2013 is sure to bring continued recovery in the real estate market. We are seeing a downturn in delinquencies with regard to homeowner assessments, which is great news for Associations. Please continue reading, as there is important information in the article below regarding the FDIC and changes in coverage. If you have any questions as to how this change affects you, please contact us to discuss.
Keeping you up to date with information such as this is a reminder why you have chosen CFM as your financial management team. CFM is the only accredited financial management firm in California. We appreciate the opportunity to serve your Association!
Linnea & Stacie
Prior to the new year, FDIC provided unlimited coverage to all funds in non-interest bearing accounts. Beginning January 1, 2013, all funds in excess of $250,000.00 in any banking institution, under one tax ID number, will lose this FDIC coverage and should be moved into FDIC insured accounts. This will require you to do a thorough analysis of your balance sheet to ensure funds do not exceed $250K in any one financial institution.
The board should consider alternatives for cash placement such as CD placement services offered by the association’s bank or other options to protect the association’s funds. We can assist in coordinating with your banker or investment advisor, if requested. It will be up to the board to provide direction, and CFM will implement changes once directed. Take a look at your balance sheet, do you have more than $250K in any one financial institution? Contact us today to assist in keeping your funds insured!
Stump the Experts
If you have a question regarding the financial management of your association, please send an e-mail to: firstname.lastname@example.org. If your question is chosen, we will publish the information in our next newsletter.
One of of our survey respondents:
“Error free and always with a positive attitude. My board is thrilled; that always makes the HOA manager look good and feel good. Thank you!”
Patricia Arnold, Manager
Oakmont Village Assoc. Santa Rosa
The Franklin Award
The Franklin Award is a company reward of a $100 bill given to one employee per quarter in recognition of an outstanding achievement or extraordinary task completion. They can be nominated by their fellow employees, by a homeowner, board member, or colleague. The Franklin Award winner for 4th quarter 2012 is Katrina SanFilippo, financial services manager. Katrina was nominated by one of the owners of the company for being so efficient and professional!