By Joseph Chorba, CPA and Cara Buccellato, CPA
Welcome to the 7th edition of the Wilkin & Guttenplan, P.C. CIRA financial survey. For over 20 years, Wilkin and Guttenplan, P.C. has been bringing you a survey of the financial results of hundreds of New Jersey Condominiums, Homeowners Association and COOPS. The 2015 edition breaks down over 410 associations into categories comparing data such as average monthly maintenance, replacement and deferred maintenance funding and assessments receivable. These participants range from small condominium associations with less than 20 units to homeowners association with 1000+ units. We hope that this survey can be used as a tool to help boards, managers, and unit owners find the answers they are looking for and help them manage their Association.
The survey aims to answer common questions such as “How do the monthly maintenance fees for our association compare to associations of similar size?”, “Do we have enough in the replacement fund?” “Are we adequately funding the replacement fund each year?” and “Are our assessments receivable balances consistent with other associations?” These questions are not new and have always played an important role in managing an Association. But these questions are not always easy to answer for many reasons. Residents of New Jersey have experienced some major events over the past few years such as one of the worst storms to ever hit New Jersey, unpredictable weather patterns and economic uncertainties. All of these issues can impact the financial stability of an association. They can also impact how boards respond to those questions and manage association finances.
This survey is meant to provide associations with benchmarks and a frame of reference that may be helpful in future planning and decision making. The survey can be used as a comparative tool to assess an association’s position relative to other associations of similar size. The results of the survey should be used as a reference and are not recommendations or guidelines that associations should follow. Keep in mind that the information contained in this report is based on associations audited by Wilkin and Guttenplan, P.C. which represent a sample of the overall population of associations in the state of New Jersey. In addition, every association is different. Therefore, the unique characteristics of your association should be considered when comparing your financial results to the survey. We hope you find the information useful and look forward to your feedback and input for future editions.
See link below to view the Financial Survey Results.