This was the second of a three-part educational program for Reston Association. In this session we covered the three financial phases. Primary focus was on best practices in building a budget, how to read and use financial statements to make good business decisions, and understanding how the three phases worked together,

1. Advanced Homeowner Education:
FINANCIALS
a presentation for
Reston Association
April 6, 2013
THOMAS L. WILLIS, PCAM®,
VICE PRESIDENT, ZALCO REALTY, INC.
ASSOCIATION BRIDGE, LLC

2. Putting the
“u” in
fiduciary
THE THREE
FINANCIAL
PHASES:
1. Planning
2. Operations
3. Review Why is this important to me?

3. No – it’s not
just an
administrative
task – it’s the
beginning of
everything.
And it’s right
smack dab in
the middle of
everything, What is the goal of the budget
too! process?

4. Budget Methods
Trend Zero-Based

5. Budget Preparation
 When?
 Who?
 What?

6. Can a one-
column
spread sheet
get you where
you need to
go?
Budget Features

7. Budget Features
 Spreadsheet columns
 Narrative (really important)
 Reserve cash flow table
 Utility logs
 Fee schedule

8. Budget Features
 Contract escalations
 (do you have to care about Obamacare?)
 Utility rates & usage
 Reserve funding & capital projects
 CIC
 Education - CAI
 Audit
 Options for budgeting for contingencies
 Capital expenses?

9. Budget
 NO FEE TARGETING
Strategies
 The “Kitchen Sink” Draft
Doing it the  Never Assume – Lessons from
right way
RCG
 Bad Debt
Meeting  Increased reserve funding
expectations
 Special assessments
 Fee increases
Communi-
cating tough  Making it real – per unit per
news month

10. It’s not just a
bunch of
numbers on a
page
Why are association financials
important?

11. Accounting
Methods
What are the
numbers telling
you?
What should I
be looking for?
Financial Statements

12. Who’s Watching the Store?
Practical Steps to Protect Your Assets

13. Can you
afford not to?
Review stage? For what?

14. Three Levels of Review
 Compilation
 Review
 Audit

15. To sum up…
Do you see how the 3 phases flow together?
Can you speak the language?
What are your challenges?
Can you help other RA communities by sharing your
war stories, your strategies, your successes?

16. THANK YOU
for your service to your community!
Thomas L. Willis, PCAM®
associationbridge@gmail.com
twillis@zalco.com
Facebook: http://on.fb.me/ABLLC
Twitter: @ideaguypcam
Linkedin: http://linkd.in/twpcam
Tomasuarus Rex Blog: http://thomaslwillis.blogspot.com/