Smart HOA Finance
Review the Money
A consistent monthly review helps the board understand what happened, notice important changes, and identify questions that need follow-up.
Financial Information to Review Each Month
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Balance sheet
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Income and expense statement
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Budget-to-actual report
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Bank statements
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Bank reconciliations
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Amounts owed to the association
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Unpaid bills and other obligations
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Reserve balances and activity
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Check register or payment details
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General ledger transactions
What Deserves Closer Attention
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Significant financial changes
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Large budget variances
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Unexplained transfers
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Reserve withdrawals or transfers
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Growing or overdue receivables
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Unexpected or unusual expenses
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New or unexpected vendor changes
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Missing or unclear documentation
A Monthly Review Example
The monthly financial report shows landscaping expenses significantly over budget.
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The board compares the expense with prior months and asks why costs increased. The increase may be reasonable, but the board should understand the explanation and determine whether follow-up is needed.
Questions to Ask
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What changed, and why?
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Are expenses within budget and properly approved?
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Is there documentation supporting significant transactions?
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Are there unusual or unexplained items?
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What questions or concerns need follow-up?
Put Monthly Reviews Into Practice
Use the free Monthly Financial Review Checklist to help your board review financial reports, identify important changes, document questions, and follow up on unresolved items.
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You don't need to understand or complete every item right away. Start with what you know and build your understanding over time.
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Next Step: Verify the Money
Reviewing financial information helps the board identify changes and questions. Verification goes further by confirming important balances and transactions using reliable, independent records.​
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