Homeowner Associations in Santa Clarita can involve lots of reports. Here are 6 financial reports that you need to know if you are part of a Santa Clarita HOA.
Balance Sheet
Your balance sheet consists of assets:
- Cash Accounts (as in your bank accounts) – You want to make sure you have them all listed in the top section of your balance sheet. They should have the ending balance for the month.
- Accounts Receivables – Outstanding dues that are owed to the Community. This can include fees or fines.
- Prepaid Insurance – These are insurance premiums paid in advance.
Owner Balances
An owner balance summary report should consist of all your homeowner accounts regardless of balances or zero balance due. The total on the last page should consist of all your receivable accounts and your prepaid accounts. The figures on this last page must match the figures that you have on your balance sheet in the receivables section and your prepaid.
Profit & Loss Statement
The other side of your assets and liabilities are the income and expenses, or what some people call the P&L or Profit Loss Statement. On your income and expense statement, the first section will be your income accounts. This is not the funds you have taken in for the month – the income accounts are your billings, period. The second part of the report is the income, expense statements are going to list your expenses, and that is exactly what that means, your expenses. What you have paid out for utilities, admin services, office supplies and if you have used any of your reserve money.
Homeowner Deposits
This monthly report gives a breakdown of the homeowners’ real cash deposits. This report will show the board members the actual cash income they have received for the month.
Checkbook Register
The next report you need to include in your monthly financials packet is the Accounts Payable Check Register report, which is intended to provide additional transparency to the board members. This report will answer board members questions regarding checks that were written within the month, and all information applicable to each invoice and its payment from the community’s funds. After you have taken your bank statement (the one that was provided to you by the bank), run a report that shows only outstanding items, items that have not yet cleared the bank but have been processed through the accounting software (this is often called a checkbook reconciliation report). This report gives you a total of what is in the bank account, which must match your balance sheet assets account.
Aged Payables Report
Every accounting software program should be able to provide you with an aged accounts payable report. This aged report should consist of all the outstanding bills that your community owes up to a specific period. For clarification for your board members, this report should include the name of the vendor, invoice description, date and the amount of the invoice. At the end of the report you should find a total, the total should match your balance sheet and the liabilities section under the specific GL account labeled accounts payable, and this must match your balance sheet at all times.
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National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355
(661) 295-5966
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