Bringing Order to Your Financials

Bringing Order to Your Financials

Published August 2016



Editor’s Note: As a service to our readers, FLCAJ asked several of our advertising partners to provide their financial best practices for this month’s financial and budgeting issue.



Protect Your Home Computer from Online Fraud

By Tanya Nelson

Florida had the second highest amount of online fraud victims according to the FBI’s 2015 Internet Crime Report. To combat this threat, follow these tips:

• Create passwords using a combination of upper and lower case letters, numbers, and special characters. (Urthe12C!)
• Don’t save your password in your browser, and change it regularly.
• Limit financial and personal data you send to websites and social media.
• Keep antivirus software, your operating system, Web browser, and security settings up-to-date.
• Inspect e-mail attachments and links for potential scams and malware.
• Avoid sponsored links/ads in search engine results—they’re usually malicious.

For more information on BB&T Association Services, call (888) 722-6669 or visit 



Common Misconceptions In Reserve Plans

By Paul Grifoni

A reserve component is defined by having a predictable, useful life. Therefore, contingency reserves and insurance deductibles have no place in a reserve plan.  Contingency funds should be budgeted through the operating side, and any surplus should be transferred to the reserves at year end.  An alternative way to cover insurance deductibles would be by setting a threshold amount in a cash flow analysis.  A common mistake in a reserve plan is leaving out long-lived components in newer communities, such as subsurface utilities or windows. Technically, everything should be considered in a reserve plan to be fair to current and future owners.

For more information on Custom Reserves, call (888) 927-7865 or visit



Preparation Is The Key To Success

By Kathleen Karpovich

Take advantage of the slower pace of summer, and begin preparing for the arrival of Florida’s seasonal residents.  Now is the perfect time to review your association’s annual budget.  After the review, you may find that you may want to add or eliminate a service.  An “annual financial review” of your services will allow community association/property management companies the opportunity to determine cost savings, adopt more efficient collection processes, and result in a greater rate of return on your deposit accounts available in the marketplace.  It’s also a great time to order association assessment payment coupons books/statements.  Preparation is key! 

For more information on Florida Community Bank, call (239) 552-1759 or visit (Member FDIC). 



• Check Balance Sheet First
• Check Operating Equity vs. Operating Cash
• Check Reserve Liability vs. Reserve Cash
• Make Notes for Budget
• Understand Variances
• Code Repairs in Detail

    For more information on Gerstle, Rosen & Goldenberg P.A.  call (305) 937-0116 or (561) 447-4000 or visit 




Bridge The Gap Between A Budget On Paper and Reality

By Sara Bremerman

A sound, well-planned, and successfully managed budget and dues collection process are key to the survival and ongoing maintenance of any association. As seen during the economic downturn, there can be a significant disparity between a budget and the actual collection of assessments/dues and plans for unforeseen expenses. It is important to work with management companies and board members across the state to help bridge the gap between a budget on paper and reality. To this end, clients are provided with tools to collect dues more efficiently and effectively, offered secure solutions for excess funds, and provided loan options for minor repairs and major renovations. By forging strong relationships with attorneys, CPAs, and contractors, an extra level of advice and care is provided. Member FDIC. Equal Housing Lender.

For more information on IBERIABANK, visit 



Extending The Life Cycle of Asphalt Pavement

By Chris Evers

Most community association managers and HOA board members think of road resurfacing as a big-ticket item to be budgeted for every 20 years, which is the anticipated service life of typical asphalt pavement. When best practice preventive maintenance (PM) is implemented, that life cycle can be significantly extended. Treatments scientifically engineered to preserve asphalt pavement have been around for 50 years and are widely used by cities in Florida. Rejuvenating pavement every three to five years can postpone the major expense of resurfacing while ensuring community satisfaction with day-to-day road conditions.

For more information on Pavement Technology Inc., call (727) 638-1699 or visit