Each month at Board Meetings the Board and Management review some basic financial information, and it is almost always sited from reports 2 months prior to the Board Meeting. For example, at this weeks meeting on Monday July 13th, we sited information from May. An Owner in attendance at the meeting asked why that is? A very, very logical question. The books for May close on the 31st of the month. After that, the Management Company has 20 business days to provide the Association with the financial statements. Over that 20 days they are compiling, reviewing, assessing and reconciling all the accounting activity for the month. This includes reviewing bank statements, income and expense statements and reports generated to help control and organize the Association’s accounts and other business functions.
Usually, we expect to receive the financial statements in the office between 15 and 20 business days after the end of the month. Once we do, the office staff starts doing an independent review. For example, there are approximately 125 different accounts on the budget for which we track activity. If what the Association is spending (or is not spending) on business and activities varies from the budget significantly, we provide a report with written explanations for these differences. We also provide an Accounts Receivable report which is a review of all late accounts, any owners that are delinquent in there assessments, and what the collections status on those accounts are. These and other reports are compiled in the office into a monthly packet that is forwarded to the Board and Budget & Finance Committee. This process takes another 5 to 10 business days – and that can vary depending on how busy we are in the office.
So, if you are keeping track, the Management Company owed us the financial statements by June 26. The office reviews and processes those and can usually distribute the packet within 10 days of that, which would be the 14th. That actually puts the date for May’s numbers following the July 13th Board Meeting. We do have the May financials, and did receive them on time. And were able to provide data to the Board in time for the meeting on Monday. This month is an exception – we did not get our formal packet out yet due to a combination of the project kicking off in the lobby ceiling, and time off I have taken this month. Regardless of the timing, it is our goal to make sure data is available for review at the first Board Meeting each month, so the Board and interested owners are able to keep a good pulse on PTCA’s fiscal health.