CAI-NJ Feb. 2019

MANAGEMENT TRENDS... from page 42.

tion attorney is important, since there may be newer strategies that can be utilized. Since the board and management will review the fiscal status of the asso- ciation with the June financial report to see if there are currently any deficits and to project costs through the end of the year (as well as the status of delin- quent accounts) this is a good time to

also communicate with homeowners. All deficits (current and projected) should be discussed and a plan for addressing the deficit-if any – should be presented. Mid-year is a good time to evaluate the fiscal health and cash flow of the community especially with the past year’s audit. This way there are no big surprises at the end of the year and the board can actually amend the current budget if needed. When reviewing the budget verses actual line item costs (after any jour- nal entries from the audit have been entered) it should be easy to prepare for next year. For example, if month- ly contributions to the replacement reserve fund have not been made, due to cash flow issues, this should be flagged. If delinquent accounts are the cause, then a change in the collection policy should be presented. Based on projections of costs and income projected through the end of the year, if cash flow will improve, then no adjustment is needed. But if it looks like there will not be enough improvement in cash flow to make the transfers needed, a revision to the budget must be considered. Also, if there are unexpected costs for broken sewer pipes, removal of damaged trees, or other unbudgeted repairs that have or will be scheduled, a revision to the budget is recommended. Even if the board does not intend to amend the budget mid-year, it is good idea to discuss the fiscal heath of the community with homeowners as soon as the summer. Good communi- cation and mid-year review is import- ant to maintain an open relationship between the board and homeowners. When homeowners are kept in the”

HML-4337 CAI Dec 2013_1/2 pg vertical 11/22/13 10:48 AM Page 1 is to include a requirement that any delinquent owner with an account balance more than 60 days overdue must be offered a payment plan while the amount is still manageable. Addressing this issue with the associa-

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Value–Experience–Quality Being prepared and responsive is what distinguishes our firm. We strive to solve the problem–resolve the issue and make life easier for our Associations and their property managers. Hueston McNulty, P.C. Association General Counsel and Experienced Trial Attorneys Samuel J. McNulty, Esq. smcnulty@huestonmcnulty.com /www.huestonmcnulty.com

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