Duty to Review Association Finances
Boards of Directors are required to by law review the following association's financial records:
- The income and expense statement for the association's operating and reserve accounts on at least a quarterly basis,
- The current year's actual reserve revenues and expenses on at least a quarterly basis,
- A reconciliation of the operating accounts on at least quarterly basis,
- A reconciliation of the reserve accounts on at least quarterly basis,
- The most current bank statements for the operating and reserve accounts on at least a quarterly basis, and
- The reserve study annually.
If an association's governing documents impose 'a more stringent standard of review, boards must follow the stricter requirements. The standards set forth above are minimum standards. It is recommended that boards perform their financial reviews every month.