Association Manager Report – June 2018
In the business office, the summer months mean it’s time for the Annual Audit and Reserve Study. While the audit looks at the past year and the Reserve Study at the coming year, both are important tools necessary for budget season.
Like many homeowner associations, Blue Ridge contracts with an independent auditing firm to review the prior year’s financial procedures and processes. Noted in the Audit Report are exceptions and recommendations to better protect homeowners money and comply with IRS and accounting standards.
A Reservist compiles a list of every asset component, its value, useful life, and remaining useful life over the next 30 years. The numbers are crunched to determine how much we’d have to save each year to afford scheduled replacements. Each year, we review the component list, make adjustments based on recent projects or findings, and the numbers are crunched again. It’s a tedious process, but critical to avoiding unplanned failures and special assessments.
Both the Audit Report and Reserve Study are available for review by homeowners and prospective buyers. Not exactly great beach books, but if you love spreadsheets and balance sheets, they could be the read for you!