Board Member Resources

Frequently Asked Questions

• HOW MUCH ARE YOUR MANAGEMENT FEES PER MONTH?

  Our management fees vary depending on the size of your Association. By filling out the attached questionnaire, we can get a clearer picture of your Association to bid accordingly.

• WHAT IS INCLUDED IN THE FINANCIAL SUMMARY AND HOW OFTEN ARE THEY PROVIDED TO THE BOARD FOR REVIEW?

  Our typical Board Packet’s financials include but are not limited to:

  • Annual Budget Comparison
  • Balance Sheet
  • General Ledger of the most current reconciled month
  • Reconciliation reports for each bank statement
  • AR/AP Reports

• DOES YOUR COMPANY ASSIST IN THE FACILITATING OF ANNUAL AUDITS AND TAX PREPARATION?

  Assist in tax preparation? Definitely! Annual audits? That depends on the Associations governing documents. When it comes to financial statements and the level of assurance provided by an accountant, three common types of services are offered: review, compilation, and audit. Each provides a different level of scrutiny and assurance regarding the accuracy and reliability of financial statements.

  1. Compilation:

  • Definition: A compilation involves the presentation of financial statements based on information provided by the company’s management. The accountant compiles this data into standard financial statement formats without verifying its accuracy or completeness.
  • Level of Assurance: No assurance. The accountant does not verify the data or offer any opinion on the financial statements. They simply organize the financial data provided by management.
  • Purpose: Typically used for internal purposes or when a third party (such as a lender) needs basic financial information but does not require a high level of assurance.
  • Procedure: The accountant gathers financial data, ensures it is presented in a proper format, and may make basic adjustments, but does not perform any analysis or verification.

  2. Review:

  • Definition: A review is a step above a compilation and involves some analytical procedures and inquiries of management to provide limited assurance that there are no material modifications that should be made to the financial statements.
  • Level of Assurance: Limited assurance. The accountant conducts a review to state that they are not aware of any material misstatements, providing a moderate level of assurance.
  • Purpose: Reviews are often used by companies that need to satisfy external parties, like lenders or investors, but do not require a full audit. It offers more credibility than a compilation but is less extensive and expensive than an audit.
  • Procedure: The accountant performs limited procedures such as analytical review and ratio analysis, and inquiries of management about accounting practices and principles, but does not conduct a thorough examination of the underlying financial data.

  3. Audit:

  • Definition: An audit is the most comprehensive and rigorous level of financial statement examination. It involves the verification and testing of financial data, internal controls, and adherence to accounting standards.
  • Level of Assurance: Reasonable assurance. The accountant provides an opinion that the financial statements are free of material misstatement and fairly present the financial position of the company in accordance with the applicable accounting framework.
  • Purpose: Audits are often required by law, regulations, or external stakeholders (like investors or creditors) to ensure the accuracy and reliability of financial statements. It is typically required for publicly traded companies, larger private companies, or non-profits.
  • Procedure: The auditor performs extensive procedures, including testing transactions, verifying account balances, examining supporting documents, and evaluating the company’s internal controls. The auditor’s opinion is then expressed in an audit report.

  These services vary in cost, with compilations being the least expensive, followed by reviews, and audits being the most expensive due to the depth of work involved.

• WHAT ASSESSMENT PAYMENT OPTIONS DO YOU PROVIDE TO OWNERS?

  Owners have the option of mailing in payments or paying via their online portal.