Board Member Resources

Frequently Asked Questions

• HOW MUCH ARE YOUR MANAGEMENT FEES PER MONTH?

  Our management fees vary depending on the unique needs and scope of work for each HOA. We don't have a one-size-fits-all pricing structure, as every community has different requirements. Instead, we provide a customized services proposal for each HOA board to review. This proposal includes:

  1. A detailed scope of work tailored to your community's specific needs
  2. A clear breakdown of all charges

  To get an accurate quote for your HOA, we recommend scheduling an on site consultation. This allows us to understand your community's unique needs and provide a comprehensive proposal that outlines our services and associated costs.

• WHAT IS INCLUDED IN THE FINANCIAL SUMMARY AND HOW OFTEN ARE THEY PROVIDED TO THE BOARD FOR REVIEW?

  Cobalt's HOA management software provides comprehensive financial summaries to boards on a monthly basis. These financial summaries generally include:

  1. Balance Sheet: Shows the association's assets, liabilities, and equity.
  2. Income Statement (Profit and Loss Statement): Details revenues and expenses, comparing actual amounts to budgeted figures for the month and year-to-date.
  3. Cash Flow Statement: Tracks cash inflows and outflows from operations, investing, and financing activities.
  4. General Ledger: Provides a detailed record of all financial transactions, organized by account number and date.
  5. Accounts Payable Report: Lists outstanding bills and invoices.
  6. Account Delinquency Report: Shows overdue homeowner assessments and fees.
  7. Cash Disbursements Ledger: Details all payments made by the association.
  8. Bank Reconciliation Report: Ensures that the association's records match bank statements.

  These financial reports are typically prepared monthly, with the board receiving them about 5-7 days before their monthly meeting. This allows board members time to review the documents and prepare any questions. While monthly reporting is common, some smaller HOAs may opt for quarterly reports, and all associations should prepare comprehensive annual financial statements.

  Cobalt's software automates much of this process, allowing for quick generation of these reports with just a few clicks. Our platform also offers real-time access to financial data, enabling board members to view up-to-date information as needed.

• DOES YOUR COMPANY ASSIST IN THE FACILITATING OF ANNUAL AUDITS AND TAX PREPARATION?

  Yes, our company does assist with audits and annual tax preparation for homeowners associations. We understand that these financial tasks are crucial for HOAs but can be complex and time-consuming for board members to handle on their own.

  Our services include:

  • Providing Documentation Required By Your CPA
  • Assistance with HOA audits
  • Financial reviews and compilations

  For audits, we can:

  • Organize and prepare financial records
  • Coordinate with auditors
  • Assist in responding to auditor inquiries
  • Help implement any recommended changes to financial processes.

  Every HOA has different needs when it comes to financial services. We tailor our approach based on your association's size, complexity, and specific requirements. Whether you need a basic compilation or a full audit, we can provide the appropriate level of service.

• WHAT IS YOUR PROCESS FOR THE COLLECTION OF DELINQUENT HOMEOWNER ACCOUNTS?

  Our process for collecting delinquent assessment accounts involves several steps:

  1. Automated notifications: Cobalt sends automatic payment reminders and late notices to owners via email or through the resident portal.
  2. Delinquency reporting: We generate regular delinquency reports to track overdue accounts and take appropriate action.
  3. Late fees: Automated late fees are applied to delinquent accounts as per the association's policy.
  4. Payment plans: For owners experiencing financial difficulties, we can set up custom payment plans through Cobalt's online system.
  5. Escalated communications: If the account remains delinquent, we send a series of notices:
     • Initial notice via first-class mail or email
     • Second notice via certified mail after 30 days
     • Final notice before lien filing after 90 days
  6. Credit reporting: We may report delinquent accounts to credit agencies, which can significantly impact an owner's credit score and encourage payment.
  7. Collections agency: For severely delinquent accounts, we may engage a specialized HOA collections agency to pursue the debt.
  8. Legal action: As a last resort, we may recommend filing a lien or pursuing legal action through small claims court.

  Throughout this process, we maintain detailed records and adhere to all applicable laws and regulations, including the Fair Debt Collection Practices Act (FDCPA). Our goal is to maximize collections while minimizing costs to the association and maintaining positive community relations.

• WHAT ASSESSMENT PAYMENT OPTIONS DO YOU PROVIDE TO OWNERS?

  Cobalt offers several convenient payment options for HOA owners to pay their monthly assessment charges:

  • Online payments through the resident portal
  • Electronic Funds Transfer (EFT) from a bank account
  • Credit card payments
    
    • (Visa, MasterCard, or Discover)
  • Automatic recurring payments (autopay)
    
    • Set up monthly, quarterly, or custom frequency payments
    • Can be configured to pay the entire balance or a fixed amount
  • One-time online payments
    
    • Make individual payments as needed through the resident portal
  • Mail-in payments; If preferred, owners can send checks to our Spokane Valley office.