Operating summaries

What are Operating Summaries?

An operating summary is a comprehensive report that offers a detailed view of a homeowner association’s (HOA) financial and operational activities. It often includes information on revenue, expenses, reserves, property management, maintenance, and capital projects, among other things. The objective of these summaries is to offer transparency into the HOA’s activities and financial health, and to equip members with the necessary information to make informed decisions.

Importance of Operating Summaries

Operating summaries are crucial for maintaining transparency within the HOA. They allow members to understand where their dues are going and how the association’s finances are managed. This can help to build trust and engagement among the members, leading to a more harmonious community. Furthermore, these summaries can act as a valuable tool for prospective buyers, providing them with an understanding of the HOA’s financial health and operations before they make a purchase decision.

Components of an Operating Summary

Typically, an operating summary would include the following components: revenues (dues, fees, assessment income), operating expenses (utilities, maintenance, insurance, management fees), reserve funds (amount set aside for future capital expenditures), and a statement of financial position (assets, liabilities, net assets). It may also include a report on the status of ongoing or planned projects, changes in regulations or bylaws, and any other significant events or updates.