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is the owner's financial obligation to the community association during a given period of time usually one year. |
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The goal of this funding strategy is to keep the reserve cash balance above zero |
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An orgainized list of titles, descriptions and assigned numbers of all accounts in an organization's general ledger. The assigned number helps you locate the account The title describes the purpose of the account |
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Discretionary budget line items |
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These are items based on owner, board and committee desires. They are items people would like to have given their values, lifestyle and preferred level of service "recreational expenses" |
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Are the cost of goods and services used to operate and maintain the community 's property |
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| Federal Housing Administration. Regulates and influences such items as the amount of insurance a community association must carry, procedures for financial operations and requirements for the upkeep of property |
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Federal National Mortgage Corporation
Buys mortgages from lenders and in doing so require certain types of insurance to be in place |
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Federal National Morgage Association. Federally established secondary mortgage institution that may set requirements that your community association will have to meet if owners are to participate in their financing programs |
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| The goal of this funding strategy is to attain and maintain the reserves at or near 100 percent as called for on the component inventory. |
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Historical trend budgeting |
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Definition
This method begins with the assumption that existing line items are needed. The amount of funds allotted to each during the current year is adjusted for expected changes in the coming year |
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Major improvement expenses |
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Definition
consist of items that are not necessarily required, but are added to improve the overall welfare, safety or life of the residents or to enhance the value of the community association as reflected in the resale value of units |
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| the section of a budget devoted to operating activities includes operating expenses and major improvement expenses but not the replacement fund |
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| are those items that occur on a regular basis day to day week to week, month to month, and year to year |
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Term
Reconciliation of
expenses and revenue |
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Definition
| After you draft both your operating and replacement fund budgets for the coming year, you must reconcile your estimated expenses with your community's anticipated revenume. To reoncile means to bring together afgter difference |
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Term
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Definition
consists of funds put aside in reserve for the replacement of major components of a community's common property |
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