Field notes from the board table.
Real situations and practical guidance on reading the numbers, questioning vendors, and making confident decisions — the kind of independent perspective I bring to every engagement.
Restoring financial oversight for a Connecticut condominium association & tax district.
The situation. This association and tax district was experiencing a breakdown in communication between its management company and the Board. After the treasurer resigned, financial statements had not been reviewed by the Board for nearly a year. I was engaged as an advisor to help restore financial oversight, improve reporting, and support the Board through the transition.
What I reviewed. I reviewed the financial reports, operating budget, accounting procedures, and standard operating procedures for both the association and the tax district — working from read-only access to the accounting software, so I could examine the transactions without altering them.
What we found. Several accounting and operational issues surfaced. The balance sheet included accounts that did not change over time or could not be clearly explained by the management company. Certain income and expense postings were recorded in the association when they belonged in the tax district, and transfers between the two were not handled properly. Accounts-receivable records were inaccurate, delinquencies and fines were not properly posted, collection matters were not always referred to the attorney when appropriate, and homeowners were not consistently informed. The Board had relied on the management company’s handling of the finances and had not been made fully aware of these issues. The tax district, in particular, was being administered more like an association than the municipal entity it is.
What changed. With read-only access, I was able to download account information, review transactions, and collaborate with the management company to help bring the books back into order. When the existing management company continued to struggle with tax-district compliance, I assisted the Board in identifying a new management company and supported the transition. I also helped develop new standard operating procedures — clearer responsibilities, better controls, and improved oversight — to make the treasurer’s role smoother going forward.
“Thank you for all the work you put in. We would have been in deep trouble if things had continued as they were. Your guidance and team effort brought back stability and confidence, while helping the Board understand what we should have been doing all along.”
Three questions every board should ask before approving next year's budget.
- Are our reserves keeping pace with what's actually aging?A budget can look balanced while the reserve slowly falls behind the roof, the HVAC, and the pavement. Ask what the reserve study assumes — and when it was last updated.
- What are we paying each vendor, and when did we last test it?Recurring contracts renew quietly and rarely get questioned. A simple review of what you pay, and what else is available, often pays for itself.
- Do we understand this, or are we trusting that someone else does?The most expensive decisions are the ones a board approves without fully understanding them. If that's happening, it's worth bringing in an independent set of eyes.
Want that independent perspective on your numbers?
860-307-6156 · rkl@rklcom.com · Serving Connecticut & Florida