Dipping Into Reserves

The Problem – The Unbudgeted Expense: Everything seems to be growing except the coffers: boards are faced with mounting operational expenses and increased delinquencies, without the same matched growth in revenue.  And, unfortunately, not all expenses are planned – emergencies will come up. For example, if there is a big snow storm and the associationGo to Resource
Healthy finances are critical to the sound operation of a community association. There are many factors that play into the financial management of an association, including accounting controls to protect the association’s assets, well thought out and implemented budgets to ensure there is enough operating capital to over the ordinary expenses of the association, andGo to Resource
Financial Operations It is CAI’s purpose to foster vibrant, responsive, competent community associations that promote harmony, a sense of community, and responsible leadership. Given that the fiscal health of the association has a direct impact on every member of the community, proper management of financial operations is an important element of building better communities. WhileGo to Resource
Volunteer boards of directors of condominiums, cooperatives, and homeowners’ associations often perform a number of functions vital to the successful self-governing of the association: fostering community harmony, maintaining common areas, and establishing and enforcing rules. The ability of the association to perform these functions depends upon its success as a business.  One of the mostGo to Resource
A.     Budgeting in General Prior to actual budget approval, consider the following: Set goals.  Review, revise and update goals each year.  Involve the community and Owners through meetings, opportunities to serve on committees and questionnaires. Establish a planning process for each service offered to community to assist with budgeting process. Each service provided by theGo to Resource