Financial Affairs of the Association

FINANCIAL AFFAIRS OF THE ASSOCIATION

The Board, the Treasurer of the Association, the Finance/Human Resources Committee, and the CSA Manager shall adhere to Article 7 (Financial Affairs) of the By-Laws. Additionally, the following procedures apply to the financial affairs of the Association: 1. The Treasurer shall be the chairperson of the Finance/Human Resource Committee 2. The Treasurer shall ensure that a certified audit is conducted annually as required by the

Florida Statutes. 3. The Association’s accountant and independent auditor shall report to the Treasurer, the

Finance/Human Resource Committee and the CSA Manager. 4. The Board Chairperson, Vice-Chairperson, Treasurer and at least one (1) member of the

Finance/Human Resources Committee shall be signatories on all Association accounts. Any

Association check for Five Thousand Dollars ($5,000) or more shall be signed by the CSA

Manager or the CSA Manager’s designee and co-signed by one of the above Board signatories. 5. The CSA Manager shall be prohibited from making expenditures over Five Thousand Dollars ($5,000) for items that have not been previously budgeted without the Board’s approval. 6. The CSA Manager shall prepare a draft budget for the Finance/Human Resources Committee to review in the September/October timeframe. The Finance/Human Resources Committee shall recommend adoption of the final proposed budget at the CSA Board Meeting in

February of each year. 7. The Board will build and maintain a funded reserve account for the purpose of making major repairs and replacements on Common Properties. All items in the reserve account will have an anticipated future expense of more than Twenty Thousand Dollars ($20,000) and must be reasonably predictable both as to timing of occurrence and amount of the anticipated expenditure. Funding for the reserve account will be included in the annual expenses of the

Association. These funds will be kept in a separate banking or investment account. The annual assessment and reserve balance required at the end of each year will be determined by these estimates. Reserve funds will only be used for those items which the reserve schedule has established and funded. The Board may vote to add, delete or modify reserve categories.

It is not intended that reserve funds be used for capital expenditures or as a contingency fund.

Contingency or capital expenditure reserves, if deemed necessary by the Board, shall be established separately.