Florida Community Association Manager Practice Exam

Which of the following is included in line items for financial reports for both Condos and HOAs?

1. Trash Collection

2. Security Costs

3. Landscape Contracts

4. Administrative Expenses

The correct answer is: Trash Collection

Trash collection is a crucial line item included in financial reports for both condominiums and homeowners associations (HOAs). This reflects the common expenses associated with maintaining the community’s cleanliness and upkeep. Since waste removal is a fundamental service that affects all residents, it is considered a necessary expense that needs to be documented transparently in financial reports. In the context of HOAs and condos, these reports aim to provide a clear picture of community finances, ensuring that all members are informed about how funds are allocated. Trash collection services are typically contracted out and represent a recurring cost that needs to be included in the budget for both types of associations, making it an essential component of the financial reporting process. Other expenses like security costs, landscape contracts, and administrative expenses may vary between different associations based on their specific needs and amenities. Consequently, while these items are significant for many communities, they do not have the same universal inclusion across all financial reports for condos and HOAs as trash collection does.