Become a Member: JOIN SFPMA TODAY   LogIn / Register: LOGIN/REGISTER

SFPMA Industry Articles | news, legal updates, events & education! 

Find Blog Articles for Florida’s Condo, HOA and the Management Industry. 

Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

  • Posted: Nov 04, 2024
  • By:
  • Comments: Comments Off on Want to take part in the decision making, step up, and run for the board. Learn about Boards how they function and How to Run Decision Making Meetings.

Everyone has something to say about the Boards Decisions, but not many want to become a board member!

When an owner approaches me to complain about the decisions of the board of directors at his or her association is;  The First Question I ask is- “did you attend the meeting that decision was made at?” The Second Question is- “have you considered running for the board so that you can be part of the decision-making process?” All too often the answer to both questions is no. If you want to understand why your board makes the decisions they make and possibly influence those decisions the best way to do this is to attend the board meetings and comment on items you have knowledge or concerns about on the agenda. Want to take part in the decision making, step up, and run for the board. – by Royale Management Services

 

The vast majority of business decisions are made in meetings. While small decisions are made in all kinds of meetings, the more important decisions often get their own dedicated meetings.

There are different types of group decision making processes, and care should be taken to choose a process that best matches the situation. A decision making process can include group activities like information gathering and sharing, brainstorming solutions, evaluating options, ranking preferences, and voting on the final options. Below are the most effective ways of running decision making meetings.

 

Primary Goals for Decision Making Meetings

Goals for a decision-oriented meeting can vary a little based on the type of decision being made, but they are always centered on coming to a consensus about a future plan. It is important to remember that the goal of these meetings also includes planning how to best execute the decision that has been made.

Make the best possible decision

If a decision making process is flawed and dysfunctional, the decisions will be bad.

By involving a group in making a decision you can rely on collective intelligence; knowledge beyond what is possible with individual decision makers. Because each participant has unique information and perspectives, combining group information leads to more informed decisions. However, it is important to use meetings designed specifically for group decisions efficiently, to not waste the group members’ time.
If all planning decisions were made by one person, not only would the choices be uninformed, there would also be little unity around team goals and direction.

Planning for execution

When individuals feel that their opinion has been considered in the group planning, they are more likely to embrace the decisions and work to carry out those goals.

Most discussions of decision making assume that only senior executives make decisions or that only senior executives’ decisions matter. This is a dangerous mistake.

Participatory decision making leads to increased team productivity and likelihood of goal execution, because team members feel ownership and responsibility for the decisions made.
Addressing both short term and long term goals at your decision making meetings is a great way to make sure team members leave with a direction and know the next steps. The short term plan can be as simple as outlining action items and assigning tasks. In the long term it could mean setting a timeline of general dates and milestones. Initial planning can be an effective way of aligning the group and cementing the decision that was made.

 

 

Key Roles in Decision Making Meetings

The participants in decision making meetings may play different roles. Understanding the distinctions between these levels of involvement is a useful way of holding members accountable for their role in implementing decisions.

Meeting leader

In order to avoid getting off topic it is recommended that one person be in charge of guiding the direction of team negotiation. In addition, it can be helpful to use some elements of status update meetings in order to have meeting attendees present and be held accountable for research into the decision being made.

Those with authority to carry out the decisions

For decision making meetings it is particularly important to include all relevant persons with authority to carry out the decision. If decisions are made without including the relevant people, it can often be very challenging to implement the resulting decision.

In some cases, it can be useful to dedicate one leader of a team to be a representative for that group. Often, this job is given to someone in a senior position, but it can be fulfilled by anyone capable of accurately reporting information on behalf of a group. If this method is used, the representative should be prepared to report back to the team the consensus that was reached. Without this information exchange, the group unity that should have been a result of the group meeting is lost.

Note taker and process observer

Decision making meetings can often get derailed or become ineffective for a variety of reasons. To counter this, it can be helpful to include a note taker and process observer. These roles should be filled by people not directly involved in the decision so they are not biased toward any particular opinion. A note taker records what was suggested and decided throughout the meeting while a process observer records how those decisions were met. Incorporating these roles can lead to a lasting group understanding as well as ability to improve decision making meetings in the future.

 

Common Challenges in Decision Making Meetings

Making group decisions can be hard. Making good group decisions is even more challenging. However, good decisions is what can make or break your project or even your company or career. Being aware of the most common challenges in decision making meetings will move you closer to facilitating successful group decision making.

Incomplete information and narrow perspectives

An important aspect of collective decision making is to incorporate a broad spectrum of opinions and ideas, and through group collaboration converge these into a best possible solution. This process is easier said than done. Getting to a solution often involves dealing with a lot of conflicting agendas and opinions which are not easily resolved.

Identifying the best possible solutions

Another classic challenge of the decision making meeting is knowing what possible options are worth further consideration and discussion, and which options to discard early. Time is often wasted discussing possibilities that are not even among the most likely or best choices.

 

 

How to Host a Successful Decision Making Meeting

Decision is the spark that ignites action. Until a decision is made, nothing happens.

A great decision making meeting effectively incorporates all participants, benefiting from the knowledge and experience they bring to the process. Giving all relevant parties the opportunity to participate in the decision making process increases the quality of the decision, adds to the collective understanding and support of the outcome, and ensures successful implementation.

Consider all relevant information

We want as much relevant information as possible to go into the group decision process. This means involving as many stakeholders as practically possible to provide input when it comes to defining the problem area, come up with possible solutions, and evaluate options.

Generate and evaluate possible solutions

Identify and agree on solution requirements before starting to brainstorm potential solutions. Then, invite to brainstorm solutions with an open mind, focusing on the issue rather than the person presenting the idea. Use the solution requirements to evaluate the various suggestions, identifying the top ideas for further consideration.

Get everyone on board

The secret of change is to focus all of your energy, not on fighting the old, but on building the new.

One of the most important aspects of decision meetings is to create unity around the decision that is created. When each participant feels their opinion has been fully considered as part of the decision making process they are more likely to feel ownership of the decision, even in cases when it is not the outcome they hoped for.

 

 

Better Decision Making Meetings with Technology

Collaborative technologies today like Zoom and a good website where owners can read and voice their opinion on subjects that will impact them are being used to make group decision processes easier to manage, more efficient, produce better solutions, and improve execution of decisions.

 

Easily include and engage all key stakeholders for more complete information

Using smart device-based participation levels the playing field and provides an efficient way to share information and reach group consensus. The unruly nature of decision making meetings is easily structured with Zoom and a good Website for your association, because participants are presented with real-time visualizations and group opinions as the discussion moves forward.

 

Quickly tap into the group’s knowledge and expertise

Having participants use Zoom and a good Website for your association to evaluate options will help focus on the task at hand. Collecting decision preferences automatically, rather than manually, speeds up the process. Not only does that mean less time spent on interpreting where a group stands but it also allows for more people to be involved in the process at the same time.

For example, conducting a brainstorm with a large group of participants using whiteboards, flip charts, and post it notes can get messy. When people are contributing one by one it takes a considerable amount of time. The Zoom and a good Website for your association everyone can brainstorm, this activity lets group members submit ideas concurrently, via their own smart devices and computers making sure to accurately record and organize all inputs. This saves time for everyone involved, no matter how large the group is

 

Real-time visualizations of options and opinions focuses the discussion

Zoom and a good Website for your association are well suited to measure group opinions. In the case of an extended discussion it can be helpful to take multiple snapshots of opinions, as they can change over the course of the conversation. Taking a quick group poll, ranking, or evaluation after an initial conversation will clearly identify where the group feels their time is best spent. This allows the discussion to stay centered on the most important and relevant issues. The group will be able to use these baseline opinions as a jumping off point for focused conversation, establishing a common ground and sense of unity which will set the stage for successfully reaching a decision.

 

Engaged inclusion of stakeholders generates buy-in and better execution

Unfortunately, just organizing a group decision making meeting does not necessarily assure that each person in the room will leave feeling that they have been heard. Using Zoom and a good Website for your association ensures each person gets to contribute on an even scale. Because, participants can literally watch their voice be factored into the results. Playing an active part in the decision making process generates a sense of ownership and responsibility for the results, which in turn ensures active participation in carrying out the plan.

 

 

Adding to this: COVID-19: Technology and Social Distancing by Becker Lawyers.

COVID-19 has introduced new challenges to the way we meet and work together in our communities. Many of our daily community association activities include in-person interaction, from regular meetings to conduct association business to elections and other membership votes. Social distancing, the new normal, has necessitated a change to our behavior. While we continue to learn more about the COVID-19 virus and how it is spread, we do know that limiting in-person interaction can greatly reduce risk. Modern technology is a powerful tool to help reduce the transmission of the virus and allow us all to continue with our normal community association business. The following are a few options to consider as your association works to reduce risk in your community.

Voting

A standard election or membership vote often involves voting on a paper ballot. In addition, other types of voting events also include meeting in person, either to cast a ballot or participate in an annual meeting. At this time, we don’t know exactly how long the virus lasts on surfaces, but experts do believe it can be transmitted by touching surfaces. While social distancing and other guidelines now require we limit group activities and avoid public gatherings, there are a number of technologies that allow voters to participate in elections and cast membership votes safely from the comfort of their own homes.

Online voting is a Florida approved option and is a powerful tool to ensure association members can easily participate without the risk of exposure to the virus from in-person meetings or via voting materials. If you have an upcoming election or other membership vote, consider adding online voting to your process to avoid the need for physical materials and in-person participation.

Association Documentation

Community associations are required to provide access to association documents in the form of document inspection requests, a common practice that is sure to continue even during these uncertain times. We expect COVID-19 to affect the normal course of business for at least the next few months, especially as we continue to avoid in-person meetings and handling physical materials.

Instead of requiring in-person document inspections, consider posting your association documentation to your community website. Community association website software offers tools to upload association documentation and share links via email. These tools also allow you to easily post all Florida required association materials to a password protected area of your association’s website, facilitating ease of access and satisfying document inspection requests. These tools are simple to use and are cost-effective methods to continue to support your membership while helping to stem the transmission of the COVID-19 virus.

Association Communication

As we have seen, communication during an uncertain time is crucial. Your community association website is an instrumental channel to quickly and effectively communicate with your association membership. By posting official notices on how your community is managing the outbreak, your website provides a quick and centralized mechanism to ensure your association is apprised of the latest information. We all rely on websites for information and entertainment, and we will likely spend more time online now that our out of home activities are limited. Take this opportunity to direct your membership to your association website for the latest community updates.

We are all facing the challenges COVID-19 has introduced. Social distancing, cancelled activities, and the overwhelming amount of information only adds to the stress of this evolving situation. Technology can be a powerful equalizer, enabling us to work together in safe conditions and keep lines of communication open to all.

 

 

 

 

Tags: , ,
Time to start thinking about taxes — making sure not to miss out on any tax credits. by RMS Accounting.

Time to start thinking about taxes — making sure not to miss out on any tax credits. by RMS Accounting.

Time to start thinking about Taxes — making sure not to miss out on any tax credits.

Did you do any energy improvements to your home? New energy efficient Air Conditioning, Heating, Ceiling Fans, Solar Panels, or Hot Water Heaters? Buy an Electric or Highbred Vehicle?
If so there might just be a tax credit in your stocking this year.? contact us today let us help with your Accounting and Taxes for your Business, Condo and HOA’s

RMS Business

Accounting

We provide extensive consulting to every accounting client. Detailed management notes are provided in addition to a comprehensive Financial Statement package.

Bookkeeping

Our bookkeeping help goes far beyond just balancing the books. Our Bookkeeping outsourcing, saves you time and money, while reducing stress levels.

Expatriate

RMS Accounting has a program that allows companies with expatriate staff to provide tax planning and preparation services to its staff anywhere in the world.

Tax

In addition to getting your corporate tax preparation right and completed the first time, our tax professional will also assist you with tax planning to help you reduce next year’s business taxes as well.

Software

At Royale Management Services, we offer support for two of the top business software programs available.

Payroll

When running a business, it makes sense to outsource tasks that can be handled best by others, save you money or allow you to be more productive. Payroll is one of the classic tasks that generally meets all of these criteria.

Credit Card Services

RMS Accounting supports Visa, MasterCard, Discover, American Express, Gift and Loyalty card, and Check processing. In addition will gladly support EBT card programs as well as a complete national debit card program.

Outsourcing

Originally, we focused on tax preparation for small to medium business, but today we do accounting outsourcing for everyone, from personal to large corporations.
2319 N Andrews Ave, Fort Lauderdale, FL, United States, Florida
+1 954-563-1269
info@rmsaccounting.com
Tags: , ,
Proposals from Vendors for the yearly budgets, here are some of the things to consider

Proposals from Vendors for the yearly budgets, here are some of the things to consider

  • Posted: Apr 04, 2024
  • By:
  • Comments: Comments Off on Proposals from Vendors for the yearly budgets, here are some of the things to consider

As Board Members are asking for Proposals from Vendors for the yearly budgets, here are some of the things to consider.

BY ROYALE MANAGEMENT

Budgets take time for any Condo and HOA Community, each year many of the services paid for by these associations come under review at budget season. While its nice to think about cost savings we feel it is much more important to look at workmanship, licensing, scope of work and then Costs. SFPMA and our Members are here for every community, on our Directory finding everything from Services to the businesses that keep your operations up and running to the Legal Experts safely protecting Condo and HOA’s from disputes and Litigation.

Search our members directory, Find a Company Ask for and  Request an RFP – Request for Proposal for your buildings Budget.

 

HERE IS A LIST OF THINGS NO VENDOR CONTRACT SHOULD CONTAIN:

1) An automatic renewal clause. While it’s ok for an agreement to continue on a month to month basis it’s wrong to saddle future board with an obligation to track and cancel an agreement on a certain date or between certain dates to keep it from automatically being extended for an additional term.

2) A right of first refusal. This allows an existing vendor to match the price and terms of any new vendor proposal and thereby force the association to keep them. Most often an association gets proposals from new contractors because they are unhappy with more than the price and terms and giving a vendor a right to stay because they agree to match price and terms, does not solve the problem and can only lead to litigation.

3) Contracts with unnecessarily long terms. While a vendor that has upfront cost for things like equipment like a laundry vendor bringing in new equipment who needs to recover the equipment cost agreement terms should be kept as short as possible. Five years might be ok for the laundry contract but would not be for a landscaping contract in this case a one year term would long enough.

4) Cancellation only for “cause” clause. Proving cause only makes the lawyers richer and can be hard to do. The best solution is to build in a “cause free” ability to cancel with a 30-day notice.

 


 

Royale Management Services, Inc

Phone: (954) 563-1269

Full-service, CAM (Community Association Management) licensed, residential property management company, specializing in management, consulting and accounting for Condominium Associations and Home Owners Associations.

According to firm president, Steven J Weil, PhD, EA, CAM,

“The expansion into Community Association and Home Owner’s Association management was a natural move after a number of our clients serving on condo boards asked for our help with their associations accounting, budgeting and management, due to increasing operating cost and sloppy accounting records maintained by their current bookkeepers and managers.”

Find us on Facebook: https://www.facebook.com/RMSCondo/

Learn more on our Website:  http://royalemanagement.com/

Find us on SFPMA Members Directory

 

Tags: , , , , , , , ,
ASSOCIATION BUDGETING FOR DUMMIES

ASSOCIATION BUDGETING FOR DUMMIES

ASSOCIATION BUDGETING FOR DUMMIES

by Steven J. Weil, PhD, EA, LCAM, Royale Management Services, Inc.

A “dummie,” in this case, is a first-time association member and/or someone with little or no association budgeting experience who wants to know more about how and why the budget is created before they vote on it.

 

Bookkeeping sfpmaIs it really necessary to go through all that work year after year?

The first answer is, yes, because it’s the law. Florida law (718.112 (2) (f) 2) requires that annual budgets be prepared and, further, that reserve calculations be made by using a formula that estimates useful life and replacement cost.

The real answer is that the budget is a tool used by the association’s board to determine how much owners will be required to pay in maintenance costs for the coming year in order to keep the association financially stable.

The budget is a financial plan, a guide; but the process is an art, not a science. That’s why it’s important to leave room for unplanned expenses. A shortfall may result in an assessment, which will not make anyone happy. The only thing owners hate more than a maintenance fee increase is a special assessment that is necessary because the budget does not adequately cover the ongoing operating and maintenance costs. The tricky part of the process is to balance what is required with the often competing interests of those who want the lowest possible increase with those who are willing to pay more for better services, better amenities or other improvements.

There are two parts to every budget: the operating budget and the reserve budget.

• The operating budget should include all the necessary regular and recurring expenses that are expected in the coming year, no matter how small, such as repairs, maintenance, payroll, utilities, supplies, insurance and administrative costs.

• The reserves are designed to accumulate funds for major ongoing repair and replacement.
Statutes make it mandatory that reserve budgets first include estimated expenditures for roof replacement, building painting and pavement resurfacing at a minimum.

 

Aside from what the law requires, a good reserve budget also covers other large capital items that will wear out and need to be replaced over the life of the association, such as: elevators, windows, common area air conditioners, docks, generators, et al.

Projected estimates take into consideration the cost to replace each item, prorated over the years of its estimated life. A common mistake in estimating this value is the failure to take into account the rise in replacement costs that occurs over time.

Reserve funds cannot be used for purposes other than those intended without a majority owner’s vote of approval in advance.

 

 

How do you build a budget that works? The big secret is to start months before your current budget year ends!

  1. Step one is the information-gathering process, including a review of long-term contracts, upcoming expected maintenance and repairs, details of possible fee increases and a “wish list.” This time-consuming step includes getting quotes from vendors, examining recurring contracts for things like insurance policies, lawn and landscaping, trash removal, etc. Sometimes closely-scrutinized contracts can be renegotiated to save money. It’s also important to use caution when reducing maintenance and repairs numbers to delay an expense outlay. That could result in increased costs in the long run.
  2. Step two is to compare and, using a spreadsheet or special budget software, enter into the appropriate columns the year-to-date income and expenses — projected through year end — with the budget for the current year, to review for increases, and show the percent of difference.

  3. Step three: compare projected expenses for the coming year with “other” income (non-assessed) — such as laundry income, application fees, clubhouse rental, dock rental and any other items for which the Association collects fees other than maintenance fees.
    Using those figures, it is then possible to calculate the maintenance fees needed to fund the budget for the coming year. These required maintenance fees are calculated by subtracting the total projected “other” (non-assessed) income from the total projected expenses. This number is then allocated by the formula shown in the association documents. (The number is often based on the number of units or on square footage.)

According to the Statutes, owners may petition the Board if it adopts a budget where assessments rise more than 15% over those for the prior year. The budget must be in keeping not only with the State Statutes but also with the association’s documents, which may be more stringent.

Final approval by the board where the proposed budget is adopted must be done at a properly noticed budget meeting. A notice of this meeting, along with a copy of the proposed budget, must be sent to all owners at least 14 days prior to the meeting. Only association members may vote to waive or reduce the budgeted reserves through full or partial funding.

Failing to fund reserves at all puts everyone’s future at risk. If owners can’t afford the monthly cost how are they going to come up with the money when the roof, elevator or other capital component needs replacing? Often this is done by borrowing, making monthly maintenance payments higher because of what is required to pay back a loan, creating a double whammy of current debt repayment for past depreciation and creating an excuse not to meet current obligations. In some buildings this can create a death spiral.

 

 

Tags:
YEAR-END TAX SAVINGS OPPORTUNITIES by Steven J Weil, PhD, EA, LCAM

YEAR-END TAX SAVINGS OPPORTUNITIES by Steven J Weil, PhD, EA, LCAM

  • Posted: Jan 25, 2024
  • By:
  • Comments: Comments Off on YEAR-END TAX SAVINGS OPPORTUNITIES by Steven J Weil, PhD, EA, LCAM

YEAR-END TAX SAVINGS OPPORTUNITIES

RMS AccountingTax planning is one of the best ways we know to reduce your tax bill, and at RMS Accounting we take a proactive approach to helping clients pay the lowest amount of tax allowed by law.

We do this through a two-step process. Step 1 requires us to keep up to date with the latest changes to the tax laws, and tax savings strategies. Step 2 is all about you our clients, it requires us to keep you updated on just what steps you can take to ensure that you can take advantage of ever tax saving strategy that will help you.

Since everyone’s situation is different the only way, we can assist you is to be available when you have questions and prior to year-end to review your situation with you, so that you can take the steps required to maximize your tax savings.

That is why every tax preparation engagement includes year-round access to our tax professionals and year-end tax planning, free when we have prepared your tax return for the prior year.

Below are links to this year’s tax planning letter which is mailed to all our clients along with links to planning worksheets for individuals and business.  You can use these documents to help you get the most out of your tax planning consultation.

 

 

Tags: ,
ANNUAL MEETING TIPS FOR ASSOCIATIONS

ANNUAL MEETING TIPS FOR ASSOCIATIONS

ANNUAL MEETING TIPS FOR ASSOCIATIONS

by Enrolled Agent Steven J. Weil, Ph.D., EA, LCAM, Royale Management Services, Inc.

 

As associations plan their annual meetings, these reminders and specific steps will be useful.

The annual meeting is a membership meeting in which every member can and should participate. Participation comes through properly-made motions, seconds, taking part in the discussion of motions and through voting.

The first order of business he is to appoint the chairperson to run the meeting.  The chairperson can be anyone who the members agree should chair the meeting.  In many associations the board president chairs the meeting; however, this requires approval of the members. Some associations ask their manager or attorney to chair the meeting.  This is acceptable as long as it is approved by the membership.  In large associations having a professional chair the meeting can help to keep it on track and see that the required business gets done properly.

A motion as to who shall chair the meeting can be made by any member of the association.  This motion must be seconded and then voted on by the members present. If the motion is approved by a majority of the member’s present, the chairperson is elected for the meeting.
Continue reading

Tags: , ,
1099-K Confusion on the Horizon

1099-K Confusion on the Horizon

The American Rescue Plan Act of 2021 lowered the filing threshold for payment processors and credit card companies from 200 transactions or $20,000 to just $600 for 2022 — but the IRS delayed the effective date until 2023.
Because of this taxpayers that use credit card processors PayPal, Venmo and Zelle are going to be receiving a 1099-K for 2023 — even if they only have a few transactions. Worse yet, the IRS is going to be looking to match the income reported on these 1099-Ks to the tax returns filed by these taxpayers.

What can taxpayers do?

What can taxpayers do?
Start by letting the payment originators know to mark the payments that are not business related (should not be income and subject to tax) as personal on the chosen platform. If you end up picking up the lunch tab and being reimbursed through Venmo or Zelle be sure to remind your friends to mark the transaction as non-business. This also holds true for gifts, reimbursements, and other non-taxable payments.

At tax time be sure to share these documents, like all tax forms you receive, with your tax professional, so they can see that income reported on 1099-Ks is properly reported on your tax return.

One thing we as tax professionals are sure of is that these 1099-ks are going to generate a lot of confusion for taxpayers in addition to a lot of IRS notices that will need to be delt with long after the 2023 returns are filed.

Learn more on this week’s blog post:

https://www.rmsaccounting.com/2023/08/08/1099-k/

 

Find other fantastic articles and Accounting information:

 

 

Tags: ,
Having an Enrolled Agent (EA) can benefit you in several ways, especially when it comes to your tax-related matters.

Having an Enrolled Agent (EA) can benefit you in several ways, especially when it comes to your tax-related matters.

  • Posted: Aug 01, 2023
  • By:
  • Comments: Comments Off on Having an Enrolled Agent (EA) can benefit you in several ways, especially when it comes to your tax-related matters.

Having an Enrolled Agent (EA) can benefit you in several ways, especially when it comes to your tax-related matters.

What can an Enrolled Agent Do for You?
Here are some of the key benefits of working with an Enrolled Agent:
*Tax Expertise: Enrolled Agents are licensed by the IRS and have expertise in all areas of taxation. They can help you with tax planning, tax preparation, and tax resolution.
.
*Representation: If you are facing an audit or other tax-related issue, an Enrolled Agent can represent you before the IRS. They can help you understand your rights and responsibilities and work to resolve the issue in the most favorable way possible.
.
*Communication: Enrolled Agents are skilled at communicating complex tax issues in a way that is easy to understand. They can help you navigate the often-confusing world of taxation and provide you with guidance and advice as needed.
Savings: Working with an Enrolled Agent can help you save money by identifying deductions and credits that you may have overlooked. They can also help you avoid penalties and interest by ensuring that your taxes are filed accurately and on time.
.
*Convenience: Enrolled Agents can work with you remotely or in person, depending on your needs. They can also provide you with ongoing support throughout the year, not just during tax season.
.
Having an Enrolled Agent on your team can provide you with peace of mind and confidence in knowing that your tax-related matters are being handled by a licensed and experienced professional.

RMS AccountingAll of the tax professionals at RMS Accounting are Enrolled Agents with over 75 years of combined experience helping taxpayers resolve tax problems and to pay the lowest tax allowed by law.
Want to talk to one of your tax professionals just give us a call at 800-382-1040.
THE ANNUAL MEETING/ELECTION:  IT’S NOT A BOARD MEETING!

THE ANNUAL MEETING/ELECTION:  IT’S NOT A BOARD MEETING!

  • Posted: Mar 08, 2023
  • By:
  • Comments: Comments Off on THE ANNUAL MEETING/ELECTION:  IT’S NOT A BOARD MEETING!

THE ANNUAL MEETING/ELECTION:  IT’S NOT A BOARD MEETING!

by Steven J. Weil, Ph.D., EA, LCAM, President, Royale Management Services, Inc.

What then is “the Annual Meeting?” 

By law Florida condo associations must have an Annual Meeting each year; but, conversely, they need not have an election every year if there are no new candidates.  What can be somewhat confusing is that they are two separate things with separate quorum requirements and with a rule that they must be held on the same day. Further, conduct of the Annual Meeting should not be confused with that of a Board meeting.

The statutory requirement for an annual meeting (which seeks to give owners a “voice”) was written to ensure that the residents are well informed, especially in communities that have very few board meetings.  It’s a members’ meeting.  No Board business, board action or voting may be conducted; but there may be reports, and there may be a “State of the Association” speech to highlight events of the previous year.

Board members are not even required to attend the Annual Meeting. Although a Board member could chair the Annual Meeting, he or she would be doing so as a resident, not a Board member.  As a rule, the Meeting is chaired by an appointed impartial resident, the Property Manager, or, if deemed necessary, by the association’s attorney. Any Motions that are made are passed by a show of hands of those present.

If there is an election, residents may vote either in person by placing their ballot in the ballot box or by mailed-in ballot. The proxy that is sent to residents in advance with the meeting announcement has nothing to do with the election. Its only purpose is to establish a quorum for the Annual Meeting.

There are two separate quorum requirements for the Annual Meeting and the Election. For the Annual Meeting, it’s 50% of the resident population plus one. For the election, the quorum is only 20% of the resident population.

How To Conduct the Election

Assuming there are candidates or Directors with expiring terms, and an Election is needed, it may take place simultaneously with the Annual Meeting. Once the Annual Meeting is turned over to the impartial Chair and the Chair has determined that a quorum has been met, he or she introduces the Inspector of Elections.

The Inspector then introduces the ballot counters and confirms that, per the Election rules, they are not Board members or Board candidates, nor are they related to Board members or candidates.

Before the counting can begin the Inspector is asked to confirm that there was a quorum for the Election. If a 20% election quorum does not exist, ballots are not opened and the current board remains in place for the coming year.

The Inspector, along with the ballot counters, also confirms that the signatures of the outer envelopes mailed in advance to residents for voting purposes have been verified and are unopened.  Those envelopes are required to provide the unit number, name of the voting member and be signed on the outside. Units with more than one owner, units owned by a trust, LLC, or units owned by a corporation must have a voting certificate on file that shows who is authorized to vote for the unit. Outer envelopes should contain the sealed ballot envelopes.

Proxies should not be placed in the ballot envelopes. No identification or markings are permitted on the inner ballot envelopes.  When an outer ballot envelope is improperly completed, it is marked “disregard” and left unopened.

Ballots may no longer be accepted once the first ballot is opened.  The polls are closed by the Inspector once there are no more new voters confirmed by a Motion from the floor to close the polls.  The residents pass the Motion by a show of hands. Ballots cannot be accepted once the counting process begins.

That being done, the Inspector turns the meeting back to the appointed Chair, who begins the Annual Meeting while the ballot counting takes place in plain sight of residents.  Anyone may observe the vote counting but may not interfere.

At the conclusion of the counting and verification, the results are announced by the Inspector, after which the Chair may adjourn the Meeting.  All election materials must be kept for one year.

It should be noted that in most associations, newly elected board members begin their term immediately once the vote has been concluded.

It is also advisable to schedule an Organization Meeting of Board members immediately following the annual meeting so that directors and officers can be appointed or reappointed and take their positions without a lapse in leadership.

Tags:
Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

  • Posted: Dec 18, 2022
  • By:
  • Comments: Comments Off on Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency?

by RMS ACCOUNTING

𝐕𝐞𝐫𝐲 𝐒𝐚𝐝 𝐒𝐭𝐨𝐫𝐲 – Very old client dies leaving his wife to deal not only with his death but also with financial matters that she is unfamiliar with and not equipped to deal with. She has no where a copy of the will is or what attorney handled the will preparation. She also does not know what investment accounts in his name have TOD designation and how to deal with them as well as the house that is titled in both their names. This lady needs help and has no children or close friends to help her deal with these issues. While we can help make her get information on all the accounts that her husband had which had taxable transactions we can’t represent and handle the notification of banks and investment accounts or location of the will. The best we could do is refer her to an estate attorney we trust.
If you are wondering why I am telling your this it’s because we see the same thing over and over where an elderly person does not remember what assets they have and or know how to deal with them. We remind clients all the time that they need to make a list of their investments, bank accounts, insurance and other important information including the names of advisors and attorney and see that this list is easy for their loved ones to find when the need arises and the time comes.
Want an emergency information guide you can use to uncover and list important information so that your loved ones know what to do in an emergency just drop us an

Email at info@RMSAccounting.com with “Emergency Guide” in the subject line along with your name and mailing address and we will send you a printed copy of this important booklet, rather have a PDF copy just let us know at the same email address.

 

Learn more and contact us for all of your Accounting Needs: 

RMS Accounting

1-800-382-1040

RMS Accounting combines quality cost effective accounting and bookkeeping services with a team of tax accounting professionals to help clients make and save more money.

rms-accounting

RMS Accounting

Accounting and tax services are about more than just numbers on a page. Unlike other accounting firms, when you call us you will get a live human being not voicemail and unlike other accounting firms we will work with you on your business helping you to grow profits and cut taxes. Unlike other accounting firms we will tell you before we begin work exactly what it will cost for our help.

Our tax accounting professionals will be happy to assist you with; tax planning, tax preparation and tax representation.

Our tax accountants are EA’s (Enrolled to practice before the IRS). They know the tax laws and will make sure you don’t pay one penny more than you have to. Visit us for a free consultation with a tax accountant, who will review your tax situation, with you to determine the best course of action. The tax accountant will provide you with a free fee quotation.

 

Tags: ,
Need a REAL tax professional? Call our office and schedule an appointment today. We’re here year round and are always ready to assist you.

Need a REAL tax professional? Call our office and schedule an appointment today. We’re here year round and are always ready to assist you.

  • Posted: Nov 04, 2022
  • By:
  • Comments: Comments Off on Need a REAL tax professional? Call our office and schedule an appointment today. We’re here year round and are always ready to assist you.
Charlotte, North Carolina: Resident Mehef Bey, a.k.a. Arthur Daniels, has pleaded guilty to conspiring to defraud the U.S. by promoting a nationwide tax fraud and assisting in the preparation and filing of false returns for the participants. Mr. Bey led taxpayers to believe that they were entitled to refunds by convincing them that their mortgages and other debts entitled them to refunds.
Bey, and his fellow conspirators, held seminars across the country to publicize the scheme from 2014 to 2016. They helped prepare and file returns for the participants, which collectively sought more than $64 million in federal refunds from the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld income tax from the participants, entitling the clients to a refund. He admitted he and his conspirators charged their clients $10,000 to $15,000 in prep fees for each tax return. They then concealed their role in the scheme by, among other things, indicating that the false tax returns had been “self-prepared” and coaching participants how to conceal the scheme from the IRS.
The good news is the IRS brought fraud only against Bey and his coconspirators. The bad news is that all those they talked into filing these fraudulent returns so they could receive refunds will end up with a big bill from the IRS for the taxes fraudulently refunded PLUS interest and penalties.
One sure sign you should run from someone claiming to be a tax professional is that they don’t sign both your copy and the IRS copy of the tax return they prepare for you. The law requires them to not only sign their return but also to include their address and tax ID or PTIN (Preparer Tax Identification Number) on every return.

RMS Accounting

1-800-382-1040

RMS Accounting combines quality cost effective accounting and bookkeeping services with a team of tax accounting professionals to help clients make and save more money.

rms-accounting

Accounting and tax services are about more than just numbers on a page. Unlike other accounting firms, when you call us you will get a live human being not voicemail and unlike other accounting firms we will work with you on your business helping you to grow profits and cut taxes. Unlike other accounting firms we will tell you before we begin work exactly what it will cost for our help.

Our tax accounting professionals will be happy to assist you with; tax planning, tax preparation and tax representation.

Our tax accountants are EA’s (Enrolled to practice before the IRS). They know the tax laws and will make sure you don’t pay one penny more than you have to. Visit us for a free consultation with a tax accountant, who will review your tax situation, with you to determine the best course of action. The tax accountant will provide you with a free fee quotation.

 

Tags: