Duty to Review Finances
Adams Stirling PLC
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DUTY TO REVIEW FINANCES

As provided for in Civil Code §5500, 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. (Civ. Code §5550(a).)

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

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Adams Stirling PLC