- October 6, 2019
- Posted by: Scott
- Category: associations, Business plans, communities, Community, Economics, Finance & accounting, HOA
There’s an interesting paradigm shift occurring in Idaho homeowner associations. This shift is the result of the Internet, because it allows homeowners to access information. Because of this, homeowners are more informed and realize that they bear the burden of their Board’s financial accounting mismanagement failures, errors and omissions. They are concerned about transparency and ensuring their Board’s due diligence.
The financial liability is so high that Board members are seeking protection from third party financial providers. Their purpose is to mitigate a Board’s control and reduce exposure to risk.
Board members volunteer their time to facilitate any HOA related activity and often run to be on the Board for personal reasons. This arrangement may produce a self-serving or a conflict of interest that presents an immediate threat to the association. A Board member who has access to their HOA’s financial records discovers an attractive place for false reporting, under-reporting or failure to report. A third party provider by nature has to report to the entire membership, thus enhancing transparency which is critical to their service.
MGM Association Management is a third party HOA service provider that offers a financial tool designed specifically for HOAs. This tool acts as an adjunct to replace anyone who directly handles an HOA’s financial records. The cost of the program is considerably less than hiring a bookkeeper.
MGM’s financial tool is not just a single program, such as Excel or QuickBooks which are typically used by HOAs. MGM provides a suite of association-specific financial tools that include compliance, collections, and delinquency. This program allows the Board and the entire HOA to interact, access and communicate in real time, resulting in improved financial controls and transparency.
MGM has set-up this program similarly to your utility providers, which by the way, are managed by independent, third party services. The program includes a fully integrated accounts receivable, accounts payable and general ledger modules. These are tasks that a volunteer Board member would have had to do, which could save them an enormous amount of time, remove a biased individual from falsifying reports, reducing your association’s exposure to risk and mitigate increases in unplanned assessments.
MGM Association Management is the only association manager in the State of Idaho that has purchased the administrative rights to a program called Village Management Systems. Because of this, MGM can pass all of the program’s benefits along to an HOA of any size. In comparison to other management companies who can only offer a more costly and limited program, MGM includes all of the VMS services. In this way, HOAs remain independent without having a management company involved. It is ideal for HOAs looking for financial accountability and is less expensive than hiring a bookkeeper.
If you are looking to update your HOA’s financial accounting and focus more on the positive aspects of your community, MGM’s financial tool is ideal for today’s Internet savvy association. You can reach MGM at (208) 846-9189 or online at www.gomgm.com.