HOA Auditor: What They Do And When Your Association Needs One
An HOA auditor can be an association’s partner in financial integrity and accuracy. Board members must understand the roles and responsibilities of auditors, when to hire one, and whether a third-party auditor is the best option. What is an HOA Auditor? An HOA auditor is a qualified professional who independently examines an association’s financial records, […]
HOA Bank Accounts: Safeguarding Access And Protecting Funds
Protecting an association’s finances starts with understanding how to properly manage HOA bank accounts. Boards must keep separate accounts for funds, establish clear access controls, and reconcile statements regularly. Doing so can help safeguard the association’s funds. Are HOA Bank Accounts Necessary? In general, it is recommended for HOAs and condominiums to open and maintain […]
Can HOA Reserve Funds Be Used For Operating Expenses?
Can HOA reserve funds be used for operating expenses? When faced with a budget shortfall, some boards’ first instinct is to borrow from reserves. Yet, this practice may not be permissible depending on the association’s governing documents. Understanding what is and isn’t allowed can help safeguard against both liability and financial problems. What’s the Difference […]
HOA Invoice Approval Process: Who Should Approve Billings?
Board members must practice a comprehensive HOA invoice approval process. This process helps support financial controls and ensures that associations monitor payables smoothly. Yet, many boards don’t even know where to begin. The Importance of HOA Invoice Approval Homeowners associations rely on vendors for various goods and services. Payment follows a strict fee structure agreed […]
HOA Operating Budget vs Reserve Funds: A Clear Distinction For Boards
The HOA operating budget serves as the financial backbone of any association’s daily operations. Many boards still confuse this with reserve funds, leading to poor financial decisions. When boards understand the difference, they can plan better and avoid unnecessary financial strain. What is an HOA Operating Budget? The HOA operating budget is a plan that […]
HOA Accounts Payable: How Boards Can Reduce Errors, Fraud, And Overspending
Managing HOA accounts payable is part of the board’s responsibilities, but it is not always easy. In fact, mistakes can result in missed invoices, duplicate payments, and even acts of fraud. Fortunately, there are some strategies the board can employ to handle payables properly. What is HOA Accounts Payable? Accounts payable (AP) is a term […]
HOA Chart Of Accounts? Why Makes This Important For Your Association?
An HOA chart of accounts forms the backbone of an association’s financial system. Without it, even the best budget can fall apart. Boards often rely on this structure to track money in an accurate manner and make sound decisions. What is an HOA Chart of Accounts? A homeowners association chart of accounts is an organized […]
Condo Association Insurance: How Can It Protect Your COA?
Condo association insurance is the first line of defense against liability and property damage. It protects the association’s finances by covering the elements the COA is responsible for. In addition to the master policy, there are other types of insurance condo boards should obtain. What is Condo Association Insurance? A condo association master insurance policy […]
HOA In Debt: What Can The HOA Do?
An HOA in debt can cause stress for both the board and homeowners. Debt can result from many things, including poor planning, unpaid bills, or unexpected expenses that exceed the budget. When this happens, the community’s financial stability and reputation are at risk. Common Reasons for an HOA in Debt In many ways, condos and […]
What Is A Fidelity Bond? Are Texas HOAs Legally Required To Have One?
What is a fidelity bond? In an HOA or condo, it’s a safety net that protects the community’s money from theft or fraud. In Texas, some HOAs wonder if it’s just something nice to have or something they’re legally required to carry. What is a Fidelity Bond? A homeowners association fidelity bond is there to […]
