M100 COMMUNITY ASSOCIATION EXAMS SCRIPT
QUESTIONS AND ANSWERS SURE A+
✔✔Zero based budgeting - ✔✔All line items are set to zero and the amount of funds
allowed to each must be justified
✔✔Historical trend budgeting - ✔✔Method begins with the assumption that existing line
items are needed.
✔✔Reserve specialist - ✔✔CAI designated awarded to qualified reserve specialist who,
through the years specialized experience, can ensure that community associations
prepare their reserve budget and reserve studies as accurately as possible
✔✔Questions to help you prepare for your budget presentation - ✔✔What information
will help my audience understand and except my estimates of revenue and expenses?
✔✔Questions to help you prepare for your budget presentation - ✔✔How can I present
that information in an easy to understand format?
✔✔common mistake to avoid when presenting a budget - ✔✔Neglecting to present any
information on how estimates were developed
, ✔✔Common mistake to avoid when presenting a budget - ✔✔Presenting so much
information that people are overwhelmed and confused
✔✔Authority to collect assessments - ✔✔Federal laws and regulations
State statutes
Governing documents
✔✔Effective collection policy - ✔✔Be established by a proper and formal resolution
Specify only actions that are within the power of the community association and its
board
Set a firm due date
Outlines steps to be taken when payment is late
Specifies delinquent assessment should be referred to legal counsel
Provided for the collection of any costs associated with collecting delinquent
assessments
✔✔Extra -judicial remedies - ✔✔Outside the law remedies to collect assessments
✔✔Lien - ✔✔A legal claim by one party on the property of another to obtain the
payment of a debt or the satisfaction of an obligation
✔✔Acceleration - ✔✔Pay assessments ahead (entire year)
✔✔Foreclosure - ✔✔Legal proceeding filed in court whereby a party with a claim
against an owner can claim ownership of the the unit involved in order to recover the
money it's owed.
✔✔Personal money judgment - ✔✔A decision by a judge to allow the community
association to claim the owners personal property to settle a delinquent account
✔✔Chapter 7 bankruptcy - ✔✔Straight bankruptcy or liquidation for an individual or
corporation
✔✔Chapter 11 bankruptcy - ✔✔Corporate reorganization
✔✔Chapter 13 bankruptcy - ✔✔Personal re-organization (make a deal to pay back a
cetain amount)
✔✔Fair debt collection practices act - ✔✔Protects debit or is from unscrupulous debt
collectors
QUESTIONS AND ANSWERS SURE A+
✔✔Zero based budgeting - ✔✔All line items are set to zero and the amount of funds
allowed to each must be justified
✔✔Historical trend budgeting - ✔✔Method begins with the assumption that existing line
items are needed.
✔✔Reserve specialist - ✔✔CAI designated awarded to qualified reserve specialist who,
through the years specialized experience, can ensure that community associations
prepare their reserve budget and reserve studies as accurately as possible
✔✔Questions to help you prepare for your budget presentation - ✔✔What information
will help my audience understand and except my estimates of revenue and expenses?
✔✔Questions to help you prepare for your budget presentation - ✔✔How can I present
that information in an easy to understand format?
✔✔common mistake to avoid when presenting a budget - ✔✔Neglecting to present any
information on how estimates were developed
, ✔✔Common mistake to avoid when presenting a budget - ✔✔Presenting so much
information that people are overwhelmed and confused
✔✔Authority to collect assessments - ✔✔Federal laws and regulations
State statutes
Governing documents
✔✔Effective collection policy - ✔✔Be established by a proper and formal resolution
Specify only actions that are within the power of the community association and its
board
Set a firm due date
Outlines steps to be taken when payment is late
Specifies delinquent assessment should be referred to legal counsel
Provided for the collection of any costs associated with collecting delinquent
assessments
✔✔Extra -judicial remedies - ✔✔Outside the law remedies to collect assessments
✔✔Lien - ✔✔A legal claim by one party on the property of another to obtain the
payment of a debt or the satisfaction of an obligation
✔✔Acceleration - ✔✔Pay assessments ahead (entire year)
✔✔Foreclosure - ✔✔Legal proceeding filed in court whereby a party with a claim
against an owner can claim ownership of the the unit involved in order to recover the
money it's owed.
✔✔Personal money judgment - ✔✔A decision by a judge to allow the community
association to claim the owners personal property to settle a delinquent account
✔✔Chapter 7 bankruptcy - ✔✔Straight bankruptcy or liquidation for an individual or
corporation
✔✔Chapter 11 bankruptcy - ✔✔Corporate reorganization
✔✔Chapter 13 bankruptcy - ✔✔Personal re-organization (make a deal to pay back a
cetain amount)
✔✔Fair debt collection practices act - ✔✔Protects debit or is from unscrupulous debt
collectors
