CAI-NJ PROOF Update.pdf

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18 J U L Y , 2 0 1 6
Hueston McNulty, P.C.
Defense and General Counsel
Serving New Jersey, New York & Pennsylvania
A Professional Corporation
Value–Experience–Quality
We provide our Association clients with qual-
ity and strive to solve the problem–
resolve the issue–and make life easier for our
Associations and their property managers.
Samuel J. McNulty, Esq.
Tel: 973-377-0200 / Fax: 973-377-6328
Florham Park - Sparta - Toms River - Philadelphia - Manhattan
Who canYOUR Association
count on today for guidance in
Transition and Construction
Defect Litigation?
Another line item often overlooked
in budget preparation is bad debt.
Bad debt is defined as funds the
association most likely will not collect.
Having a good understanding of the
collections and reviewing the status of
those collections with the association’s
attorney can help determine this key
line item in the budget. Since all bud-
gets have revenue (maintenance fees)
to offset expenses, any uncollected
maintenance fees cause cash flow
problems. Bad debt can be the lead-
ing cause for poor cash flow.
Creating a sound budget is not a
challenging process. Reviewing con-
tracts, insurance and the overall spend-
ing history along with short and long
term needs is all you will need to pre-
pare an adequate budget. The chal-
lenge is communicating that process to
the owners when your “number crunch-
ing” results into an increase in mainte-
nance fees/assessments. Associations
that meet that challenge, reflect a solid
board and management team who
have a full understanding of the needs
of the community and are making the
tough decisions that are required to
have a fiscally sound association. The
board and management can only feel
confident when all of the math works
and the owners fully understands all that
goes into the budget. Sometimes the
message may not be received well due
to an increase in fees. Explaining the
numbers and how they all come togeth-
er is the only path to a well-run com-
munity. If the process is detailed and
supportive, the board and management
will have full confidence in presenting
the budget to the membership. Q
CONFIDENCE...
from page 17.