215-343-1550

 

 

Financial Management

A Manager is assigned to the Association to oversee the Association and ensure the Board of Directors follow all requirements of the Declaration and Bylaws.  The Manager processes all approved invoices for the Association, schedules the Annual Meeting of the members, places the Associations Insurance and handles any questions that might arise that deal with the Finances of the Association.  The Board of Directors would be responsible for all Property Management functions for the Association except what is listed below.
 
The Manager and support staff will handle all administrative responsibilities including accounting functions, budget preparation, collection of delinquent assessments, preparation of resale certificates and insurance responsibilities.

Property Management

  • Assist in establishing rules, regulations and architectural controls.
  • Direct owners and residents requests for common area maintenance to the Board of Directors.
  • Provide 24 hour answering service.
  • Compile association/owner maintenance responsibility list.
  • Direct all association general correspondence to the Board of Directors.
  • Arrange for mailing of notices and newsletters to owners and residents.
  • Arrange for distribution of new owner information packages and welcome letters.

Financial

  • All association funds are directly deposited into the association’s checking account.
  • Funds are never commingled between accounts. They are segregated among Operating, Reserve and Capital bank accounts.
  • All investments are approved by Board of Directors prior to implementing.
  • Investments are restricted to institutions offering FDIC Insurance.
  • Investments are limited to $250,000 with each institution.
  • Negotiate interest rates on certificates of deposits and money market accounts that are higher than those available to the general public.

Accountants

  • Assist the association in selection of an independent Certified Public Accountant (CPA).
  • Provide Accountants with all necessary association financial information and detailed analysis of general ledger accounts.
  • All corporate federal tax returns are filed within 75 days of the association’s year-end closing.
  • The filing of an association’s tax return is never placed on extension.
  • Require all Accountants to prepare their year-end financial statement by March 15th for distribution to the Board of Directors.

Accounting

  • Maintain all association accounting records on an accrual basis. 
  • Monthly financial statements are distributed to the Board of Directors by the 15th of each month.
  • Annually, a draft of the association’s subsequent year’s budget is prepared a minimum of 110 days before year-end.
  • The budget draft includes both projected operating expenses and annual assessment for Reserve for Replacement Fund.
  • Copies of approved budgets and payment coupons/information mailed to homeowners 30 days prior to implementation as required by law.

Insurance

  • An Insurance Administrator is in control of all association insurance requirements.
  • Annually, obtain insurance renewal proposals from various companies.
  • Insurance coverage is not allowed to automatically renew.
  • Administer all property damage insurance claims which affects common areas.
  • Administer all liability claims for common areas including answering complaints or interrogatories and attending depositions, arbitrations or court proceedings.

Resales

  • Resale Department processes all requests, in a timely fashion, for homeowners who are selling their homes or refinancing their mortgages.
  • Provide all required association documentation, financial statements and proof of insurance coverage as well as complete the final payoff statements, resale certifications and mortgage questionnaires. 
  • Assist mortgage lenders in obtaining required FHA condominium association mortgage approvals.

Collections

  • Annually, mail to all owners assessment notices/payment coupons.
  • Deposit all funds received directly into the association’s individual bank account.
  • Charge owners appropriate late fees, if assessments are not received during the grace period.
  • Issue late notices to owners for assessments not received by the date due.
  • Mail monthly collection letters to delinquent owners detailing all outstanding amounts.
  • The collection of all delinquent assessments is processed in-house, not through outside sources. 
  • Monthly, follow-up on all delinquent accounts.
  • File with district court for collection of delinquent assessments in accordance with the association’s policy. 
  • Attend district court hearings, if required, at no additional charge. 

Record Retention

  • In accordance with Internal Revenue Service regulations, association records are maintained for a minimum of seven years. 
  • Permanently maintain copies of all the association’s tax returns, financial statements, Board and Annual Meeting minutes, summaries of architectural approvals and, if required, age certification forms.
  • All association e-mail correspondence is maintained electronically.