M-100 The Essentials of Community Association Management Test|Questions with 100% Correct Answers

M-100 The Essentials of Community
Association Management Test|Questions with
100% Correct Answers

Internal Resources for Enforcing Rules - ✔✔Suspension of voting rights
Suspension of recreational facility usage
Fines
Eviction
Self help


External Resources for Enforcing Rules - ✔✔Local Health Department
Local Zoning Department
Local Fire Department
Local Police Department
Local Building Department
Local Animal Shelter


Sources of Budget Requirements - ✔✔Federal Laws
State Statutes
Local Laws
Governing Documents


Name Two Main Budget Components - ✔✔Revenue & Expenses

, Revenue - Owner assessments, Interest, late fees, fines, usage fees.


Expenses - Operating, major improvements, reserves


Budget Line Items - ✔✔Mandatory & Discretionary


Mandatory - Community and owner needs and obligations (maintenance, utilities,
repairs, taxes).


Discretionary - Owner, board and committee desires (social and recreational
expenses, picnic areas, patrol, pool towels).


Budgeting Methods - ✔✔Zero-Based - all line items are set to zero.


Historical trend - Item assumed to be justified and prior information adjusted for
planned changes.


Reserve - ✔✔Funds set aside for future replacement of major components of
communities common property.


Extra-Judicial (nonjudicial) Remedies - ✔✔Late charge/interest penalty
Security deposit requirement
Acceleration
Owner rights suspension