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What every resort needs

Happy dues paying owners

Effective governance &

planning

and.. new,younger visitors

Worry, fear and frustration are the results of inaction.

Let’s now continue on our path of positive,

forward-thinking planned action.

THE PILLARS REINFORCING BOARD MEMBERS

FIDUCIARY DUTIES

Brian Heller – Tricom Management

The Pillars:

Are a guide for responsible board member resort management.

As a fiduciary – a board member is someone who has undertaken to act for and on behalf of another with the duty to make decisions regarding financial matters on behalf of the others.

The Eight Pillars of Fiduciary Duties

1. Legal: Board members should act – “Based on the advice of legal counsel…”

Qualified timeshare legal counsel

The Eight Pillars of Fiduciary Duties

2. Audit: Board members should –

Engage a qualified CPA firm to conduct an annual audit.

A firm with experience in timeshare financials

The Eight Pillars of Fiduciary Duties

3. Financial Records: Should include -• Operating Account (detailed)

• Reserve Account (based on Reserve Study)

• General Fund (if supportable)

• Accrual-basis Accounting (required for Audit)

The Eight Pillars of Fiduciary Duties

4. Insurance – Every Resort needs -

D&O policy * General Liability Policy

Reviewed by an experienced timeshare insurance agent

5. Reserve Study• Update on an annual basis• Cash-funded

The Eight Pillars of Fiduciary Duties

5. Disclosure: Boards should provide -Transparency & Disclosure;

to its owners consistent with the governing documents and subject to “advice of legal counsel”

5. Reserve Study•Update on an annual basis

•Cash-funded

The Eight Pillars of Fiduciary Duties

6. Reserve Study: Boards should - Engage a qualified third party to

conduct a through Reserve Study Update on an annual basis Fund it

The Eight Pillars of Fiduciary Duties

7. Communications: Board members

should–Establish a system of;

• Consistent, Ongoing, Quarterly owner communication

• Communicate Special Situations as needed• Determine the medium(s) that is connective

with the ownership demographic base

The Eight Pillars of Fiduciary Duties

8. Non-assessment Revenues: Board Members should -

• Explore, Plan and Implement sources of non-Assessment

• Rentals, Re sales, Space Rentals, Special Events

• Consult with a 3rd Party

The Eight Pillars of Fiduciary Duties

Learn, Expand & Improve, You will Enjoy! being a board

member.