CMCA Study Guide UPDATED ACTUAL
Exam Questions and CORRECT Answers
Management ethics - CORRECT ANSWER - consists of a review of governing
documents and existing policies and procedures, current condition of the property,
owner/resident satisfaction, and fiscal operations. This review can be done by the
board and man
ager together, or a third
-
party management consultant can be hired
Management plan - CORRECT ANSWER - a statement of goals and objectives
approved by the board. It includes the yearly cycle of tasks that management should
perform on the community
association's behalf
Standing committee - CORRECT ANSWER - Committees which have a continued existence
and are not
related to the accomplishment of a specific, once
-
only task. Budget and nomination
committees are examples of standing committees
Alternative dispute resolution - CORRECT ANSWER - Mediation, arbitration and other ways
of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
,Appeal - CORRECT ANSWER - A request for a review of a case by a higher authority
—
if permitted by the
governing documents or statute
Default hearing - CORRECT ANSWER - A hearing held when the alleged violator fails to
appear
Due process procedure - CORRECT ANSWER - a formal process designed to protect the
rights of all parties
involved
Hearing notice - CORRECT ANSWER - This is a written notice to an alleged violator that a
hearing will be
held to consider his or her alleged violation
Hierarchy of authority - CORRECT ANSWER - Policy that: Rules and architectural
guidelines may not contradict or be in conflict with the legal sources
that take precedence over them. Although rules and
architectural guidelines are lower in the hierarchy of authority for community associations, they
may clarify and expand a community's governing documents
—
but
may not conflict with the other governing documents.
Rule - CORRECT ANSWER - A specific statement of required behavior whose violation
carries a penalty
(sometimes called a sanction).
Assessment - CORRECT ANSWER - the owner's financial obligation to the community
, association during a given period of time
—
usually one year
Baseline funding - CORRECT ANSWER - The goal of this funding strategy is to keep
the reserve cash
balance above zero
Chart of accounts - CORRECT ANSWER - An organized list of titles, descriptions and
assigned numbers of
all accounts in an organization's general ledger. The assigned number helps you
locate the account. The title describes the purpose
of the account
Discretionary budget line items - CORRECT ANSWER - These are items based on owner,
board and
committee desires. They are items people would like to have
—
given their values
FHA or Federal Housing Administration - CORRECT ANSWER - Regulates and influences
such items as the
amount of insurance a community association must
carry, procedures for financial
operations and requirements for the upkeep of property.
FHLMC or Federal Home Loan Mortgage Corporation - CORRECT ANSWER - Buys
mortgages from lenders
and in doing so require certain types of insurance to be in place.
Exam Questions and CORRECT Answers
Management ethics - CORRECT ANSWER - consists of a review of governing
documents and existing policies and procedures, current condition of the property,
owner/resident satisfaction, and fiscal operations. This review can be done by the
board and man
ager together, or a third
-
party management consultant can be hired
Management plan - CORRECT ANSWER - a statement of goals and objectives
approved by the board. It includes the yearly cycle of tasks that management should
perform on the community
association's behalf
Standing committee - CORRECT ANSWER - Committees which have a continued existence
and are not
related to the accomplishment of a specific, once
-
only task. Budget and nomination
committees are examples of standing committees
Alternative dispute resolution - CORRECT ANSWER - Mediation, arbitration and other ways
of resolving
conflicts with the help of a specially trained neutral third party without the need for a
formal trial or hearing
,Appeal - CORRECT ANSWER - A request for a review of a case by a higher authority
—
if permitted by the
governing documents or statute
Default hearing - CORRECT ANSWER - A hearing held when the alleged violator fails to
appear
Due process procedure - CORRECT ANSWER - a formal process designed to protect the
rights of all parties
involved
Hearing notice - CORRECT ANSWER - This is a written notice to an alleged violator that a
hearing will be
held to consider his or her alleged violation
Hierarchy of authority - CORRECT ANSWER - Policy that: Rules and architectural
guidelines may not contradict or be in conflict with the legal sources
that take precedence over them. Although rules and
architectural guidelines are lower in the hierarchy of authority for community associations, they
may clarify and expand a community's governing documents
—
but
may not conflict with the other governing documents.
Rule - CORRECT ANSWER - A specific statement of required behavior whose violation
carries a penalty
(sometimes called a sanction).
Assessment - CORRECT ANSWER - the owner's financial obligation to the community
, association during a given period of time
—
usually one year
Baseline funding - CORRECT ANSWER - The goal of this funding strategy is to keep
the reserve cash
balance above zero
Chart of accounts - CORRECT ANSWER - An organized list of titles, descriptions and
assigned numbers of
all accounts in an organization's general ledger. The assigned number helps you
locate the account. The title describes the purpose
of the account
Discretionary budget line items - CORRECT ANSWER - These are items based on owner,
board and
committee desires. They are items people would like to have
—
given their values
FHA or Federal Housing Administration - CORRECT ANSWER - Regulates and influences
such items as the
amount of insurance a community association must
carry, procedures for financial
operations and requirements for the upkeep of property.
FHLMC or Federal Home Loan Mortgage Corporation - CORRECT ANSWER - Buys
mortgages from lenders
and in doing so require certain types of insurance to be in place.
