Conclusion For an experienced CAM, much of the information in this course is a review. For many new CAMs (less than five years of experience), the information may provide some insight as to the expanse of information that is included in the fundamentals of financial management. Understanding the many components of financial records and the functions and details of each is important for management to be involved in the preparation of financial statements,
preparation of budgets, and the implementation of good financial accounting practices and record maintenance policies. The preceding pages addressed various processes, sources, and responsibilities related to the fundamentals of financial management activities. We hope that this course was informative and thoroughly explained the activities that constitute financial financial management from a CAM/CABs perspective.
FUNDAMENTALS OF FINANCIAL MANAGEMENT Final Examination Questions Select the best answer for each question and mark your answers on the Final Examination Answer Sheet found on page 76, or complete your test online at EliteLearning.com/Book 1. As a fiduciary, a director or officer has all of the following duties, EXCPT: a. Duty of care. b. Duty to act in good faith. c. Duty of loyalty. d. Duty of guarantee. 2. An HOA Board may use special assessment surplus for all of the following, EXCEPT? a. It may be transferred to one or more reserve accounts. b. It may be applied as a credit to a future special assessment. c. It may be refunded to the members. d. It may be used to offset future expenses in the operating budget. 6. An association is required to issue an estoppel certificate within what period after receiving a written or electronic request from a member? a. 10 calendar days. b. 20 business days. c. 30 calendar days. d. 10 business days. 7. An association with a total annual revenue of $400.000 is required to prepare which type of annual financial report? a. Audit. b. Review.
c. Cash receipts. d. Compilation. 8. Which entity may levy special assessments? a. 75% of the eligible TVI. b. The members of the association.
3. How many days after the date on which a notice of intent to file a lien has been delivered to the owner of a condominium unit may an association file a claim of lien? a. 30 days. b. 20 business days. c. 15 calendar days. d. 45 days. 4. What report are condominium associations required to provide to the DBPR? a. An annual report containing the names of every financial institution in which it has reserve accounts. b. An annual report containing the names of every financial institution in which it has savings accounts. c. An annual report containing the names if all directors, officers, and agents. d. An annual repost containing the names of all the financial institutions in which it maintains accounts. 5. Which statement is correct regarding a director, CAM, or CAB at the time a condominium forecloses on a unit? a. They may purchase the unit at auction. b. With some exceptions, they have the right to obtain possession of the residence from the circuit court if a tenant has failed to vacate the premises within 30-days of the foreclosure. c. They are prohibited from purchasing a unit at the foreclosure sale resulting from a foreclosure for unpaid assessments of to take title by deed in lieu of foreclosure. d. They are prohibited from purchasing a unit at the foreclosure sale unless a majority of eligible TVI of the membership has amended the documents.
c. The board of directors unless the association documents state otherwise. d. 33% of the board of directors at a properly noticed and quorumed board meeting. 9. How long must a condominium, cooperative, and HOA maintain accounting and financial records? a. One year. b. Two full fiscal years. c. Seven years. d. Life of the association. 10. Comprehensive inventory; vendor ledgers; contracts; insurance policies; and any other records that identify, measure, record, or communicate financial information are considered components of what? a. An auditor’s request list for a year end cash receipts report. b. A financial management system. c. A records retention policy. d. A collection policy.
Course Code: CAMFL03FM
EliteLearning.com/CAM/Florida
Book Code: CAMFL1524
Page 14
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