Podcast
Questions and Answers
How often is a budget prepared?
How often is a budget prepared?
- Every 6 months
- Monthly
- Annually (correct)
- Every other year
Who establishes the procedures for preparing and implementing association budgets?
Who establishes the procedures for preparing and implementing association budgets?
- The association
- The board of directors
- Condominium and Cooperative Acts (correct)
- The municipality
Which MUST be included in community association budgets?
Which MUST be included in community association budgets?
- All of these (correct)
- Outline all fees and charges for recreational amenities
- Estimated revenues and expenses for the next 12 months
- Estimated surplus and deficit of the last 12 months
If an expense category doesn't apply to an association, how should the association note this in the budget?
If an expense category doesn't apply to an association, how should the association note this in the budget?
What is the term for the funds set aside for expenses that occur less often than annually?
What is the term for the funds set aside for expenses that occur less often than annually?
Items for which replacement or deferred maintenance costs exceed a certain amount must be included in the budget. What is this limit?
Items for which replacement or deferred maintenance costs exceed a certain amount must be included in the budget. What is this limit?
How many days prior to a meeting in which the budget will be considered MUST condominium associations send written notice to their members?
How many days prior to a meeting in which the budget will be considered MUST condominium associations send written notice to their members?
In addition to a master association budget, what else MUST multi-condominium associations prepare?
In addition to a master association budget, what else MUST multi-condominium associations prepare?
When an association is calculating the 115% increase over the budget from the previous year, which should they NOT include?
When an association is calculating the 115% increase over the budget from the previous year, which should they NOT include?
When is a special assessment levied?
When is a special assessment levied?
In reserve funding methods, what is the name of the method where each asset is analyzed separately and has it's own dedicated reserve account?
In reserve funding methods, what is the name of the method where each asset is analyzed separately and has it's own dedicated reserve account?
In reserve funding methods, what is the name of the method where cash is combined into one general account?
In reserve funding methods, what is the name of the method where cash is combined into one general account?
In a time-share association, if an owner is more than ________ days delinquent and has been given a 30-day written notice, the owner may be locked out of the unit and denied the use of the unit and facilities
In a time-share association, if an owner is more than ________ days delinquent and has been given a 30-day written notice, the owner may be locked out of the unit and denied the use of the unit and facilities
If delinquent fees are not paid, associations may place a lien on the property. Condos, Cooperatives and HOA's must give a written notice of ______ days of their intent to lien the property
If delinquent fees are not paid, associations may place a lien on the property. Condos, Cooperatives and HOA's must give a written notice of ______ days of their intent to lien the property
Flashcards
What is a budget?
What is a budget?
A financial plan outlining estimated revenues and expenses for the next 12 months.
How often is a budget prepared?
How often is a budget prepared?
Monthly, every six months, or annually depending on the association’s needs.
Who establishes the budgeting procedures?
Who establishes the budgeting procedures?
The association's board of directors.
What MUST be included in a community association budget?
What MUST be included in a community association budget?
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How to handle an expense category that doesn't apply?
How to handle an expense category that doesn't apply?
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What are reserve funds?
What are reserve funds?
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What's the limit for items included in the budget due to replacement costs?
What's the limit for items included in the budget due to replacement costs?
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How many days' notice is required for budget meetings in condominiums?
How many days' notice is required for budget meetings in condominiums?
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What other budgets are required for multi-condominium associations?
What other budgets are required for multi-condominium associations?
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What should NOT be included in the 115% budget increase calculation?
What should NOT be included in the 115% budget increase calculation?
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When is a special assessment levied?
When is a special assessment levied?
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Study Notes
Unit 7 Quiz - Study Notes
- Budget Preparation Frequency: Budgets are prepared annually.
- Budget Procedures: Condominium and Cooperative Acts, or the association, or the board of directors establishes procedures.
- Community Association Budget Requirements: Must include estimated revenues & expenses for the next 12 months, surplus/deficit for past 12 months, and all fees/charges for recreational amenities.
- Handling Missing Expense Categories: If an expense category doesn't apply, the association should note this instead of deleting the category or making up a number - it should be clearly stated on the line item.
- Funds for Infrequent Expenses: "Reserve funds" or "rainy day funds" are used for expenses that come less often than annually.
- High-Cost Replacement Items: Replacement or deferred maintenance items exceeding a certain amount (e.g., $15,000) need to be included in the budget.
- Budget Notification: Condominium associations must notify members of budget discussions at least 21 days before a meeting.
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