Advanced Homeowner Education: Financials - Reston Association 4-6-13


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This was the second of a three-part educational program for Reston Association. In this session we covered the three financial phases. Primary focus was on best practices in building a budget, how to read and use financial statements to make good business decisions, and understanding how the three phases worked together,

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Advanced Homeowner Education: Financials - Reston Association 4-6-13

  1. 1. Advanced Homeowner Education: FINANCIALS a presentation for Reston Association April 6, 2013 THOMAS L. WILLIS, PCAM®, VICE PRESIDENT, ZALCO REALTY, INC. ASSOCIATION BRIDGE, LLC
  2. 2. Putting the“u” infiduciaryTHE THREEFINANCIALPHASES:1. Planning2. Operations3. Review Why is this important to me?
  3. 3. No – it’s notjust anadministrativetask – it’s thebeginning ofeverything.And it’s rightsmack dab inthe middle ofeverything, What is the goal of the budgettoo! process?
  4. 4. Budget MethodsTrend Zero-Based
  5. 5. Budget Preparation  When?  Who?  What?
  6. 6. Can a one-columnspread sheetget you whereyou need togo? Budget Features
  7. 7. Budget Features Spreadsheet columns Narrative (really important) Reserve cash flow table Utility logs Fee schedule
  8. 8. Budget Features Contract escalations (do you have to care about Obamacare?) Utility rates & usage Reserve funding & capital projects CIC Education - CAI Audit Options for budgeting for contingencies Capital expenses?
  9. 9. Budget  NO FEE TARGETINGStrategies  The “Kitchen Sink” DraftDoing it the  Never Assume – Lessons fromright way RCG  Bad DebtMeeting  Increased reserve fundingexpectations  Special assessments  Fee increasesCommuni-cating tough  Making it real – per unit pernews month
  10. 10. It’s not just abunch ofnumbers on apage Why are association financials important?
  11. 11. AccountingMethodsWhat are thenumbers tellingyou?What should Ibe looking for? Financial Statements
  12. 12. Who’s Watching the Store?Practical Steps to Protect Your Assets
  13. 13. Can youafford not to? Review stage? For what?
  14. 14. Three Levels of Review  Compilation  Review  Audit
  15. 15. To sum up… Do you see how the 3 phases flow together? Can you speak the language? What are your challenges?Can you help other RA communities by sharing your war stories, your strategies, your successes?
  16. 16. THANK YOU for your service to your community! Thomas L. Willis, PCAM® Facebook: Twitter: @ideaguypcam Linkedin: Rex Blog: