Journal Notes

by Michael Hamline, Editor / Published August 2024

     Condominiums, cooperatives, and homeowners’ associations have to be maintained, repaired, and renovated, and this means spending a good deal of cash. Boards of directors should want to spend the association’s money appropriately and wisely. Therefore, the August issue is replete with articles that seek to help boards in this endeavor.

     On page 34 there are multiple tips for managing a community’s money, spending money to save the community money and headaches, budgeting best practices, and mitigating financial risk, to name a few.

     Turn to page 46 to see what advice Lisa Elkan with Alliance Association Bank offers for preventing common mistakes that lead to financial frustration. She recommends the following: accurate recordkeeping, realistic budgeting, completion of a professional reserve study, restraint in cutting corners to cut costs, and having a team of experts.

     On page 52 Sundeep Jay, RS, PRA, with J.R. Frazer shares the actions associations should be taking as the structural integrity reserve study (SIRS) deadline approaches on December 31, 2024. He recommends that the association provide a copy of any engineering inspection report completed on any of the community buildings in the last five years. He also encourages boards and current owners to fund the necessary updates to their aging buildings.

     When you flip to page 56 you will find an article by Kathy Naughton of Centennial Bank addressing the issue of how to determine if the association’s bank is safe and in good financial condition.

     Turn to page 62 to read about proper budgeting for your 2025 condominium association insurance renewal from Star Herbig with Florida Community Association Insurance. She provides helpful counsel to ensure adequate insurance coverage and appropriate limits so the community isn’t left in a bind.

     On page 68 Julie Celozzi with Cogent Bank shares several ways associations can protect themselves against financial fraud. Two of her recommendations are to receive secondary statements, which is a monthly report from the association’s bank that can be used to cross reference your association’s internal records, and to bring outgoing mail directly to the post office and not risk it being stolen from the mailbox.

     FLCAJ hopes that the remainder of 2024 and all of 2025 will see your community association establish itself on sound financial principles.

Editor