Dear Treasurer, - lhsc



Lake Huntington Summer Community

Treasurer Job Description

revised 11/5/01

Dear Treasurer,

Following is a guide to help you perform your treasurer’s duties during the coming year. It has been written for someone with little or no formal accounting background. The guide attempts to be as comprehensive as possible. However, there will no doubt be a need for revisions and updates as circumstances change. Consider this guide to be your working document. Please feel free to edit it during the year so that next year’s Treasurer has the benefit of your experience. This way there is continuity despite the fact that the Treasurer changes every two years. As questions arise, feel free to consult with last year’s Treasurer. You, in turn, will be called upon next year to offer advice and guidance.

Thank you for being willing to donate your time to perform this critical task for the community. You will find that you will learn a great deal about LHSC.

Table Of Contents

1. Before You Start

2. Treasurer’s Responsibilities

3. Budget

4. Line Item Expense Budget

5. Per Share/Unit Maintenance Budget (Income)

6. Maintenance and Other Shareholder Bills

7. Deck Fees

8. Recording and Depositing Income/Receipts

9. Late Fees and Arrears

10. Paying Bills and Expenses Payroll

11. Payroll Taxes and Withholding Payments

12. Coordinating with the Accountant

13. Coordinating with the Bookkeeper

14. Record Keeping and Reports

15. Appendix

Before You Start

Before you can perform your duties, there are several things you should do, as follows:

1. First, you should obtain and execute a change of signature card from Jeffersonville Bank for the LHSC bank account. The Treasurer and Board President (alternate) should execute the form. You will not be able to sign checks until the signature card has been received by the Bank.

2. You should not process any change of address requests with our suppliers. Bills come to the community PO Box and they can be forwarded to you from there. At the end of the summer you should make arrangements with the post office to forward all correspondence to your home address

3. Check to make sure you have an adequate supply of checks, deposit slips and mail-in envelopes. Make sure you have the check stamp.

4. Set up your record tracking systems. You should establish separate files for each major line item. You should also set up a black binder for holding copies of all Maintenance bills, deposits and receipts (see section on record keeping).

5. It is also helpful to stock a supply of envelopes, stamps and files.

Treasurer’s Responsibilities

The LHSC Treasurer’s basic responsibilities are:

1. Prepare and mail the quarterly maintenance bills to LHSC cooperators.

2. Prepare and mail other bills to cooperators, such as plumbing repair bills for work on individual units.

3. Collect, deposit and record payments of maintenance and other fees.

4. Calculate late payments and follow up on arrears.

5. Pay and record bills paid for maintenance, deliveries and other work performed for the community.

6. Prepare, pay and record weekly payrolls for employees.

7. Maintain records and various supporting ledgers to track the status of cash receipts, expenditures, bills paid, funds owed and cash on hand.

8. Coordinate with the community’s Accountant to ensure that tax forms are prepared, taxes are paid and necessary reports are filed.

9. Prepare and present Treasurer’s reports at Board meetings and at annual Community meetings.

10. Work with the President and Board members to prepare next year’s line item budget.

11. Transfer complete records to new Treasurer. Train new Treasurer and provide an updated copy of the Treasurer’s manual. Act as a consultant to answer questions for the new Treasurer.

Please be sure to keep a record of any expenses incurred in performing your Treasurer’s duties. These can be billed to LHSC and are reimbursed as an Administrative expense. Be sure to have your alternate sign the check to avoid any questions.

Budget

A line item budget will be prepared by the outgoing Treasurer and the Board President and will be approved by the full Board. Make sure you have a copy of the final approved budget. Most likely, this budget will be prepared before you start your duties as Treasurer. You will participate in the development of the line item budget at the end of your term which will be used by the next year’s Treasurer. Line items for various committees will be developed in conjunction with the Committee Chair and the Board Committee Liaison member. See last year’s budget as an example.

The budget reflects the LHSC fiscal year which is November 1 though October 31.

The annual budget consists of two parts:

1. Line item expense budget

2. Per share/unit maintenance budget (income)

Line Item Expense Budget

The line item expense budget will form the basis for determining the per share maintenance and for your accounting of expenses during the year. The final approved budget is sent to all cooperators. It is the Treasurer’s job to make sure that the overall budget is not exceeded. Other Board members also play a role in ensuring that the budget is not exceeded. The Board Committee Liaison should advise each Committee Chair of the budget for their committees. The Chairs are responsible for staying within their budget. The Board Grounds and Maintenance Liaison also has an important role in monitoring the maintenance expenses to ensure that the maintenance line item is not exceeded.

If individual line items have been or may be exceeded, this should be brought to the attention of the Board as soon as possible. The Board will need to approve a revised budget with corresponding adjustments in other categories to ensure that the overall budget will not be exceeded. Your job will be to prepare the resulting revised budget and distribute it to Board members.

You should use the budget line items as a basis for setting up your records.. You will be asked to make reports at Board and community meetings concerning the status of expenditures (actual and projected) against each line item in the latest revised budget.

Budget line items are currently as follows:

1. Loan Repayments

2. Taxes

a. Land Taxes

b. School taxes

3. Insurance

a. Property

b. Employment

unemployment

disability

4. Salaries

a. Maintenance Person(s)

b. Lifeguard

c. Payroll Tax

5. Maintenance

a. Tree Pruning

b. Pool

c. Grounds Maintenance

construction materials

season opening

season closing

miscellaneous

d. Pier Repairs

e. Plumbing

f. Other

6. Garbage Removal

7. Utilities

a. Electricity (NYSEG)

b. Gas (C.E.S.)

8. Legal and Accounting

9. Corporate and Income Tax

10. Administration

11. Equipment

12. Capital Projects

13. Committees

a. Landscaping

b. Gardening

c. Pool

d. Lakefront

e. Social

f. Community Relations

g. Tennis

h. Marketing

j. Newsletter

k. Labor Day Dance

l. Rentals

14. Contingency (recommended at 10% to account for arrears and unexpected expenses)

Per Share/Unit Maintenance Budget (Income)

Once the Line Item Expense Budget has been determined and the total annual expenses have been projected, the Per Share/Unit Maintenance Budget can be developed. The Maintenance Budget determines what each cooperator must pay. There are "above the line" (per share items) and "below the line" (per unit items).

There are a total of 1740 shares and 55 units. Cooperators own either 30 (44 cooperators), 45 (10 cooperators) or 60 shares (1 cooperator), as follows:

60 shares - 52/53

45 shares - S2A/B, 11/15B, 12/15B, 36/37, 40/41, 42/43, 46/47, 48/49, 55, 56

30 shares - everyone else

"Below the line" per unit items are:

Interest and Principal on the new tennis court

Taxes on the adjacent property purchased by the community

Utilities

"Above the line" per share items are:

Base interest on loan

all other line items except utilities

The Maintenance Budget should indicate the basis for these calculations (i.e. dollar amount of maintenance per share and dollar amount of maintenance per unit). It should also identify the total annual maintenance amount for 30, 45 and 60 share holders. This amount is used to calculate the four maintenance payments due from each cooperator.

The total Per Share/Unit Maintenance Budget (income) should equal the total Line Item Expense Budget (expenses).

Other Sources of Income

Deck fees are a separate assessment which vary by deck size. Many cooperators have decks and must be assessed. One cooperator (No. 8) has an additional special assessment. These fees constitute a second form of contingency and are not calculated into the Maintenance Budget (income). (See section on Deck Fees).

Other potential sources of income which are not reflected in the Budget which you should track and record are:

Late Fees

Repair Reimbursements

Rental Fees

Laundry Receipts

Social Event Receipts

Miscellaneous Receipts

These are discussed under the section: Recording and Depositing Income and receipts.

Maintenance and other Shareholder Bills

Maintenance Bills and Deck Fees

Once the Per Share/Unit Maintenance Budget has been established, and the annual Maintenance payment for each 30, 45 or 60 shareholder has been determined, quarterly Maintenance bills must be prepared by the Treasurer. If the annual payment is not devisable by 4, the last payment will reflect the odd amount. Be careful to keep track of this!

Quarterly payments are due: December 1, February 1, April 1, June 1. As stated on the bill, a grace period extends for 15 days after each due date. After the grace period, late fees of 2% per month (prorated) are assigned retroactively to the payment due date of December 1, February 1, April 1 or June 1. (see section on late fees).

Each maintenance bill reflects the following:

Total Maintenance

Quarter Payment

Past Due Amount

Deck Fee

Late Fee

Other (i.e. plumbing or other repair reimbursement owed)

Net to Pay This Quarter

Each quarter, you must determine the appropriate quarter payment, past due amount, deck fee, late fee and other fees owed by each cooperator and reflect these on the bill. Deck fees are billed on the third quarter bill (see section on deck fees). If a late fee is being assigned, indicate on the bottom of the bill how it was calculated.

You should try to send out the bills one month before the due date so that cooperators have sufficient notice.

Other Bills

From time to time you may also need to bill cooperators for work done on their units which has been paid for by the Community such as plumbing and gas repairs "above the boards". A separate form letter has been developed for this purpose (see appendix). To maintain good relations with companies that serve the community, bills are sent directly to the Treasurer and paid. As Treasurer , you must review the bills and make sure that the company has indicated the unit number and that the appropriate cooperator is billed. You must keep a separate record of these bills and receipts. If a bill has not been paid by the next quarterly maintenance bill, it is added to the maintenance bill under the "other" category. If the bill is not paid with the next maintenance, late fees start accruing.

Deck Fees

Deck fees and special assessments are billed with the third payment due April 1. The deck fees are based on a percentage. The percentage is derived from the square footage of the cooperator's deck. The first 50 square feet are free, after which each 10 feet equals 1%. The deck fee is derived by applying an assigned percentage against the base maintenance for a 30 share unit for the year. There is one special assessment (No.8) which is also based on a percentage of the base maintenance.

Recording and Depositing Income/Receipts

You will receive checks and/or cash for the following categories of receipts/reimbursements:

Quarterly Maintenance Payments

Deck Fees

Late Fees

Repair Reimbursements

Rental Fees

Laundry Receipts

Social Event Receipts

Miscellaneous

You should keep a separate record of each category of income/receipts in a separate subsidiary ledger. At the end of the year you will need to report on the total income received from each category of income/receipts.

Check Deposits

All checks should be stamped with the bank stamp and recorded on the preprinted deposit slip. Indicate the individual and amount. Be sure to indicate your mailing address and include the "mail deposit receipt" in the preprinted bank envelope. If the check involves the payment of deck fees, late fees, rental fees, repair or other reimbursements, record the receipt on the appropriate subsidiary ledger form.

Quarterly Maintenance Payments (including late fees and past due)

When you receive a quarterly maintenance check, you should record the amount, the date of receipt, and the date of deposit on the bottom of the maintenance bill. You should note whether the payment includes any prior late fees of past due amounts. If the payment is postmarked past the grace period deadline, staple the envelope to the bill in case you are questioned about late fees. You will use this information in preparing the next quarter's bills and in calculating the amount of any late fees and past due amounts.

Repair Reimbursements

As Treasurer, you are directly responsible for billing and tracking the receipt of repair reimbursements by cooperators. When you send a bill, note the date, amount and cooperator's name on the appropriate subsidiary ledger form. Use the same procedure as above for depositing payments. Record the payment receipts on the appropriate subsidiary ledger form.

Rental Fees

The Board Rental Liaison will be responsible for obtaining the appropriate rental fees and sending the checks to the Treasurer. Use the same procedure as above for depositing payments. Record the payment receipt of the appropriate subsidiary ledger form. As Treasurer, you will also be asked to certify that a cooperator's maintenance is paid in full before the cooperator can be authorized to rent. The rental fee is currently $30 per week for a maximum of 4 weeks.

Laundry Receipts

Currently Ruth Braunstein is collecting laundry receipts and depositing them directly. You will be given a copy of the deposit slip. Keep a record off all laundry receipts in the appropriate subsidiary ledger.

Social Event/Miscellaneous Receipts

Use the same procedure for depositing receipts. Record all receipts in the appropriate subsidiary ledger.

Late Fees and Arrears

The Board has established a standard late fee policy which has been previously sent to all cooperators. As Treasurer, you will need to keep track of arrears and calculate any late fees due. Late fees and past due amounts are added to the next month's quarterly maintenance bill. This includes any overdue and unpaid repair reimbursement amounts.

A late fee of 2% per month on arrears (past due balances) is charged to help defray the cost to the community of late payments, and to discourage such payments.

The late fee is charged beginning the day after the grace period ends.

If payment in full is not made by the last day of the grace period, the late fee is charged on the past due balance, retroactive to the due date. The due date is the original date and not the grace period date.

The postmark on the payment envelope will be used to determine the date of payment. Envelopes for all overdue payments should be stapled to the bill as a record, in case of questions.

Unpaid late fees are added to the past due balance on the next quarterly maintenance bill. The cooperator has until the due date of that quarterly bill to pay. If the grace period is once again missed, additional late fees are calculated against the full amount due, including past due amounts.

EXAMPLE 1:

12/01 - $500 due

12/15 - grace period ends

12/16 - $500 received per the postmark

Late fee charged retroactive to 12/1 = 2% x $500 / 16/31 = $5.16

Next quarterly payment reflects $505.16

02/01 - $505.16 due

02/15 - grace period ends

03/12 - $505.16 received per the postmark

Late fee charged = 2% x $505.16 = $10.10 (for the month of Feb)

2% x $505.16 / 12/31 = $3.91 (for partial month)

Total Late Fee = $14.01 which is reflected on the next quarterly bill

EXAMPLE 2:

12/01 - $500 due

12/15 - grace period ends

No payment is received. Next quarterly maintenance bill is sent 1/1 for payment by 2/1

Late fee charged retroactive to 12/1 = 2% x $500 = $10 (December)

Next quarterly payment reflects $500 past due, $10 late fee and $500 for second quarterly payment.

02/01 - $1010 due

02/15 - grace period ends

03/12 - $1010 received per the postmark

Late fee charged = 2% x $1010 = $20.20 (for the month of Feb)

2% x $1010 / 12/31 = $7.82 (for partial month)

Total Late Fee = $28.02 which is reflected on the next quarterly bill

Once the last quarterly payment due date is past due (6/1), you will need to carefully monitor any overdue payments and arrears, since the next quarterly payment is not due until 12/1. Late fees continue to accrue until payment or the 12/1 bill is sent (usually sent 11/1). You will need to reflect the accurate fee amount in the 12/1 bill. Follow letters should be sent in September to all those in arrears. Usually when payment of arrears occurs after the last quarterly bill due 6/1, the payment does not reflect the full late fee owed which is calculated as of the payment receipt date. You will need to send a separate bill for this additional fee and provide a reasonable time for payment of the final late fee (see sample letter in the appendix).

You need to keep a subsidiary ledger of all late fees owed and payments received.

Arrears

Arrears are any failure to pay one or more maintenance payments by the end of the grace period. The Treasurer must report on arrears at each Board and Community meeting. Significant arrears are any amounts due in excess of $1000. The Board has established a policy that any cooperator in significant arrears must work out an acceptable repayment schedule. Cooperators in arrears may not rent without the Board's special approval. In such cases, the rental payment must be sent directly to the Treasurer as an offset against arrears. In the absence of an approved repayment schedule or good faith effort, the Board will proceed to deny the cooperator use of the unit and initiate foreclosure.

A Board member other than the Treasurer is designated to contact those with significant arrears and work out a repayment schedule. As Treasurer, you will need to coordinate closely with the Board member. You will need to keep a subsidiary ledger for all arrears owed, and payments received. For each repayment schedule, you will need to keep a separate record to ascertain whether the cooperator is adhering to the repayment schedule, as agreed.

For those in significant arrears who have not worked out a repayment schedule, you should indicate on the bottom of their next quarterly bill, whom they should contact to avoid additional late fees and other penalties.

Paying Bills and Expenses

As Treasurer, you have possession of the LHSC check book and will be called upon to pay all community bills and payroll. Payrolls, mortgage payments and certain utilities and supply bills will be fairly consistent. Other standard expenses include property and school taxes and property insurance. You should set up separate files and ledgers for these types of bills.

Payrolls and Related Taxes/Withholding/Insurance

Payroll payments are discussed in a separate section

Mortgage Payments

Biweekly mortgage payments are automatically deducted from the LHSC account. It is critical to ensure that there is sufficient cash in the account at all times to cover these deductions. You should keep a Mortgage Payment ledger and file to keep track of these automatic payment deductions, since you will not be writing checks for this amount. The bank will also send you a confirming notice.

Other Bills

A list of suppliers and contractors with whom the community may do business is attached. Certain suppliers and categories of expenses are fairly routine:

Telephone (NYSEG)

Chlorine and pool supplies (Clearwater)

Gas (C.E.S.)

Maintenance Supplies (Kohler Lumber)

When a bill is paid, you should mark on the bill "paid" and indicate the date and check number. The check stub in the book should also indicate the date, amount and purpose of the check payment. You should record the bill amount under the appropriate Budget Line Item ledger, as a way of monitoring whether expenditures will exceed the approved Line Item Budget amount. As discussed elsewhere, if it appears that a Budget Line Item will be exceeded, this needs to be brought to the attention of the Board, and corrective action must be taken. Committee Chairs should be keeping track of their Committee budgets.

In addition to recording the above bills as expenses against your budget line items, it is also a good idea to keep a listing by supplier of the individual invoice and date paid for routine suppliers such as Clearwater, C.E.S. and Kohler. The reason for this is that these suppliers send cumulative bills which include any unpaid amounts from previous invoices. If checks have crossed in the mail it is easy to pay the same invoice twice without realizing it.

You will also need to monitor whether work was done on individual units "above the boards" which is the responsibility of the individual cooperator. As discussed you should pay these bills directly, and then bill the appropriate cooperator(s) for reimbursements.

Payroll

As Treasurer you will be responsible for the payroll all employees. It is important to know whether the person hired is functioning as an employee or as a contractor. For employees, deductions must be made for social security, federal withholding, state withholding, and disability.

There should be a written contract with each person hired, a copy of which is given to the Treasurer. Use this contract to set up a separate payment ledger for each person hired indicating the weekly pay period, amount paid, check number and date. Consult with the accountant or bookkeeper to determine what should be withheld from each weekly payment. Payday is Friday.

You may find it easiest to issue paychecks on a monthly basis. In such case, each o the weekly checks for the month should be dated as of the appropriate weekly pay date. Both the check and the check stub should indicate the dates of the pay period and any deductions. Appropriate information should be entered in the payment ledger. A transmittal letter should accompany each check (see sample letters in the Appendix).

Payroll Taxes and Withholding Payments

On a quarterly basis, payments to the State Insurance Fund and to the federal government will have to be made for social security, federal withholding and state withholding. Payments will also be made for unemployment insurance. The necessary forms are prepared by the accountant or bookkeeper, and signed by the Treasurer along with any required check payments.

Disability Insurance is carried under a policy with Callicoon Cooperative Insurance Company. There is an annual premium.

Coordinating with the Accountant

Currently, LHSC has retained Lachman & Lachman to perform accounting services. There should be a written letter of understanding with the accountant outlining the duties to be performed. Currently these are:

Annual Shareholder's Financial Statement - must be sent to shareholders no later than February 1.

Federal and State Corporate Income Taxes - due January 15

Federal and State Unemployment Taxes

108 Form for deductible taxes and interest

W-2 employee income forms

Quarterly Federal and State reports and employee wages

State Insurance and Unemployment Forms

Maintain employee records

Your responsibility will be to coordinate with the Accountant to ensure that required forms and related payments are filed in a timely manner. Many of the forms will require the Treasurer's signature, as well as a check. You should keep a copy of the executed forms in your files.

Following is a listing of various required forms and their due dates:

New York State Tax Department

Processing Unit

P.O. Box 1970

Albany, N.Y. 12201-1970

Quarterly WT-4-AEZ Quarterly Combined Withholding and Wage Reporting Form and WT-4-B (Part B)

January - March Due April 30

April - June Due July 31

July - September Due October 31

October - December Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date. Covers all employee wages and state tax withheld. Payment usually is required with the filing of the form.

New York State Department of Labor

Unemployment Insurance Division

P.O. Box 1589

Albany, N.Y. 12201-1589

1. Quarterly Employers Report of Contributions

January - March Due April 30

April - June Due July 31

July - September Due October 31

October - December Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date. Covers all employee wages. Payment usually is required with the filing of the form.

New York State Insurance Fund

199 Church Street

New York, N.Y. 10007

1. Policy number 845-343-3 Worker's Compensation and Employer's Liability

Pay premium amount shown on bill. Consult with Accountant

Internal Revenue Service

Andover, MA 05501

1. Form 941 Employer's Quarterly Federal tax return; 941-V Form 941 Payment Voucher.

January - March Due April 30

April - June Due July 31

July - September Due October 31

October - December Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date. Covers all employee wages. State "Employer's Report of Contributions" usually attached. Payment usually is required with the filing of the form.

2. Form 940-EZ Employer's Annual Federal Unemployment (FUTA) Tax Return

Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date. Covers all taxable wages. State "Employer's Report of Contributions" usually attached. Payment usually is required with the filing of the form.

Corporate Income Tax

Fiscal Year 11/1 - 10/31

1. IRS Form 1120 Corporation Income Tax Return

Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date.

2. New York State CT-3 General Business Corporation Franchise Tax Return

Due January 31

Prepared by Accountant and signed by Treasurer and must be mailed by the due date.

Annual Distributive Share of Interest and Real Estate Taxes

1. Statement from Accountant

Due February 1 - to be sent to all cooperative shareholders

Prepared by Accountant for the tax year and must be mailed by the Treasurer by the due date. Statement identifies the interest deduction by share and the real estate taxes by share. Amounts are shown for 30 shareholders, 45 shareholders and 60 shareholders.

Record Keeping and Reports

Record keeping has been discussed throughout this manual. In summary, the Treasurer is required to:

Maintain records and copies of deposited checks

Maintain Subsidiary Ledgers of Income and Expenses

Maintain files

Maintain the checkbook

In addition, the Treasurer must reconcile the checkbook and prepare and present Treasurer's reports at Board and Community meetings.

Checkbook Reconciliation

Each month, you will receive a bank statement with canceled checks. You should reconcile this with your records of deposits and expenses. In particular, you should note any checks written but not yet paid. You will need this information to monitor the community's cash position. When you have completed this reconciliation, you should send the monthly bank statement and canceled checks to the bookkeeper.

Subsidiary Ledgers

The following subsidiary ledgers should be maintained:

1. Shareholder's maintenance payments

2. Fees and receipts

Deck Fees

Late Fees

Repair Reimbursements

Rental Fees

Laundry Receipts

Social Event Receipts

Miscellaneous Receipts

3. Arrears

4. Line Item Budget Expenses

Treasurer's Reports

The Treasurer must prepare reports for the periodic Board meetings. It is useful to present a printout of expenses to date for each Budget Line Item. You should also summarize income received to date, and cash on hand after expenses. You should discuss arrears. You should identify any line items which are likely to be exceeded so that the Board can agree on corrective action. You should indicate whether there is sufficient cash to pay incoming/pending bills.

For the two community-wide meetings, you should give a briefer summary of the information. Arrears are always a topic raised by cooperators. At the year end meeting, you should summarize the overall financial position of the community, as follows:

Total maintenance billed, received and owed

Other receipts and income (deck fees, late fees, etc)

Total arrears (current and prior year's totals)

Total expenses (highlight significant over or under budget lines, and any major expenses)

Projected balance of cash on hand at the end of the fiscal year (10/31)

Appendix

1. Sample Maintenance Bill

2. Sample Repair Work Bill

3. Sample Late Fees Letter

4. Sample Arrears Letter

5. Sample Payroll Letter

Lake Huntington Summer Community

c/o Treasurer

Treasurer Address

October 15, 2001

Maintenance, 1992-93, First Payment Due December 1, 1992

xxxx xxxx

44 Park Place

Brooklyn, N.Y. 11217

Late Fees are 2% per month for outstanding balances!

Payments are due December 1, 1992, February 1, 1993, April 1, 1993 and June 1, 1993.

Grace period is 15 days after each due date.

Total Maintenance: $

Quarter Payment: $

Past Due: $

Deck Fee: $

Late Fee: $

Net to Pay this quarter $

Lake Huntington Summer Community

c/o Treasurer

Treasurer Address

October 15, 2001

xxxx xxxx

44 Park Place

Brooklyn, N.Y. 11217

Dear Shareholder:

A review of our records indicates that the following work was done on your unit on 8/13/93:

Repair gas leak (C.E.S.) - $42.80

This bill has been paid directly by the LHSC. Attached is a copy of the itemized bill from C.E.S. In accordance with community policy, such work is the responsibility of the individual cooperator. Therefore, the community should be reimbursed by you in the amount of $42.80.

If our records are incorrect and you have already paid this bill directly to the contractor, please send a copy of the check issued for this item.

Thank You,

Sincerely,

xxxxx xxxxx

Board Treasurer

Regarding Late Fees

Dear Cooperator:

As you know, our community operates on a tight budget. The Board tries to keep the maintenance payments to a bare minimum. Each cooperator's timely payment in full is critical if the community is to pay its bills. 80% of our cooperators pay their maintenance by the due dates.

Our greatest expenses (mortgage, taxes, utilities, insurance, etc) are not optional, and have fixed due dates. The schedule for quarterly payments is designed to ensure that there is sufficient cash in our account to pay these bills when due. If cooperators are late in their payments, the community experiences serious cash flow problems. The result is that we must delay our bill payment and incur late fee penalties, or use our line of credit and incur additional interest costs. Either way, there is an additional cost to the community as a whole.

Consequently, the community has established a policy of charging a late fee to those cooperators who do not pay their maintenance by the due date. The due date is clearly indicated on the quarterly bill. A grace period of fifteen days is provided after which the penalty for late payment is charged. We wish to stress that the last day of the grace period is not the due date. Thee assessment of penalties begins the day after the grace period ends, and is charged from the due date, based on the postmark on the envelope. The fee is 2% per month on outstanding balances. The fee is prorated if the late period includes a partial month. Unpaid late fees added to the past due balance, against which the 2% late fee continues to accrue.

We hope this explains the basis for any late fees appearing on your most recent bill. We hope that you will make every effort to pay your maintenance by the due date to ensure that the community can pay its bills on time and this avoid unnecessary expenses. Ultimately, such expenses result in an increased maintenance for everyone.

Thank You

Lake Huntington Summer Community

c/o Treasurer

Treasurer Address

October 15, 2001

xxxx xxxx

44 Park Place

Brooklyn, N.Y. 11217

Dear Shareholder:

Our records indicate that we have not received your last maintenance payment of $671.00 which was due June 1. In accordance with LHSC policy, a late fee of 2% per month is charged on overdue amounts. As of 7/15 your late fees equal $19.91 ($13.42 for June and $6.49 as of 7/15). The total late fee amount will be based on the postmark of your payment.

As you know, LHSC operates on a very tight budget and every cooperator's payment is needed to meet our expenses.

Please let me know as soon as possible if there has been some error or if you need to arrange a repayment schedule.

Thank You,

Sincerely,

xxxxx xxxxx

Board Treasurer

September 24, 2001

Maintenance Person Name

P.O. Box XXXXX

Monticello, New York 12701

Dear YYYYY,

Enclosed, please find your paycheck for the week of September 18 - September 24.

As agreed, your weekly salary is $360.00. Deductions have been made as follows:

Social Security $27.54

Federal Withholding $31.00

State Withholding $12.10

Disability $.60

Total Deductions $71.24

Therefore, your net pay as reflected in this check is $288.76. Please do not cash until the date indicated on the check.

Sincerely,

xxxxx xxxxx

Board Treasurer

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