Simplifying the Accounting for Your Homeowners or Condo Association

It is the time for some condominiums and HOA’s to do many of their budgets. For many people, budgets look like a mess of meaningless numbers. But, like it or not, the Board is responsible for understanding what those numbers mean so you can guide the financial course of the HOA.

Financial statements may be prepared according to three methods: Cash, Accrual, or modified. You must know and understand the method used to understand the financial statements. What method is used has a major impact on the numbers in the financial report. The methods differ as follows:

Cash. Cash accounting method is like a personal check that tracks when cash is received or paid out. Income is recorded when a deposit is made. Expenses are recorded when a check is written. States financial flows method is easy to understand and prepare. However, do not give the full picture because they omit information on unpaid bills or uncollected assessments.

Accrual. Accrual accounting tracks all transactions, even if money is received or paid. Revenues are recorded when the assessments are due instead of when charged. The same is true for expenditures. Expenses are recorded when incurred. For example, if the HOA purchase of new equipment, the purchase is registered, even if the project has not been paid. Because the tracks all income and expenses, accrual method accounting more accurately records the financial activity of a period of time.

Modified cash. Most HOAs use the modified cash method for record keeping. Methods is a mixture of cash and accrual. With this method, most transactions are recorded on the cash method, but some are recorded in an accrual basis. For example, accounts receivable (amounts owners owe the HOA) are recorded as they are billed (accrual method). Expenditure is recorded in the accounts are paid (cash method). Other regularization settings, such as prepaid expenses and tax provisions, not made. The modified cash method is less complex than the accrual method, but during an audit, a CPA often must convert the financial statements to accrual basis, as it more accurately groups income and expenses in the fiscal year applied.

There are two basic types of financial statements: the Balance Sheet and Statement of Income and Expenses. A balance sheet is sometimes called the Assets and Liabilities Declaration. The Board must receive both states – usually monthly, or at least every three months – soon after the end of the reporting period. Reviewing the financial report to the Board of the necessary corrections early.

Income and expenses. The purpose of this report is to keep abreast of state revenue and expenditure for a period of time. “Eight months ended August 31, 2003” for example, the income statement generally shows the current period – either the month or quarter – as well as the total year to date. At the end of each year (accounting) years, this statement “closes” and starts again with the start of new fiscal year.

An important feature of the statement of income and expenditure is the budget for the actual comparison that shows whether a special budget is over or under budget. If there is significant variation, it is easier to detect. The accounting method used, cash or accrual, impacts on the report. If you use the cash method, revenue is recorded when the assessments are paid and deposited. With the accrual method, revenues are recorded when it is “earned.” For this reason, a report of accumulation typically show a much larger income figure that a cash report unless all assessments have been paid on time. Same scenario for the payment of bills. With accrual accounting, the energy bill that applies to December but not received until January, is still reflected in the December report. Not so with a report cash method. These differences can greatly distort the financial position of the HOA, if the Board is not aware of them.

Balance Sheet. The balance sheet takes a “snapshot” of the financial status of the HOA at a certain date. It compiles assets, liabilities and equity.

Assets. These are the elements of the HOA owns. Financial flow statements generally list only effective method as an asset. A financial statement accrual method may show cash, to collect fees, prepayments and deposits (money held by the HOA, which will be returned).

Capital goods like furniture, vehicles, tools, equipment and depreciation may appear in an effective or financial statement accrual method. Capital goods can also be items that the HOA has the title and generate significant cash flow as a golf course or in the garage. However, the ownership of common areas is not included in the balance of the Homeowners Association.

Liabilities. These are the amounts owed by the HOA, whether products, services or taxes. Financial flow statements usually contain no obligations method. Liabilities may arise in a state of flow modified method, but only updated at the end of the year, and that expenditures are accrued monthly or quarterly.

Equity. This is also known as retained earnings, and generally states the current balance of reserve funds and operations. However, some accountants prefer to list reserves as a liability. The total assets must equal the sum of liabilities and equity. Thus, the term “balance” sheet.

Reserve is money budgeted for future repairs and replacements of common areas. Often it is the amount of cash from the Homeowners Association has reserved but can also be the amount the Homeowners Association projects that will have on your replacement by a certain date. The presentation of the amounts allocated to reserves is very variable. The HOA should consult an expert on HOA operations and financial statements must comply with CPA at year end to show the amounts budgeted for reserves, the reserves were spent, and any transfers between operating and  reserve.

When it comes to interpreting financial statements, the Board is responsible for the financial stability of the Homeowners Association. It is a fiduciary duty to understand them.

The “Con” in the Condo Board

It’s not all glam…

Owners of condominiums and co-op units have a lot of reasons to join their homeowners association board, especially if they want to participate in decisions that affect the monthly budget and the future value of their home. The caveat is that almost everyone who has participated in meetings of condominium association can share a horror story about the experience.

Lisa Robinson, an agent for Riverside Property Management, had a particularly unpleasant experience.

“A unit owner failed to pay a special assessment because not be notified in a timely manner about a construction problem,” said Lisa. “After that the unit owner sent dozens of emails  threatening to sue because I had sent him a delinquency letter explaining the amount owed the condo association. Fortunately, he sold his unit before it became a lawsuit. Several other delinquent owners have treated me like I was the bad guy when I confronted them about late assessments.  I was hired by the association, so I can imagine how it would be if I lived in the community. ”

Members of the condominium board often experience harassment from other owners who do not understand who are the volunteers, residents, employees paid by the association, etc.  And other owners just have not gotten over that experience of the college dorm and take issues into their own hands (Resident Advisers).

“I am happy to be a link between a resident in need and the management company, or to help a neighbor in an emergency, but people need to understand that members of the condominium board are volunteers from the community, not mothers in the home. ”

Phone calls about disputes between neighbors are the worst. Do not get caught up in personal conflicts.

Another common complaint among members of the condominium board  is that very few homeowners are willing to serve on the board or even attend an annual meeting. In a condominium building of 100 units , approximately only ten to fifteen owners are usually present at the annual , with only a handful who attend regular meetings.

In many neighborhoods, condominiums are filled with a mixture of elderly residents who have lived in the building for decades and owners that are young and single. This generation gap can create a conflict when it comes to changing the management model of a condominium or the introduction of a new procedure such as e-mail of the minutes from the last meeting.

Like the board meetings of the community, a problem with the building or the residents can make the monthly meeting short-hour debate, giving potential members a bad taste for what their future may hold if join the board.

Despite the problems outlined in this piece, becoming a board member of your condominium building has its benefits as well. You may simply want to do some research on the personality of the people living in your building before diving in.

As always, there are people that stand up and serve…and there are ALWAYS the ones that only have “lip-service”.  As a Community Manager, I have learned to take it all in stride and turn that conversation around.  The common goal is to increase the value of the property-BOTTOM LINE!

Written by: Lori Miles, CAM

Riverside Property Managment, Inc.

(678) 866-1436

www.riversidepropertymgt.com

Simplifying Accounting for Your Homeowners or Condo Association

 

Fall is the time HOAs do many of their budgets. For many people, budgets look like a mess of meaningless numbers. But, like it or not, the Board is responsible for understanding what those numbers mean so you can guide the financial course of the HOA.

Financial statements may be prepared according to three methods: Cash, Accrual, or modified. You must know and understand the method used to understand the financial statements. What method is used has a major impact on the numbers in the financial report. The methods differ as follows:

Cash. Cash accounting method is like a personal check that tracks when cash is received or paid out. Income is recorded when a deposit is made. Expenses are recorded when a check is written. States financial flows method is easy to understand and prepare. However, do not give the full picture because they omit information on unpaid bills or uncollected assessments.

Accrual. Accrual accounting tracks all transactions, even if money is received or paid. Revenues are recorded when the assessments are due instead of when charged. The same is true for expenditures. Expenses are recorded when incurred. For example, if the HOA purchase of new equipment, the purchase is registered, even if the project has not been paid. Because the tracks all income and expenses, accrual method accounting more accurately records the financial activity of a period of time.

Modified cash. Most HOAs use the modified cash method for record keeping. Methods is a mixture of cash and accrual. With this method, most transactions are recorded on the cash method, but some are recorded in an accrual basis. For example, accounts receivable (amounts owners owe the HOA) are recorded as they are billed (accrual method). Expenditure is recorded in the accounts are paid (cash method). Other regularization settings, such as prepaid expenses and tax provisions, not made. The modified cash method is less complex than the accrual method, but during an audit, a CPA often must convert the financial statements to accrual basis, as it more accurately groups income and expenses in the fiscal year applied.

There are two basic types of financial statements: the Balance Sheet and Statement of Income and Expenses. A balance sheet is sometimes called the Assets and Liabilities Declaration. The Board must receive both states – usually monthly, or at least every three months – soon after the end of the reporting period. Reviewing the financial report to the Board of the necessary corrections early.

Income and expenses. The purpose of this report is to keep abreast of state revenue and expenditure for a period of time. “Eight months ended August 31, 2003” for example, the income statement generally shows the current period – either the month or quarter – as well as the total year to date. At the end of each year (accounting) years, this statement “closes” and starts again with the start of new fiscal year.

An important feature of the statement of income and expenditure is the budget for the actual comparison that shows whether a special budget is over or under budget. If there is significant variation, it is easier to detect. The accounting method used, cash or accrual, impacts on the report. If you use the cash method, revenue is recorded when the assessments are paid and deposited. With the accrual method, revenues are recorded when it is “earned.” For this reason, a report of accumulation typically show a much larger income figure that a cash report unless all assessments have been paid on time. Same scenario for the payment of bills. With accrual accounting, the energy bill that applies to December but not received until January, is still reflected in the December report. Not so with a report cash method. These differences can greatly distort the financial position of the HOA, if the Board is not aware of them.

Balance Sheet. The balance sheet takes a “snapshot” of the financial status of the HOA at a certain date. It compiles assets, liabilities and equity.

Assets. These are the elements of the HOA owns. Financial flow statements generally list only effective method as an asset. A financial statement accrual method may show cash, to collect fees, prepayments and deposits (money held by the HOA, which will be returned).

Capital goods like furniture, vehicles, tools, equipment and depreciation may appear in an effective or financial statement accrual method. Capital goods can also be items that the HOA has the title and generate significant cash flow as a golf course or in the garage. However, the ownership of common areas is not included in the balance of the Homeowners Association.

Liabilities. These are the amounts owed by the HOA, whether products, services or taxes. Financial flow statements usually contain no obligations method. Liabilities may arise in a state of flow modified method, but only updated at the end of the year, and that expenditures are accrued monthly or quarterly.

Equity. This is also known as retained earnings, and generally states the current balance of reserve funds and operations. However, some accountants prefer to list reserves as a liability. The total assets must equal the sum of liabilities and equity. Thus, the term “balance” sheet.

Reserve is money budgeted for future repairs and replacements of common areas. Often it is the amount of cash from the Homeowners Association has reserved but can also be the amount the Homeowners Association projects that will have on your replacement by a certain date. The presentation of the amounts allocated to reserves is very variable. The HOA should consult an expert on HOA operations and financial statements must comply with CPA at year end to show the amounts budgeted for reserves, the reserves were spent, and any transfers between operating and  reserve.

When it comes to interpreting financial statements, the Board is responsible for the financial stability of the Homeowners Association. It is a fiduciary duty to understand them.

 

The Best Association Board Practives

How the Board of Directors (BOD) members  interact says a lot about the state of a condominium or homeowners association.

Leadership is the ability to do things by encouraging and channeling the contributions of others, take a position on and address the issues, and acting as a catalyst for change and continuous improvement.

Yesterday’s leaders in for-profit businesses could demand performance.  Today we face a more educated workforce that is democratically oriented. In a volunteer organization, as a condominium or homeowners association BOD, problems and opportunities can be even more complex and challenging. As a result, today’s BoD must promote and implement the contributions of all members, both individually and in groups.

Here are some ways in which members of  the BoD can initiate effective and ineffective actions:

Ineffective teams: People shield those in power from unpleasant facts, fearful of penalties and criticism for shining light on the rough realities

Effective teams: People bring forth grim facts—”Come here and look — this is ugly”—to be discussed; leaders never criticize those who bring forth harsh realities

Ineffective teams: People assert strong opinions without providing data, evidence, or a solid argument

Effective teams: People bring data, evidence, logic, and solid arguments to the discussion

Ineffective teams: The BoD president has a very low questions-to-statements ratio, avoiding critical input and/or allowing sloppy reasoning and unsupported opinions

Effective teams: The BoD president employs a Socratic style, using a high questions-to-statements ratio, challenging people, and pushing for penetrating insights

Ineffective teams: Team members acquiesce to a decision but don’t unify to make the decision successful—or worse, undermine it after the fact

Effective teams: Board members unify behind a decision once made, and then work to make the decision succeed, even if they vigorously disagreed with it

Ineffective teams: Team members seek as much credit as possible for themselves, yet do not enjoy the confidence and admiration of their peers

Effective teams: Each Board member credits other people for success, yet enjoys the confidence and admiration of his or her peers

Ineffective teams: Team members argue to look smart or to further their own interests rather than argue to find the best answers to support the overall cause

Effective teams: Team members argue and debate, not to improve their personal position but to find the best answers to support the overall cause

Ineffective teams: The team conducts “autopsies with blame,” seeking culprits rather than wisdom

Effective teams: The team conducts “autopsies without blame,” mining wisdom from painful experiences

Ineffective teams: Team members often fail to deliver exceptional results and blame other people or outside factors for setbacks, mistakes, and failures

Effective teams: Each team member delivers exceptional results, yet in the event of a setback each accepts full responsibility and learns from mistakes

Do Your Homework in Condos and Planned Developments

Several bloggers and industry experts have posted blogs or articles on the completion of due diligence before buying a condo. A common theme among the suggestions include:

•     Conduct a visual inspection
•     Review minutes of meetings
•     Review the operating budget
•     Review the current reserve study
•     Review the association rules and regulations
•     Policy Review of the insurance association

I would say that is not enough to “review” the operating budget. I recommend examining each item in the current budget, and its comparison with the budgets of the previous two years to identify trends and accuracy. With regard to the study of the reserve, if you have no experience in construction or maintenance of the building, passing the report to a friend or relative who may have knowledge and can provide valuable assessment. Also, be sure to check out the escrow account, in addition to the actual subject of study.

As for the rules and regulations, we also recommend reviewing the statement of the association and the bylaws. You do not have to be a lawyer to identify gaps and potential problems. In reviewing insurance, be sure to look at the limits of the policy, deductibles, Directors and Officers coverage and endorsements for specific multifamily residences, such as sewer backup, code compliance and coverage of the demolition to name a few. There is no substitute for review by a professional insurance agent or consultant.

I would also add the following to the list of due diligence:

When performing visual inspection, stopping to talk to homeowners and ask them a few strengths and weaknesses of the community. You may be surprised by what you discover, both positive and negative.
Call the manager of the association and ask them the same question. They are not paid by such calls, but can provide a brief summary of the community.
In these times of economic crisis, be sure to examine not only the operating budget, but bad debts and collections / foreclosure rates.

Finally, I believe the above steps are not limited to condominiums, but the evolution of the Planning Unit (“PUD”) or Communities of Common Interest (“CIC”), too.

Buying a condo can be more complex than buying a house. For a successful purchase, be sure to perform your due diligence.

Penny Wise and Pound Foolish

During this tough economy, associations are looking for ways to trim expenses; but opting out of insurance coverage is not a prudent choice.  In my opinion, even the smallest homeowners’ association needs insurance coverage.  If an HOA owns any property, then there is a risk that a resident, visitor or guest could be injured or hurt on that property.  Insurance claims are rare, but it is too risky to consider going without coverage.

Eliminating coverage may save the association money in the short term, but the cost savings is not worth the risk of exposing the community to tremendous liability.  In addition to maintaining coverage, HOAs should also take preventive actions to limit their risk exposure.  These precautions include the obvious steps like maintaining equipment and placing fencing around swimming pools and retention ponds; however, consistent enforcement of your CC&R’s may be another means of prevention.

The Green Pines Association’s CC&R’s clearly do not allow street parking, yet the association has been extremely lax in their enforcement of the parking rules.  In fact, cars line both sides of the narrow streets most days of the week.  What happens when a child darts out between cars to chase a ball and is accidentally struck?  The driver claims their visibility was hindered by all the cars parked in the road and they didn’t see the child until it was impossible to stop.  Was the association negligent?

Accidents happen.  It is wise to plan for the best and prepare for the worst.  An association in St. Petersburg, Florida learned the hard way, when they decided against fencing their ”dry pond”.  The area became a “playground” for the neighborhood children and ultimately turned into the site of a terrible tragedy claiming the life of a young girl.  At the heart of the lawsuit  are accusations of  negligence brought against the community for not fencing the area.

Saving a few hundred dollars a year won’t seem so significant if a serious accident occurs.  A homeowner’s share of an insurance premium is minimal when compared to the sizeable costs of a legal defense, court fees and a settlement.

My grandmother often reminded me not to be “penny wise and pound foolish” … she was right.

About HOA Management Solutions

Riverside Property Management was founded on the premises that our clients deserve a “Concierge” quality of service and attention. We do not believe in “cookie-cutter” services, and will work with you to define and implement processes that meet your individual needs. Here are just a few other reasons why our clients stay with us year after year.

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Source: http://www.communityassociationmanagement.com

The “Con” in the Condo Board

It’s not all glam…

Owners of condominiums and co-op units have a lot of reasons to join their homeowners association board, especially if they want to participate in decisions that affect the monthly budget and the future value of their home. The caveat is that almost everyone who has participated in meetings of condominium association can share a horror story about the experience.

Lisa Robinson, an agent for Riverside Property Management, had a particularly unpleasant experience.

“A unit owner failed to pay a special assessment because not be notified in a timely manner about a construction problem,” said Lisa. “After that the unit owner sent dozens of emails  threatening to sue because I had sent him a delinquency letter explaining the amount owed the condo association. Fortunately, he sold his unit before it became a lawsuit. Several other delinquent owners have treated me like I was the bad guy when I confronted them about late assessments.  I was hired by the association, so I can imagine how it would be if I lived in the community. ”

Members of the condominium board often experience harassment from other owners who do not understand who are the volunteers, residents, employees paid by the association, etc.  And other owners just have not gotten over that experience of the college dorm and take issues into their own hands (Resident Advisers).

“I am happy to be a link between a resident in need and the management company, or to help a neighbor in an emergency, but people need to understand that members of the condominium board are volunteers from the community, not mothers in the home. ”

Phone calls about disputes between neighbors are the worst. Do not get caught up in personal conflicts.

Another common complaint among members of the condominium board  is that very few homeowners are willing to serve on the board or even attend an annual meeting. In a condominium building of 100 units , approximately only ten to fifteen owners are usually present at the annual , with only a handful who attend regular meetings.

In many neighborhoods, condominiums are filled with a mixture of elderly residents who have lived in the building for decades and owners that are young and single. This generation gap can create a conflict when it comes to changing the management model of a condominium or the introduction of a new procedure such as e-mail of the minutes from the last meeting.

Like the board meetings of the community, a problem with the building or the residents can make the monthly meeting short-hour debate, giving potential members a bad taste for what their future may hold if join the board.

Despite the problems outlined in this piece, becoming a board member of your condominium building has its benefits as well. You may simply want to do some research on the personality of the people living in your building before diving in.

As always, there are people that stand up and serve…and there are ALWAYS the ones that only have “lip-service”.  As a Community Manager, I have learned to take it all in stride and turn that conversation around.  The common goal is to increase the value of the property-BOTTOM LINE!

Written by: Lori Miles, CAM

Riverside Property Managment, Inc.

(678) 866-1436

www.riversidepropertymgt.com

Due Diligence for Buyers of Condos and Planned Developments

Several bloggers and industry experts have posted blogs or articles on the completion of due diligence before buying a condo. A common theme among the suggestions include:

•     Conduct a visual inspection
•     Review minutes of meetings
•     Review the operating budget
•     Review the current reserve study
•     Review the association rules and regulations
•     Policy Review of the insurance association

I would say that is not enough to “review” the operating budget. I recommend examining each item in the current budget, and its comparison with the budgets of the previous two years to identify trends and accuracy. With regard to the study of the reserve, if you have no experience in construction or maintenance of the building, passing the report to a friend or relative who may have knowledge and can provide valuable assessment. Also, be sure to check out the escrow account, in addition to the actual subject of study.

As for the rules and regulations, we also recommend reviewing the statement of the association and the bylaws. You do not have to be a lawyer to identify gaps and potential problems. In reviewing insurance, be sure to look at the limits of the policy, deductibles, Directors and Officers coverage and endorsements for specific multifamily residences, such as sewer backup, code compliance and coverage of the demolition to name a few. There is no substitute for review by a professional insurance agent or consultant.

I would also add the following to the list of due diligence:

When performing visual inspection, stopping to talk to homeowners and ask them a few strengths and weaknesses of the community. You may be surprised by what you discover, both positive and negative.
Call the manager of the association and ask them the same question. They are not paid by such calls, but can provide a brief summary of the community.
In these times of economic crisis, be sure to examine not only the operating budget, but bad debts and collections / foreclosure rates.

Finally, I believe the above steps are not limited to condominiums, but the evolution of the Planning Unit (“PUD”) or Communities of Common Interest (“CIC”), too.

Buying a condo can be more complex than buying a house. For a successful purchase, be sure to perform your due diligence.

How to Run an HOA or Condo Board Meeting

The Secret to Good Board Meetings.

Board meetings should be productive, efficient meetings where the board conducts business.  Are your board meetings productive and efficient? Does the board meet to conduct business or socialize? Are you getting the most out of your meetings?

Consider doing a few of these things:

Prepare a Realistic Agenda. Five page agendas with 50 objectives set out may be impressive but they are unrealistic and counter-productive.  You need to set a list of priorities for each meeting and focus on those issues.  If you have 50 issues you want to address, spread them out over the course of the year.  You will be more efficient and see better results if you are able to manage your agenda.

Set an end time to your meetings. Meetings should last no more than an hour.  Start the meeting when it is scheduled to begin and get straight to business. If you collectively have the focus to get done in an hour you’ll be amazed with how much you can accomplish. If you have no time limit, the meeting will typically drag on and a lot of time will be wasted. When time is wasted at a meeting then people are less likely to volunteer because they feel their time is wasted.  One hour meetings have a major impact on volunteers. Associations that hold focused, one hour meetings have more people volunteer. It’s also important to note that those volunteers stay active the in the community for much longer. Length of your board meetings may seem like a trivial matter, but it really does have a large impact on how the volunteers of the association view the organization and, in turn, how they view their role.

Be familiar with the Covenants and Bylaws. Key elements with which board members should familiarize themselves are the association’s governing documents that define the board’s authority. If you have a management company, they should provide guidance on your role as a board member, your fiduciary responsibility, specific board responsibilities from decision-making to administrative tasks, and how to conduct and participate in board meetings. Other vital information will include how to avoid personal liability, professional conduct at meetings, parliamentary procedures, the operating and reserve budgets, federal, state and local laws that impact your community, and appropriate insurance coverage.

Come prepared. Be familiar with the issues that will be addressed at the meeting.  If you have questions, ask them prior to the meeting so that your manager (if professionally managed) can have ample time to find the answers. This will help the meeting be more effective and brief. There is nothing more frustrating to those attending the meeting than for fellow board members to come unprepared and want to discuss issues at great length.

Make the meeting a time for action. Next, hold action oriented HOA board meetings.  Don’t just discuss issues, make decisions. Every item up for discussion should end in a vote to move forward in some way or table the issue with a clear understanding of why the item is being tabled and when it will be revisited. When taking action on an item make sure it is clear who will be responsible for getting that task completed. Ambiguity cripples a board.

Don’t be confrontational. Board members should recognize they are part of a team and not take a confrontational position with fellow board members or their management company. No one should have to work or conduct business in a hostile environment. Realize that at times you will not always agree, but take the position that even disagreement can bring compromise and consensus. Be concise with your opinion and thoughts and then be sure to listen to others. Always be respectful of your fellow board members and staff, as well as the homeowners. The tone of the board can set the tone of the community. So, if you want to have a healthy, vibrant and successful community, you should reflect that image as a board member.

Treat your Community Manager with Respect. Your community manager is your agent, not your employee. They act on behalf of the board and facilitate the decisions of the board.  Remember that they are professionals and should be treated as such. It can be detrimental to a board and its community to consistently be at odds with their management company. They are there to offer their expertise based on their experience, training and education to ensure that the board doesn’t compromise their fiduciary responsibility. A board should trust and rely on their management company’s vast experience and unlimited resources.  If your board has lost trust in the management company, have a frank discussion with the company’s CEO regarding whatever problems exist. Perhaps a different manager can restore your trust, eliminating the need to start all over with a new company.

Be a Team Player. If you recognize that, as a board member, you are part of a team of volunteers and management experts, you will be rewarded when you use those resources to make decisions that are based on sound business judgment. This, in turn, will inspire others to serve and build a team of future leaders who will want to emulate your leadership. By doing so, you will find serving on the board is not a burdensome chore, but a rewarding experience that you will value for years to come.

Be determined to have one of the best HOA’s in Atlanta by having an HOA management company that focuses on helping you have effective meetings.

Call 678-866-1436 Today for a free quote in the Atlanta, GA. area.
# # #

With over 40 years of combined industry experience, the Executive Staff of Riverside Property Management knows that the most successful communities are those where there is a sense of unity and pride among the membership; this unity and pride begins with a firm foundation comprised of:

Well defined policies and objectives
A strategic plan and future vision
A proactive Management team
Mutual team trust and respect
Timely and open communication
Excellent customer service
Industry knowledge
“Out of the Box” Thinking
Services designed to meet your needs

Give us fifteen minutes of your time and we can show you how to put your community on a fast track to success; if you don’t believe us, feel free to call upon any one of our satisfied clients.

Condo Association board keeps charitable donations a secret from owners?

Condo Association Management Blog

Our Florida HOA is a non-profit Association which makes profits and has given some of the profits to charities, gulf club, etc. without approval of the Board of Directors (BoD) or Association Members. The Officers of the Association keeps these profit secret and will not tell BoD or the Association Members the amount or how much is donated. Most Officers are on members of the BoD. I am certain the profits are not reported for tax reasons. Here is what one Officer sent by email. Please note that they hide behind the word funds and I do not question that funds are donated just profits. “Also, the association budget and profit and loss statements do not include an expense account for donations. The Financial Statements Balance sheet includes an accounting for the Activities Fund as an asset and liability efffectively deleting these monies from the association funds since they are not actual funds of this association.” Please comment on what one can do as these Officers ignore BoD and Association Members and they cannot be kick of the BoD because there are many that want them in.

Get in on the conversation at: http://www.condoassociation.com/blog/tabid/19257/bid/76950/association-board-keeps-charitable-donations-a-secret-from-owners?source=BlogTwitter_[Association%20board%20ke]

With over 40 years of combined industry experience, the Executive Staff of Riverside Property Management  knows that the most successful communities are those where there is a sense of unity and pride among the membership; this unity and pride begins with a firm foundation comprised of:

Well defined policies and objectives
A strategic plan and future vision
A proactive Management team
Mutual team trust and respect
Timely and open communication
Excellent customer service
Industry knowledge
“Out of the Box” Thinking
Services designed to meet your needs

Give us fifteen minutes of your time and we can show you how to put your community on a fast track to success; if you don’t believe us, feel free to call upon any one of our satisfied clients.

http://www.riversidepropertymgt.com/