Year End Accounting: Loose Ends

Year End Accounting: Loose Ends

[ Blog/News ]

Year End Accounting: Loose Ends

For most associations, their fiscal year ends on December 31. If an association does not obtain an independent audit by a Certified Public Accountant, it is perhaps more imperative that boards of directors pay close attention to the year-end financial reports.

Some Areas To Consider Include:
Cash

Ensure all bank accounts have been reconciled. Obtain a copy of reconciliations and bank statements and compare, paying attention to unusual or large reconciling items.

Assessments Receivable

Review the aged receivables report. Understand the reasons for delinquent accounts and ensure that a collection plan is in place to maximize recovery of delinquencies.

Accrued Expenses

Most associations account for expenses only when invoices are paid. Boards should ensure they account for all expenses incurred during the year, regardless of when vendors are paid. Remember, you set a budget for the year. It is easy to overlook a late invoice for this year that may be recorded as an expense in the next year.

Special Assessments

Sometimes special assessment programs last more than one year. Often, special assessments are levied to repay a commercial loan. If accounting for special assessments billed, collected, outstanding or delinquent is inaccurate, a board of directors may not be able to determine if the remaining funds to be collected are sufficient to repay a related loan.

Ensure there is a report showing special assessment billing to and receipts from homeowners. Compare the aggregate of special assessment bank account balances plus amounts to be billed and collected less any outstanding special assessment expenditures to the loan repayment requirements, both principal and interest. Early determination of a potential deficit will provide boards with the opportunity to develop a contingency plan.

Loans

Ensure the correct loan balance is presented on your financial statements. Compare to the loan statement provided by lenders.

Income

Review assessments and other income accounts to ensure all income appears to have been recorded. You will need to know if the financials are prepared on accrual or cash basis. Under the accrual basis, assessment income should match budget.

Expenses

Compare actuals to budget. Inquire about unexpected variances. Ensure all current year expenses have been recorded. End Of Article

By Newman CPA

By Newman CPA

Chapter Happenings Sponsor, January 2021

Newman CPA simplifies the HOA CPA process. Our streamlined process enables us to complete your work accurately, efficiently and on time. We understand your need for reliable communication and on-time reporting. We believe that you deserve hassle-free audit & tax services. Have confidence knowing we are your responsive partner here to make your life easier.

By: Jeremy Newman CPA. Newman Certified Public Accountant, PC

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The Longest Life For Your Pavement

The Longest Life For Your Pavement

[ Blog/News ]

The Longest Life For Your Pavement

While we do not often think about the blacktop beneath our tires and under our feet, having a proper maintenance program for your asphalt can extend its life significantly, therefore pushing out the replacement date and saving thousands of dollars.

Asphalt paving is done with a mix of asphalt binder and construction aggregate (rocks and sand).  From the moment it is installed, it starts to deteriorate.  You may think the deterioration is mostly from traffic, however the most impactful elements are sunshine (especially UV), rain, moisture and harsh chemicals like oils, gasoline, etc. 

Asphalt works by providing a “waterproof” skin to vehicle areas, which does not allow water to get underneath it.  With regular crack sealing and sealcoating you can keep the water from causing damage like “alligator bellying” and potholes, which can accelerate damage to the surface if left alone.  When there are breaks in the asphalt the result is that water infiltrates below the surface of the paved area and causes subterranean erosion as well as damage caused by the freeze-thaw cycle in winter.

Remember to sealcoat your asphalt 6 months after installation and again every two to three years for best results and longest life.  Sealcoating protects against oxidation, blocks UV damage and prevents the sun’s drying effects which cause reveling, cracking, and deterioration.  It helps keep water from infiltrating below the surface (the fastest way to damage asphalt.)

Save Money

The binder in asphalt is a petroleum product and has tripled in price over the past forty years—replacement is a cost which every association should have in their reserve study and budget for.  You can push the date out on your replacement from less than 10 years for completely unmaintained asphalt to 20+ years for well-loved pavement, more than doubling the lifespan!

Save Hassle

With a seasoned provider that has years of experience working with community associations, multifamily, and hospitality clients you can be assured that the work will be executed with a detailed plan to ensure all areas are treated with minimum hassle to the occupants. End Of Article

Transblue offers free asphalt consultations!

Call Us Today! (425)658-0098

By Transblue

By Transblue

Chapter Happenings Sponsor, January 2021

Transblue provides Asphalt & Concrete Services to community associations, as well as a variety of residential, public and commercial properties. A smooth, freshly painted parking lot is a thing of beauty and function. Assure your customers that their safety is a priority by refreshing your asphalt, concrete, and other hard surfaces with Transblue.

  • HUB International NW - HOA And Condo Solutions - Web Ad
  • The Copeland Group - Banner Ad
  • Condominium Law Group, PLLC - General Counsel & Collection Services - Partners Ken Harer & Valerie Oman - Phone: (206) 633-1520 Website: www.condolaw.net
  • Newman HOA CPA - Banner Ad
  • Barker Martin
  • Porter Construction Inc - Building With Integrity - www.porterci.com
  • Rafel Law Group - Banner Ad

Search WSCAI


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Diamond Sponsors

  • SageWater - Logo
  • ServPro Of Seattle NW - Logo
  • CIT - Community Association Banking - Logo
  • Columbia Bank - Logo
  • Newman HOA CPA - Audit & Tax - Logo
  • CAU - Community Association Underwriters - Logo
  • Association Reserves WA - Logo
  • Transblue - Logo
  • RW Anderson Services - Logo
  • Rafel Law Group PLLC - Logo
  • HUB International NW - Logo
  • Superior Cleaning & Restoration - A COIT Service Company - Logo
  • Agynbyte - Logo

Chapter Magazine

Journal July-August 2022

Jul/Aug 2022 Issue

Journal Advertising Partners:

  • Newman HOA CPA Audit & Tax
  • CIT Group Inc. - Logo
  • Rafel Law Group PLLC - Logo
  • The Copeland Group - Logo
  • Bell-Anderson & Associates - Logo
  • Community Association Underwriters - Logo
  • Ruff Construction - logo
  • Charter Construction - Logo
  • Popular Association Banking
  • SSI Construction
  • Sagewater
  • RW Anderson Services - Logo
  • Pacific Engineering Technologies, Inc - Logo

  • Pacific Western Bank - Small Ad
  • Association Reserves of Washington - Ad