MANDATORY ANNUAL DISCLOSURES

Article 7. Annual Reports
5300 Annual Budget Report.
5305 Review of Financial Statement.
5310 Annual Policy Statement.
5320 Delivery of Budget Report to Members.



California Civil Code §1365 Financial Records and Reporting provides that

…the association shall prepare and distribute to all of its members the following documents:

(a) A pro forma operating budget, which shall include all of the following:

(1) The estimated revenue and expenses on an accrual basis.

(2) A summary of the association’s reserves based upon the most recent review or study conducted pursuant to Section 1365.5, based only on assets held in cash or cash equivalents, which shall be printed in boldface type and include all of the following:…

 

Civil Code §1365.5 (e) provides that

At least once every three years, the board of directors shall cause to be conducted a reasonably competent…study of the reserve account requirements of the common interest development, …The board shall review this study, or cause it to be reviewed, annually and shall consider and implement necessary adjustments to the board’s analysis of the reserve account requirements as a result of that review

Civil Code §1365 provides that

(f) (1) A summary of the association’s property, general liability, earthquake, flood, and fidelity insurance policies,…shall be distributed…

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