FREE CMCA Knowledge Questions and Answers
Which of the following is a typical management control that guarantees maintenance work is completed on schedule?
B, C, and D refer to factors that are NOT a control to guarantee maintenance work is done.
What should the board take into account while reviewing the proposed budget for approval?
When the board considers the proposed budget for approval, it should take into account the association's financial situation.
Why are there special membership meetings?
Special membership meetings are organized to conduct specific business that demands the members' attention. Most of the time, these meetings are called when important decisions need to be made right away and can't wait for the next planned meeting. The only business that can be discussed at a special meeting of members is the business that was called for.
What is a Management Letter used for?
An auditor may provide the management of an organization with a letter known as a management letter. It serves as a means of communication for the auditor to provide observations and advice related to the organization's financial operations.
What contract would recommend a lien waiver?
Large contracts involving considerable material purchases and/or the employment of subcontractors frequently involve lien waivers and should be suggested to the board.
A waiver of lien is not required for categories A, B, and C since they frequently do not include substantial material purchases or the employment of subcontractors.
Which two important financial documents should the board of directors look at to see how much money is available for an expense that wasn't planned for?
The balance sheet shows the company's finances at a certain point in time. The statement of revenue and expenses, which is also called the income statement, shows how the company's finances have changed over time.
When the financial reports show that money was received when it was due and that costs were paid when they were due, on what basis is the community organization reporting its finances?
A cash basis is used to report the community association's financial data. In other words, the association keeps track of money as soon as it is received and costs as soon as they are paid.
At a minimum, the interim financial report should contain:
A report on the company's financial performance during a certain time period is called an interim financial report. It should include, at the very least, an income and expense statement, account balances, and a balance sheet.
A ____________ includes examining the governing papers, current rules and regulations, the property's state, owner and resident satisfaction, and financial operations.
A management audit is an objective and systematic analysis of a company's entire operations and performance. It is a helpful tool to evaluate the company's efficiency, functions, goals, and achievements.
This is the main management control tool for figuring out if the association needs to maintain a certain property element:
The governing papers and the maintenance responsibility chart establish the scope of the association's maintenance responsibilities.
The other answers don't have anything to do with whether maintenance is needed or who is responsible for it.
Which of the following should be in the minutes of a board meeting?
The exact wording of each motion made, and the outcome of each vote should be included in the board meeting minutes. This is important to make sure that the meeting decisions are written down correctly so that they can be used again if needed.