By-Law Amendment On the November BPRA Ballot - BPRA Fiscal Year Dates Change Proposed to Match the Calendar Year
BPRA’s current fiscal year runs from March 1 to February 28/29.
Based on a recommendation from the Recreational Association (BPRA) Finance Committee, the Board of Trustees, at its September 14 meeting, voted unanimously to send a proposed By-Laws amendment to a BPRA Membership vote at the November 2021 annual meeting. The proposed amendment to By-Law Article XVI, §1 that would change the BPRA Fiscal Year to coincide with the calendar year, January 1 to December 31. The date for the Annual Assessment will not be changed under this amendment, remaining March 1.
The proposed Amendment would amend Section 1 Article XVI to read: The fiscal year of the Association shall coincide with the calendar year, upon proper application to, and approval to do so by, the Internal Revenue Service.
Why the change?
The dates for the BPRA fiscal year will be easier to understand. Most homeowners think in terms of calendar year, January through December, when thinking about their financial planning. For example, the United States federal and state income tax years are based on the calendar year. Aligning BPRA’s financial year to the calendar year synchronizes BPRA with the “normal” financial planning cycle of most members. In addition, our previous auditors recommended making this change several years ago.
The BPRA budgeting process will be easier. BPRA’s budget year is based on its fiscal year. Making the budget year align with the calendar year would make understanding the budget simpler. A homeowner would immediately understand it is for the next calendar year without having to think about exactly what time period it covers.
The work to handle the funds will be simplified, which should reduce bookkeeping fees. Assessment Payments are required to be paid by March 1, for the start of the current BPRA fiscal year. BPRA members Annual Assessment payments also must be applied to the CORRECT fiscal year.
Currently, we send Notices of the Annual Assessment payment in mid-January (per our Pool Covenant Article V, §8). Happily, we receive upwards of 85% of BPRA Member payments before March 1! Yet, these payments are received in the outgoing BPRA fiscal year, BEFORE the fiscal year for which the payments will apply. Accounting for these pre-March 1 payments complicates the work of BPRA’s accountant and bookkeeper. One must first enter the prepaid assessments into a separate pre-paid account, and then after March 1, move the dues into the correct fiscal year assessment account. This requires additional bookkeeper/accountant time and thereby adds additional costs for BPRA members, since BPRA homeowners are the source of 99% of all revenue for the organization (the remaining1% being guest fees). In sum, by changing the fiscal year to match the calendar year, but retaining March 1 as the Assessment due date, we save the expense associated with entering the same data twice and reduce the possibility of data entry error along the way.
Please vote “YES” on the proposed By-Law Amendment when you cast your Annual Meeting Ballot!
