WDW Financials

[daviator]

The most recent financial summary for Westin Desert Willow was released and can be seen here: https://image.email1.marriott-vacations.com/lib/fea115737565067c73/m/1/e963f31b-30a4-4897-9ac6-1a8fd5cb9ba7.pdf

The only thing that jumped out at me, if I’m understanding correctly, is that they seem to have lost $11 million dollars on investment activities in 2025. My interpretation is that the HOA made bad investments with its cash and lost $11 million of our money. That’s troubling if indeed I’m understanding it correctly. I would not expect HOA funds to be invested speculatively.

Can anyone who knows more than I do comment on whether my interpretation is correct?

 

[Ski-Dad]

It is a somewhat confusing statement in that it has two year ends on one statement. It also has very scant details to the extent that the balance sheet, income statement and cash flows are on one page.

I can follow a balance sheet and income statement. Not great at understanding a cash flow statement, but I see what you are talking about. I don't think this is a loss; rather, it represents monies moving in and out of the fund balance. If you look at the balance sheet and income statement, an investment loss of that size would stick out like a sore thumb. It doesn't register.

Perhaps an accountant can chirp in.

 

[dioxide45]

Perhaps this is a good question to email the treasurer about. His email address is on page 2. I am interested in the answer. I don't know how one could lose $11 million dollars in the kind of market we had in 2025. HOA boards really should be using conservative investments anyway given they need the money in the next 10 years. I know Grande Vista used a company that provides them laddered FDIC insured vehicles (likely CDs) through many different US financial institutions. Shoot CDs have somewhat decent returns these days. At least compared to where they've been historically over the last two decades.

Perhaps they are just showing movement of funds from Operating into investment vehicles?

 

[VacationForever]

I read the balance sheet and it does not appear to be a loss in investments. They did invest the money, hence it is in the cash flow. The assets/liabilities look fine.

 

[daviator]

I used my friendly AI assistant who confirmed what we all assumed:


Yes, that's the correct interpretation. The ~$11.1 million shown as "Net cash used by investing activities" on the Statement of Cash Flows represents cash being deployed into investments — not a loss. A few things confirm this reading:

1. Total assets actually increased — from ~$25.5M to ~$43.9M year-over-year, which would be inconsistent with an $11M loss.
2. Fund balance grew — from $12,562 to $1,927,247, reflecting healthy operating surplus, not erosion.
3. The label itself — "investing activities" in cash flow accounting refers to the movement of cash into or out of investment vehicles (securities, money market funds, CDs, etc.), not to gains or losses on those investments. A use of cash here simply means dollars shifted from liquid cash into investment accounts.
4. The math tracks — Operating activities generated ~$20.3M in cash, investing activities absorbed ~$11.1M of it, resulting in a net ~$9.2M increase in cash on hand — which is exactly what you see in the ending cash balance ($21.9M vs. $12.7M at the start of the year).

So the association is in a stronger position at year-end, with both more cash and more invested assets than the prior year. The cash flow statement is just showing where the money moved, not that any of it disappeared.

 

[duke]

I used my friendly AI assistant who confirmed what we all assumed:


Yes, that's the correct interpretation. The ~$11.1 million shown as "Net cash used by investing activities" on the Statement of Cash Flows represents cash being deployed into investments — not a loss. A few things confirm this reading:

1. Total assets actually increased — from ~$25.5M to ~$43.9M year-over-year, which would be inconsistent with an $11M loss.
2. Fund balance grew — from $12,562 to $1,927,247, reflecting healthy operating surplus, not erosion.
3. The label itself — "investing activities" in cash flow accounting refers to the movement of cash into or out of investment vehicles (securities, money market funds, CDs, etc.), not to gains or losses on those investments. A use of cash here simply means dollars shifted from liquid cash into investment accounts.
4. The math tracks — Operating activities generated ~$20.3M in cash, investing activities absorbed ~$11.1M of it, resulting in a net ~$9.2M increase in cash on hand — which is exactly what you see in the ending cash balance ($21.9M vs. $12.7M at the start of the year).

So the association is in a stronger position at year-end, with both more cash and more invested assets than the prior year. The cash flow statement is just showing where the money moved, not that any of it disappeared.

Daviator is correct. The funds flow statement shows movement of fund. Funds Balance Sheet shows holdings. If there was a loss or gain it would be shown on the Income (P&L) Stmt.

 

[rickandcindy23]

We own an EOY Desert Willow. I hope the fees don't go up much for 2027. I have it listed on RW and Koala for rent and didn't leave much of a "profit" margin. I will be glad to just break even. I hope Koala rents it, then I will do better than break even. Redweek is charging 5% + $45 listing fee. They are creepy--creeping into my pocketbook.