Negative balance in assets?

Hello,

I'm reviewing HOA financials as part of an offer on a condo. I was provided a cash-basis balance sheet for the YTD, prepared by the management company.

I'm perplexed by a few things. Mainly, the sheet lists $0 in liability. But there's a large negative item titled "Money-in Transfer" in the assets.

The HOA recently had a large expense that was covered by insurance, so some of the oddities make sense (ie a large negative retained amount balanced by an insurance payout). The reserve study indicates some deficit (30% funded) but was done prior to the insurance payout so it's not clear to me if the deficit was perhaps larger than anticipated due to insurance issues?

Why would there be a negative asset? Why isn't that a liability? What is money-in transfer?

I'm asking for more detailed budget and financial items.

Those are good questions - which you should ask the SELLER. If you get a lot of doublespeak, think twice about buying that condo. I'd also take a look at the reserve study and perhaps the last year's worth of board meeting minutes, which should give you details on the large expense (e.g. it could have been a fire).

Here's a website that provides information on accounting terms - start here to see if your questions are answered: https://www.keynotesupport.com/accounting/accounting-basics-debits-credits.shtml