The Management Report
For Your Eyes Only – Management Reports are issued electronically in pdf format and emailed to the board by the 5th of the month. The law requires financial reports to be made available to the membership. The management report contains information that may be considered confidential.
Once issued, the management report remains archived and available to board members. The format of the report allows certain information to be static while other information is obtained live at the time of the click–delinquency reports, violations, architectural changes, open contract bids are all updated at the time the report is viewed. The management report contains at a minimum:
- Management Summary Narrative – Your managers will write about financial, administrative and physical happenings of the month. Budget variances will be explained, action item status reported and contract management reminders generated. If you read nothing else, this concise report will keep you aware of what is going on from a management perspective.
- Administrative Calendar – This tool is included monthly because changes happen. Here, we remind you of upcoming board meetings, contract expirations, annual meeting dates, notice requirements and important holidays to avoid scheduling events on religious or State holidays or special days like Valentine’s Day. We also include management company closures.
- Action Log – Anything assigned to anyone goes on this report. Whether it is a management task, a board member task or that of a committee, we list open tasks, projected completion dates and status on a monthly basis. Nothing is overlooked. The board will help develop this log and management will see that reminders are generated.
- Site Visit Reports – Reports are intended to deliver the findings of a property site visit which includes any observed contractor shortcomings, homeowner violations, maintenance issues or other concerns. Often, these reports contain photos to help explain the findings.
- Collections Report – Delinquencies are confidential. Some believe that they are public information, but MMI believes that there is no benefit to disclosing individual delinquency and collection actions to all members. Thus, the delinquency reporting is kept in the confidential management report. This section includes a list of delinquent owners, a narrative detailing any targeted collection action and any legal, collection related attorney correspondence.
- Legal Correspondence – Any other legal correspondence that is not for all eyes is included in this section of the report. Addition Management Report content may include:
- Articles of Interest – When management comes across information that would be of interest to the board, a copy is included in the report. This is a small part of our board education program. Again, the following links are provided in the electronic management report, but are reported in real-time:
- Violations – Actionable violations are entered into a tracking system automatically by the preparation of the initial violation notice. Documents citations are searched automatically and entered on the letter. A compliance date and consequences are established and the manager is emailed when the deadline draws near. There is a report available at any time and this report is linked in the management report.
- Architectural Change Applications – Owners may submit applications by uploading a form or completing an online template. Photos may also be uploaded. The application is transmitted to the ACCR Chair and a report of status is always available, plus the report is linked in the management report.
The Financial Report is intended to keep the board and any inquiring members about the financial condition of the community. The reports are issued on a Modified Accrual format meaning that assessment income is accrued while all other accounts are reported on a cash basis. Cash reporting is available, on request. The Financial Report is created separate from the management report, but is also linked in the management report. Our financial reports always contain:
- Balance Sheet – Lists all Asset Accounts (operating checking, reserve accounts and accounts receivable), Liabilities (accounts payable and prepaid assessments) and Equity Accounts (reserve allocations, retained earnings.) A balance sheet is a snapshot of your current financial condition at any given moment. MMI lists all reserve accounts and includes the interest rate and maturity dates on all CDs right on the balance sheet.
- Income Statement – A tabulation of all income and expenses on both a current month and year-to-data basis. Our format also includes comparisons of the current month and year-to-date actual versus budget figures.
- 12-Month Spreadsheet – Identical to the Income Statement, but reflects monthly income and expenditures for 12 months, shown independently. This report is extremely valuable during budget preparation.
- Budget Comparison Income Statement – Identical to the Income Statement, but reflects actual numbers vs budgeted figures as well as dollar and percentage variances from budget both on a monthly basis and YTD.
- Copies of Bills – While a cumbersome task that most management companies choose to exclude, MMI feels that all board members should see actual invoices from vendors. All invoices are copied to this report.
- Check Register – A simple list of checks issued
- Bank Statements – All operating and reserve statements are included together with reconciliation reports
- General Ledger – While not usually included, a G/L can be included at no additional cost. Most communities opt out of receiving this report due to its length. A General Ledger is a detailed report showing all transactions behind the balance sheet and income statements, complete with names and dates.
Board Meeting Packet
The Board Packet has been replaced by an electronic version of the Meeting Agenda. Our system permits the president, board and management to collaborate on the agenda and to distribute draft copies of meeting minutes, proposals and other relevant documents over the course of the month leading up to the meeting. When used effectively, it will shorten meetings and help make meetings far more productive.
- Approved Minutes – As a part of the open record of the community, approved minutes are attached to this report.
- Proposals & Contracts – Items for signature or consideration at the meeting
- Updated Financial and Delinquency Summary – to aide the treasurer in preparing a timely report
During the budget process, we provide:
- Proposed Operating Budget – MMI will draft a budget and meet with your budget committee to review the draft. We will modify the draft to reflect the desires of the budget committee and present this proposed budget to the board for further consideration
- Narrative Detail Support – Each line-item of the draft budget is explained in an attached narrative report.
- Annual Insurance Review – We list all current policies and recommend additional insurance the board may consider.
- Insurance Review – A list of all current insurance coverage and providers together with limits, deductibles and premium cost. Yes, we may even make recommendations!
- Interim Reserve Analysis – Reserve studies are performed every five years. In those between years, you may be ahead of schedule on certain replacement and may defer others. You may have made all scheduled reserve contributions… or not. We will show you where you stand as we are engaged in the budget process.