Understanding Our Financial Statements
 
We’re sharing the Association’s financial statements so homeowners can see how community funds are being managed. Two useful reports are the balance sheet and the income statement.
 
Balance sheet: 
A snapshot of the Association’s finances on a specific date. It shows what the Association has, such as cash and amounts owed to it; what it owes, such as unpaid bills; and the remaining balance. It can help residents understand the Association’s financial position at that point in time.
 
Income statement: 
A report of money earned and expenses recorded over a period, such as a month or year. It shows assessment income and expenses such as landscaping, insurance, management, and legal fees. Comparing actual results with the budget can help residents see where spending differs from what was planned.

These reports answer different questions: the balance sheet shows the Association’s position on a date, while the income statement shows its activity over a period.