Budgets And Boards

Community Associations HOA Annual Meetings Property Management Career Rules and Regulations

To operate a successful community association, there are many important facets of association governance that must be understood and implemented by the association’s board of directors. One of the most important facets is the budgeting process.
Serving on a board of directors is like running a small to midsize business – – with all of the decisions, exposure, and liability that accompany such a task. Of course, when running any type of organization, it is helpful when you can turn to the experts to ensure that everything is handled properly.  In the case of overseeing the operations of an association, you will want to turn to a community association specialist to make sure decisions are made in accordance with the associations governing documents and current laws.
The association’s governing documents determine when the fiscal year will end.  In most cases, the year-end will occur at the end of a calendar year, but this can vary by association. As with any well run corporation, a budget must be prepared prior to the beginning of the fiscal year.  For an association, a budget is extremely important since it establishes how the association’s income will be used to run the organization and perform necessary maintenance and repairs. Note that the only source of income for an association is the members’ assessments which must cover all of the expenses.  The budget process must be taken seriously and the budget should be prepared with a very detailed hand.
Whether you are experienced with the budget process or will be preparing your first budget, your Henderson Properties Community Association Manager will provide complete guidance as to when and how the budget process should go.  He or she will give you detailed information regarding the income and expenses from previous years; information that will prove invaluable as you prepare the budget for the coming year.
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