Fairbanks Ranch Estates – Guide to HOA Financial Management

Описание: Fairbanks Ranch Estates - HOA Financial Management Primer
This video takes a step by step walk through the structure and processes involved in the management of HOA finances. It covers in some detail the sources of revenue, and the types of expenditures, including operating expenses, capital improvement expenditures and allocation to a reserves account. Once the basics are presented, the video focuses on budgeting and reserve studies.
Operating funds are used primarily for the provision of services to the HOA community – such as, insurance premiums, security services, office expenses, legal expenses, property management and regular maintenance of common areas.
Capital improvements include adding new assets to the HOA, such as tennis courts, parks or a library and are funded from the capital account.
A reserve study is a long term capital budget planning tool which consists of two parts: the physical analysis and the financial analysis. The reserve study is prepared annually by a qualified outside consultant for the benefit of administrators, the board of directors and the community of homeowners. A reserve study provides a long term view of the funding needed to repair and replace assets such as the roof of a building owned by the HOA or the resurfacing of roads. With the knowledge provided by a reserve study, the HOA management can anticipate the level of funding required and the timing of such expenditures – such that budgets may be funded appropriately.