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Financial Management

Financial Management

Reserve Study Implementation

California law requires that a reserve study is performed at least once every three years; to fulfill the requirement the study must include a visual inspection of all major components the HOA is responsible to repair or maintain. The study provides the Board of Directors with essential tools needed to make important decisions regarding potential HOA dues increases or the imposition of special assessments. We obtain competitive bids from reputable reserve study companies, meet the chosen company on-site for the visual inspection and obtain a draft of the study for our analysis, Board Member review and final Board approval.

Budget Preparation

Careful tracking of the association’s actual historical expenses, combined with a comparison to previously budgeted expenses and information contained with the HOA’s reserve study allows us to prepare draft budgets with accuracy. Board approved budgets are combined with other disclosures required by the Davis Sterling Act for annual distribution.

Reserve Contributions

Setting reserve funds aside is an essential part of maintaining fiscal responsibility, and is incorporated with the budget preparation process. By allowing funds to accrue and bear interest in a reserve account, the association will be prepared to take on capital improvements from a preemptive standpoint. The contribution level is in-part based upon a Reserve Study, but primarily determined from a practical stand-point taking the Board’s goals for the association into account.

Annual Reporting & Tax Filing

An annual report summarizing the prior year’s income and expenses will be provided at the end of each year fiscal year. This, together with a General Ledger Report is provided to the HOA’s tax preparation specialist for timely annual tax filing.

Prompt Invoice Payments & HOA Dues Deposits

All approved invoices are carefully scrutinized, and subsequently paid in a timely manner. Prior to releasing funds to vendors, we ensure that all services have been completed per the contract job scope specifications and to the highest standards of workmanship. Utility bills are carefully analyzed to identify any significant changes in consumption, which is indicative of a potential leak requiring investigation.

Bank Deposits Processed Daily

To maintain healthy HOA operating cash flow, bank deposits are processed on a daily basis. This results in association members’ HOA account ledgers always accurately reflecting their true account balance. Although HOA billing statements are mailed on a monthly basis, statements are also available to homeowners anytime upon request and can immediately be provided via e-mail or US Mail.