BOARD NEWS AND EDUCATION - JUNE 2026

Dear Board Member,

We are moving into the 2027 budget preparation season. Accordingly, June’s focus is on financial oversight, budgeting, and long-term financial planning. In addition to this newsletter, I have developed a new four-hour webinar for board members titled, Understanding Financials, Building Budgets, and Protecting the Financial Future of the Community. This discussion centers around three important questions:

• Where are we financially today?

• What financial decisions and obligations are ahead over the next year?

• How do we protect the long-term financial future of the community?

I am currently waiting for course approval of this webinar as a four-hour CEU for Homeowner’s Association Board Members. My goal as always is pique interest, stimulate thinking and provide solutions. Hopefully, we provide something that resonates.

— Be well. Doug Jenkins, Director of Learning & Development

Upcoming Online Board Education Events:

Individual Registration is required for all courses*.

New Condominium Board Member Four Hour Certification

DBPR Required Four Hour Certification Course for new Condominium Association Board

Members Subject to Florida Statute 718

July 15, 2026 1:00PM - 5:00PM

Registration Link for the July 15, 2026, Condominium Course

New Homeowners' Board Member Four Hour Certification

DBPR Required Four Hour Certification Course for new Homeowners' Association Board

Members Subject to Florida Statute 720.

July 8, 2026 1:00PM - 5:00PM

Registration Link for the July 8, 2026, Homeowners Association Course

2025/2026 Legislative Update - Condo Board Member One Hour CEU

June 24, 2026 4:00PM - 5:00PM

Registration Link for the June 24, 2026, Condo CEU

Understanding Financials, Building Budgets, and Protecting the Financial

Future of the Community (Pending 720 HOA Board CEU Approval)

This four-hour educational course is designed to provide Condo and HOA board members with a practical and comprehensive understanding of association financial operations, budget preparation, and long-term fiscal stewardship.

June 23, 2026 1:00PM - 5:00PM

Registration Link for the June 23, 2026

*Proposed DBPR changes to Board Education guidelines will require that all attendees use their own unique registration links to qualify for attendance and completion. If you do not register and attend using your own link, you may not receive credit for attendance.

Myth vs. Reality: Association Financial Oversight

❌ Myth #1

“If the association has money in the bank, the community must be financially healthy.”

✅ Reality

A strong bank balance alone does not always mean the association is financially stable. Boards must also evaluate reserve obligations, unpaid liabilities, deferred maintenance, delinquency levels, and upcoming capital projects. A community may have substantial cash today but still face long-term financial pressure if reserves are underfunded or major repairs are approaching.

❌ Myth #2

“Budget variances automatically mean someone did something wrong.”

✅ Reality

Not all variances indicate overspending or poor management. Some differences occur because of timing issues, seasonal expenses, insurance renewals, contract billing cycles, or delayed repairs. The board’s responsibility is to understand the reason behind the variance and determine whether it represents a temporary timing issue or an ongoing financial trend.

10 Habits of Financially Focused Boards

1. Waiting too long to send the first communication 
   
2. Failing to clearly define where official updates will be posted 
   
3. Sending inconsistent messages from multiple sources (board vs. management) 
   
4. Overcommunicating without substance—or under communicating when it matters 
   
5. Not setting expectations for update frequency 
   
6. Using only one communication channel (email or text, but not both) 
   
7. Providing information without clearly stating “what happens next” 
   
8. Failing to acknowledge uncertainty (silence often creates more concern than honesty) 
   
9. Communicating decisions without explaining the reason behind them 
   
10. Going quiet after the storm when communication is needed most

Budgets Are More Than Just Numbers

By Doug Jenkins

One of the most important responsibilities of a board is developing and adopting a realistic annual budget. Associations, however, are facing financial challenges that communities did not experience to the same degree rjust a few years ago. 

For many owners and board members, today’s financial pressures naturally bring back memories of the real estate and financial challenges experienced during the 2008 housing crisis. While there are similarities —including affordability concerns, rising costs, and economic uncertainty — many of today’s challenges are different in nature. Current pressures are less tied to risky lending practices and collapsing home values, and more connected to increasing insurance premiums, inflation, aging infrastructure, statutory reserve funding obligations, and the rising cost of operating and maintaining communities. As a result, many boards are finding themselves in the difficult position of balancing short-term affordability concerns with the long-term financial stability.

The budget is more than just numbers — it is a strategic plan guiding the community’s future. Like a successful coach preparing for a new season, strategic board leadership requires vision, discipline, preparation, sound judgment, adaptability, patience, and the ability to balance immediate pressures with long-term goals.

10 Things Board Members Should Consider When Creating the Association Budget

1. The budget is the is the association’s operational and financial game plan. It identifies objectives, evaluates available resources, anticipates potential challenges, and outlines the actions needed to move forward successfully. Boards should be thoughtful not reactionary.
   
   
2. The board has the fiduciary responsibility to approve the budget. Managers, accountants, reserve specialists, and vendors assist with information, but the board makes the final decisions.
   
   
3. Building a responsible budget requires balancing affordability and sustainability. Boards must consider both current owner concerns and the long-term needs of the community.
   
   
4. Insurance, utilities, and contract costs often rise faster than expected. Many budget pressures are market-driven and outside the board’s direct control. Anticipate.
   
   
5. Reserve funding is part of responsible budgeting — not optional planning. Underfunding reserves today will lead to large special assessments later.
   
   
6. A “flat” budget is not always a healthy budget. Keeping assessments artificially low will result in deferred maintenance, reduced services, or future financial instability.
   
   
7. Trend analysis is critical. Boards should review multi-year trends for insurance, utilities, repairs, delinquency levels, and vendor pricing. Prepare for the obvious cycles.
   
   
8. Responsible budgets account for the unexpected. Emergency repairs, severe weather, infrastructure failures, and other unforeseen events can create sudden financial pressure on the association. Resilient budgets avoid planning so financially “tight” that the community has little flexibility to respond to unexpected challenges.
   
   
9. Delinquencies directly affect operational stability. Every unpaid assessment reduces available operating cash and increases financial pressure on paying owners. Accurately projecting anticipated delinquency is essential.
   
   
10. Trust is one of the community’s most valuable financial assets. Open budget workshops and meetings that allow owners to observe and better understand the discussion, challenges, and decision-making process can help strengthen owner confidence and trust in the financial decisions being made by the board.

While budget discussions can sometimes become difficult or emotional, they are ultimately centered around 

protecting the long-term stability, maintenance, and quality of life within the community. By approaching the 

budgeting process thoughtfully, transparently, and with a focus on both present needs and future obligations, 

boards help create communities that remain financially stable, properly maintained, and positioned to support owner satisfaction well into the future.

Financials: Looking Beyond the Data

By Doug Jenkins

One of the most important responsibilities of a board member is financial oversight. While most directors do not have accounting backgrounds, they are entrusted with making governance decisions that directly affect the financial health, maintenance, and long-term stability of the community.

Financial oversight requires that board members understand the association's financial condition well enough to ask questions, evaluate information, identify emerging risks, and make informed decisions. Effective boards recognize that financial reports are not simply historical records of what has already happened; they are governance tools that help identify trends, opportunities, and potential concerns before they become larger problems.

Communities rarely experience financial difficulties overnight. More often, challenges develop gradually through increasing expenses, deferred maintenance, inadequate reserve funding, growing delinquencies, aging infrastructure, or changing market conditions. Boards that routinely review financial information and engage in thoughtful discussion are better positioned to recognize potential concerns early and respond appropriately. Asking questions is not a sign of inexperience; it is one of the most important aspects of effective governance. 

How to Look Beyond the Data:

Key questions as you review the monthly financials:

• Do we currently have enough operating cash?
• Are total expenses within budget year-to-date?
• What are the largest budget variances and why?
• Are any expenses showing upward trends?
• Are any repairs or maintenance items being postponed?
• Is delinquency increasing or improving?
• Are reserve balances keeping pace with future obligations?
• Are there any upcoming insurance or contract increases we should prepare for?
• Are there any financial risks that could affect next year’s budget?
• Are our current decisions protecting the long-term financial health of the community?

Financial oversight is not limited to reviewing the current month's numbers. Effective boards also look for patterns over time. A single month's financial report rarely tells the entire story. Reviewing trends over multiple months or years often provides greater insight into the association's financial position and can help boards identify opportunities for improvement before significant issues develop.

Key questions for Board Self-Evaluation:

• Do we understand the association’s largest financial risks?
• Are we planning ahead or simply reacting to problems as they arise?
• Are we communicating financial realities clearly to owners?
• Are we comfortable asking questions during financial discussions?
• Are we addressing maintenance proactively or delaying projects?
• Are we reviewing long-term trends instead of focusing only on monthly numbers?

Skilled financial oversight begins with simple, honest discussion. It requires curiosity, preparation, transparency, and a willingness to understand both the challenges and opportunities facing the community. Boards that remain engaged in understanding the financial health of the association are better equipped to make thoughtful decisions, navigate changing economic conditions, and protect the long-term interests of the owners they serve.