INTRODUCTION
Advanced Management of Southwest Florida, Inc. offers professional
Management services that consistently handle the detail of the Florida
legal requirements and frees the Directors' time for executive overview
and policy making. Flexibility in the ability to adapt to the unique
needs of the Association or the Board is a trademark of AMI's service.
AMI's comprehensive services are detailed below, and their
implementation can be coordinated with the Board and outside
contractors by using the attached
Association Responsibility Assignments form.
Outlined below are brief summaries of key services that further explain the AMI level of professionalism and service.
FINANCIAL CONTROLS
AMI has established strict financial controls to assure financial
security through a number of important checks and balances. Financial
responsibilities are divided among different AMI employees. Separate
personnel approve invoices, prepare checks, complete financial
statements, and sign checks. All checks require two (2) signatures.
Typically, arrangements are made that one (1) signature on operating
account checks are made by the Management Company and one (1) by the
Board representative. AMI recommends that both signatures on reserve
accounts be those of Board representatives. Bank reconciliations are
completed monthly and may be included in the financial package and
original bank statements can be inspected by the Board during the
normal business hours.
AMI maintains Association files at their office in an organized and
accessible manner. AMI is very responsive to requests for historical
documents from Board members and Association members. AMI maintains
financial history and vendor files that include the original proposal
and contract, as well as individual invoices throughout the
relationship with the individual contractor. This avoids the necessity
of tracking through many months of financial statements to locate
individual invoices. Similarly, individual unit owner files are
maintained that contain the original evidence of ownership, all
correspondence received from and mailed to the owner, including any
delinquency letters, and service requests.
COMPUTER SYSTEM
AMI uses the most modern computer hardware, including a
complete network system in each of its two (2) offices. The computer
network can be accessed through multiple authorized personnel in the
office increasing the productivity and efficiency of maintaining
Association records. Many different printers are used to prepare
correspondence, financial reports, and mailing notices.
Yardi is the software system used by AMI. Over 12,000 professional
Management Companies use this system that has been tested and is
updated periodically to provide greater efficiency and more flexibility
in its reporting format. In addition to the general ledger functions of
accounts receivable and accounts payable, the system includes a module
to assist in delinquency and collection follow-up, as well as
maintaining the data base for owners, vendors and has a work order
system for tracking service requests.
AMI has worked with most banks in the two county area, as well as a
number of brokerage firms for the maintenance of operating accounts and
reserve investments. Associations are not limited to use only
predetermined financial institutions. AMI has always maintained
separate accounts for its clients' reserve accounts apart from the
clients' operating funds. AMI maintains close working relationships
with major banks in the area, as well as provides alternative
investment vehicles for investing reserve funds. AMI has a bank that
will provide a lock-box system at no charge, pay interest on operating
accounts, and waive all service charges no matter how small the
balance.
Advanced Management, Inc. will manage any on-site staff and
provide payroll services through a staff leasing company. AMI has
negotiated an outstanding arrangement with the staff leasing company to
provide significant savings in most areas of insurance, including
especially the workers' compensation rates. This allows for significant
savings in insurance costs to the Association if they would choose to
hire an employee directly, or attempt to make similar arrangements
through a staff leasing firm. On-site employees have the opportunity to
obtain many additional fringe benefits while the Association maintains
the flexibility of individual decisions on which items will be
reimbursed partially or fully by the Association.
AMI will locate, recruit, train and monitor the performance of all
on-site employees. AMI will work with the Board of Directors to develop
the job description and listing of regular duties of the employee. AMI
will coordinate the hiring, firing, and performance review with the
Board of Directors to seek their input and concurrence on such matters.
Assessment collection includes preparing and mailing of annual,
quarterly, or monthly assessments notices, invoices, or coupons and the
subsequent updating of the owners' account when payment is received.
Deposits are made daily or every other day depending on volume. A
number of the banks AMI deals with have agreed to provide a lock-box
system to collect payments.
Delinquency follow-up includes sending of past due
statements mid-month and at the end of the month until the account is
60 days past due. At this point the account is turned over to the
Association's attorney for a lien to be filed. Thereafter, AMI works
with the Association's attorney towards the successful collection of
past due balances.
LIEN FILINGS AND FORECLOSURE PROCEEDINGS
AMI cannot provide this service as to do so would be
practicing law without a license which was recently confirmed by a
State Supreme Court Ruling. This function should be performed by the
Association's attorney. AMI, however, coordinates and monitors the
attorney's performance of this duty.
INVOICE APPROVAL
Invoice approval includes checking invoices against the
Board approved contract amount, checking the amount against the budget,
and verifying that the work or service was performed in a satisfactory
manner and coding invoices by proper account number.
Invoice payment includes preparing laser cut checks,
obtaining proper signatures and mailing checks. A copy of the check is
filed along with the invoices in individual vendor files. Invoices are
paid twice per month.
PAYROLL ACCOUNTING FOR ON-SITE PERSONNEL
This includes preparing the payroll on a bi-weekly basis,
preparing and filing all payroll tax reports, making all payroll tax
deposits for all on-site personnel, and tracking of vacation time and
sick leave. This service is handled through a staff leasing company
under contract with AMI and includes health insurance.
Monthly statements are prepared on a modified accrual
basis. The statements are prepared on a Fund Accounting Basis as
required by the AICPA guidelines for Community Associations. Also
included are the schedules of income, expense, delinquencies and
comparison to budget monthly and year-to-date.
The preparation of state, federal income tax (using either
an 1120 or an 1120H Federal return) intangible and tangible returns,
will be coordinated by AMI through an independent CPA firm. AMI has
worked with most CPA firms in the two county area and has negotiated
favorable rates for tax return work.
YEAR-END FINANCIAL REPORT
Year-end statements are prepared on a full accrual basis.
The statements meet the requirement of the State of Florida for
Condominium Associations, if the State's requirement for a Compiled,
Reviewed or Audited statement is waived by the members.
YEAR-END AUDIT, REVIEW OR COMPILATION
This work must be done by an outside independent State
Certified Public Accountant. AMI can assist the Association in the
selection of the Accounting Firm and will help the Accountant at our
office in the performance of the Audit, Review or Compilation. Advance
preparation by AMI's accounting staff in providing summary schedules,
reports, locating requested data, and responsiveness to questions
expedites the CPA's work resulting in lower fees.
This includes the preparation of a draft of the
Association's proposed budget for review by the Budget Committee and/or
the Board. The estimates used are based on an evaluation of the needs
of the Community and research into any anticipated rate adjustments.
AMI provides line item comparisons of current budget and projected
year-end results to help review the proposed budget. Detailed budget
assumptions are listed identifying the purpose and bases for each
budget item.
RESERVE ANALYSIS (LONG-RANGE PLANNING)
This includes compiling information provided by
contractors, the Board or in-house experience to create a reserve
schedule. Because the Board is responsible for the accuracy of the
costs and economic life remaining, an independent outside engineer or
reserve analyst should be retained to provide confirmation of this
data.
AMI's Community Association Manager will attend Board Meetings to
discuss with the Board any of the work that AMI has undertaken since
the last meeting and to assist the Board in compliance with its
Documents, the Florida Statutes and Bureau of Condominiums' Rules.
SPECIAL MEETING AND/OR COMMITTEE MEETING ATTENDANCE
AMI's Community Association Manager will, if requested and
advanced scheduling permits, attend Special Board Meetings or Committee
Meetings to discuss any of the work that AMI has undertaken since the
last meeting and to advise the Association of alternative courses of
action.
ANNUAL MEETING ATTENDANCE
AMI's Community Association Manager will attend the Annual
Meeting to answer questions of those in attendance regarding any of the
work that AMI has undertaken since the last Annual Meeting and to
assist in conducting or conduct the meeting in compliance with its
Documents, the Florida Statutes and Bureau of Condominiums' Rules.
MINUTE TRANSCRIPTION
Most experts recommend that the Association's minutes be
taken by the Board Secretary, a Board Member, or an independent third
party. This will allow the majority of the Board and Manager to
actively participate in the meeting discussions. If the AMI manager is
requested to also be Acting Secretary for the meeting, minutes will
only reflect topics discussed, and resultant direction or motions
including Board voting.
MINUTE TYPING
This includes transcribing the Secretary's handwritten
minutes and putting them in the proper format. If the minutes are typed
by AMI, the minutes are reviewed by AMI for their content and, when
appropriate, suggestions are made regarding changing the minutes to
help avoid any future legal liability which could result from
improperly or imprecisely prepared minutes.
AMI has developed a comprehensive Election and Meeting
Notice package to comply with the revisions to the Florida Statutes and
the Bureau's Rules. This includes the first notice, receipt of notices
from candidates, the preparation of the second notice, proxies,
ballots, tracking of designated voters from year to year, information
sheets received from candidates, and the preparation of an election and
meeting sign-in roster.
ANNUAL MEETING COORDINATION
AMI's Community Association Manager is available to handle
or coordinate the registration process and the counting of any Ballots.
Upon request, the President of AMI is available to conduct the
Association's Annual Meeting.
This includes maintaining the owners of record names, addresses, and phone numbers when provided.
TENANT (RENTER/LESSEE) ROSTER
Our computer system has fields that can be used to track
the Renter or Lessee when requested. This service is part of our basic
fee, if information is provided by owner or Board and does not require
additional research.
RECORDS AND FILES MAINTENANCE
Condominium Law and the Bureau's Rules require the
Association maintain an extensive list of records that must be
available for inspection by any unit owner within 5 days of receipt of
their written request to inspect the records. Not making the records
available subjects the Association to a fine of up to $500 plus
damages. Our services includes keeping your records in compliance with
the Law and Bureau's Rules and handling requests to inspect your
records.
RESALES: PREPARATION AND PROCESSING OF TRANSFER INFORMATION
The Association is required by Law to provide to a unit
owner or unit mortgagee, a certificate giving the status of the unit
owner's account within 15 days. However, these certificates are often
demanded by attorneys and title companies on very short notice over the
phone and then followed up by FAX. Also, information regarding the
approval or disapproval of a lease or sale must be tracked and
communicated to the parties involved. When the transfer involves a fee,
the costs are charged to the owner.
NEW RESIDENT/SALES INFORMATION (PREPARATION AND DISTRIBUTION)
Proposed new members can be sent a letter welcoming them to
the community and explaining required approval processing, and
availability of copies of documents, rules and regulations, Questions
and Answers sheets, etc. The mailing can include any other information
the Association would like to have sent to the proposed new owner.
RESIDENT ORIENTATION
This should be done by a committee of unit owners.
NEWSLETTER
AMI will provide the editing, typing, and distribution of a newsletter written by the Board designated person(s).
This includes typing, mailing or preparing for
distribution, any special communications from the Board or its officers
to the members or other third parties.
SPECIAL PHOTOCOPYING
Photocopying of Association's records is available when requested by the Board, owners or when required by Florida Law.
It is important that there be a written contract or
agreement between the Association and the vendor anytime a product or
service is provided to the Association. AMI will assist in obtaining
the documentation for the Association's records. When the aggregate
amount of the contract is more than 5% of the Association's total
annual budget including the reserves, the Association must obtain
competitive bids (subject to certain exceptions). To do so, a
comprehensive bid package including specifications, should be prepared.
AMI can develop such a bid package and has available specifications for
many of the types of maintenance projects the Association may require.
This includes comparing bids and making a recommendation to
the Board of Directors. Also included is assistance with the review of
the contract and help with the preparation of an appropriate contract
to protect the Association. Review by legal counsel can be coordinated
by AMI.
YEARLY MANAGEMENT PLAN
An annual management plan can be developed for the
Association. This includes a schedule of the events affecting the
Association over the period of a year, listing of goals and objectives
with deadlines, and appropriate budget to accomplish the goals.
STANDARD OPERATING PROCEDURES AND POLICY REVIEWS
This includes a review of the Association's operating procedures and policies and recommendation for improving them.
PERIODIC INVENTORY OF ASSOCIATION PROPERTY
This includes a listing of all property that is not part of
the common elements such as: pool furniture, club room furniture, etc.
AMI has worked with most attorneys in the area that
specialize in Association Law. As a result of our extensive experience
with attorneys that specialize in Condominium Law, we can save the
Association significant dollars in legal expenses by assisting in
defining the issue and proper communication to legal counsel for
review. AMI will act as a liaison to the Association's attorney.
This is usually handled by a committee. However, we have
worked very successfully with the various County, State and City
governmental agencies on behalf of our clients to obtain the desired
results regarding a multitude of issues.
Our main phone lines are answered after-hours by a personal
answering service. Whenever an emergency arises, the answering service
can reach our personnel quickly any time of the day or night using
personal pagers, cellular and home telephones.
AMI has developed over the years a system of letters that has proven to
be very effective in enforcement of Association's rules and
regulations. This also reduces or eliminates the need for neighbors to
confront neighbors about the rules.
This includes the preparation of insurance bid
specifications, comparative schedules of quotations, completion of bond
applications and mortgagee certificates, review of existing coverages,
analysis of the market and advise regarding existing and future
coverage.
This includes the drafting, word processing and filing of letters regarding Association business.
HIRING/FIRING/MANAGING OF ON-SITE PERSONNEL
This includes locating, interviewing, recommending to the
Board, hiring, managing and, when necessary, firing of any on-site
personnel. AMI keeps on file applications and resumes of individuals
who are interested in working on-site for community associations. AMI
staff obtain, through networking, sources of personnel.
POLICIES AND PROCEDURES
We have developed many policies and procedures that can be
adopted as is or used as models for your own customized policies and
procedures. Examples include: hurricane shutter installation, rules
enforcement, record inspection, meeting procedures, and collections.
This includes the inspection of work by outside contractors for compliance with the contract specifications.
PERIODIC INSPECTION REPORT
This includes preparing periodic inspection reports to be used as a basis for correcting deficiencies and making improvements.
AMI handles the processing of applications for the Board
according to established procedure. AMI has developed a number of
application forms for the Board's consideration. AMI can also obtain
credit reports and other investigation reports for the Association.
RENTALS/LEASING
AMI does have an affiliated company that can handle, when
requested to do so by the Association, an Association approved rental
program for the Association in a manner consistent with Florida legal
requirements for such a program.
SECURITY SERVICE
This is handled by independent contractors.
INFORMATION CONCERNING LAWS AND ORDINANCES
A recent Florida Supreme Court Ruling significantly reduced
community association manager's ability to advise the Association on
legal matters because of a broader definition of the "unlicensed
practice of law". However, AMI does stay abreast of the Laws and
Ordinances that affect your Association. This knowledge can help the
Association save time and money. Our knowledge often helps guide the
Association to ask the right question of the Association's attorney for
proper guidance. When legal advice is needed, AMI can help focus the
question(s) to reduce the time required to obtain the legal advice.
This is usually handled by a committee. We have available
many different systems and procedures for implementing a workable and
successful Architectural review and approval program. The importance of
such a program is crucial to the success of the community. The Board is
charged with the responsibility of maintaining a uniform procedure to
process requests. This service is available to establish and guide the
Association's committee.
