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Definition
The goal of this funding strategy is to keep the reserve cash balance above zero |
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Definition
An organized list of titles, descriptions and asigned numbers of all accounts in an organization's general ledger. the assigned number helps you locate the account. the title describes the purpose of the account. |
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Term
Discretionary Budget Line Items |
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Definition
These are items based on owner, board and committe desires. they are items people would like to have given their values, lifestyle, and preferred level of service
i.e social and recreational expenses. |
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Definition
Are the cost of goods and services used to operate and maintain the community property |
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Definition
Federal Housing Administration. regulates and influences suvch items as the amount of insurance a community association must carry, procedures for financial operations and requirements for the upkeep of property |
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Definition
Federal Home Loan Mortgage Corporation.
Buys mortgages from lenders and in doing so require certain types of insurance to be in place |
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Definition
Federal National Mortgage Association Federally established secondary mortgage institution that may set requirements that your community association will have to meet if owners are to participate in their financing programs |
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Definition
The goal of this funding strategy is to attain and maintain the reserves at or near 100 percent as called for on the commponent inventory |
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Term
Historical Trend Budgeting |
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Definition
This method begins with the assumption that existing line items are needed. The amount of funds allotted to each during the current year is adjusted for expected changes in the coming year.
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Term
Major improvement expenses |
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Definition
Consist of items that are not necessarily required, but are added to improve the overall welfare, safty or life of the residents or to enchance the value of the community association as reflected in the resale value of units. |
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Term
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Definition
The section of a budget devoted to operating activities includes operating expenses and major improvement expenses but not the replacement fund. |
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Term
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Definition
Items that occur on a regular basis day to day week to week month to month and year to year |
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Term
Reconciliation of Expenses and Revenue |
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Definition
After you draft both your operating and replacement fund budgets for the coming year, you must reconcile your estimated expenses with your community's anticipated revenue. To \reconcile means to bring together after a difference. |
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Term
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Definition
This fund consists of funds put aside in reserve for the replacement of major components of community's common property |
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Reserve Cash Flow Statement |
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Definition
Shows the amount to be funded and the amount to be expended from the replacement fund over a given period of time |
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Term
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Definition
Is a budget planning tool that considers the current status of the replacement fund and determines a stable and quitbable funding plan to offset the anticipated future major common area expenditures |
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Term
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Definition
Consists of the collective items or amounts of income which, in the case of a community association are appropriated for public expenses |
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Definition
This method is based on the baseline funding concept. the minimum reserve cash balance in threshold funding is set at a predetermined dollar amount |
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Definition
With this method, all line items are set to zero and the amoun of funds alloted to each must be justified |
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Term
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Definition
The collection of all assess.ments due through the end of the fiscal year. I.E. If an owner's payments on the annual assessment are due monthly and become delinquent at the end of march, all monthly payment through december of that year are due immediately |
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Definition
is the owner's financial obligation to the community association during a given period of time usually one year. It covers the owner's share of the common exense, also known as common expense liabilities in some states. |
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Definition
consists of recording an uncollectible debt as an expense that the association must absorb. This usually requires a resolution of the board |
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Term
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Definition
Is called straight banruptcy of liquidation. It involves the prompt conversion of all the individual's or corporation's non -exempt property to cash, and payment of creditiors to the extent possible |
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Term
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Definition
Is called a reorganization because it is designed to allow for an orderly payment to creditors that enable a corporation to continue |
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Term
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Definition
Is used to reorganize personal or non corporate debt a plan is submitted to a judge for paying off all or nearly all of the debt over a specified period of time |
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Term
Fair Debt Collection Practices Act |
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Definition
Requires that the person who owes a debt receive written notice |
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Term
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Definition
Is a legal proceeding filed in court whereby a party witha claim against an owner can claim ownership of the unit involved in order to recover the money it is owed. The unit is usually auctioned by the court and sold to the highest bidder. |
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Term
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Definition
Is a legal claim by one party (community association) on the property of another (delinquent owner) to obtain the payment of a debt or the satisfaction of an obligation. Placing a lien on an owner's property protects the community association's interest |
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