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HGM
Consulting Services |
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Community Condition Audit & Assessment |
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A Management Audit for a Community Association is similar
to other type of assessments, audits and/or examinations you are
familiar with such as a physical or dental examination; or a
diagnostic examination of your car. Each of these investigates
and examines the
critical systems and their component parts, identifies critical
conditions, trends, analyzes how the parts or systems is working
in concert and contributing to the overall mission and well being
and and recommends and takes action with remedies, plans and
solutions. A Management Audit of your association
uses
the same process. |
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The
Community Condition Audit & Assessment
or Management Audit (MA) is a review;
examine, measure and an analysis of the framework, operations and
process of your community association in each of eight (8) major
component groupings:
The
final Community Condition Audit & Assessment report will include:
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A summary of rating and
analysis of over forty-five (45) sub categories within the eight
component groupings.
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An executive summary of
finding.
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A summary of
recommendations.
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Copies of all check
lists, schedules and digital files used in preparation of the
report.
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An addendum of samples
and examples and other supplementary materials to the
recommendations.
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1. What is a
Community Condition Audit and Assessment? |
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A
Community Condition Audit and Assessment or Management Audit
(MA) is a review, examination and an analysis of eight (8) major
components of a community association. It measures and judges
the association’s structural efficiency and effectiveness of the
community structure. The MA looks at the association’s
framework, operations and process.
The framework is the
organization, systems and policies that are employed to operate
and manage the association. The operations are all the
services delivered to the residents and facilities preservation
and maintenance routines and practices of the property. The
process is the financial, management and governance practices
and routines.
The MA’s major components and
their percentage weight in the summary score are:
Major Component
Weight
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Category |
% |
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Administration |
14 |
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Personnel |
8 |
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Services and Communications |
8 |
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Security and safety |
10 |
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Covenants |
5 |
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Facilities |
20 |
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Finance |
20 |
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Governance |
15 |
| Total |
100 |
A
five level grading-rating system is used for evaluating each
component. From lowest to highest the levels are primitive,
minimal, functional, effective and synergistic.
Each category graded on four (4) point grading system and the
level assigned is based on the summary scores. Summary scores of
Less than .5 is primitive, .5 to 1.5 minimal, 1.5 to 2.5
functional 2.5 to 3.5 effective and 3.5 and over synergistic.
The numerical score for each component grouping is weighted to
determine the over rating score for the association.
Characteristics and
description of the grading levels
Primitive
The
primitive condition is the least desirable and is generally
characterized by an absence of structure, purpose, vision,
policy, direction, standards and/or routine practices. Decisions
are usually forced on the association by an immediate condition
or need. There is little or no evidence of an organizational or
administrative structure that allows for routine or repetitious
performance that is designed to avoid problematical conditions
and emergencies. Attention and focus by the association
generally occurs when an event happens or an emergency condition
develops. Examples of these events would be are where there is a
loss of function of a facility component, an interruption of
service, a threat to the safety of property or person, an
issuance of a citation by a governmental organization and/or an
eminent legal action. In the primitive condition decisions and
policy have no vision beyond the immediate.
Minimal -
The minimal category in most
cases is characterized by reactive conditions and is below
normally considered acceptable standards of operation,
management and government. Board and management decision, agenda
and focus are directed by problems, complaints, and chronic
conditions from a prior period. . Key staff and contractors
dictate and determine the performance requirements rather than
policy, planning and best practices. There is normally a lack of
written policy and procedures, backup or history. The minimal
condition is only driven by obvious operational needs, legal, by
laws and government regulatory requirements. Planning and
decisions are short term and current.
Functional
- The functional condition meets the basis
requirements of operations, services, and governance There is
generally a basis framework of written policy and procedures,
backup or history. . Key staff and contractors rely on normally
effected practices to determine performance requirements and
perform requirements. Goals, objectives, decision ate based on
guideline established by the annual budget. Planning and
decisions are based on the annual budget and are based on an
annual cycle. Policy and procedure decisions are based on
tradition and established practice.
Effective -
This level of condition meets or
exceeds minimal acceptable standards of operation, management
and governing. There is in place a structure to determine
policy. Planning is based on goals and predetermined standards.
The organizational structure specifics staff action. There is in
place an annual cycle of planning and decision making that has
proven successful. Contract specification, board resolutions,
and staff procedures are in writing and routines and day-to-day
operations follow these guidelines.
Synergistic -
This is the highest level of
condition. Board of Directors policy and administrative
resolutions establish policies and practices. Decisions are
based on long term cost effectiveness with emphasis on the
preservation and improvement of the Community Structure. It is
apparent that the operations and governance are well managed and
efficient. There is a definite focus on customer service. . This
highest level of excellence is easily recognizable to visitors,
vendors and neighbors. There is obvious level of team spirit,
enthusiasm and pride among residents, owners, vendors and
employees. A comfortable agreement exists between stakeholders
regarding vision, goals, structure and process. All parties feel
they are part of the success of the association.
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2. How is
a Management Audit preformed? |
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Hiban Group Management, LTD. (HGM) will gather data and
information, organize the information and measure, compare and
evaluate against standards, identify trends and conditions and
make recommendations from the following information in each of
eight (8) governing and operating groups:
Administration
All written instructions,
procedures, policies, guidelines in the pertinent
association operations; a sampling of all office files and
records, insurance records, claims and policies; a sampling
of resale and disclosure documents; contract records,
purchasing records of supplies and parts; telephone, office,
computer operations and records.
Personnel
Interview and test staff
personnel; Review personnel and payroll records
Security & Safety
Examine security hardware,
property and building design, management practices, history
of incidents and resident cooperation and participation;
safety procedures, routines and inspections; key control
records and practices; workplace safety practices, routines,
policy and compliance.
Services & Communication
All notices, newsletter,
general written communication, policy, practice and
policies; office, receptionist, resident services, service
facilities, policy and records
Covenants
Records, policy,
procedures in regard to rule enforcement, pets and
architectural control
Facilities
Facility maintenance,
records, routines, procedures, practices in regard to
preventive maintenance, energy conservation, fire and
safety, in unit maintenance and inspections
Finances
Past budgets, audits,
financial reports and records in regard to budgeting, cash
management, fee collection, investments, cash management and
reserves.
Governance
Minutes, records, policy
routines and procedures in regard to association meetings,
committee and board operations and board policy
If you are interested in
receiving more information or a proposal for a management
audit for you association please complete our
management audit inquiry form.
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