What Financial Information Should You Present at Your HOA’s Annual Meeting?

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What Financial Information Should You Present at Your HOA’s Annual Meeting?

What Financial Information Should You Present at Your HOA’s Annual Meeting?

As you prepare for your HOA’s annual meeting and your annual budget report, you’ve ideally already laid the groundwork by creating detailed financial reports throughout the year. Keeping up with the books—and bringing in professional help when you need it—is the best way to ensure you can generate the required annual financial information you need without too much trouble.

But how do you convey the financial health of your HOA to your community without bogging them down in the nitty-gritty? Yes, I know there’s always the one resident who needs every comment footnoted with a bank statement or two, but, for most folks at least, you’re aiming for a clear, concise presentation that leaves community members feeling good about the neighborhood and the HOA.

Checklist: what you need for your annual meeting financial report

Your HOA’s annual meeting will likely include a full slate of agenda items, including elections, board presentations, items requiring owner approval, and other key announcements. With so much on the table, your financial report needs to be both high-level (more on that later) and super specific.

Your financial report should include:

  • Current year financial update. Include year-end projections if possible.
  • Review of next year’s budget. You can hand out the details, so stick to the major revenue and expense categories.
  • A summary of your reserve account and funding, including past and proposed improvements.
  • Audit results if you commissioned one.
  • List of major initiatives for the year ahead.
  • Other financial updates as applicable, like loan and insurance status.

Present your report with style

While you’ll want to have every number you might need on hand, you certainly don’t want to distribute a bulky packet of spreadsheets. Instead, tell a story with a PowerPoint or other visual presentation, rolling out highlights, compelling charts, and photos that remind residents what your HOA accomplishes. Don’t try to gloss over potential issues. In my experience working with HOA boards, and serving on my own HOA board, it’s always better to get out in front of the results as they are.

By sticking to what even your least financially savvy residents will find important or interesting, you’ll be able to present a financial picture that satisfies the community.

Help with your HOA’s finances

As a neutral third party, BJM can help ensure your organization is, and will remain, financially healthy. If you have any questions about your HOA’s financial status, please contact us today.

By Neal Bach, CPA


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