Fairlington Arbor
Board of Directors' Meeting

February 22, 2000

Board Members Present: Judith Greig, Tom McQuillan, Jincy Boerner, Gus Wescott and Patricia Schoen

Management Present: Mike Maloney, CFM Management Services, and David Pollard, Facilities Manager

HOMEOWNER FORUM
Ms. Patty Costello asked if she could have a copy of the office rules.

BOARD MEETING
Ms. Greig called the Board meeting to order at 7:05 p.m. She introduced Ms. Anne F. Plante, CPA, representing Singleton & Bardowski, and invited Ms. Plante to present the audited financials for FY 1999.

Auditor's Report: Anne F. Plante, CPA
Ms. Plante told the Board that Fairlington Arbor is in an outstanding financial condition as a result of excellent management of its funds and assets. The operating surplus of $38,551 was the result of lower operating expenses over revenue collected from assessments. The co-owners' equity increased $33,345 at the FY ended 10-31-99. Of the 50 Associations audited by Singleton & Bardowski, Fairlington Arbor is number one for the amount of cash in reserves for capital replacements, Ms. Plante reported. Contributing to the Association's strong financial condition are sound investment decisions, superb on-site management of Arbor assets, incorporation of reserve recommendations into the budget, and a very low level of delinquent monthly assessments. Ms. Plante praised the Association for maintaining significant reserves and investing them wisely, saving in excess of $6,000 in taxes. Ms. Plante noted that these significant accomplishments occurred with no increase in condominium fees for seven years. The Board requested minor changes to the wording of the audit to reflect that the Association is incorporated.

Minutes
Ms. Greig asked for approval of the February 1 minutes which really was the meeting scheduled for January but postponed due to weather. Ms. Boerner moved that the minutes be approved, Mr. Wescott seconded the motion. The minutes were approved: 5-0-0.

Ms. Boerner noted that the Arbor Board minutes from Oct. through Dec., 1999 were now on the web. Ms. Greig indicated that there would be notification in the Arbor News Letter.

Vice Presidents' Reports

Building Committee: Mr. Wescott indicated that the roof replacement work was about 75 percent done.

Treasurer's Report
Mr. McQuillan noted that at the last meeting there had been questions on the Variance and Trend report and that Mr. Maloney had responded via letter. Mr. McQuillan asked for further clarification on the Reserve Equity listings. Mr. Maloney responded. Mr. McQuillan indicated that he had reviewed the financial statements for this month and everything appeared to be in order.

Management Report
Mr. Maloney indicated that a check had been deposited into the Arbor account under Miscellaneous Income for income tax penalties incurred due to late payment by CFM.

Mr. Maloney noted that the office procedures were enclosed for information.

Mr. Maloney briefed the Board on a legislative alert concerning proposed legislation in the Virginia Assembly.

New Business
Ms. Greig noted that the Board would approve the final Audit Report at the March meeting.

Ms. Greig asked for a motion to reallocate $53,020 from the Landscaping Reserve account to the Swimming Pool Reserve account. Ms. Boerner moved that the Board approve the reallocation. Ms. Schoen seconded the motion. The Board approved the motion: 5-0-0.

Mr. McQuillan asked for a motion allowing the excess income over expenses to be assigned to the roof replacement account in line with the auditor's recommendation. Mr. McQuillan made the motion. Mr. Wescott seconded the motion. The Board approved the motion: 5-0-0.

Ms. Greig indicated that she had general questions concerning late fee collections on delinquent assessments. In order to discuss these issues, the open Board meeting was closed and the Board met in Executive Session.

Executive Session
The Board discussed in detail specific delinquent accounts.

Adjournment
The Board meeting adjourned at 8:45 p.m.