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Duty to Review Finances
As provided for in Civil Code §1365.5(a), boards of directors must review their association's financial records as follows:

  • a current reconciliation of the operating accounts on a quarterly basis,

  • a current reconciliation of the reserve accounts on a quarterly basis,

  • the current year's actual reserve revenues and expenses compared to the current year's budget, on a quarterly basis,

  • the latest bank statements for operating and reserve accounts,

  • an income and expense statement for the association's operating and reserve accounts on at least a quarterly basis, and

  • the reserve study annually. Civil Code §1365.5(e)

If an association's governing document impose a more stringent standard of review, boards must follow the higher requirements.

Adams Kessler PLC
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