PSI Specializes in the management of homeowner associations. From professional business, governance, and community management services, to leading online services – we offer a complete and unparalleled solution for our clients.
PSI's Best Practices
Following best practices leads to the best outcomes
While PSI has in-house accounting staff we firmly believe in independent, third-party audits to keep the books in order. Throughout the course of the year, management will work with a CPA to ensure that all financial practices are being performed responsibly.
Accounting Checks and Balances
Within PSI’s accounting department there are systems of checks and balances employed to ensure that no mistakes are made: manager reviews the monthly, unaudited financials prior to sending them to the Board, invoices are reviewed by at least three different people prior to the money leaving the account.
Every year your community association manager will put together the first draft budget for the Board to review. This will be based on several key factors: historical trending, contracts in place, and any planned projects. We will then work with the Board to adjust the budget as needed to ensure that all of the goals for the Association in the coming year are understood. We try to take the headache out of budgeting for our communities.
Planning for years of projects can be a daunting task for many Boards. A helpful tool to make sure that the Association is financially on track is a reserve study. A report is compiled by a licensed engineer to determine the estimated useful life of all components of the community. Having a reserve study performed can help guide a Board in fulfilling their fiduciary responsibility to the Association by planning for long-term projects and ensuring that the appropriate funding is available when the time comes.
At PSI, while we believe reserve studies are essential, we like to go one step further. We guide our communities to work with financial advisors to allocate a portion of their reserve funds to low-risk investments to earn interest and help offset some of the long-term project costs. Investing also helps to keep assessments from spiking and, in tandem with a reserve study, can help avoid special assessments.
Requests for Proposal (RFPs)
Selecting a contractor to perform work at your community can be a daunting task whether it is for a routine maintenance contract or a large scale project. PSI works with the Board to create a Request for Proposal to ensure the Association’s needs are being met. This RFP will include a contract that has been reviewed by community association attorneys and a set of specifications that has been created with the help of experts in the field of whatever project the Board is working on. From there we can bid out the project to several contractors and the RFP ensures that the bids that are returned are apples-to-apples, making the job of choosing a contractor much easier for the Board.
Many contractors are needed to keep an association maintained and PSI holds these vendors to the highest of standards. We work with Vendor Information Verification Experts (VIVE) to ensure that all contractors who work with communities we manage have the appropriate licensing and insurance and are compliant to our standards. Through their software and expertise, VIVE is able to effectively monitor these credentials to make sure that the association is not exposed to any liability from the contractors it hires.
© 2020 All rights reserved