AMS
Board Members are signers on all Reserve accounts, CDs, money markets, etc. Corporate Officers for AMS are signers on the day-to-day operating account.
AMS uses Alliance Bank for day-to-day operations. The Board can keep relationships with other banks. AMS has associations with many bank accounts at all banks listed.
AMS does not have a CPA on staff; but, we require all staff accountants to have a Bachelor’s Degree and specific experience requirements. AMS works with a variety of CPA firms in the coordination of tax returns, audits, etc.
Caliber is our software system, which is an HOA Management-specific software. Administrative and accounting team members both use this system.
Financials are provided before the 20th of the month.
The law requires that an HOA segregate its reserve funds from its operating funds and perform an annual financial review. Some governing documents increase the scope or frequency of this review and require periodic audits that are more thorough than financial reviews.
The law also requires preparation and distribution of a budget and financial report each year as described under the heading “Association Budgeting, Reserve Planning, and Reporting Requirements” above.
Reserve funds can be used only for repair, restoration, replacement or maintenance of the portions of the property that the association is obligated to maintain, or litigation involving these items. In some circumstances, the association can borrow reserve funds to cover operating expenses, but a plan to replenish the reserve funds must generally be adopted within one year.
The board is responsible for fulfilling the association’s accounting responsibilities, but it can delegate this responsibility to an officer, committee, or professional manager provided the board retains final authority.
Professional managers offer a wide variety of services to homeowner associations including accounting, budgeting, record keeping, assessment collection, bill payment, meeting coordination, and common area maintenance. Associations choose from among the services available and enter into a contract with the manager describing the scope of work. The management contract should also include the fee, the duration of arrangement, and the circumstances under which the arrangement can be terminated early. Some governing documents limit the duration of management agreements or require specific early termination provisions. Most governing documents list certain association functions that cannot be delegated. Non-delegable functions typically include borrowing money, levying assessments, making capital expenditures more than budgeted amounts, and imposing discipline for violation of the governing documents. Regardless of what functions are delegated and regardless of the content of the management agreement, the board retains the duty to supervise the manager and the authority to override any decision.