Welcome to class #9: Money Matters! Creating a Budget; Reading HOA/Condo Financials; Preventing Fraud & Embezzlement; and 411 on Reserve Funds
In today’s class, Beth Mulcahy, Esq. will provide a summary of the HOA/Condo bills that have been signed into law this legislative session. Then we will go over the most effective ways to create a budget, read HOA/Condo financials, how to prevent fraud & embezzlement, and give the 4-1-1 on reserve funds!
Questions and Answers video can be found here: youtu.be/j_BLAv3B_xI
00:00 Introduction
00:20 Topic
00:46 Neighborhood Services
00:57 Beth Mulcahy, Esq.
01:32 Poll
02:01 Class Agenda
02:39 AZ State Legislative Update
03:26 HB2251 Condominium insurance coverage
03:33 HB2298 Planned community public roadways.
04:01 HB2301 HOA Political Activity
05:02 HB2607 Board Member Removal
07:03 SB1049 Protected Flags
08:34 Poll results
09:49 Money Matters!
10:08 HOW TO CREATE A HOA/CONDO BUDGET
14:11 Budget Goals
15:51 Check governing documents for budgeting procedure
16:21 Reviewing and approval of budget
19:34 Backup information for estimates
19:43 Accurate and simple information
20:34 Address trends
21:15 Be transparent and ready to answer all questions
22:04 STEPS TO COMPLETE THE BUDGETING PROCESS
22:19 Review
23:30 Evaluate
24:23 Sample Excel Spreadsheet
25:30 Assess Needs
26:43 Question Vendors
26:50 Review and Analyze Contracts
27:16 Plan for the Unexpected
28:44 Analyze Income & Expenses
30:15 RESERVE STUDIES AND RESERVE ACCOUNTS
30:35 Poll 3
31:27 What is a Reserve Study?
35:47 Does AZ law require a reserves or a reserve study?
38:45 Professional Reserve Study
38:54 Reserve Study & Budget
40:45 What Should a Reserve Study Provide?
44:06 Reasons For Establishing Reserve Fund
45:35 A reserve fund minimizes or negates the need for
special assessments.
46:27 What should not be included in a reserve study?
47:30 How to Read HOA/Condo Financials
48:40 Review Year to Date (YTD) budget monthly.
49:07 Review reserve study.
50:02 Board Members should Spend 10-30 minutes a month before
the board meeting looking at YTD Budget.
52:34 HOW TO PREVENT FRAUD AND EMBEZZLEMENT IN YOUR
HOA/CONDO COMMUNITY
53:38 What does misappropriation of funds look like?
55:35 Warning signs of potential fraud.
57:56 Tips to prevent theft and fraud.
1:02:41 If your board discovers that funds are missing from you
association.
1:06:37 Closing remarks
1:09:02 Google Review
1:09:44 Copyright 2023
Links, Cheat Sheets and Blogs mentioned in this class:
2023 Legislative Update: mulcahylawfirm.com/publications/2023-legislative-update/
Top 10 Community Association Law: mulcahylawfirm.com/publications/top-10-community-association-law/
Budgeting for Associations: mulcahylawfirm.com/publications/budgeting-for-community-associations/
Reserve Funds for Associations: mulcahylawfirm.com/publications/reserve-funds-for-associations/
How to Read an HOA or Condo Association Balance Sheet
activerain.com/blogsview/2156023/how-to-read-an-hoa-or-condo-association-balance-sheet
Tips for Preventing Theft & Fraud: mulcahylawfirm.com/publications/preventing-theft-fraud-association-funds/
Mulcahy Law Firm Website: MulcahyLawFirm.com
Google Review link: g.page/r/CUaKxgS42hUKEB0/review
Mulcahy Law Firm, P.C.
3001 East Camelback Road, Suite 130
Phoenix, Arizona 85016
mulcahylawfirm.com
Phone: 602-241-1093
Fax: 602-264-4663
- 2023 Virtual HOA/Condo Academy #9: Money Matters! Budgets; Preventing Fraud & Embezzlement ( Download)
