Accounting and Financial for HOAs, Condominiums and Cooperatives

Property Management Services

Consolidated Community Management, Inc. (CCM) provides a full range of specialized services to Condominiums, Cooperatives, and Homeowners Assocrattons throughout the state of Florida. These services will give the Board of Directors assured assistance in meeting their goals, duties and responsibilities.

The following outline identifies the tasks included in our full service management agreement. Through detailed discussions with your Board of Directors additional tasks, duties or unique needs specific to your community may be identified to properly manage your community.

Budgeting, Accounting, Financial Reporting

Consolidated Community Management, Inc. details the following sub categories within the Budgeting, Accounting and Financial Reporting portion of your management services agreement.

  • Prepare annual budget
  • Collect and apply maintenance fees
  • Accounts receivable
  • Work with attorneys to process and collect delinquencies
  • Collect statutory amounts due from bank owned foreclosures
  • Maintenance of vendor EIN numbers, and vendor insurance files
  • Invoice processing – accounts payable
  • Fund reserves
  • Bank reconciliation on all bank accounts
  • Monitor association investment accounts
  • Prepare interim and end of month, end of year financial reports
  • With association CPA prepare end of year financial reports and tax returns
  • Prepare estoppel letters
  • Prepare and answer PUD questionnaires

A. Prepare annual budget: Approximately 60 days in advance of the end of the fiscal year CCM will prepare and submit to the Board of Directors a proposed budget with recommendations for the upcoming fiscal year. Formalize and prepare and send all budget notices within statutory guidelines.

B. Collect and apply maintenance fees: The Board of directors has their choice of several payment options. Coupons, monthly or quarterly statements, ACH, lock box or payments by credit cards just to name a few of the available options. Apply all payments received timely and make timely deposits of association funds.

C. Account s receivable: Prepare and mail all late letters to delinquent owners. Apply late fees on late payment due dates. Prepare and mail final notice of intent to liens / attorney collection letters. Apply comments from unit owner’s communications on delinquency reports. All reports are detailed and aged. Unit owner’s ledgers contain all pertinent information to ensure the Board will make informed collection decisions.

D. Work with attorneys to process and collect delinquencies: Process files that are to be turned over to the association’s attorney. All collections practices are performed in accordance with the communities uniform collection policy. There is no additional charge to the association to prepare, turnover and monitor collection files at the attorney for collection. All collections are performed under the fair debt collection act and the Florida state statutes.

E. Collect statutory amounts due from bank owned foreclosures: Monitor bank foreclosures in concert with the association attorneys. Upon the bank taking title to a unit, send required notices to collect all statutory amounts due the association. Continue to monitor and collect from the financial institution for their appropriate amounts due to the community.

F. Maintenance of vendor EIN numbers, and vendor insurance files: Prior to a vendor being entered into your community’s payable system W -9 and certificates of insurance will be obtained evidencing proof of insurance together with any required licenses. This file is maintained throughout our relationship.

G. Invoice processing – accounts payable: All payable are coded to the general ledger for your community. This ensures that the expense is recorded properly, and reflected in the appropriate line item for your profit and loss statement. Payables are processed weekly and delivered to the Treasurer for payment. CCM is not a signer on your account. Where possible we make use of ACH debits on utilities and bank loan accounts.

H. Fund reserves timely: Perform a review of all required reserve line items not less than once every three (3) years. This will ensure that the correct amount is reflected on proposed budgets for replacement items over$ 10, 0000.00. In many cases we find that accounts are over funded or under funded, this results in future cash flow problems for the association in the future. Recommendations are made to correct these issues. Funding of reserves approved by the community will be transferred monthly. In the event there is a shortfall of funds preventing a transfer the Board of directors will be notified. Appropriate due to/ due from line items will be reflected on the balance sheet.

I. Bank reconciliation on all bank accounts: All bank statements are reconciled monthly. Certificates of deposit or other investments are reconciled upon receipt of statements. Copies of bank statements are included together with a copy of the actual reconciliation to assure the Board that proper financial controls are in place.

J. Monitor association investment accounts: Reflect the maturity date of all certificates and other investments on the balance sheet. Notify the Board of Directors in advance of maturity dates so that educated decisions can be made with respect to future investments.

The association understands that CCM is not acting as an investment professional. Work together with the Board of Directors to maximize return on money via money market accounts, COAR accounts, and other safe investment vehicles that the Board of Directors chooses.

K. Prepare interim, end of month, and end of year financial reports: Prior to all board meetings, interim financial reports are prepared and distributed in the meeting packages. Upon receipt of the bank statements, all counts are reconciled and a final month end reconciled financial report is generated and distributed. At the end of each fiscal year the books are closed in concert with the association professional that prepares the taxes and year end report.

L. With association CPA prepare end of year financial reports and tax return: In the fourth quarter of each year CCM will seek a minimum of three proposals for the upcoming year end financial reports and tax returns. When the December financials are reconciled in mid January, all financial information is forwarded to the CPA of the Boards choice. Following this process CCM typically is 30 – 60 days ahead of most other management companies in the area. This results in the community being at the top of the list and receiving their year end reports about 30 – 90 days ahead of most neighboring communities.

M. Prepare estoppel letters: When a Condo/ Coop Unit or Home is transferred or refinanced CCM will prepare the requested estoppel for the requesting party. Any and all fees associated with this are charged to the requesting party not the association. Turn around time on this is typically 24 hours or less.

N. Prepare and answer PUD questionnaires: When a Condo/ Coop Unit or Home is transferred or refinanced CCM will prepare the requested estoppel for the requesting party. Any and all fees associated with this are charged to the requesting party not the association. Turn around time on this is typically 24 hours or less.

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