HOA Budget format

Our new (half developed) community is divided into an All Ages side and a 55+ side. The "base" monthly fee is $85/mo, which pays for landscape service, property management, etc. We have now built a clubhouse and pool on the 55+ side, and as soon as COVID restrictions are lifted so we can use it, the 55+ side will see their fee go up $20/month. We also have a clubhouse and pool on the All Ages side, which the 55+ members can also utilize. When it is completed everybody/s fee will go up another $12/month. So it can be broken down as follows:

All Ages Residents: $97 month ($85 Base plus $12 amenities)
55+ Residents: $117 month ($85 Base plus $12 main clubhouse plus $20 for the 55+ clubhouse)

My question is this. When we set our budget, should all income and expenses be broken down by these three categories, with each of those three categories balanced separately? That is, I would think if our $20/month income for the 55+ clubhouse generates $50,000 in income and only costs $40,000 to maintain, that $10k surplus should be a line item somewhere on the financials, should it not? Or is it customary to just combine everything into one big pot?

The 55+ amenities are significantly smaller.

My main question is what is considered good accounting practice. I would think the Income side should have three main categories: one for the main operating expenses, one for the All Ages amenities, and one for the 55+ amenities; and the Expense side should have the same three main categories -- and those categories should balance:

Main Operating Fund: $200,000 income, $200,000 expense
All Ages Clubhouse Fund: $50,000 income, $50,000 expense
55+ Clubhouse Fund: $30,000 income, $30,000 expense

Clearly this would be a good idea, but I'm not sure if it is a financial accounting requirement, or if it is considered best practices. Or is it common for them to just be all in one big bucket with no balancing between the funds.

I think that would depend on the community, but now that you say the 55+ amenities are smaller, I agree that it would be easier to just keep everything separate. The best answer will likely come from an accountant, so if you haven't already spoken to one, do it.

Good point regarding reserves. Thanks!

Thanks.

I'm still curious to know if HOA's usually account for each fund separately, or if they just go into a single bucket.

Thanks. Here are the answers:

Yes, it is still under developer control. However, the property management company placed a "newbie" at our property, so she is learning as she goes. We are working on next year's budget and I would like to start it off correctly rather than just accept whatever she comes up with; because I'm the one who has to respond to homeowners that have questions about it. I want to make sure some account in the community doesn't find problems with our accounting.

There will be about 400 on the all ages side, and about 200 on the 55+ side. Each side is over halfway complete.

We have just one board, one set of documents, etc.

David,

What do your covenants say about the cost of common amenities?
This will be your guide on how to set up the assessments.
Remember, for a clubhouse, you will have:

Additional insurance
utilities
regular maintenance (cleaning at least)
Reserves for expected repairs/replacements (roof for example)