With the recent COVID19 pandemic, we now face many uncertainties in planning for our resort’s finances. Despite all the safety measures undertaken by the Government of Aruba as well as the various private sector entities, we cannot at this point project occupancy/business levels for 2021 and beyond because of many unpredictable factors that impact our operation. As we continue to do our best in forecasting month by month the remainder of 2020, we will require more time to evaluate how 2021 will unfold financially.
Under normal circumstances, the current annual financial statement of the Coop, the external audit of the previous year’s financial statement and the next year’s budget would be prepared and approved by the Board in July and would be included with the convocation for the Annual General Members Meeting (AGM) to be held in the month of September. At the AGM, the annual operational and financial accounts would be presented by the management and the Board and together with the budget for the next fiscal year (including the maintenance fees for the following year) would be put to a vote by the members for approval.
This year, the financial statements and the external audit will be prepared and finished on time and will be made available to the membership on the website by early August. However, because of the uncertainties in the projections and forecasts, it is not possible at this time nor prudent for us to make a budget for the resort operations for the year 2021. We believe that we will not be able to make useful projections and forecasts before October of this year.
Instead of holding this year’s AGM in September without a budget for approval and holding another member’s meeting later in the year just for approval of the budget, the Board of Directors determined that it is better to postpone the AGM until November, when we anticipate being able to present a budget for fiscal year 2021 for approval. This means that the other business at this year’s AGM, such as the approval of the external auditor’s financial statements for 2019 and the election of the new board members, will also have to wait until the later AGM, but we believe that with the availability of the audited financial statement to the members on the website from the early part of August , and with the term of the new board members starting on January 1, 2021, it is more prudent and cost effective to postpone the AGM as opposed to holding two general members meeting in the space of a few months.
We will inform you as soon as we have determined the date for the postponed AGM and we’ll be sending the convocation out to all the members in due course.
We hope you understand this decision and we are available if you have any questions or comments.
The Board of Directors