Annual Financial Statements
New:
CALIFORNIA PINES ANNUAL FINANCIAL STATMENTS
The following is the most recent Annual Financial Statement published by the POA:
December 31, 2015
At the end of an association’s fiscal year, the
association’s CPA prepares a written report regarding the association’s financial
condition. The information used in preparing the report includes management
representations and statements concerning the association’s assets and
liabilities, including any litigation that could have an adverse impact on the
association (pursuant to FASB Statement of Financial Accounting Standards No.
5, Accounting for Contingencies).
THE LAW
Unless an association's governing documents impose more stringent standards, the association must prepare a review of its financial statement in accordance with generally accepted accounting principles by a licensee of the California Board of Accountancy for any fiscal year in which the gross income of the association exceeds seventy-five thousand dollars ($75,000). (Civ. Code § 5305.)
Distribution of Review:
A copy of the review of the financial statement must be delivered to all of the association's members within one hundred and twenty (120) days after the close of the association's fiscal year. (Civ. Code § 5305.) For California Pines, the fiscal year ends December 31st.
Individual Delivery Required:
The
review must be delivered to all members by individual
delivery. (Civ. Code § 5305.) This includes any of the
following methods: (Civ. Code § 4040.)
First-class mail, postage prepaid, registered or certified mail, express mail, or overnight delivery by an express service carrier; or
E-mail, facsimile, or other electronic means, if
the recipient has consented, in writing, to that method of delivery.
Annual Budget Report
Required Contents
Civil Code Section 5300 requires
an association to prepare and distribute to its members an annual budget
report. The annual budget report serves as a consolidated disclosure
statement which must include all of the following information, as well as any
additional requirements imposed by the association’s governing documents: (Civ. Code §
5300(b)(1)-(9).)
1.
Operating
Budget –
a pro forma operating budget, showing the estimated revenue and expenses on an
accrual basis.
3.
Reserve
Funding Plan Summary – a
summary of the reserve funding plan adopted by the board, as
specified in Civil Code Section 5550(b)(5). The summary must include
notice to the members that the full reserve plan is available upon request, and
that the association must provide the full reserve plan to any member upon
request.
4.
Deferred
Maintenance Items – a statement as to whether the board has determined to defer or not undertake
repairs or replacement of any major component with a remaining life of thirty
(30) years or less, including a justification for the deferral or decision to
not undertake the repairs or replacement.
5.
Anticipated
Special Assessments – a statement as to whether the board, consistent with the reserve funding plan adopted pursuant to Civil
Code Section 5560,
has determined or anticipates that the levy of one or more special
assessments will
be required to repair, replace, or restore any major component or to provide
adequate reserve funds for such repair, replacement or restoration. If so, the
statement must also set out the estimated amount, commencement date, and
duration of the anticipated special assessment.
6.
Reserve
Funding Mechanisms – a statement as to the mechanism(s) by which the board will fund reserves to
repair or replace major components, including assessments, borrowing, use of
other assets, deferral of selected replacements or repairs, or alternative
mechanisms.
7.
Procedures
for Calculation and Establishment of Reserves – a general statement
addressing the procedures used for the calculation and establishment of those
reserves to defray the future repair, replacements, or additions to those major
components that the association is obligated to maintain. The statement
must include, at the least, reserve calculations using the formula described in Civil Code Section 5570(b)(4), and may not assume a rate
of return on cash reserves in excess of two percent (2%) above the discount
rate published by the Federal Reserve Bank of San Francisco at the time the
calculation was made.
8.
Outstanding
Loans – a
statement as to whether the association has any outstanding loans with an original term of more than one year, including the
payee, interest rate, amount outstanding, annual payment, and when the loan is
scheduled to be retired.
9.
Insurance
Summary – a summary of the association’s property, general
liability,
earthquake, flood, and fidelity insurance policies. For each policy, the
summary must include the name of the insurer, the type of insurance, the policy
limit, and the amount of the deductible, if any. If this information is
specified in an insurance policy’s declaration page, the association may
satisfy its obligations to disclose that information by including copies of the
declaration page with the annual budget report. Additionally, the
insurance summary must contain, in at least 10-point boldface type, the
statement provided under Civil
Code Section 5300(b)(9).
(See also “Insurance Disclosures.”)
10.
FHA
Status –
if the association is a condominium community, a statement as to whether the
association is a Federal Housing Administration (FHA)-approved condominium
project. The disclosure must contain, in at least 10-point font on a
separate piece of paper, the statement provided under Civil Code Section
5300(b)(10).
11.
VA
Status –
if the association is a condominium community, a statement as to whether the
association is a federal Department of Veterans Affairs (VA)-approved
condominium project. The disclosure must contain, in at least 10-point
font on a separate piece of paper, the statement provided under Civil Code Section
5300(b)(10).
When
Distributed
The annual budget report must be
distributed to the members within thirty (30) to ninety (90) days before the
end of the association’s fiscal year, regardless of any contrary provision
contained in an association’s governing documents. (Civ. Code §
5300(a).)
How
Distributed
1.
The full annual budget
report; or
2.
A summary of the annual
budget report. The summary must include a general description of the content of
the annual budget report, as well as instructions on how the member may request
a complete copy of the annual budget report at no cost to the member. Those
instructions must be printed in at least 10-point boldface type on the first
page of the summary.
Notwithstanding the
above, if a member has requested to receive association reports in full, the
association must deliver the full annual budget report to that member, rather
than the summary referenced above. (Civ. Code §
5320(b).)
Please let us know if you have any trouble accessing reports on this page, or if you have any questions regarding their contents.
