Condo Media - November 2014 - 44
FINANCE
Generally, this is unpaid condo fees or
special assessments.
Current liabilities are the opposite
of current assets. They are debts or
obligations due within one year. Some
common items on a condominium association's balance sheet are accounts
payable, which is bills that are due that
have not been paid, and "money to
reserve." Money to reserve is money
designated as going to the reserve but
has not been paid to the reserve yet.
A report you will often see is the budget comparison report. This compares
how the performance of the association
is compared to the budget. It gives a
comparison both for the month and for
the year. There will often be a total budget comparison report and then subsections after it. For example, one section
could be general maintenance and
cleaning and another could be repairs.
There is also a report called the cash
journal. This is simply a report that
shows all the money that came in for
44
Condo Media * November 2014
that month. It will also show checks that
were returned for insufficient funds.
The aging report (or delinquency
report) shows condominium units
behind in their payments. One thing
to look for is owners more than 30
days late. That could be a signal that
they are having financial problems. You
may also see units that have a negative
balance. It may look like this: (1,200).
That means either they have a credit
balance or possibly a check for one unit
was incorrectly applied to their unit.
The accounts payable check register
is the opposite of the cash journal. It
shows all the checks that were paid
out, the check numbers, the date of the
check, who it was paid to, and various
other descriptive information.
The accounts payable trial balance
shows bills owed that have not been
paid yet. One thing to keep in mind is
that if the accounts payable trial balance
is large and the amount in the checking account listed under current assets
is low, it will appear that the condominium will not be able to pay its bills.
However, on the first of the month, the
condo fees will come in and the checking account will be replenished.
The bank reconciliation report is a
comparison of the bank statement and
the books of the association. Since
there are probably deposits that have
come in but not cleared yet and checks
that have gone out but not cashed yet,
the books and the bank statement will
be different. This report will make clear
the reasons for the differences.
Understanding the financial statements
of condominiums is not difficult. Hopefully, this article has made it even easier. CM
Ed Hofeller is the founder and president of Hofeller Management. He has
an MBA degree and an AMS designation from CAI. Mark Sheingold works
at Hofeller Management as an assistant
property manager and has obtained his
CPM, RPA, and CPO designations.
Condo Media - November 2014
Table of Contents for the Digital Edition of Condo Media - November 2014
Contents
From the CED’s Desk
Editorial Board
CAI News
CAI Regional News
Asked & Answered
Homeowner’s Corner
Maintenance
Management
Focus on Fees
Vendor Spotlight
Finance
Volunteer Spotlight
CAI-NE 2014 Management Directory
Classifi ed Service Directory
Advertisers Index
Condo Media - November 2014 - Cover1
Condo Media - November 2014 - Cover2
Condo Media - November 2014 - Contents
Condo Media - November 2014 - From the CED’s Desk
Condo Media - November 2014 - 3
Condo Media - November 2014 - Editorial Board
Condo Media - November 2014 - 5
Condo Media - November 2014 - CAI News
Condo Media - November 2014 - 7
Condo Media - November 2014 - 8
Condo Media - November 2014 - 9
Condo Media - November 2014 - 10
Condo Media - November 2014 - 11
Condo Media - November 2014 - CAI Regional News
Condo Media - November 2014 - 13
Condo Media - November 2014 - 14
Condo Media - November 2014 - 15
Condo Media - November 2014 - 16
Condo Media - November 2014 - 17
Condo Media - November 2014 - 18
Condo Media - November 2014 - 19
Condo Media - November 2014 - 20
Condo Media - November 2014 - 21
Condo Media - November 2014 - Asked & Answered
Condo Media - November 2014 - 23
Condo Media - November 2014 - Homeowner’s Corner
Condo Media - November 2014 - 25
Condo Media - November 2014 - Maintenance
Condo Media - November 2014 - 27
Condo Media - November 2014 - Management
Condo Media - November 2014 - 29
Condo Media - November 2014 - 30
Condo Media - November 2014 - 31
Condo Media - November 2014 - Focus on Fees
Condo Media - November 2014 - 33
Condo Media - November 2014 - 34
Condo Media - November 2014 - 35
Condo Media - November 2014 - 36
Condo Media - November 2014 - 37
Condo Media - November 2014 - 38
Condo Media - November 2014 - 39
Condo Media - November 2014 - Vendor Spotlight
Condo Media - November 2014 - 41
Condo Media - November 2014 - Finance
Condo Media - November 2014 - 43
Condo Media - November 2014 - 44
Condo Media - November 2014 - 45
Condo Media - November 2014 - Volunteer Spotlight
Condo Media - November 2014 - 47
Condo Media - November 2014 - CAI-NE 2014 Management Directory
Condo Media - November 2014 - 49
Condo Media - November 2014 - 50
Condo Media - November 2014 - 51
Condo Media - November 2014 - 52
Condo Media - November 2014 - 53
Condo Media - November 2014 - 54
Condo Media - November 2014 - 55
Condo Media - November 2014 - 56
Condo Media - November 2014 - 57
Condo Media - November 2014 - Classifi ed Service Directory
Condo Media - November 2014 - Advertisers Index
Condo Media - November 2014 - 60
Condo Media - November 2014 - 61
Condo Media - November 2014 - 62
Condo Media - November 2014 - 63
Condo Media - November 2014 - 64
Condo Media - November 2014 - Cover3
Condo Media - November 2014 - Cover4
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