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Audit Review FY 18-19

While financially sound, the co-op cannot distribute member rebates due to unchanging rental rates last year. Meanwhile, the University requires an increasing amount of co-op money in the upcoming fiscal year, corresponding with the need for a rental increase.

CTC Member Rebate Check Example
Without a rental increase last year, the co-op is unable to provide member rebates, which are usually distributed at this time (Dec-Jan) after the audit review of the fiscal year.

During the Board of Directors meeting held November 20, 2019, the board approved the independent audit for the fiscal year of July 1, 2018 - June 30, 2019. The audit concluded that the financial position of Commonwealth Terrace Cooperative is healthy and sound.

Despite the continuing rental fee increases here in Twin Cities market (on an average of 3%-7%), there was no rental increase for the co-op during the 2018-2019 fiscal year. Even though the disbursement of patronage refunds will not be happening this year, the co-op maintains a healthy bottom line with a nominal surplus of income over the anticipated potential fiscal year deficit. Annually, the increase of certain expenses that happen to be uncontrollable in nature such as snow removal, U of M’s Financial Requirement rates, and other contractual service agreements (i.e. internet and waste/recycling) gave rise in accruing more expenses. 

While the looming, significant University reinvestment plans guided the FY 20-21 increase, the co-op’s University Financial Requirement has increased every year (upwards of 4+ percent) except once since 1970.

During the presentation of the University’s Capital Budget fiscal year 2020-2021, our co-op's U of M liaison pointed out there has been an overall incremental increase (3.9%) for all the financial requirements towards the Capital Renewal Reserve, University Requirements, and Equipment Reserve Requirement. Historically, the change of magnitude of these Financial Requirements is deemed to continually increase based on projected improvement projects. The FY20-21 increase requirement, remained aligned with the previous fiscal year, as the pending questionability of the future St. Paul Campus master planning direction is determined. The University Housing and Residential Life department forecasts substantial financial requirement increases for anticipated future redevelopment of the Cooperative property.

With the overarching looming status of the University’s future plans for the CTC property, the our co-op is working tirelessly in exploring and exhausting all possible endeavors to minimize costs and continue to provide a maximum-quality living standards; by means of approval and implementation of the closed-circuit surveillance camera system (in progress), along with other operational and facility improvements to enhance the safety and livability for the community.

Unite with our board

We highly encourage and welcome your participation at our next Board of Directors Meeting on Dec. 18, 2019 - 6:30 pm in the Community Center Meeting Room!