KP3 (Texas)
Posts: 124
Posts: 124
Posted:
When the board requests monthly financial docs to review, it is a reasonable date to ask to receive them by the 15th for the prior month from the management company?
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Finiancial Doc Receipt
Started by KP3 • 4 replies • 993 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
That depends on how the accounting is done. Our HOA late fees are charged at 15 days passed due. Dues are due at the beginning of the month. So the 15th before/after may not give us a "full" picture. Some HOA's it's 5 days late. Plus some of our bills are charged at different times of the month. It's NOT always at the 1st or last of the month. Considering that basically last month's collections go to next month's bills.
My new HOA board who replaced me made a HUGE mistake. I told them that we were broke and had no money. We broke even each month for the most part like you are to do in a HOA. (Spend as much as you collect). We did not have any "Extra" money for special projects or had to do a special assessment for them.
However, the new board saw "$5K" on the monthly statement. They then called me a liar and promptly decided to spend this $5K on projects I told them "NO" to. Well you can guess the timing of the monthly statement right? The 5th of the month when dues were collected and posted BUT NO bills paid.... Yeah it came as a shock to them the next month...
So get to know the timing of collections and expenditures. Then request at the appropriate time line.
My new HOA board who replaced me made a HUGE mistake. I told them that we were broke and had no money. We broke even each month for the most part like you are to do in a HOA. (Spend as much as you collect). We did not have any "Extra" money for special projects or had to do a special assessment for them.
However, the new board saw "$5K" on the monthly statement. They then called me a liar and promptly decided to spend this $5K on projects I told them "NO" to. Well you can guess the timing of the monthly statement right? The 5th of the month when dues were collected and posted BUT NO bills paid.... Yeah it came as a shock to them the next month...
So get to know the timing of collections and expenditures. Then request at the appropriate time line.
Former HOA President
RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
Owning a management and having the opportunity to prepare the financials for the associations I represent, 15 days is not too much to ask. On the 1st day of the month I can run the financial reports for the previous month with the exception of the bank reconciliation report. You need the original bank statement to prepare them. I get them by the 5th of each month.
There are a lot of holes in Melissa's response, but I won't go there.
There are a lot of holes in Melissa's response, but I won't go there.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
We get the previous month's financials --117pages this month-- from our MC usually by the 10th and always by the 15th.
(Melissa's reply doesn't seem to relate to this topic)
(Melissa's reply doesn't seem to relate to this topic)
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
KP3, It is very reasonable to ask to receive the prior month's financials by the 15th unless in your management agreement it specifies a later date.
As a management company we do bank reconciliations of all accounts by the 2nd day following the previous month. All necessary information is obtained by phone from the banks involved for all HOAs we manage. Their financial statements are emailed to all Board members with an email account by the 3rd day following the previous month. This keeps their Board as up to date as possible.
As a management company we do bank reconciliations of all accounts by the 2nd day following the previous month. All necessary information is obtained by phone from the banks involved for all HOAs we manage. Their financial statements are emailed to all Board members with an email account by the 3rd day following the previous month. This keeps their Board as up to date as possible.
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