Every November the Board mails to each homeowner a copy of the budget, a notice of assessments for the coming year, a summary of insurance coverage and other documents. If you do not receive this material, please notify the manager at (916) 929-8380 or utilize the easy-to-fill out form found here.
The manager proposes a budget every fall, the Finance Committee reviews it, and the Board discusses it in public session prior to making adjustments and approving it in October or November. The budget, which includes contributions to the reserve funds, determines the level of assessments (dues) for the coming year. A copy of the approved budget and an announcement of assessments are mailed to homeowners in late November or early December. If you do not receive this material, please notify the manager at (916) 929-8380 or utilize the easy-to-fill out form found here.
RESERVE FUNDS
Reserve studies are documents that identify and describe all major components, such as roofs, that might have to be replaced during the next 30 years. The studies estimate a lifespan and replacement cost for each component. They also compute the amount of money that must be deposited in the reserve funds each month. The objective is to plan ahead and save ahead, thus avoiding big dues increases to pay for major projects. Studies are compiled by a professional preparer, reviewed annually and renewed every three years.
Nepenthe employs a conservative investment strategy, settling for modest gains in exchange for low risk. A little more than half of your monthly assessment goes into the reserve funds. Fund activity is reported in the monthly financial reports.
ACCOUNT INFORMATION
The Association’s checking account is with US Bank in Los Angeles. All assessments and other income are deposited in the Nepenthe account, out of which all bills are paid and monthly disbursements made to the reserve funds. Nepenthe funds are not co-mingled with other associations’ funds or with FirstService Residential funds. All checks require the signatures of two Board members. Bank statements are included in the monthly financial reports, which are available to any homeowner for review in the office upon request.
AUDITS AND FINANCIAL DISCLOSURES
Nepenthe’s books are reviewed every year by a Certified Public Accountant. A summary of the CPA’s report is mailed to homeowners every April. If you do not receive the summary, call the manager at (916) 929-8380 or utilize the easy-to-fill out form found here. Copies of past reports are kept on file in the office for homeowner review at any time.
Management provides the Board with monthly financial statements. Copies are kept on file in the office for homeowner review during business hours.