The budget establishes the financial lifeline of the community. The budget process is one of the most important activities that Northern Virginia Management, Inc. Associates and the Board work on each year.
The budget is broken down into both short-term and long-term finances. The short-term budget is the yearly financial plan for the Association’s operating budget. Long-term planning is achieved through the development of a comprehensive and accurate replacement reserve schedule, which summarizes the Association’s anticipated major capital expenditures over an extended period of time.
The budget process is a collaborative effort between the Board, Committee and the Community Manager. The Community Manager provides all the information from a variety of sources, including Northern Virginia Management, Inc.’s accounting department, on-site personnel, Board members’ meeting minutes, and Committees. This coordination allows the Community Manager to take a global approach to the budget, to develop what he or she feels to be in the best interest of the Association. Since the Community Manager has a working knowledge of the budget process and the Community, he or she will be more sensitive to budget guidelines through the upcoming fiscal year.
The ultimate goal of the budget process is to ensure a healthy and financially stable community, in addition to providing specific guidelines and objectives for the Board and Northern Virginia Management, Inc. Associates to follow.