Financial Management Services provided by United can be broken down into the following categories:

• Budget Preparation
• Collection of Maintenance Fees 
• Accounts Receivable
• Assessment Records
• Delinquency Processing
• Invoice / Disbursement Procedures
• Financial Reports
• Audit / Tax Preparation
• Investments

The Association shall authorize United to bill and receive assessments and other amounts due to the Association. Receipts shall be deposited in an operating account under the Association's name and not commingled with funds of any other party, including United.

All reserve funds invested in other accounts, certificates, or other investment vehicles shall be under the sole control of the Association and not United. United shall have no signature authority on any account owned by Association, unless so directed in writing by Board to do so with an indication of appropriate control procedures.

A record of income, expenses, assets and liabilities shall be maintained utilizing the accrual method of accounting and Association's approved Chart of Accounts. United will utilize its computerized payable system which includes computer-printed Association checks.

1. Budget Preparation

a. Prepare the initial draft of the annual budget for approval by Association approximately 75 days before the start of each fiscal year during the term of this Agreement.

b. Assist the Association in the finalization of the budget by answering questions or obtaining additional relevant information. Adoption of each budget shall usually occur at least thirty to forty-five days prior to its effective date.

c. Prepare a mailing to owners of the approved budget in accordance with Association documents when requested by the Association.  Go to top of page

2. Collection of Maintenance Fees

a. Prepare coupon booklets for each existing resident which will be mailed prior to the beginning of the fiscal year. Additionally, coupon books for the remainder of the first calendar year of residency shall be supplied to all new residents upon their purchase of the home.

3. Accounts Receivable

a. Receive and process the owner payments for both regular and special assessments.   United shall track separately each of these types of Assessments.  Payments are to be received at a lock box for depositing by a bank directly into the Association's account the day received by the Bank. In no case shall cash be accepted by Manager on behalf of the Association.

b. Deposit payments received at the Manager's office within three business days into the separate Association operating account.  Go to top of page

4. Assessment Records

a. Maintain a monthly record of assessment billings, charges, adjustments and payments as received.

b. Respond to owners and their prospective purchasers regarding their individual accounts on a timely basis.

5. Delinquency Processing

a. Create a system with Association establishing dates and actions Manager should take related to delinquency accounts. These would include, but not necessarily be limited to, the number of days delinquent resulting in: late penalty and first warning letter being levied; second warning letter (if any); and notice of intent to lien.

b. Administer the delinquency procedure by charging monthly late fees, preparing warning letters in the Association's name consistent with the procedure, and answering questions regarding accounts.

c. Prepare account information to assist the Association's attorney in any litigation. Manager court appearances with the attorney may be an additional charge dependent upon Management Staff Time Allocations.

d. Issue Association copies both monthly and upon request of an aged delinquency report in a format to be approved by Association.  Go to top of page

6. Invoice/Disbursement Procedures

a. Develop and monitor a payment voucher system for Association.

b. Receive and review all Association invoices and other bills.

c. Prepare checks for Board's signature for payment of Association expenses within the Association's cash-flow limitations. Manager will not use its own funds to assist the Association's cash-flow situation nor will Manager be responsible for the consequences of insufficient Association funds.

d. Maintain vendor files containing payment information and invoice.

e. Issue annual 1099 Forms to qualified Association vendors, consistent with IRS guidelines.  Go to top of page

7. Financial Reports

a. Prepare and maintain the records necessary to produce monthly computerized financial statements.

b. Provide Association board members a copy of the following each month:

• Balance Sheet - list assets and liabilities as of the end of the current period.
• Income and Expense Statement (Profit and Loss) - list income and expenses by account (which had been designated by Association) showing the current month's activity, current month's budget, current month's variance, year-to-date activity, year-to-date budget, year-to-date variance and annual budget.
• Delinquency report - reflecting individual charges on an aged basis as well as what actions have been taken that month by United on each delinquent account.
• Cash Disbursement Journal - listing by all checks processed.
• Copy of bank statement for each bank account held by the Association and a reconciliation report for each account.
• Reserve analysis reflecting monthly additions and deletions to each reserve account.
• Spreadsheet tracking on a 12 month trailing basis of the cost attributable to every utility meter (electric and water) that the Association is responsible for. 
• Prepaid insurance schedule.
• Pre-payment Report - reflecting assessments received in advance of their due date.
• Report from Association's attorney on their status of every account they are performing collection actions upon. 

d. At year-end closing, print Association one copy of the Year-end Cumulative General Ledger for the entire fiscal year.

e. Other financial reports are available upon request at no additional charge.  Go to top of page

8. Audit/Tax Preparation: Manager shall at the option of Association either:

a. Cooperate with the Association's independent Certified Public Accountant in the annual, quarterly, or semi-annual audit, review, or compilation by making all the records, books, and files available for inspection and review. Review the resulting audit and make the CPA's recommended adjustments to the Association's records; or

b. Prepare an annual financial statement (at no additional charge assuming a compilation is not required) and prepare and file the annual Federal and State income tax returns at a fee to be agreed upon by Manager and Board.   Go to top of page

9. Investments

a. At the request of Association, provide assistance in developing an investment policy or program which utilizes savings accounts, money market funds/accounts, certificates of deposit, or other prudent investment alternatives. The Association recognizes that Manager is not acting as an investment professional,

b. Provide support to the Association in its responsibility for investment of funds. This support may take the form of limited investigation of rates or assistance in completing necessary forms required by the banking institutions and investment firms.

c. Reflect relevant maturity dates and rate on the Association's Balance Sheet for reference purposes.  Go to top of page