Unit 2: The Governing Documents, Budget, and Financial Management Flashcards
The declaration, the articles of
incorporation, the bylaws, and the board
rules and regulations.
Governing Documents
The document filed with the Florida
Department of State that creates the
community association and defines its
powers and responsibilities.
Articles of Incorporation
A corporation in which no part of the
income or profit is distributable to its
members, directors, or officers
Corporation not for profit
The code or codes of rules adopted for the
regulation or management of the affairs of
the corporation
Bylaws
Informal or supplemental rules adopted by
the association board.
Rules and regulations
The status that protects an individual under
the age of 18 years who is domiciled with a
parent or other person having legal
custody.
Familial status
A person has a physical or mental impairment which substantially limits one or more major life activities, or he or she has a record of having, or is regarded as having, such physical or mental impairment.
Handicap
The unit owner’s share of the money
required to pay the expenses of the
association.
Assessment
The regular recurring expenses of the
association including such items as taxes,
insurance, maintenance, utilities,
administration and management.
Operating expenses
Funds collected and set aside to cover non-
recurring capital expenditures and deferred
maintenance.
Reserves
The document, prepared annually, that
reflects the estimated revenues, expenses,
and reserves schedule for the next fiscal
year and the estimated surplus or deficit as
of the end of the current fiscal year.
Budget
Owners have petitioned the board because
the budget calls for new assessments for
operating expenses in excess of 115% of the
previous year.
Reconsideration
All funds remaining at the end of the fiscal
year after all expenses have been paid.
Common surplus
A one-time charge to pay for unexpected or
unforeseen association expenses.
Special Assessment
A foreclosable claim against property to
secure payment of a debt, such as a
mortgage or association assessments.
Lien
A certified document provided by the
association that states an owner’s current
assessment status.
Certificate of assessment / Estoppel
Certificate
The type of financial report, also known
as a basic cash report, that applies to all
associations with fewer than 50 units and
all associations with annual revenues of
less than $150,000
Informal report
The type of financial report that applies to
larger associations of 50 or more units
and $150,000 or more in revenue.
Formal report
The most basic formal statement that
applies to associations with annual
revenues of $150,000 to $299,999.
Compiled report
The more in-depth statement that applies
to associations with annual revenues of
$300,000 - $499,999.
Reviewed report
The most in-depth statement that applies
to all associations with annual revenues
of $500,000 or more and all timeshares.
Audited report
