The Community Association is a business, a “community business”. In order to provide the basis for an ongoing association, the Board of Directors must exercise their fiduciary responsibilities in administering the affairs of business of the Community Association. This necessitates the establishment and maintenance of financial records and accounts that meet the needs of the association.

DANELLA REALTY & MANGEMENT CO. has developed a financial management system that allows the Executive Board through monthly financial reports, to monitor the financial activity in the various service areas of the association.

Danella administers an effective financial system for the Association. Accounting is done on an accrual basis with a double entry bookkeeping system. Billings, cash receipts, cash disbursements, contracts, prepaid expenses and approved invoices and purchase orders serve as the basis for entries. The accounting system is maintained in a manner sufficient to enable a Certified Public Accountant to prepare an annual financial report based upon an examination by the Board, officers or members at any reasonable business hour.

Danella Realty does not commingle funds. Each Association has its own checking and savings accounts at banks of its own choosing. Although each association can designate its own signatories, Danella recommends that it be the sole signatory on disbursements for insurance, utilities and contractual items so that coverage does not lapse, discounts are not lost and vital services are not interrupted.

Maintain general ledger using generally accepted accounting principles on an accrual basis. Create a customized Chart of Accounts specific to the Association. Develop an annual operations and reserve budget.

a. Financial Statements
  1. Monthly Income Statement.
  2. Monthly Budget Comparison.
  3. Last Year Comparison.
  4. Balance Sheet.

b. Reports.
  1. Monthly General Ledger.
  2. Year-to-Date General Ledger.
  3. Journal Transaction Report.

Monthly fee collections, as well as any special assessment levied by the Association.
  1. Produce monthly invoices, or annual coupon books, if requested.
  2. Computerized collection tracking.
  3. Monitor delinquencies, including sending letters and assessing late fees according to the by-laws.
  4. Pursue delinquencies until collected, either voluntarily by the unit owner, or through litigation.
  5. Timely reporting to the Board regarding all collections.
  6. Reports.
    1. Scheduled Charges Report.
    2. Deposit Activities Report.
    3. Cash Journal.
    4. Delinquency/Aging Report.
    5. Adjustments Journal.
    6. Owner Ledger.

Maintain computerized payables in a timely manner.
  1. Pay all re-occurring and special invoices that are Board-approved.
  2. Maintain a Board-approved list of vendors and suppliers.
  3. Maintain a purchase order system for all supplies and services.
  4. Timely reporting to Board regarding all paid invoices and payables.
  5. Act as liaison between vendors and suppliers to encourage discounts and quality service to owners.
  6. Reports.
    1. Voucher Reports.
    2. Check Register.
    3. Expense Distribution Report.
    4. Vendor Profile/Listing Reports. (Year end)
    5. A/P Aged Trial Balance.

Maintain all bank accounts at a Board-approved financial institution.
  1. Make daily deposits of all collections.
  2. Perform monthly computerized reconciliations of all accounts.
  3. Reports.
    1. Budget Report.
    2. Statement Reconciliation.

Prepare annual budgets.
  1. Prepare initial annual budgets for approval using past experience and historical data.
  2. Work closely with Board or committee from budget preparation to approval.
  3. Track budget on a monthly basis and supply a Budget Comparison Report.
  4. Reports.
    1. Budget Report.
    2. Budget Comparison Report.
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