accounts needed for HOA

What is the "exit plan" with the MC??
It should be spelled out what reports the MC should give to you at the end of the contract. Insist on a Balance Sheet and other reports.

First to ensure you're doing everything according to your Bylaws and CCRs, you and everyone else on the board need to read them (all of it) and perhaps talk to an attorney about anything you don't understand (make sure he or she has experience in working with HOAs). The reason I think you should read your govening documents first is to ensure that you set up your budget and accounting systems in a way that contains safeguards against embezzlement and that your budget is adequate to cover whatever services the Association provides. The attorney can also help acquaint the board with whatever laws you have in your state covering HOAs that may impact issues like reserves.

It sounds like you're fairly new at this so I would also suggest you use the search mode on this website to find various threads on budgeting, bank accounts, reserves, etc - you'll get a good idea on what to do and what to avoid. You might also look at the Community Associations Institute (CAI) website, which has some free resources and a bookstore where you can purchase various guides on setting up and managing a HOA.

As to bank accounts, our HOA has a petty cash fund (for minor repairs and supplies used by our handyman), a reserves fund (finally, we're getting an updated reserve study done this year!) and a checking account (the operating budget money goes here). If you want a clubhouse, I suppose that could go into reserves, depending on when you want to do this. I've heard of other HOAs having a contingency account, which has about two months of dues in it - this is uesd to pay for unexpected repairs and shortfalls in the budget.

You've got A LOT of work ahead of you and will need a good Board and management company (if your HOA is so large that it needs a management company). To make sure you don't burn yourself out, perhaps the Board can establish a committee that will interview prospects and make recommendations to the board. Good luck!

on one report is shows $90.24 over payment for a Homeowner from last year. and when we got the final reports the overpayment was off for that homeowner. I asked where it went I dont see where it was applied and they made some excuse that it was a forecloser so that money was written off the account.

Why did you hire a lawyer?

Linda,

As a side note, hold back their final check until all of this is straightened out. Otherwise, you will have zero leverage.

Tim