Do you ever wonder how Anasazi’s annual budget comes together—and what happens to your assessment dollars once the budget is approved?

The process begins months before a new budget takes effect. Management and the Board review expenses, contracts, utilities, insurance, maintenance needs, upcoming projects and how actual spending compares with the current budget.

As the next budget is developed, the Community Manager prepares the operating budget, which is reviewed by the Treasurer and President before going to the Board. The various committees of the Board also identify their anticipated operating needs.

Board committees play an important role in developing the reserve budget. Working with the Community Manager, committees identify identify and prioritize proposed projects and expenditures in their areas. This gives the Board, through its committees, direct involvement in determining reserve spending priorities and ultimately deciding what is funded.

Based on the proposed annual budget, the Board determines the HOA fees needed to fund operations and reserves and, when necessary, may propose a special assessment.

Once approved, the budget becomes the financial plan for the coming year, but oversight continues. The Treasurer reviews and approves all invoices, while expenses are tracked against the budget, accounts are reconciled and financial reports are reviewed.

The Treasurer, Community Manager and President also conduct mid-year and year-end budget reviews for the Board. These reviews compare budgeted and actual spending and identify expenses added because of unforeseen circumstances. The results also help inform the next budget cycle.

In other words, managing Anasazi’s finances is a year-round process of planning, spending, monitoring, and preparing for the future.

For more details, visit https://anasaziliving.com/anasazi-finances/

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