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Home HOA Clients

 

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Internal Control
Reserve Fund
Tax
FAQ
Legal Disclaimer

 

 

 

Guidance  

The Board of Directors need to understand how to handle the finances of the association, including internal controls and the reserve fund, to fulfill Board's fiduciary responsibility to the HOA membership. Definitions follow.  A more thorough discussion is provided by using the indicated links.


Internal Controls

A homeowners association, as is true for any organization,  should have strong internal controls. Implementation of appropriate internal control procedures for your HOA is the responsibility of the Board of Directors.


Reserve Fund

A "Reserve Study" is used to ensure the financial resources needed, at a particular time, will be available at that time. While the initial reserve study should be made by a professional engineering company, updates to the study can be made by the Board of Directors. In addition, a reserve budget should be developed and reviewed every year.


Tax

Generally, homeowners associations have two federal tax filing alternatives  One method could cut an association's income tax bill in half.  However, certain stringent rquirements must be met to reduce the chances of not surviving an IRS audit.


FAQ (Frequently Asked Questions)

Frequently asked questions (FAQs) are answered in this section