CAI-NJ July 2021

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What’s in a

BOARD LEADERSHIP DEVELOPMENT

Workshop?

Fundamentals of Financial Management By Michael Mezzo, CPA WilkinGuttenplan

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R unning a condominium or homeowners association is not dissimilar from running a business. Unfortunately, many of us do not have the experience or expertise to easily step into this role. CAI provides the “Fundamentals of Financial Management” course within the Board Leadership Development Workshop, which aims to provide a thorough overview of the knowledge and tools needed to effectively manage the finances of your community. The topics covered in the course strive to help board members: • Recognize effective practices for protecting your associ- ation’s assets • Learn the importance of having a team of professionals to inform and guide you in managing your site’s finances • Discover potential financial liabilities that not only impact the association, but board members as well, and learn how to mitigate those risks • Learn to implement sufficient controls to oversee cash collections, payments, etc.

• Discover tools and techniques to aid in preparation of an annual budget • Gain the skillset of pulling key metrics and benchmarks from both the association’s internal monthly financial statements and the annual audit • Familiarize yourself with the long-term funding strategies required for the association’s replacement fund Exploring an overview of the concepts discussed above will go a long way in helping to provide board members with the tools necessary to make informed and educated decisions with respect to the financial management of their community. Most importantly, it is vital to remember that “no one knows everything!” Even those with extensive experience in running a business will find themselves at a crossroads from time to time. They key to success is arming yourself with the knowledge and tools to get to the right solution, which is the ultimate goal of the CAI Fundamentals of Financial Management course. A N O T H E R C O M P O N E N T O N P A G E 1 8 .

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