Each month, you’ll review a Board Financial Packet in the Documents section of the portal. The main reports you should review include:

Income & Expense Report

This report compares what the HOA planned to spend and collect (your budget) against what has actually been spent and collected to date.
• It helps identify overages (spending more than budgeted) or shortfalls (collecting less than expected).
• Look for variances – large differences between budgeted and actual numbers.
Example: If landscaping is budgeted at $50,000 per year, and mid-year spending is already $40,000, this could be a red flag that needs investigation.

Balance Sheet

The balance sheet provides a snapshot of the HOA’s financial position at a specific point in time. It lists:
• Assets – What the HOA owns (operating cash, reserve funds, prepaid expenses).
• Liabilities – What the HOA owes (unpaid invoices, loans, deferred income).
• Equity – The difference between assets and liabilities, representing the HOA’s net worth.
Example: A strong balance sheet will show healthy reserve balances and manageable liabilities, which indicates long-term financial stability.

Delinquency Report

This report tracks past-due homeowner accounts – assessments, fees, or fines that have not been paid.
• It shows each delinquent owner, the amount owed, and how long the balance has been outstanding.
• The board uses this report to decide if late notices, payment plans, or legal collection actions are needed.
Example: If a significant percentage of owners are delinquent, the HOA may face cash flow problems and will need to address collections quickly.

Tip: Focus on major variances from the budget and unusual expense patterns.