POLICIES 100-149

Policy & Procedures 105

105 Financial Management

I. POLICY
The Board will approve an Annual Financial Plan.

II. RESPONSIBILITIES
POA Board

III. SCOPE
This policy covers all revenues and expenses of the POA

IV. DEFINITIONS

V. RELATED POLICIES OR DOCUMENTS
Procedure 105.1 Annual Budget Procedure
I. PROCEDURE
The Annual Budget is prepared based on a budget calendar developed by the CFO. The budget calendar must allow:
• Time for the Finance Committee review and make a recommendation to the Board for the upcoming year’s budget,
• The Board to have adequate time to review the proposed budget, and request changes to the budget prior to a vote to approve the budget no later than the regular November board meeting of the year preceding the budget.
• The Budget will include:
• Re-forecast of the current year income and expense projections
• Operating Budget for the upcoming year
• Capital Budget for the upcoming year
• Ten year cash forecast
• Associated documents that provide;
- A budget overview
- Analysis to facilitate review by the Finance Committee and Board
II. RESPONSIBILITIES
POA Board, General Manager, Director of Finance and Finance Committee

III. SCOPE
Document the Annual Budget process.

IV. DEFINITIONS

V. RELATED POLICIES OR DOCUMENTS

VI. APPROVED BY:
Director of Finance
Procedure 105.2 Special, Reserve and Board Designated Capital Assessments
I. PROCEDURE
Special Assessments
Special Assessment dollars tracked in separate general ledger accounts. Expenditures on projects associated with special assessments are also tracked in separate general ledger
accounts. A detailed report is prepared for Management and the Board showing the status for
special assessment dollars collected and expenditures made for the related projects is part of
the monthly financial report that is submitted to the Board and posted on the Web Site. These
reports are shared with the community at Town Hall meetings and the Annual meeting.

Reserve Assessments
Reserve Assessments are tracked in separate general ledger accounts and funds are segregated into separate bank accounts. An income statement for the reserve assessments billed and the reserve assessments collected and expended is part of the monthly financial report that is submitted to the Board and posted on the Web Site.

Board Designated Capital Assessments
Board Designated Capital Assessments are tracked in separate general ledger accounts and funds are segregated into separate bank accounts. An income statement for the Board designated capital assessments billed and the Board designated capital assessments
collected and expended is part of the monthly financial report that is submitted to the Board
and posted on the Web Site.

II. RESPONSIBILITIES
The Board, General Manager, Director of Finance and Finance Committee.

III. SCOPE

IV. DEFINITIONS
Special Assessment: An assessment for the purpose of defraying in whole or part the cost of any construction or reconstruction, unexpected maintenance or repair and replacement of the Common Properties and capital improvements thereon and to repay any loans made to the
Association. Any such assessment shall have the assent of the members as delineated in the
covenants.

Reserve Assessment:
Capital Reserve: An assessment for the funding of monies to pay for:
a.) The purchase, repair, maintenance and replacement of Association property
identified in a Capital Reserve Study performed by a Reserve Specialist
b.) Expenses or capital expenditures caused by natural disasters, other emergencies
that affect the health, safety, and welfare of the Owners, and to prevent or minimize damage or
waste of Common Property.

Debt Reduction Reserve: An assessment for the funding of monies to pay down
specified debts.

Board Designated Capital Assessments: A portion of monthly general assessment the Board
allocates for capital purposes.

V. RELATED POLICIES OR DOCUMENTS
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