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Questions and Answers
How often is a budget prepared?
How often is a budget prepared?
Who establishes the procedures for preparing and implementing association budgets?
Who establishes the procedures for preparing and implementing association budgets?
Which MUST be included in community association budgets?
Which MUST be included in community association budgets?
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?
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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?
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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?
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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?
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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?
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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?
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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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Description
Test your knowledge on budget preparation for community associations with this quiz. It covers procedures, requirements, and handling of special expense categories. Perfect for those studying property management or community organization finances.
