Statement of assets

What is a Statement of Assets?

A Statement of Assets is a comprehensive financial document that lists all the assets owned by a Homeowner Association (HOA). These assets can be tangible or intangible in nature. Tangible assets could include physical properties, equipment, and cash reserves, while intangible assets could include things like trademarks, licenses, or any other type of intellectual property.

Why is a Statement of Assets Important?

The Statement of Assets is an integral part of an HOA’s financial health. It provides a clear picture of what the association owns and is essential for financial planning, budgeting, and decision-making processes. The document is often used in conjunction with the Statement of Liabilities to determine the net worth of the association. It can also be used as a tool to ensure that all assets are being properly managed and maintained.

How is a Statement of Assets Prepared?

The preparation of a Statement of Assets involves the identification, categorization, and valuation of all assets owned by the HOA. This process requires a thorough understanding of the association’s financial records, contracts, and property details. Most HOAs hire professional accountants to prepare this statement, ensuring accuracy and compliance with financial reporting standards.