Common interest realty associations are responsible for the administration, operation, maintenance and repairs, and replacement of the common elements of properties such as condominiums, cooperative housing, townhomes, and timeshare units.
The owners elect a board of directors for the Association to represent their interest in the ownership of the common property. Often these boards contract with a professional management company to manage the association on behalf of the owners.
Both the management company and the board of directors have a fiduciary responsibility to the owners of the property. To fulfill this fiduciary responsibility it is imperative that the board engage a firm highly qualified in providing professional accounting services to the Association.
McGovern & Greene LLP is such a firm.
We have assembled a team of professionals whose backgrounds include a former CFO for one of the largest suburban Chicago condominium management companies, a former architect with a CPA and MBA from The University of Chicago, a foremost expert in forensic accounting and white collar crime, and a Construction Damages financial expert. All supplemented with accounting, tax, and financial investigation consultants. Our vast experience uniquely positions us to offer a comprehensive suite of services to common interest realty associations.
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.