Community Associations Archives

Four Reserve Rules

May 2, 2022 | Article, Association Boards, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance, Reserve Funds, Reserve Studies

THERE ARE FOUR RULES OF RESERVES that associations should know. Our company has pioneered foundational concepts & principles and provided extensive educational materials to the industry for over 35 years, but all can be distilled down to the rules below as the heart of planning for reserve projects at your association. Fundamental education is key to all of our success, as board members and professionals come and go over time.

Efficient Audits

May 2, 2022 | Accounting, Auditing & Bookkeeping, Article, Association Boards, Blog, Chapter Happenings Sponsor, Community Associations, Financial: Money, Banking, Insurance

ASSOCIATIONS WITH DECEMBER 31ST YEAR ENDS make up a large share of annual audits. There is often intense pressure on managers, accounting departments and audit firms to complete accurate and complete audits in a timely fashion. Completing an efficient audit requires strong communication and sharing of information.

Application of the 10/25/2021 King County Public Health Order to Common Interest Communities

Jan 3, 2022 | Article, Attorneys - General Counsel, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, COVID-19, Law Updates, Legal, WA State Law

The King County Public Health Officer issued an order on September 16, 2021, effective October 25, 2021. The Local Health Order requires people ages 12 and older to show proof of COVID-19 vaccination or a recent negative test result to enter certain establishments and events, including but not limited to restaurants and bars, gyms, indoor recreational events or establishments, and outdoor events with 500 or more people. A question has arisen as to whether the order applies to gyms, restaurants, and meeting rooms within common interest communities. The text of the order is not clear on the scope of its application. It does not make any exception for members-only establishments. It does refer ambiguously in one place to “public” facilities.

Fund Accounting For Associations

Jan 3, 2022 | Accounting, Auditing & Bookkeeping, Article, Blog, Chapter Happenings Sponsor, Community Associations, Financial: Money, Banking, Insurance

Whether preparing an annual budget or a reserve study, it is important to know how much money is available to spend and where the money is saved and recorded. Maintaining separate bank accounts for operating expenses or for reserves activities is both required by some statutes, and highly recommended. Having a bank account for each type of fund is a great place to start separating each fund’s financial activity.

Reading Financial Statements Series© – Balance Sheet Part 6: FUND ACCOUNTING FOR ASSESSMENTS & EXPENSES

Sep 29, 2021 | Accounting, Auditing & Bookkeeping, Article, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance

Community associations use a system of accounting called fund accounting. As with non-profits and charities, the entity is collecting money for specific purposes, and should account for specific financial activity in pre-determined funds.

Investing & Protecting Your HOA Reserve Funds: The Right Way To Do It

Sep 1, 2021 | Article, Banking & Lending, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance, HOAs, Reserve Studies

How you handle your HOA reserve funds really makes a difference in the successful running of your association. Managing HOA reserve funds is important for the longevity and future investments of your association.

As a member of the board, it is your responsibility to stay on top of your reserve fund making sure it is regulated well and in the community’s best interests.

Reading Financial Statements Series© – Balance Sheet Part 5: PREPAID EXPENSES

Sep 1, 2021 | Accounting, Auditing & Bookkeeping, Article, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance

Another part of a financial statement deals with prepaid expenses. A prepaid expense is an expense an association has paid in advance. It is an asset of the association. The most common prepaid expense is an association’s annual insurance premium.

Reading Financial Statements Series© – Balance Sheet Part 4: ACCOUNTS PAYABLE & ACCRUED EXPENSES

Aug 12, 2021 | Accounting, Auditing & Bookkeeping, Article, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance

Now we come to the part of a financial statement that deals with accounts payable and accrued expenses. A payable is something the association owes to another entity or person. It is a liability of the association.

Standards, Best Practices, and Public Policy Following Surfside Condo Collapse

Jul 14, 2021 | Article, Blog, Building Defect Investigation, Repair & Design, Common Interest Communities, Community Associations, Condominiums, Financial: Money, Banking, Insurance, Insurance, National CAI, Repair, Restoration & Recovery, Reserve Studies, Safety & Security

The past two weeks have been devastating after witnessing the partial collapse of the Champlain Tower South condominium in Surfside, Fla., learning of the lives that perished, and seeing the tragedy’s impact on survivors and those in the immediate community. An investigation into the cause of the condo collapse is ongoing; standards of practice and legal requirements related to ensuring maintenance and structural integrity of condominiums understandably are coming under scrutiny.

Reading Financial Statements Series© – Balance Sheet Part 3: RECEIVABLES

Jul 13, 2021 | Accounting, Auditing & Bookkeeping, Article, Blog, Chapter Happenings Sponsor, Common Interest Communities, Community Associations, Financial: Money, Banking, Insurance

Receivables are an asset which is generally presented just below cash on the balance sheet. It represents amounts the association has the right to receive. Receivables are amounts due from other people or entities.