HOAleader.com - Tip of the Week - June 11, 2010
Published: Fri, 06/11/10
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Tips for Tight Financial Controls at Your Homeowners Association
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In this week's tip, we provide you with two questions you should
ask your HOA management company to be sure your association's
finances are safe and soundly managed.
1. What level of detail are we receiving on delinquencies?
"I'd want to see a delinquency list, and if we've given our
manager authority to pursue collections, I'd want to know
the status of those collection activities," says Lisa A.
Magill, a shareholder and association attorney at Becker &
Poliakoff PA in Fort Lauderdale, Fla. "How many letters have
been sent? Has the matter been sent to the attorney? Has a
lien been filed?"
2. Are we receiving original copies of invoices and checks?
"Your board should have financial reports prepared every
single month, and those should have the actual backup
attached to them," says Magill. "There should be a check
with an invoice attached so you can see what bills have been
paid and the payee on each one."
"We recommend at least one board member--and we think it
should be the entire board--do a review of the invoices and
checks," agrees Kristen L. Rosenbeck, a partner at the
Mulcahy Law Firm PC in Phoenix, which represents associations.
"You might allow your manager to issue checks up to a certain
amount, say $500. But at least on a monthly basis, review the
checks and your account statements to provide a check and
balance on the financial distributions that have taken place."
"It's good to rely on your manager, who has the experience and
should be able to give you guidance on budgeting and finances,"
says James R. McCormick Jr., a partner at Peters & Freedman LLP
in Encinitas, Calif., who represents associations. "But not
asking questions and overseeing your manager results in what
we've seen--managers who've bled their associations blind."
For more questions to ask your manager about your association's
finances, see our new article:
http://www.hoaleader.com/members/441.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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You HOA's Money: Tips for Collecting Interest on Unpaid Fees
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Click here to read full article:
< http://www.hoaleader.com/members/437.cfm >
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Click here to read full article:
< http://www.hoaleader.com/members/440.cfm >
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What to Know Before Setting Up Electronic Withdrawal of
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Click here to read full article:
< http://www.hoaleader.com/members/438.cfm >
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Click here to read full article:
< http://www.hoaleader.com/members/436.cfm >
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9 Tips for Better HOA Financial Reporting and Management
What financial information should the your condo or homeowners
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and understanding the association financial statements that help
you monitor and control your association's financial health.
Click here to read full article:
< http://www.hoaleader.com/members/435.cfm >
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