How Well Do You Know
Your Association?
ASSOCIATION QUIZ
Finances
1 What are the sources of your association's income?
2 How does the association manage its cash (checking, money market and long- term investments?)
Who is the designated person to carry out these tasks?
3 Does someone on the board review and understand all income and expenses each month?
4 How and who develops the budget? Is the process open to all units owners, board members?
5 How many signatures are required on your checks? Are there any limits associated with this?
6 Who reconciles the bank account? Can they also sign your checks?
7 How often do you have an audit by a CPA? What do your documents require?
8 Is your CPA hired by the association or by the management company?
Assessments
9 What are your total annual assessments?
10 What is your collection policy? (How many notices, time periods, etc.)
11 Who collects your assessments?
12 How much can the board raise assessments without a vote by the homeowners?
Reserves
13 What is your association's process for determining its reserve needs?
14 How much is currently in your reserve funds?
15 What items are covered by your reserve funds?
16 Where are the monies?
17 What are your common elements? (For condominiums, your limited common elements?)
Attorney/Legal
18 Which firm represents your association? Do they also perform collections for your association?
19 Does your attorney represent the board or the association?
20 Do board members have any fiduciary responsibilities?
21 Do committees have the power to operate independently of the board?
22 What types and amounts of liability insurance coverage does the association have?
23 Does the association have a Directors and Officers liability insurance policy?
24 What type of protection do you have, as a board member, if you are sued personally because
of a board decision?
25 Does the association indemnify board members?
26 Are board members acting within their legal authority if they take an active role in management?
Rules/Covenants/Documents
27 When did you last read the Declaration, By-Laws, and Articles of Incorporation of your association?
28 What is the order of priority in case of conflict between Rules/Regulations, the Declaration, By-Laws, Articles of Incorporation, and State Laws?
29 Would you be ready, when an issue arises, to look up the pertinent authority that should govern the board's position or action on the issue?
30 Do your have a current set of policies or Rules and Regulations to implement the Declaration and By-Laws?
31 Do you have a due process procedure to provide for enforcement of your policies? What is it?
Operations
32 What services does the association provide to its owners and residents?
33 What are the guidelines for contract bidding, selection, and performance for contractors who perform work for the association?
34 Does the board contract with relatives or businesses related to board members/association members? If so, do you disclose this?
35 If the association has a management agent, how does the board evaluate the performance of that individual or organization? How often do they do this?
36 Should the budget determine the maintenance to be accomplished or should maintenance needs determine the budget?
37 How many units are included in your association?
Resale Packet
38 Who makes up the resale packet?
39 Who is responsible for its accuracy?
40 What (generally) is in it?
41 Have you ever read the state legislation that mandates the contents of the packet?
Motivation
42 Why are you on the board?
43 Are you able to think in terms of what is good for the association versus what is good for your unit?
44 Do you understand the difference in setting policies and carrying out operations? Who is responsible for each function?
45 Are you prepared to deal fairly and consistently with residents who are angry and blame the board for everything, (and are your neighbors)?
The Quiz is courtesy of Jim Ahlbert (Ahlberg & Associates), Judy Currier (President, Leewood Homeowners Association), Joe Douglass (Whiteford, Taylor & Preston, L.L.P), Anne Inman (President, Concord Mews), and Barbara A. Mosgrave (Woodburn Village). If you have any questions that have not been answered, or would like to offer feedback on the Association Quiz, call the Chapter office at 703-1750-3644, or email us (info@caidc.org) Your comments are welcome!
