Clear, Accurate, and Easily Understood Financials

 

The Management of the Association’s financial records is a critical and important function to be carried out by the Managing Agent.  Management of the Association’s accounts carries with it responsibility and potential liability.  It is an imperative that an Association and hence its Managing Agent be able to properly account for all Association income and expenses.  Clear, accurate, and easily understood financial information is to be provided by the Managing Agent on a periodic and recurring basis. 

 

Associations are required to have various accounts into which Association funds are to be deposited.  The purpose of those funds is to be respected by the Managing Agent and the Board.  Property Managing Agents are to assist the Board in developing a responsible Association operating budget and in designing an annual reserve budget which is compliant with the Association’s Engineering Capital Replacement Reserve Study.  Managing Agents should work closely with the Association’s Engineering Consultant to understand and comply with the Engineer’s recommendations when formulating an annual Reserve Budget. 

 

The assessment and collection of Association fees is typically delegated to the Managing Agent.  The collection of these fees is the life-blood of the Association.  It is the responsibility of the Manager to not only collect but to properly account for fees posted and those which have not been paid.  Accurate billing statements to be submitted to members of the Community are an imperative.  When collection of an account proves unsuccessful the account should be turned over to the Association’s Attorney for handling.  The Manager’s ability to provide accurate financial information to the Association’s Attorney enables the Attorney to successfully collect monies which are due and owing to the Association.