[cascascassie]

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How many units are in your association?

[white_rose]

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We are a nearly 300-unit community in Indiana.

[cascascassie]

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Considering you have 300 units in your HOA, I think the decision to fire your management company was a bad one. You’ll quickly find that financial management is not the only thing you’re gonna have a hard time with over the next year or so. I suggest you hire another management company but maybe look for one that your budget can afford.

[white_rose]

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Unfortunately, looking for a management company that we can afford isn’t as easy as it sounds. We’ve been forced to cut a lot of our spending due to a budget deficit.

[cascascassie]

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What’s causing your budget deficit? Are there too many owners not paying their fees? Perhaps this is a larger problem when you dig deeper and not something you can fix by simply hiring a financial management firm.

[arnie920]

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I’m on the board of our condo in Seattle and let me tell you – outsourcing our financial management tasks made life a lot easier. It’s the thing most people don’t know how to do since it requires a fair bit of knowledge, so it really helped us in terms of our workflow and budget when we hired a professional to do most of the work. 100% would recommend.

[white_rose]

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@cascascassie I’m not sure why we’re in a deficit (I’m not on the board but I am a VERY concerned homeowner). I’ll have to bring that up at the next board meeting.

@arnie920 Thanks for your input! I will definitely suggest it to our board.

[cascascassie]

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Budget deficits definitely need to be looked into if it happens often. Odds are something’s not right internally. Let me know how that works out for you!

[rpr@softmach.com]

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I’m a new HOA board president, and our bylaws say the treasurer does the finances, but the management company has been handling our finances for years.

At first, I was alarmed, but I think it might be much less work for the HOA that way. Particularly, considering that folks only last a year or two before quitting the HOA board or moving away.

I am trying to figure out how the board can insure the money handling is above board. We get monthly and yearly breakdowns on spending, income, and on our reserve balance. I have asked to see the cancelled checks, but don’t know how that will go. The checking account is a shared trust account the management company uses.

[Webula]

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I think outsourcing the financials is a good idea. It’s a lot of work, as well as a lot of responsibility. However, the board should still do their due dilligence and look over the financials every month. I have heard horror stories about financials that don’t jive.

@cascascassie I agree, something is definitely not right internally.

[danyellow]

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I would suggest going back to a management company to help and take over financials.

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