Maintaining complete, accurate, and timely association financials is a cornerstone of our firm. We produce all the necessary financial information your association will need to make sound financial decisions. From developing pro-forma operating budgets to reserve funding, our firm has the resources to protect and maintain the financial health of your association. As part of our services we provide the following financial reports on both an interim and annual basis: Accounts Receivable Report Balance Sheet Bank Reconciliations Budget Comparison Report Cash Disbursement Report Operating Budget 8        ACCESS COMPUTER SYSTEM  CFM operates a highly dependable and flexible in-house computer system.  The hardware package is a Hewlett Packard Netserver LS2 Dual Pentium System Pentium Processors. CFM was the first major community management firm in the country to install and operate the Jenark financial system.  Since its installation in 1992, the system has become the standard for our industry.  Jenark Business Systems of Rockville, Maryland developed the financial software program, Access.  Written in Progress, it is a sophisticated, completely integrated system designed exclusively for the community and property manage­ment industry.  The system is operated by CFM personnel and technically supported by Jenark.  As a supplemental service, we offer up to the minute, on-line inquiry capability to our communities.  The site-manager or a designation officer is able to access the system 24-hours a day, 7 days a week for virtually any financial information related to the community. The system includes a dynamic report writer feature that allows wide flexibility in formatting reports and in developing creative and useful comparative studies. 8        ACCOUNTING DEPARTMENT CFM Management Services maintains a full service accounting department and community services operation.  Our accounting department segregates all Association funds, with accounts in the name of the Community.  8        FEES & CHARGES COLLECTION and DELINQUENCY PROCEDURES CFM offers lock-box collection and direct debit service.  Collection of fees is no longer just a routine procedure done by the managing agent with all its hard-edges; it is customer service to owners.  We make the process easy for owners to pay their fees and retrieve outstanding balance information.  We provide information to lenders and attorneys quickly, accurately and courteously.  Delinquencies are closely monitored, and the collection procedure adopted by the community is closely monitored.  Locating the right person to talk to about a charge, to check on payment status or for resolving a problem can be an unpleasant experience.  CFM has direct telephone lines to community service associates and a rapid response policy to correspondence, inquiries and disputes.  Routine collection of fees and charges is handled in concert with the approved budget and the Bylaws of the Community. 8        FINANCIAL STATEMENTS The financial statements are prepared monthly on a modified accrual basis and reflect the activity on a monthly and year‑to‑date basis with a comparison to the budget.  The statements include a general ledger, balance sheet, statement of operations, schedule of delinquencies, accounts payable and check disbursements report.  8        ANNUAL BUDGET CFM staff works with the Board of Directors, On-site Manager and its committees to prepare an annual budget.  The budget will set forth anticipated expenses (including funds required to maintain reasonable operating needs and reserves), assessments and contributions for the ensuing year, taking into account the general condition of the property.  8        AUDIT CFM staff works diligently with the auditor selected by the Board of Directors to ensure all necessary information is at their disposal for the preparation of the annual audit and the appropriate federal and state tax returns. 8        RESERVES CFM assists the Board and its committees in the preparation of an adequate budget for funding the Association’s reserve requirements.  This process is normally done in conjunction with the operating budget. We recommend the Board contract with a third party, professional engineer to prepare a comprehensive reserve study.  This study should be updated every three to five years by a professional engineer, and CFM will assist the Board with the selection process, review of specifications, final product and meeting with the Engineer and Auditor.  8      INVESTMENTS We maintain an excellent working relationship with a number of banks in the Metropolitan area and conduct weekly surveys of the market to find the best interest rates.  Treasury investments are handled in-house, at the direction of the Treasurer.  We work with investment professionals such as Dean Witter Reynolds, Shearson‑Lehman and Merrill Lynch for money manage­ment programs.  Our Financial Department, through the Community Manager, will assist the Board of Directors in the development of an investment policy, if needed.  8      PAYROLL Biweekly, our Payroll Service Provider (PSP) will disburse all wages and salaries, commissions and bonuses for all employees following federal, state and local wage and hour withholding tax and minimum wage regulations. We will abide by all local, state and federal laws, regulations and guidelines in administering the payroll for the condominium.  CFM prepares and files all forms, reports and returns as required by law about unemployment insurance, workers’ compensation insurance, withholding tax, social security and other similar taxes now in effect.  All Association personnel will be reported under Association’s Employer Identification Number and Worker’s Compensation policy.  8      HUMAN RESOURCES Offering a broad benefits package for employees is one of many methods we support to retain qualified staff. CFM offers its communities’ employees excellent health, life and disability insurance through a modified Section 125 Cafeteria program.  By allowing employees to pay for insurance with pre-tax income, the Condominium can save as much as 10% of gross payroll for participating employees in reduced taxes and insurance costs.  Our payroll contractor PSP offers all employees the option of participating in a qualified 401(k) plan.  The Association has the choice of making an employer contribution to each of their employee’s accounts.