Money makes the world go ‘round, and a good finance committee helps you save and make money. Previously, we covered three Condo Association finance committee project ideas that would benefit your community: expense, revenue, and audit reviews. If you’ve got a productive finance committee that is doing great work for your community, here are three more Condo Association finance committee project ideas that will keep your community rolling in the green.
Reserve Study Updates
The reserve study is one of the most boring – yet critical – documents in a community Association. Ensuring that you have an up-to-date reserve study – and your community is following it – is critical to financial success. If your finance committee is productive and intelligent, delegating the reserve study to them can be a useful exercise. They can devote their full attention to it, and the Board can review their work.
Amenities Financial Review
Amenities are an important driver of Condo living. Scenic landscape, a well-equipped gym, and a nice pool are all elements that prospective Owners desire and current Owners love. But with them comes cost. An amenities financial review can ensure that all of your amenities are giving you the right bang for the buck. Your finance committee can review to ensure that each amenity is being run in a financially prudent manner – such as having contracts rebid- or ensure amenities are being utilized. The key for this effort is to make sure your committee is focusing on the big picture and not just the dollars.
Reserves Investment Plan
Some Condo Association finance committee project ideas – like this one – are strictly for the fat cats. If your community has been correctly budgeting reserves, you may be in a solid financial position. If you’re solid, why not aim to be flush? Your committee can consult with qualified financial advisors to identify if a portion of your reserves can be invested in higher yield activities such as stocks and mutual funds. Just be careful – you always want enough cash on hand for immediate needs or imminent major projects. But if you have the money, you can take the burden off Owners and instead make money off your investments.
The Condo Association Finance Committee Is Critical to Success
No community ever turned their nose up at more money. However, when it comes to managing money, you need to balance many factors. First and foremost, you want to make good financial decisions. Second, you must consider the programmatic impact of issues. If your Finance committee wants to eliminate your beloved landscaping efforts, expect an angry mob. If you can balance these different priorities, however, you’ll be on your way to being financially stable and leading a better Condo life.