We add value by developing pro-forma operating budgets, communicating personally and issuing monthly formal financial communications, by providing the following financial reports on both an interim and annual basis:

• Accounts Receivable Report
• Balance Sheet
• Income Statement
• Bank Reconciliations
• Budget Comparison Report
• Analysis
• Cash Disbursement Report
• Operating Budget
• Prepaid Reports
• Detailed General Ledger
• Reserve and Equity Report

Other cost effective reports are also available:

ACCOUNTING DEPARTMENT                                                                           

Our accounting Department is staffed by professional accountants with BS degrees accounting majors with over 34 years of Controller office experience, including managing their own accounting firms. Our accounting department manages all aspects of your association from a financial standpoint. The internal controls in place at our company are a response to the assessment of risk to client assets by management. Risks are assessed through management’s awareness of the environment in which it operates and its direct involvement with the day to day operations of the client community association.

Control Activities are the policies and procedures that assist in ensuring that management directives are successfully implemented. CSI management firm maintains segregation of duties wherever possible. The accounting department is staffed with professionals segregated by specific job descriptions and policies and procedures are in effect to provide the maximum relative controls based on clients and management companies constraints of staff and budget.

A sample of client community association control activities includes:

• The A/P department maintains control over a cloud based system with invoice approval delegated by established procedure and then ultimately approved by the community manager or board president. All invoices are scanned and available for review look up and printing 24-7 on the cloud.
• Check stock is locked and under control by A/P Department
• Community manager reviews invoices before and after checks are issued
• Check signing authority is limited to one
• On-line Cash Manager monitors all banking transactions
• Cash receipts are processed by A/R department and processing staff with department director having oversight of this process and reconciling to an outside source
• The primary receptacle of cash receipts is a bank lockbox
• All web based cloud transactions are on a secure server
• All customer credit card information is stored in secure locations
• General ledger system is password protected with limited access by only accounting staff
• Monthly closing process is identified and managed using a checklist of various journal entries and procedures to follow
• Financial statements produced monthly in accordance with FASB 117 and delivered to treasurer for review then to Board
• Chart of accounts utilized to track income and expense in manner per FASB requirements and GAAP
• Computer network is protected by a firewall and maintained by an IT consulting firm specializing in network security
• Physical security of computer network servers established by locked computer room
• Daily back-ups are performed of all computer systems – both financial and operational
• Employee background checks are performed on all new hires including credit and criminal
• All staff is required to sign acknowledgement and understanding of Employee Handbook which contains separately signed conduct and fraud policy
• Disaster Recovery Plan is established and reviewed on an annual basis

Other control activities include monthly review of internal financial statements by the treasurer and Board of Directors and CSI Community Manager and Controller. On a monthly basis, the Board and community manager review the internal financial statements for budget to actual variances. Financial statements from the prior month are issued on a scheduled basis, usually no later than 20 business days after the end of that particular month, but usually they are provided by the 14^th of the month.

BUDGET                                                                             

During the fiscal year budgeting process, each functional area is provided historical and current year financial data, an updated chart of accounts and budget parameters to assist in developing reasonable and valid assumptions for the new budget. Detailed notes and assumptions are also part of the budget package that is delivered to the Board for its approval.

MONITORING                            

Monitoring is the process of evaluating and assessing the systems of internal control to ensure that the procedures are consistently and effectively applied over an extended period of time and that CSI is using the most current and effective technology available. On an on-going basis, staff evaluates the various systems of internal control and updates/modifies/enhances where needed. Monitoring is also provided through the annual financial statement audit process. CSI staff works diligently with the auditor selected by the Board of Directors to ensure all necessary information is at their disposal for the preparation of the annual audit and the appropriate federal and state tax returns and investment reserve reports.