some of that’s a timing aspect and … will happen as the year progresses.”
Keiling said the next step involves General Manager John Viola and the operations team preparing a financial outlook for the remaining year.
“The timing of that next forecast hasn’t been released,” he said.
Keiling said maintaining profitability is the intent moving forward.
“In general costs are looking very good,” he said. “Things are looking positive.”