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This was the second of a three-part educational program for Reston Association. In this session we covered the three financial phases. Primary focus was on best practices in building a budget, how to read and use financial statements to make good business decisions, and understanding how the three phases worked together,
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THOMAS L . WILLIS, PCAM®,VICE PRESIDENT, ZALCO REALTY, INC.
ASSOCIATION BRIDGE, LLC
Advanced Homeowner Education: FINANCIALSa presentation for
Reston Association April 6, 2013
Why is this important to me?
Putting the “u” in fiduciary
THE THREEFINANCIALPHASES:1. Planning2. Operations3. Review
What is the goal of the budget process?
No – it’s not just an administrative task – it’s the beginning of everything. And it’s right smack dab in the middle of everything, too!
Trend Zero-Based
Budget Methods
Budget Preparation
When?
Who?
What?
Budget Features
Can a one-column spread sheet get you where you need to go?
Budget Features
Spreadsheet columns
Narrative (really important)
Reserve cash flow table
Utility logs
Fee schedule
Budget Features
Contract escalations (do you have to care about Obamacare?)Utility rates & usageReserve funding & capital projectsCICEducation - CAIAuditOptions for budgeting for contingenciesCapital expenses?
Budget Strategies
Doing it the right way
Meeting expectations
Communi-cating tough news
NO FEE TARGETINGThe “Kitchen Sink” DraftNever Assume – Lessons
from RCGBad DebtIncreased reserve fundingSpecial assessmentsFee increasesMaking it real – per unit per
month
Why are association financials important?
It’s not just a bunch of numbers on a page
Financial Statements
Accounting Methods
What are the numbers telling you?
What should I be looking for?
Who’s Watching the Store? Practical Steps to Protect Your Assets
Review stage? For what?
Can you afford not to?
Three Levels of Review
Compilation
Review
Audit
To sum up…
Do you see how the 3 phases flow together?
Can you speak the language?
What are your challenges?
Can you help other RA communities by sharing your war stories, your strategies, your
successes?
THANK YOU for your service to your community!
Thomas L. Willis, PCAM®
associationbridge@gmail.comtwillis@zalco.com
Facebook: http://on.fb.me/ABLLCTwitter: @ideaguypcam
Linkedin: http://linkd.in/twpcamTomasuarus Rex Blog:
http://thomaslwillis.blogspot.com/
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