Common Interest Realty Tax Accounting & Consulting

Tax & Management Advisory Services

As tax advisors, we prepare tax returns for the Association and assist them in developing their tax planning strategies to achieve tax economies. We represent Associations before taxing authorities and provide tax consulting services on a broad range of financial and investment decisions.

In response to the changing needs of common interest realty associations, we continuously review the breadth and depth of our management advisory services. We are increasingly playing a vital role in assisting Associations to improve the use of their resources and increase their efficiency. Our technical knowledge and Association experience provide the basis for a broad range of management advisory services, such as:

• Analysis and projection of current and future replacement reserve funding requirements;
• Counseling and assistance on annual budget development;
• Review of records during developer turnover;
• Educational seminars for boards of directors and general membership;
• Expert testimony and litigation support services on behalf of the Association;
• Investment counseling for Association funds; and,
• Human resource allocation.

Developer Turnover Examinations

Upon turnover of the property from the developer to the realty owners, the Board of Directors has a fiduciary responsibility to its members to review the finances of the Association. Oftentimes, the developer has under funded reserve accounts, used Association funds to pay their own expenses and subsequently left the Association financially strapped. Our professionals can assist the Board to determine if such conditions exist. In addition to assessing the finances of the Association, we can review the documents to be turned over and ensure that the developer is in compliance with state statutes. Other procedures may include:

• Inventory records and documents before turnover to the homeowners.
• Review and recompute assessments to ensure that assessments have been both billed and collected properly.
• Examine member and developer/converter assessment amounts.
• Examine cash disbursements of the Association for propriety.
• Analyze financial statements and prepare proofs of cash for all cash accounts; ascertain the balances of other current asset amounts such as utility deposits, unexpired insurance premiums, and other sundry assets.
• Prepare a schedule of outstanding obligations, past due amounts for collection, and review contracts and prepare abstracts for the Association’s legal counsel.