Financial

Financial Audits of Condominium Associations

Considering a financial audit? We'll review financial audits of condominium associations (Chapter 514B). There is no audit requirement for Planned Community Associations (Chapter 421J). Most Board of Directors of condominium associations and their managing agents do not give much thought to the auditor’s report. As long as the auditor issues a “clean opinion” [...]

2017-10-17T15:37:18+00:00 Financial|

Replacement Reservers for Condominium Associations

Replacement reserve law as it applies to condominiums can be complex. We'll navigate through its history, legal requirements, tax issues accounting and calculation. The definition of “replacement reserves " is defined in the law as "... funds for the upkeep, repair, or replacement of those parts of the property, including but not limited [...]

2017-10-17T19:29:12+00:00 Financial|

Internal Controls to Prevent Thefts from Internal Sources

Business losses due to employee thefts amount to billions of dollars every year. The most important strategy used to minimize such losses is a good system of internal controls. Internal controls do not prevent thefts; however, a good system will detect such threats on a timely basis. Basically, an internal control system separates [...]

2017-10-17T14:29:25+00:00 Financial|

Embezzlement of Association Funds – Awareness and Prevention

The potential for theft or unauthorized use of association funds should be one of the highest priorities of every director. Unfortunately issues dealing with governance, budgetary and financial concerns, repairs and maintenance, enforcement of house rules, policies, and other association issues usually take precedence. Most boards assume that the funds handled by the [...]

2017-10-17T16:05:36+00:00 Financial|

Investment Issues for Homeowner Associations – FDIC Insurance, CDARS, Laddering and Policies

Associations should be well-versed in how to invest excess funds. Homeowner associations include condominiums (Ch. 514B), planned community associations (Ch. 421J) and time-sharing plans (Ch. 514E). The only definitive guide to the investment of excess association funds is found in Ch. 514B-149, Association fiscal matters; handling and disbursement of funds. However, as a [...]

2017-10-17T19:16:47+00:00 Financial|
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