Managing condominium finances entails much more than merely collecting assessments and reconciling the association’s checkbook. In fact, even veteran association board members need guidance in complying with the many statutory regulations and association rules covering the development of a budget and the establishment of reserve funds. Newcomers to the board and individuals serving on budget committees for the first time may lack the knowledge required to follow the law and fulfill their fiduciary duties. And unit owners themselves have every reason to want to be informed about whether the assessments they pay are being allocated and spent appropriately.
This course instructs all those who participate in the budget-making process how to craft an association budget, maintain proper accounting records, and create budget and reserve schedules that can help secure the financial solvency of the association and fulfill the association’s financial reporting obligations. In accessible language, the course explains the rules that regulate association finances and the correct procedures for adhering to them (Discounts are available for Condominium Boards or Property Management Companies by calling us at 1-800-521-9667).
TARGET AUDIENCECondominium association board members, unit owners, and members of association budget committees
TIME TO COMPLETE90 minutes
PURPOSETo instruct condominium association board members, unit owners, and budget committee members in the procedures for preparing an association’s budget and reserve schedule.
LEARNING OBJECTIVESAfter completing this course, the learner will be able to:
- describe the purposes and processes of an association budget and reserve schedule;
- instruct association members and unit owners in the procedures for maintaining proper accounting records;
- craft a budget, avoiding the usual pitfalls that accompany the process;
- adhere to statutory requirements when creating the condominium association’s budget and reserve schedules; and
- specify the association’s duties with respect to condominium finances after the developer has ceded control of the association to unit owners.
TOPICS COVERED
- Developing and Adopting a Condominium Association Budget
- Planning and Conducting Meetings to Discuss the Budget
- Keeping Proper Accounting Records
- Maintaining Operating and Reserve Accounts
- Computing Regular and Special Assessments
- Establishing and Funding Capital Expenditure and Deferred Maintenance Reserves
- Waiving or Reducing Reserves
- Managing a Budget Surplus
- Creating a Reserve Schedule Using Either the Segregated or Pooled Methods
- Administering an Operating Budget
- Using Cash and Accrual Accounting Systems
- Compiling Financial Statements