by Michael Hamline, Editor / Published August 2019
It was Benjamin Franklin who shared, “Beware of little expenses. A small leak will sink a great ship.” There is, of course, much truth to this. In the case of community associations, however, the boards of directors have a fiduciary duty to act in the best interests of the association residents, which means they will wisely need to spend money to maintain the community and keep it from springing leaks and sinking.
“I believe that through knowledge and discipline, financial peace is possible for all of us,” remarks Dave Ramsey. The August issue has multiple articles that detail financial knowledge and disciplined steps that when followed can lead to a higher degree of financial peace.
On page 6 in the article “Women of the Industry—Financial Roundtable,” several women share important elements to consider when planning for the community’s financial success.
Lilliana M. Farinas-Sabogal, Esq., with Becker has written the article “Financial Mismanagement Protections” on page 30. She shares a variety of policies associations can implement to protect themselves. She summarizes, “In order to reduce the likelihood of theft or other misuse of association funds, it [the board] should adopt sensible, clear, and verifiable policies when dealing with association funds; ensure the adopted policies are followed; and perform routine checks on accounts and finances.”
Cesar de la Noval with Executive National Bank has written “Florida: The HOA/COA Fraud Capital.” He shares on page 44 how to detect fraud and how to implement best practices to prevent or minimize situations where your community might be taken advantage of.
A trio of articles deal with the importance of reserve funding. Robyn Rocco, CAM, with Landex Resorts International shares her article “Budgeting and Reserve Studies: Planning for Financial Security in the Future” on page 50.
The second of these articles, “Understand the Importance of Fully Funding Reserves,” was submitted by Sundeep Jay with J.R. Frazer, Inc. He shares his insights on page 60.
The final article of this trio, “To Reserve or Not to Reserve? That Is the Question” was submitted by Richard Alfonso with U.S. Century Bank and can be read on page 66. The reality is that the community must be maintained, and money is required to carry out that task.
Finally, Jennifer Olson, CAM, with Centennial Bank has authored the article “Board Officer Roles—What’s the Board Treasurer’s Job?” on page 54. She highlights the basic responsibilities of the treasurer.
FLCAJ hopes that you continue to enjoy your summer.