CIS uses a seasoned staff of dedicated accounting personnel. The staff is trained to use a powerful, customized HOA management and accounting software from HOA Data Services. Our goal is to create the most accurate and transparent records for your Homeowners Association. Your CPA will agree that we regularly meet that goal.
Monthly Financial Reporting
Maintain the General Ledger and produce monthly financial management reports. This exceeds the quarterly requirement for HOA Management imposed by the State of California. HOA financials are processed upon the receipt of bank statements and are e-mailed to all officers.
Balance Sheet Preparation
The Balance Sheet is prepared to meet accounting industry standards for HOA management. It consists of an overview of the balances to date of current assets, liabilities, and equity.
Statement of Income and Expenses Preparation
This document shows both the budgeted and actual incomes and expenses throughout the month. The incomes and expenses are broken into appropriate subcategories.
Annual Financial Report
In addition to the reports included in the monthly financials, the Annual Financial Report includes a General Ledger Balance. The GL Balance shows a detailed account of transactions under every general ledger account category, such as landscape extras or postage. This report is provided to the client’s approved CPA.
A/R Aging Report
The Accounts Receivable Aging Report shows information on any delinquent accounts as well as amounts that are prepaid, currently due, overdue by 30 days, 60 days or over 90 days. Collections statuses such as Legal Hold, Lien, Foreclosure, and Inactive are also noted on the accounts.
The Check Register recaps all monthly payment activities. Each entry includes the payee, payment date, amount, account and/or invoice references, and general ledger coding. Following this report are the account statements from the HOA’s bank. Each statement is paired with a reconciliation report showing any payments that have not yet been cashed.
Billing Statements are sent to owners on a monthly basis. This effectively increases the timely collection of receivables while providing to owners a short review of their assessment account history. Receivable funds are deposited daily into the bank account owned by the client.
Invoices are entered into a sophisticated HOA management software system for check printing on a weekly basis. Where available, clients may view and approve or hold invoices online before the check is printed. When CIS is given signature authority, checks are sent directly from the HOA management office to the payees for maximum efficiency. Otherwise checks and copies of corresponding invoices are sent to the On-Site General Manager or Board Treasurer for signature and disbursement. Utilities and other regular payments may be set up as automated, reoccurring electronic payments.
CIS staffs highly educated HOA collections personnel to assist clients with complicated collection activities for HOA management such as placement of liens and foreclosure. Common Interest Services follows the most current regulations set forth by multiple statutes. CIS works with professional HOA collections attorneys such as Witkin & Neal, Inc.
About two months prior to the mailing deadline for a fiscal year budget, CIS prepares an easy to read, easy to adjust proposed budget. A certified HOA Management Specialist (AMS) prepares the proposed figures using historical trends, contract agreements, professional speculation and recommended figures from professionals.