FINANCIAL MANAGEMENT

Objective:  To maintain the books and records of the Association on an accrual basis according to generally accepted accounting procedures and to receive fees, pay invoices and issue reports all on a timely basis.

BUDGET

• Prepare for the Board of Directors a Draft Annual Budget sixty (60) days prior to the end of the fiscal year and such Budget to be footnoted and provide such comparative data as needed for an informed decision by the Board.
   
• Mail to Owners a copy of the approved Annual Budget with an appropriate explanatory letter.

MONTHLY FEES

• Calculate homeowner's fees and charges, to receive directly or through such other method as determined by the Association, fees and all other monies payable to the Association by all homeowners in the Premises and to deposit the same promptly in the "Operating Bank Account" which shall be used exclusively for such funds and which shall be identified for the Association.
  
  
• Prepare and mail to each homeowner an assessment coupon booklet with return envelopes on or before December 20th of each year.  Or, invoice monthly or quarterly for fee which is due plus any other delinquent charges on the owner's account.
   

Delinquency

• Assist the Board of Directors in the development of delinquency policies and procedures.
  
  
• Initiate late payment letters and such fines in accordance with the Association's Delinquent Policy.
   
• Coordinate and represent the Association with Counsel at further legal actions if necessary.

Invoices/Disbursements

• Receive, review and approve invoices.
  
  
• Process invoices according to such policies as established and approved by the Board and pay all bills from the Operating Bank Account, including review, control and allocation to expense codes.
   
• Maintain record files of all invoices and disbursements.

Financial Statements

• Deliver to the Board for each preceding calendar month on or before the twentieth day of each month the monthly operating statements with comments as follows:

• Trial Balances
• Seasonalized Profit and Loss for month and year-to-date
• Check Register
• Accounts Receivable
• Accounts Payable
• Copy of Bank Statements and Reconciliations
• Schedule of Accrued Expenses

• Deliver to the Board annual financial statements no later than forty-five (45) days following the end of each fiscal year of the Association.

Books and Records

• Keep proper accounting records in accordance with generally accepted accounting procedures and to retain those records for reasonable periods specified by the Association or its representatives and those periods to be at least sufficient to satisfy requirements of the Internal Revenue Service.  The Association shall have the right to inspect and audit at its expense said records.
   
• Provide any designated independent public accounting firm with data or information requested by that firm in order to complete the Association's annual tax return, annual review or audit.

Bond

• Furnish a Fidelity Bond in an amount not less than $1,000,000.00 conditioned upon the faithful performance of Agent's duties and the due accounting of all Association funds received or collected by Agent.

Replacement Reserve

• Assist the Board in the selection of an Engineer, Architect or Company providing such services for the development of the core replacement data as follows:

• Age and remaining useful life of each component
• Quantity and Unit Replacement cost of each component
• Total Replacement Cost and remarks on each as applicable
  
  
• From this data Management or the selected group providing the core data will develop:
  • Projection of Reserve Fund Expenditures
  • Projection of Cash Flow for Reserve Funding
  • Be prepared to make recommendations on the implementation of the Replacement Reserve Study and update periodically.

Investments

• Assist the Board in developing an investment policy.
• Provide information to the Board on various investments including certificates of deposits, bond ladders, savings accounts, money market funds, which meet the fiduciary requirements for investments.
• Carry out the investment policy as directed by the Board.

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5 Christy Drive | Suite 302 | Chadds Ford, PA 19317
Ph (610) 358-5580 | Fax (610) 558-3399
info@pencomanagement.com