What's required?

Self managing a home owners association has always been considered a difficult task. It's like running your own business. At the very least you need accounting support, a software package and volunteers willing to do the work.

This has all changed. There is finally a solution which allows board members to do exactly what they should be doing; managing the association. In a corporate environment you would not expect top management to be performing all the functions required to operate a business. Corporate management needs information which is reliable, current and easily accessible in order to make decisions.

This also holds true for associations. As a board member you need accurate information to make informed decisions. You need a process which allows member feedback and communication as well as a reliable process that performs all the operational functions for you. It must be easy to use, readily available and provide accurate and current data.

How do I get there?

To start you on the road to self management there are 4 key factors:

• • Definition of board structure and responsibilities;
• • Establish key committees;
• • Member communication;
• • Comprehensive software application.

Board structure and responsibilities:

Most boards are organized based on the description set forth in their by laws. This usually identifies 4 board members: president, vice president, treasurer and secretary. The president is directly responsible for the overall running of the association. The vice-president oversees the committes and provides each committee with the guidance and support necessary to insure that they are able to effectively accomplish their goals. In addition, the vice president should approve all major expenditures and the weekly payroll. The treasurer is the primary check signer and his signature will appear on all system generated checks. He should also have the ability to generate manual checks whenever they are needed. The secretary is responsible for recording meeting minutes, broadcasting association announcements and ascertaining that the member information such as by laws and insurance documents are kept current.

Committees:

Committees play a major role in the self management model. Key committees include maintenance, insurance and recreation. Committees typically have a minimum of 3 members and a maximum of 5 members. No experience is necessary in the particular areas represented by the committees. The objective is to control costs while obtaining the best possible service for the association.

Maintenance

The maintenance committee is responsible for contacting vendors such as landscapers, electricians, plumbers and trash removal companies. Contractors should be provided with a detailed description of the associations' requirements. Based on the information provided to each contractor, written bids should be obtained. This process is critical to maintaining the overall costs of the association. A minimum of 3 bids should be received for each major expenditure.

Insurance

Insurance has become a major item in most associations' annual budget. Unfortunately we just keep renewing the same policy instead of evaluating it and obtaining new quotes from other insurance companies. This is a very competitive field and rates can differ significantly. So it behooves this committee to contact a number of companies and request quotes. Again, a minimum of 3 quotes should be received. This exercise is not required to be done every year, but should be performed every few years to be sure that you are obtaining the most competitive rates.

Recreation

Most associations have a swimming pool, tennis court and possibly a playground and clubhouse. All these areas require significant maintenance. The recreation committee needs to evaluate the extent of maintenance required each year and obtain the necessary bids. Once again, multiple bids should be obtained (minimum of 3) not only for the sake of determining cost but also for getting a variety of opinions as to the extent of the work to be done and the best way to approach it. Very often vendors will suggest different options for maintaining or repairing the recreation areas.

Member communication

Having the ability to easily communicate with the associations' membership is a major advantage. IA21 Manager has dedicated an entire module to member communication. It includes a member comment program; on line voting and rating program; on line access to the member directory and board announcements; on line access to the associations' by laws, insurance policy and meeting minutes; access to individual member information such as invoices and statements.

Controlling costs is important

This is your community. You obviously have made a major financial committement and you are concerned about protecting this investment. Keeping costs under control is certainly a challenge, but not insurmountable. By using the model proposed in this report you will be able to evaluate and compare estimates for services you require. This is the single most important benefit obtained by self management. You control the costs. This impacts your monthly maintenance fee and should the time come when you decide to sell your home, having low maintenance fees is a very attractive selling feature.

How IA21 Manager supports self management

Up to this point we have discussed what's involved in managing an association. Based on this you can see that you probably have been performing most of these tasks if you are a current board member or participate on a committee. The next area describes the comprehensive support IA21 Manager provides for self managed associations.

We provide comprehensive accounting support, we provide your information technology support and we design, develop and maintain your associations' website. Every member receives a secure login, so they can access IA21 Manager directly from any device that has an internet connection.

• • Members receive a monthly email invoice (hard copy available by request).
• • We provide postage paid remittance envelopes to all members.
• • We process all cash receipts.
• • Members also have the option of paying their monthly fee online.
• • We generate all vendor payments.
• • We perform all general ledger functions including the generation of monthly financial statements.
• • We prepare an annual budget based on prior year information that you can then approve or modify.
• • We prepare your monthly bank reconciliation on your primary account.
• • We perform your payroll processing. Employees enter their hours online; a board member approves the hours online and we then interface directly with a payroll provider.
• • We provide complete support for all applications. There are no hardware or software requirements for members.
• • When members logon they have access to the associations' by laws, insurance policy and meeting minutes.
• • Members can access their accounts recievable statement or invoice online using their secure logon.
• • The system includes a member communication module which allows members to communicate with each.
• • Members have the ability to vote online, respond to opinion polls and rate vendor performance.
• • Members have access to their associations' online calendar that highlights important dates and activities.
• • Board members can run a program that quickly tabulates voting results for online elections or rating vendors.
• • Board members can easily post announcements online; inactivate members and enter new members. The system will automatically generate the new member's invoice and generate a prorated invoice for inactivated members.
• • Designated board members can enter member fines and special assessments.
• • Comprehensive reporting is available online and includes financial statements, detailed account analysis, budgets, cash variance reports, accounts receivable aging reports and a monthly bank reconciliation.
• • A complete fixed asset system with extensive reporting is available to associations with fixed assets on their balance sheets.

With IA21 Manager you will be running your association using the most sophisticated property management system available. It is unique, since it was developed specifically to meet the needs of associations who want to be self managed. IA21 Manager costs less than other services, but provides significantly more functionality and support. Remember, since it is internet based, you always have the information you need anytime, anywhere there is an internet connection.