Statement the necessity for an audit and the Benefits of Engaging a Certified Investment Advisor for Yardley Station’s Financial Management
For the past decade, Yardley Station Condominium Association has struggled to optimize its capital reserves, leading to missed opportunities for necessary improvements, substandard services, and an underserved community. The lack of a Capital Reserve Analysis, combined with minimally or completely uninvested funds, has hindered the association’s ability to grow its reserves and execute much-needed upgrades. To reverse this trend and ensure a sustainable financial future, it is critical for Yardley Station to engage a certified investment advisor who will collaborate closely with our new tax advisor, annual tax accountant, and property management firm, Associa. This integrated approach will provide the expertise and discipline needed to maximize our financial resources and secure long-term success.
Key Benefits of Engaging a Certified Investment Advisor:
- Strategic Capital Reserve Management Using the Capital Reserve Analysis Tool:
- Long-Term Financial Planning: A certified investment advisor, working in partnership with the tax advisor and accountant, will conduct a comprehensive Capital Reserve Analysis. This tool is essential for assessing the association’s long-term financial needs, identifying future capital expenditures, and ensuring that sufficient funds are set aside to cover major repairs, replacements, and improvements.
- Data-Driven Investment Decisions: The advisor will use the analysis to make informed, data-driven investment decisions that align with Yardley Station’s specific needs and timeline. Rather than keeping funds uninvested or minimally invested, the advisor will develop a customized investment strategy that balances growth with risk management, allowing the association to build its reserves more effectively.
- Prevents Future Shortfalls: By planning for future capital expenses, the association can avoid emergency assessments or funding shortfalls, which can burden homeowners. A well-managed reserve ensures that essential projects, such as infrastructure repairs, are completed on time and without compromising service quality.
- Close Collaboration with the Tax Advisor and Accountant:
- Holistic Financial Oversight: A certified investment advisor who works in partnership with the tax advisor and annual tax accountant ensures that all aspects of Yardley Station’s financial health are considered. This collaboration provides a unified approach to managing reserves, taxes, and investments, minimizing tax liabilities while maximizing the association’s financial growth.
- Optimized Tax Efficiency: By working closely with the tax advisor, the investment advisor can help structure investments to take full advantage of tax-saving strategies. This will allow the association to keep more of its earned returns, ensuring that capital reserves grow more quickly and effectively.
- Transparency and Accountability: Having a team of financial professionals overseeing Yardley Station’s funds guarantees greater transparency and accountability in financial decision-making. The community will benefit from clear, comprehensive reporting on both tax and investment strategies, giving homeowners confidence that their money is being managed responsibly.
- Alignment with New Property Management Firm, Associa:
- Coordinated Financial and Operational Planning: A close working relationship between the certified investment advisor and Associa, the new property management firm, will ensure that financial planning is aligned with operational needs. The property manager will provide insights into upcoming projects, maintenance schedules, and community priorities, allowing the investment advisor to adjust strategies as needed to ensure the funds are available when required.
- Better Service and Improvements: A well-managed investment strategy will enable Yardley Station to fund necessary improvements, such as infrastructure repairs, amenities upgrades, and enhanced services. These improvements will not only increase the quality of life for residents but also boost property values and ensure that Yardley Station is competitive with other condominium communities.
- Enhanced Accountability: By involving the property management firm in financial discussions, the board and community will benefit from an added layer of oversight. Associa’s operational expertise combined with the financial acumen of the certified investment advisor will create a more accountable and efficient system for managing the association’s funds.
- Reversing a Decade of Poor Financial Stewardship:
- Addressing Past Mismanagement: Over the past ten years, Yardley Station has struggled due to a lack of financial oversight, minimal investment of reserve funds, and the absence of any Capital Reserve Analysis. As a result, the community has been underserved, with missed opportunities for improvements and substandard services. Bringing in a certified investment advisor to work with the tax advisor, accountant, and Associa marks a turning point for the association, offering the professional guidance necessary to correct these past mistakes.
- Unlocking Financial Potential: With a sound investment strategy and disciplined financial planning, the association can finally unlock the potential of its capital reserves. Instead of leaving funds uninvested, the certified advisor will put the association’s money to work, generating returns that will allow for greater improvements, higher service quality, and long-term financial stability.
Conclusion:
Engaging a certified investment advisor who works closely with Yardley Station’s tax advisor, annual tax accountant, and new property management firm, Associa, is critical to turning around the association’s financial health. By utilizing the Capital Reserve Analysis tool and implementing a strategic investment plan, Yardley Station will be able to grow its capital reserves, fund necessary improvements, and ensure that the community is well-served for the next decade and beyond. Now is the time for Yardley Station to embrace professional financial management, secure accountability, and build a strong foundation for the future.
Below is another year of uninvested funds sitting in a bank account and not professionally advised lacking long term strategy and goals. 1 of 11 sample years of completely uninvested capital, no capital reserve analysis, no professional guidance. Fiscal neglect. Yardley Station could have new roads by now if managed properly, diligently and professionally as proposed.
Yardley Station Reserve Balances September 30, 2022
| Bank | Account | Rate | Type Balance Notes | ||
| Firstrust Bank | Reserve Account | 0.75% | MM | $169,624.35 | quarterly statement |
| Firstrust Bank | Operating Excess Account | 0.75% | MM | $1,346.95 | quarterly statement |
| Firstrust Bank | Capital Account | 0.75% | MM | $7,757.37 | quarterly statement |
| Customers Bank | Reserve Account | 0.60% | MM | $54,198.76 | Sept statement pending |
| Total | $232,927.43 | ||||