Ventana Lakes Property Owners' Association www.ventanalakespoa.com

Financial Report
October 18, 2006

Balance Sheet
Statement of Operations
Reserve Funds Report
Treasurer's Report

Ventana Lakes Property Owners Association
Treasurers Report
October 18, 2006

Attached and Included  As Part Of This Report

   The first 2 pages of Colby Management’s Balance Sheet for the nine months ending September 30, 2006.

Comments

   The 2007 Budget Drafts for the Master and Gardens will be submitted today for Board discussion and/or approval.  In an attempt to remove all income uncertainties from the Operational side of the budget the Board has decided to use only assessment income in preparing the 2007 budget draft.  Any interest income derived from the Operational bank accounts will be treated as Operational income but is not being used to project available income.

   Any additional income from sources such as Resale Fees or Cell Tower Revenue will be added to the Ventana Lakes Reserve Fund.

 Reserves

   Attached is an additional page listing all Ventana Lakes CDs held in our Reserve Account. 

Recommendations

     Attached are my recommendations to the Board from my September report with updates.

Submitted and signed by Bob DellaPia this 18^th day of  October, 2006.

Ventana Lakes Property Owners Association

Certificate of Deposits as of September 30, 2006

                                                                                                                                         HELD AT
          BANK                                              Yield     BALANCE    MATURES      WELLS FARGO

 1) Citizens State Bank                       4.95%    $ 50,000       Nov. 24, 2006       YES

 2)  First Bank of Puerto Rico             5.05%    $ 58,000       April 20, 2007      YES

 3)  Morgan Stanley Bank                    5.25%    $ 75,000       May  16, 2007      YES

 4)  Washington  Mutual                      5.25%    $ 25,000       Aug. 23, 2007       YES

 5)  Westernbank of Puerto Rico       5.30%    $ 25,000       Aug. 23, 2007       YES

 6)  AmTrust                                            4.70%    $100,000      Nov. 23, 2007

 7)  FNB                                                    4.65%    $ 76,692       Jan. 30, 2008

 8)  First Federal Savings Bank, IN    5.40%    $ 25,000       April 9, 2008        YES

 9)  Sky Bank                                           5.25%    $ 50,000       May 27, 2008       YES

10)  First Community Bank                  4.93%    $ 15,282       Oct. 6, 2008

11)  FNB                                                    4.65%    $ 76,707       Jan. 30, 2009 

12)  GMAC Bank                                     5.30%    $ 50,000       May 19, 2009       YES

13)  New West Bank Greenley, CO    5.40%    $ 25,000       Aug. 4, 2009         YES

14)  FNB                                                   4.75%    $ 76,726       Jan. 30, 2010

15)  First Internet Bank of IN               5.59%    $ 35,000       Aug. 16, 2010

16)  First Internet Bank of IN               5.64%    $ 45,000       Aug. 16, 2011

17)  Stonebridge Bank                          5.50%    $ 17,000       Aug. 18, 2011

18)  United Bank Parkersburg, WY    5.60%    $ 75,000       Aug. 30, 2011 guaranteed CDARS FNB

19)  Bank One                                         5.68%    $112,308      June 18, 2012

Board:  Progress on recommendations approved in September.

1)  Line item 171 - Gardens reserve Money Market FNB

          Move this to any bank that has consistently offered high money market rates and that has no other Ventana Lakes funds so that it is 100% insured.  2.15% from FNB is not in our best interest plus we are well over FDIC insurance limits with FNB.

     All funds have been moved to a money market account at Domestic Bank with a current yield of 5.08%.

2)  Line item 120 - Reserve Money Market FNB

          Move  $95,000 of this to any bank that has consistently offered high money market rates and that has no other Ventana Lakes funds so that it is 100% insured.  2.15% from FNB is not in our best interest and we are well over FDIC insurance limits with FNB.

          The remaining funds would be used to purchase a CD.  If you look at our list of CDs ( there are now 19 )  you will see we have approx. $50,000 maturing about every 3-5 months. 

          The $95,000 in the liquid MM plus what we add every month plus what matures is more then enough available for use.

      All funds ( approximately $ 99,200 ) have been moved to a money market account at State Farm Bank with a current yield of 4.50%.

  3)  Line item 102 -  FNB Operating

          I have paper tracked the last 8 months for this account.  We seldom use $150,000 per month yet we carry around $300,000 yielding 2.15%.

          Tammy is in agreement that we should move $95,000 to a Money Market account at any bank that offers consistently high rates and that we do not have other funds with.  This will give us a better rate of return in money we do not use but still have liquid access to and it will be 100% insured.

       This will be done now that all the funds are at Compass Bank.

          Now the most important step.  We should move our operating account which is really a money market account from FNB 2.15% to Compass Bank 4.50%.  Compass is where Colby holds most of its other customers money and based on yield you can see why.  That would mean approximately  $200,000 at Compass with only about $100,000 over the FDIC insurance limits.

        The Operational Account has been completely transferred to Compass Bank.  This was finalized after the September 30 Balance Sheet was prepared.

  4)  Line item 103 -  FNB Activity CHKG

         Go to Compass at Lake Pleasant and Beardsley and open a CHKG account there.  More convenient for deposits and the balance is not large enough to worry about FDIC insurance.  But if  insurance  is a concern we could open that account anywhere.

     Lois Owen and Barbara Jennings have moved the Activities checking account to Compass and have closed the FNB account.  This will be reflected in the October Balance Sheet.