Tools we employ:
- Review of governing documents (your community's rules).
- Confidential interviews with board members and key employees to identify possible areas of increased value or efficiency.
- Detailed specification of desired services.
- Cost accounting.
- Line item expense review and prior period comparisons.
- Competitive bidding.
(53 Member Homeowners Association)
Non-renting homeowners in an association where 50% of the membership offered their homes for rental were very concerned that they were subsidizing the commercial aspect of the operation. The board heard the concerns and worked with management on a line item expense review to identify specific costs associated with the commercial operation. After a review of the governing documents and legal consultation, the board passed a resolution charging those costs directly attributable to commercial operation only to the renting homeowners. A detailed cost accounting system allowed these particular costs to be updated from budget year to budget year. The system also allowed transparent bookkeeping that withstood the scrutiny of outside audit. Prior period comparisons of these costs revealed any unusual variances and allowed management and board to diagnose problem areas and correct them in the early stages.
Barbara Lucks was General Manager and bookkeeper during this process.