2017-May 2019 32% of units (77) have roof leaks and roof repairs

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Total Roof Leaks = $8,403 cost to HOA

Total Roof Repairs = $7,933 cost to HOA

Total Cost to Homeowners = $16,336

May 2018

Roof Leak Costs = $1,002

Roof Repair Costs = $419

May 2019

Roof Leak Costs = $2,220

Roof Repair Costs = $4,279

May 2019:  65% of 2019 budget for Maintenance-Homeowners is already spent.

357% Increase in Costs May 2018 to May 2019

Is your roof next?



Sources:  Property Reports

             Transaction by Account Reports

             Financial Statements

Roofing problems should have been addressed as Construction Defect-Related Transition Issues.

Thousands of dollars have already been spent repairing roofs and siding.   A professional transition inspection would have assessed whether any construction defects existed through poor workmanship or defective materials. 

Compare snow removal contracts

1-inch trigger contract versus 2-inch trigger contract costs $14,500 more and has less service.

Snow_Removal 2017-2018 (pdf)

Download

Snow Removal 2018-2019 (pdf)

Download

2019 Landscaping Contract

Balance Sheet Discrepancies

Beginning in March, 2018, these discrepancies were brought to the attention of the Board treasurer, Finance Committee, and Cranberry Community Management.

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We have received no acknowledgement, response, or explanation. 


These Balance Sheets from 2018 are still not posted on the "official" HOA website.


Financial checks and balances can protect associations.

ENSURE THE BOARD HAS CONTROL OF RESERVE TRANSACTIONS.

 The board must have full and separate control over the association’s reserve account(s), including the signatory control of bank accounts.

   

http://www.hindmansanchez.com/resources/article/tips-protecting-your-association-finances/

DETERMINE POLICY FOR SIGNATORY CONTROL.

Associations should require two board signatures on all reserve checks, redemptions, or fund transfer requests.  One of these signatures should be from an appropriate board officer (e.g., treasurer).  


For operating cash accounts, associations should consider requiring two signers for all checks above a certain amount.  


Though obtaining a second signature for checks on operating cash can be an inconvenience, associations should weigh the extra control and protection this procedure provides against any delays it may cause.

INSIST ON FIDELITY BOND FOR MANAGER AND/OR EMPLOYEES.

Associations must insist that the manager and/or employees are sufficiently bonded to cover all association funds reasonably at risk.  


Associations should require 60 days notice prior to cancellations or nonrenewals of the management agent’s or the association’s bonds.

SPECIFY THAT KICKBACKS ARE PROHIBITED.

The management company contract should specify that kickbacks from contractors, employees, or others are not allowed.  


Also, associations should establish in writing that any benefits, credits, discounts, or free services provided by a financial institution or contractor must benefit the association, not the management agent.

ESTABLISH GOOD FINANCIAL PROCEDURES.

 The board must ensure the safety of its financial systems and implement effective internal controls.   

  

Protecting the finances of our association takes effort from board members and residents.

  

https://www.ikocommunitymanagement.com/blog/5-tips-for-the-best-hoa-financial-management-ever

ADD AND DEDUCT FUNDS FROM THE PROPER ACCOUNTS.

Mischaracterized expenses or income can skew your association's entire financial system.


Use the money from reserve fund contributions for common area projects and other large, unavoidable expenses. Don’t take from the operating fund, which is used for regular maintenance, vendor contracts, and similar expenses, unless you need to. If you do, it can unnecessarily enlarge assessments.  
https://www.hoaleader.com/public/435.cfm