Florida Community Association Manager Practice Exam

What are the main financial responsibilities outlined in FS 718.115?

1. Personal tax filings of board members

2. Collection of assessments and management fees

3. Common expenses and common surplus management

4. Loan applications for community improvements

The correct answer is: Common expenses and common surplus management

The main financial responsibilities outlined in FS 718.115 relate primarily to the management of common expenses and common surplus within a community association. This provision emphasizes the duty of the association to effectively handle financial resources that are shared among all members, including overseeing how common expenses are allocated and ensuring that any surplus funds are used appropriately for the benefit of the community. Management of common expenses involves budgeting for regular maintenance, repairs, and other operational needs that directly affect all residents. On the other hand, managing common surplus includes deciding how any excess funds should be reinvested or distributed, thus directly impacting the financial health and stability of the entire association. These responsibilities are critical to maintaining the community's operations and ensuring that all members are treated fairly in the sharing of costs and benefits. The focus on these financial responsibilities supports the overall governance and financial well-being of community associations, fostering transparency and accountability in handling communal funds.