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Behind The Scenes

We are often asked as Board Members or as the Management Company about routine activities that are happening behind the scenes for the benefit of the Association. Homeowner volunteers do some of that coordination and work, and the Management Company does other work.

It is very important that the relationship between the Board and Management Company is of one of trust and respect in order to serve the general Membership to the best of everyone’s ability. Communications between all parties is crucial in order to achieve the Goals of the Association.

In addition to the visible mechanical maintenance required, as described in Item 11, below, there is a certain amount of ongoing paperwork, and functions required to run the association from month to month, and year to year.

Here are some examples:

  1. Collect Monthly Dues from Each Homeowner (Accounts Receivable)
  2. Follow-up on delinquent accounts as directed by policy.

    The management company receives the funds makes the bank deposits and records the collections on the homeowner balances, prepares and mails out account statement of balances each month to each homeowner.

    The management company also uses attorneys as needed to accomplish collection of any delinquent accounts. Sometimes this involves liens on units.

  3. Pay Bills Each Month (Accounts Payable).
  4. Examples: Insurance on the property; city water; sewer fees; city storm water drainage fees; gas and electric for common areas, including pool; yard and garden services; income taxes owed.

    The management company prepares computerized checks from vendor invoices.

  5. Bank Account Reconciliation
  6. The management company prepares bank account reconciliation each month to insure the accuracy of the accounting reports.

  7. Financial Statements
  8. The management company uses it’s computerized system to provide tracking documents, including a Cash Flow sheet that shows the net change in the association’s cash status.

    Also provided is a Cash Disbursement Register (Check Register) that lists each check issued that month, and the purpose of the check. In addition to each invoice that is attached to the monthly statement.

    There is also a Deposit Register of bank deposits, and a Work Order Summary, which is supported in detail by photocopies of Work Order for work that is done by certain project and hourly vendors.

    Prepares the Annual budget for the Board to review and modify, as the Board desires.

    Association Board members on a monthly basis review these documents.

  9. Annual Income Tax Returns
  10. The management company monitors the preparations and filing of these forms. These forms are prepared by a separate tax preparation person, and are reviewed and signed by the association Treasurer or other Board member, relying on data supplied by the management company.

  11. Non-profit Corporation Legal Papers
  12. The management company monitors the due dates and prepares the filing of these forms, which are; then reviewed and signed by a Board member, relying on data supplied by the management company.

  13. Meetings
  14. The management company attends meetings and offers input on issues that affect the operation of the Association.

  15. Oversees Committees
  16. The Management Company assist and obtains information for committees of the Association when ask to by that committee

  17. Minutes Of Meetings
  18. The management company makes meeting notes and uses email to distribute to each board member a DRAFT copy of minutes. The Association President and others mail corrections by return E-mail to the management company, which then mails out the yet-to-be-approved minutes via U.S. Mail or E-mail.

  19. Annual Homeowner Meeting Notices
  20. The management company prepares the agenda and other reports with input from the Association President and others, and prepares and mails out the annual meeting notices.

  21. Vendor-Supplied Services
  22. Schedules and follow-up monitoring of such vendors as tree and shrub service; roofing; snow removal services; routine maintenance issues; electrical wiring changes and fixes; pest control inspections; asphalt contractors; concrete; fences; etc.

  23. Lending Institutions & Realtors
  24. Prepare status letters for banks and title companies when individuals sell or refinance their units. Provide copies of Association documents, such as Declarations, Bylaws, and financial account information to appropriate inquirers, such as lending institutions and realtors.

  25. Advice & Guidance
  26. The management company helps Associations with establishing and updating, Rules and Regulations, amending the Associations governing documents, establishing and updating policies and procedures. The Management Company also advises the Board as to legal concerns and when to seek legal advice on various matters.