Journal Notes—August 2016

Journal Notes—August 2016

by Michael Hamline, Editor/ Published August 2016

The August issue of FLCAJ is appropriately known as the “Budgeting and Financial” special issue. By my count, there are nine articles that deal with a wide range of financial themes, such as budget preparation, financial best practices, the communities of excellence financial innovation winners, collections, overtime pay, bank loans, fraud, and bank technology. The reason for the number of financial articles in August is that money and finances are a vital part of what communities are concerned with and must oversee in a responsible manner.

Ryan Clifton with Leland Management writes in “The Annual Budget: The Lifeblood of a Financially Healthy Association” on page 8, “A properly crafted budget guides the association in financial decisions throughout the fiscal year and helps minimize unexpected costs.” He details the importance of allotting for sources of income and expenses and explains what should be under each category. Clifton writes, “Preparing an association budget can be a lengthy and sometimes difficult process; however, if done correctly it will ensure your association is meeting its fiduciary responsibility and is on the path to financial health.

“Bringing Order to Your Financials” on page 12 provides several important best practice tips from various advertisers. The COE Financial Innovation Winners, Turtle Cay HOA and Tuscany Bay HOA, are profiled on page 18 and share a variety of avenues their communities have taken to save money.

Will Simons of Association Reserves in “The Comprehensive Guide to Reserves: Reserve Funding Plans” on page 24 talks about the funding plan as “the recommended action plan by which the association provides income to the reserve fund to offset ongoing common area deterioration.” He details the importance of fully funding the community’s reserves.

David Podein, Esq. and Roger Slade, Esq. detail the ramifications of the updated federal overtime regulation on page 34 and how it will affect the community association industry. Additionally, read Mitch Drimmer’s article “Failure to Pay Not a Matter to Be Taken Lightly” on page 52 and Bruce Rodger’s article “Itopia Private Residences: A Shining Example” on page 68 to gain important counsel on how to have a proper and successful collections strategy.

Finally, do not skip “Borrowing Is Not a Dirty Word” on page 56 by David Farrar; “Fraud: How It Happens and How to Prevent It” on page 60 by Brad Schneider, CPA; and “Utilizing Technology to Streamline Association Financial Management” on page 64 by Janet Romano. There are many vital issues to understand, so start reading.