Financial Services
Let our financial experts make your life simpler.

Whether you’re thinking of utilizing our total in-house financial processing as part of our complete property management offering or simply as a stand-alone service, we provide two valuable assets to every client: accountability and timeliness. Our financial, management, and customer service systems have been custom designed to allow the most detailed, service-oriented management in the industry.

We get it done.

PCM’s accounting department, headed by a CPA, provides comprehensive financial services to each Association. Every client has a separate bank account with separate and complete books. All financial systems, statements, and internal controls are designed to comply with generally accepted accounting principles.

CPA Managed
We pride ourselves on providing the best financial services in the industry. Our accounting department structure provides proper segregation of duties and strong internal control procedures. Our accounting department is headed by an in-house CPA. The accounting staff utilizes our in-house, proprietary accounting software for processing all financial data. Our staff members are trained in Microsoft Office products to enable them to provide customized schedules and correspond with board members.

Financial Training
Our staff accountants are specifically trained to understand the unique needs of Homeowner Associations and the appropriate accounting methods to support them. In addition to training for our own staff, we offer financial training seminars to board members and committee members that range from the ABC’s of accounting principles to advanced seminars.

Expert Advice
Our Controller will coordinate the audit and tax preparation with an outside auditor approved by the Association. The Controller is responsible for reviewing the audit and tax returns and preparing any adjusting journal entries. The Controller is also responsible for discussing any financial issues with the manager and/or the Board.

Monthly Financial Package
PCM will provide your Association with a monthly financial statement that includes:

• Balance sheet and income statement. The income statement compares the month and year-to-date actuals to budget.
• Schedule of cash detailing all Association bank accounts and investments.
• Check register detailing the check date, check number, payee, general ledger account number, and a brief description of the service.
• Bank reconciliations and bank statements.
• Schedule of assessments receivable, which details all owners with a balance or prepayment on their account.
• Schedule of year-to-date reserve activity detailing contributions and expenditures.
• Schedule of year-to-date litigation or reconstruction activity detailing income and expenditures, if applicable.
• Schedule of accounts payable.

Accounts Receivable
Our accounts receivable staff will follow the Association’s delinquency policy in regard to the mailing of late letters, pre-lien letters, lien filings, and interface with the Association’s collection attorney when appropriate. We will also provide the Board of Directors and manager with a monthly summary delinquency report. Standard accounts receivable activities include:

• Monthly homeowner billing statements.
• Process daily cash receipts, both in-house and lockbox and monthly ACH direct debit program.
• Billing department responds to billing inquiries and correspondence.
• Administer Board approved collection policy for delinquent homeowners.
• Provide a monthly delinquency report detailing each delinquent account and the current status.
• Administer fines and violations as approved by the Board.
• Process escrow demands and changes of ownership.
• Assist the Association’s collection attorney through various stages of collection on delinquent accounts.
• Monitor to ensure that monthly status reports are received from the Association’s collection attorney on all delinquent accounts.

Accounts Payable
The accounts payable staff is responsible for processing the Association bills weekly and has been trained to process only original invoices, which are properly detailed and approved. Standard accounts payable activities include:

• Review all invoices for proper approval and coding.
• Pay all approved Association invoices on a weekly basis.
• File annual 1099’s for all independent contractors.
• Report as required by law to the Employment Development Department all independent contractors who are paid more than $600.00.
• Monitor appropriate vendor insurance coverage and contractor licenses.
• Monitor and process any garnishments.

Budget Management
Your manager, in combination with our accounting staff, can review the specific activities required by your community and recommend a realistic and balanced budget. As always, it is our goal to assist you in this process and you have the final say in how the budget is managed. Some tools we use to help develop and manage the budget are:

• Budget Worksheets
• Trend Analysis report
• Budget Variance Report

Banking
We utilize a bank lockbox to process daily deposits. We communicate electronically with the bank each evening providing the bank with information regarding each Association. The bank communicates electronically with us each morning providing us with information regarding deposits processed by the bank the prior night. All remittance advices, correspondence, etc. are returned to our office by the bank’s courier and are reviewed daily by our staff.

The staff accountant is responsible for reconciling all bank accounts. Association bank accounts are always held in the name of the Association.

Standard banking activities include:

• Reconcile all bank accounts monthly and provide monthly reconciliations.
• Facilitate the opening and closings of investments and rollovers as approved by the Board.
• Daily deposits.

General Accounting Services
In addition to the services cited above, PCM provides these additional services to round out our full offering:

• Maintain and store Association financial records.
• Litigation and reconstruction accounting.
• Special projects as requested by the Board.
• Provide information required by the Association’s accountant to complete the annual audit and tax return in compliance with California Civil Code.
• Review of annual budget.
• Review of annual audit and tax return and recording of any audit adjustments.