The following are warning signs to look for when reviewing monthly financial reports:

• The association is unable to make consistent reserve deposits each month or each quarter in the amount determined by the last reserve study.

• Accounts receivable (delinquent assessments) are increasing.

• The association's accounts payable ar!'l increasing.

• The balance of cash in the operating account is declining.

• There are significant differences between the association's budgeted income and expenses, and actual income and expenses.

• The association's percentage of delinquent assessments exceeds 5% of the budget.