CAI-NJ May 2019 (w)

FINANCIAL STATEMENTS... from page 23.

on a particular line item in the associ- ation’s operating budget. Reviewing the monthly income statement for sig- nificant variances can pinpoint on a more timely basis instances such as this where an expense reclassification may be needed so that the expense is included in the appropriate fund.

When examples of these reclassi- fications occur, be sure to transfer the funds from the proper fund cash account promptly in order to avoid interfund balances. The interim monthly financial state- ments are a great tool to help support the management of the community from a fiscal standpoint if utilized properly. Understanding what items to look for and being able to decipher what they represent can be extremely advantageous in assisting boards and property managers to more effectively serve their community associations. n Your requests are welcome...

is originally included as an annual operating expense. This expense appears to be one belonging to the deferred maintenance fund, however is currently causing a negative impact

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