The Best 4 Financial Reports for HOAs and Condo Communities
As a board member you have a fiduciary responsibility to exercise due care and diligence when overseeing the community and its funds. The following four condo / HOA financial reports are vital tools for protection of association assets, control and planning.
HOA Financial Report #1 – Aged Delinquency Report
Sample Aged Delinquency Report
HOA Financial Report #2 – Comparative Income & Expense Report
Sample Comparative Income & Expense Report
HOA Financial Report #3 – Balance Sheet
There are three key accounts on a balance sheet that Condo & HOA officials should pay special attention to:
- Cash in the Operating Checking Account – shows ability to meet current operating expenses.
- Accounts Payable – shows how much is owed to vendors and service providers.
- Capital Reserves – shows how much is available for major capital repair and replacement projects in the near and distant future.
Sample Balance Sheet
HOA Financial Report #4 – Bank Reconciliation Report
Sample Bank Reconciliation Report
Additional Reports to Consider
Bank statements are another tool to ensure you are not a victim of theft. Plus you can easily see how much money you have in the bank. Bank statements are easier to understand than the balance sheet since we’re all used to looking at them and they show the current amount of money in the bank account(s), recent deposits and withdrawals.
Current Capital Reserve Plan
You don’t need a fancy report but you should have something that shows how much money you have set aside and the anticipated cost for replacements and larger capital projects. This report is far superior than looking at a capital/ reserve bank account which can be deceiving. You may think you have a lot of money saved but if you had a big roofing or paving project it could be wiped out with no funds for other projects.
Of course our service offers a host of condo / HOA financial reports that serve a supporting role to our top 4 which allow you to drill down for greater detail.