BUDGET LINE ITEMS EXPLANATION

Accounting: The accounting function is responsible for posting the Association's books, maintaining records, managing financial accounts, producing financial statements, and assembling and recommending budgets. Monarch pays a proportionate share (based on unit weeks) of the cost of wages and benefits for the MVCI accounting department, which currently comprises the Director of Finance, four Assistant Controllers, and one full-time hourly associate.

Activities: Represents the costs associated with providing activities at Monarch for all age groups. Certain activities have a fee associated with them, and any fees collected are used to offset this line item. Also represented in this line item is Monarch's cost of wages and benefits for our Activities personnel (currently one Recreation Supervisor, one full-time hourly associate, and hourly seasonal summer interns).

Administration: Monarch's proportionate allocation of the labor costs of East Region Operations, Resort Operations (including Director of Operations), the Sea Pines General Manager, and Admin Assistant, plus the cost associated with quality assurance reviews.

Audit fee: Cost charged from the auditing firm (currently RSM) that audits Monarch's financial statements.

Bad Debt Expense: There is an estimated charge recorded each period to bad debt expense, based on a percentage of operating fee revenue, that is trued up at the end of each year based on the year end outstanding receivable..

Billing & Collections: This is a fixed charge from MVCI to produce and mail the maintenance fee statements, to process payment on accounts, and to enforce the Association's delinquency policy regarding late fees and collection procedures. This function is handled in Lakeland, Florida.

Board of Directors: To reimburse the Monarch Board members for out-of-pocket expenses directly associated with attendance at Board meetings.

Cable Television: This cable service is provided by an outside contractor (currently World Cinema and Hargray) and is directly billed by the vendors to Monarch.

Consulting Expense: This pays for the Owner Association services provided through the Board through the Owner Liaison to the Board for owner communications (newsletter, correspondence, advocacy, website, resources).  

Credit Card Fee: The credit card processing fees charged by the bank for owners who choose to pay their maintenance fees by credit card.

Easement Agreement: This is the cost associated with Sea Pines Plantation access/road maintenance, directly billed by Community Services Association (CSA) to Monarch.

Electricity: Electric service for the villas, common areas, and surrounding grounds, provided by an outside contractor (currently Palmetto Electric) and directly billed by the vendor to Monarch.

Front Desk: Covers owner/guest services for check-in and general coordination of occupancy. Covers wages and benefits for the front desk, PBX, and concierge services.

Gas: This propane cost is for the gas grills and pool heating, provided by an outside contractor (currently Palmetto Gas a Blossman Gas Company) and directly billed by the vendor to Monarch.

High Speed Internet: This service is provided by Windstream, an outside contractor and is directly billed by the vendor to Monarch.

Housekeeping: This is a combination of direct charges (guest supplies, housewares, laundry costs, and housekeeping services provided by an outside contractor) and proportionate allocation of the wages and benefits for the MVCI Housekeeping Manager and associate.

Human Resources: Proportionate allocation to Monarch of the costs of MVCI Human Resources for payroll, compliance, recruitment, training, and retention.

Income Tax: Reflects taxes due on non-member income, including bank interest on investments in the operating and reserve funds.

Insurance: Includes property, liability, directors & officers, workers compensation, and other required insurance needs. The cost of the insurance, which is purchased by MVCI in order to get a bulk purchase price, is allocated to Monarch based on the values associated with each item.

Landscaping: This grounds upkeep service is provided by an outside contractor (currently the Greenery) and is directly billed by the vendor to Monarch.

Loss Prevention/Security: Costs of 24-hour patrolling of the resort, including gate house and pool patrol. The Loss Prevention personnel currently comprises the Loss Prevention Manager and six associates split between the three MVC Sea Pines properties.

Maintenance: Combination of goods and services that are purchased or provided by an outside contractor or vendor and in-house labor and benefits. Monarch pays our proportionate share of the wages and benefits of MVCI's HHI Maintenance personnel (currently there is a Director of Engineering, Chief Engineer, Assistant Chief Engineer and 10 full-time hourly associates split between the MVC Sea Pines properties).

Management Fee: Our management contract with MVCI provides for a management fee based on a percentage of Monarch's total operating and reserve expenses billed each year.

Other Income: Includes bank interest, maintenance fee interest charges, maintenance fee late fee charges, and income from owner float week fees.

Owner Services: The services provided by the Management Company for a portion of the call-in communication center in Salt Lake City, UT, used by owners for reservations, MVCI exchange program, Interval International exchange program, and to make general inquiries.

Pest Control: This extermination service for the villas, common areas, and surrounding grounds is provided by an outside contractor (currently Orkin) and is directly billed by the vendor to Monarch.

Pool Maintenance: This service is provided by an outside contractor, whose costs are directly billed to Monarch.

Postage & Printing: Cost associated with printing and mailing of all Association correspondence, e.g. newsletters, notice of meeting, meeting minutes. This also covers the costs of distributing electronic mailings.

Property Tax: Taxes are assessed by Beaufort County. MVCI bills and collects these funds then distributes the funds to the county.

Refuse Collection: This trash pick-up service is provided by an outside contractor (currently Republic Waste) and is directly billed by the vendor to Monarch.

Reserve Fee: The budget used for future replacement of major assets of the Association, including roof replacement, furniture & fixtures, building painting, external building maintenance, pavement resurfacing, and common area rehabilitation.

Telephone: This service is provided by an outside contractor (currently FourteenIP and Hargray Communications) and is directly billed by the vendors to Monarch.

Water & Sewer: This service is provided by an outside contractor (currently South Island Public Service) and is directly billed by the vendor to Monarch.