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You may have been noticing an increase in the frequency of plumbing system replacement, at very high costs. Now that a significant portion of the housing stock we serve within Washington Community Associations has reached or is near the 50-year mark of life, expect that trend to continue. But what do you plan for in terms of timing, and cost? Why isn’t total replacement typically in your reserve study?
CASH! Everyone likes cash! Associations are no different. Without enough cash, association management and community property can become neglected, often leading to future major repairs requiring loans and special assessments. Understanding what activities have the most impact on cash balances is vital to the future success of an association’s operations.
This blog, introducing you to balance sheets, is the first in our Reading Financial Statements Series©
What is a Community Association’s strongest hedge against inflation? A strong reserve fund! As of the end of April, 2021, increases in the pricing of lumber, asphalt binder , and other materials have risen well into the double digits when compared to the previous year. Costs for the “Big 9” projects (painting, roofing, asphalt, siding, windows, decks, plumbing, elevators, HVAC) are simply wild and unpredictable right now.
April showers bring May flowers…and sometimes uninsured losses! Building damage caused by heavy rain, clogged gutters and storm drains, accumulated water in a crawl space and any other water that originates OUTSIDE of a building is generally excluded on most policies for several reasons.
To help make your association’s annual audit go smoothly, it is important to follow and support annual audit process efficiencies.
These days, synthetic turf is widely accepted as an alternative for sod lawns in both commercial and residential settings. Condominiums and apartments especially have been converting sod lawn areas into synthetic turf more in the past few years as they discover and reap the benefits of switching over!
Last month, Jeremy Newman of Newman CPA had an excellent article on accounting for special assessments. This blog will discuss other important considerations should an association consider financing its remediation project.
With water damage, there are situations where it is important to call a professional. Here are some examples of situations where professional help should be sought out:
Mold is ubiquitous to our environment, and if trapped moisture is involved in an enclosed space, it can create an unpleasant odor issue. The best way to mitigate? Remove it at the source.
Record keeping and accounting for special assessments should not be as challenging as it often is. Often, as auditors we find the accounting for special assessments is incomplete due primarily to changes of management companies, inadequate tracking of owners’ accounts and payments, accounting for special assessment receipts in the wrong fund, and/or special assessment forecasts are inadequate to determine if there will be sufficient funds to pay for all repairs or pay off a loan.