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Questions rated A
Which of the following is a common management control for ensuring maintenance work is performed in a timely manner? A. A purchase order system B. An equipment warranties C. A work order/response form D. A contractor's invoice - correct answer ✅C. A work order/response form - A, B, and D speak to elements OTHER than a control to ensure maintenance work is completed. The primary management control tool for identifying whether the association needs to maintain a particular property element is: A. Physical inspections B. Association bylaws C. Maintenance responsibility chart D. Community asset inventory - correct answer ✅C. Maintenance responsibility chart along, with the governing documents, defines parameters of association maintenance responsibility. The other answers have no bearing on necessity of maintenance or maintenance responsibility. In what type of a contract would a waiver of lien by recommended?
Questions rated A
A. Repair of the HVAC system B. Re-roofing the buildings C. Repair of the pool pump D. Annual tree pruning - correct answer ✅B. Re-roofing the buildings - Large contracts involving significant material purchase and/or use of sub-contractors commonly include lien waivers and should be recommended to the board. A, C, and D typically do not include significant material purchases or the use of sub-contractors so a waiver of lien is not necessary. What does "Co-Insurance" obligate the Association to do? A. Pay the deductible B. Maintain certain limits of insurance C. Cover the depreciated value of all association buildings D. Provide insurance for homeowners - correct answer ✅B. Maintain certain limits of insurance - Co-insurance seeks to the limits of insurance in place at the time of a loss and speaks to insurance obligation for the parties involved in the claim. When an association contracts out all of its services and has no employees, it is a best business practice to: A. Negotiate contracts within the bidding process. B. Purchase employment practices liability insurance.
Questions rated A
A. Will make future audit work more accurate. B. More accurately reflects the association's financial condition. C. Is more easily understood by board members. D. Can be accomplishment more quickly. - correct answer ✅B. More accurately reflects the association's financial condition. Under the modified accrual basis, also sometimes referred to as modified cash basis, some accounts, such as assessment income, are maintained on the accrual basis and other accounts, such as interest or other miscellaneous income accounts, and some expenses, such as miscellaneous repairs, are maintained on a cash basis. The accrual of major expenses in particular, such as a contract for landscaping, trash removal, etc., regardless of non- receipt invoices, gives the read a much more accurate depiction of the association's financial standing, as the accruals serve to alert the reader to recognition of obligations that the association must meet. TRUE OR FALSE: The basic authority in a community association lies with the developer. - correct answer ✅FALSE The board of directors in a community association has a _____________ to act in the best interests and for the benefit of the community as a whole. a. bond b. fiduciary duty
Questions rated A
c. ballot d. quorum - correct answer ✅b. fiduciary duty When developing a rule, it must be consistent with: A. Fine schedules as approved by the courts B. Board recommendations and resolutions C. Guidelines established within the governing documents D. Applicable statues and governing documents - correct answer ✅D. Applicable statues and governing documents. Rules cannot conflict with statues and governing documents. In an initial letter you send to an owner who has violated one of the association's adopted rules, which of the following is included? A. The amount of fine assessed. B. Steps to amend the rules. C. The offer to meet to hear the owner's viewpoint. D. What the outcome of similar cases has been. - correct answer ✅C. The offer to meet to hear the owner's viewpoint. Best way to get compliance is to let owner be heard and explain rule to the owner. Knowledge Tested: Successful rule enforcement Procedures. If the governing documents and laws present conflicting notice periods, follow:
Questions rated A
For which project would a board most likely want to use a consultant to help develop bid specifications? a. Landscape renovation project b. Repairing and/or replacing all roofs c. Painting the interior of lobbies and hallways d. Repairing HVAC and boilers - correct answer ✅b. Repairing and/or replacing all roofs - An outside consultant is most likely to be used in a large, complicated project, such as replacement of all roofs in a HOA. Which of the following has the greatest regulatory influence on the management of a community association? a. Federal statues b. Articles of Incorporation c. Specific state statues d. General state statues - correct answer ✅c. Specific state statues - There may be specific state statues addressing regulations which effect the management of a community association. TRUE OR FALSE: Employees are finished with training after they receive their initial training for a job. - correct answer ✅FALSE
Questions rated A
Which of the following is an example of an association control system? a. Frequent neighborhood inspections b. Owner garage door locks c. Telephone entry system d. Posting police department information on building bulletin boards - correct answer ✅a. Frequent neighborhood inspections - The key for the correct answer is "control" and the only response that speaks to an overall system of control is frequent neighborhood inspections. . TRUE OR FALSE: The "business judgement rule" means that if a board has exercised reasonable business judgement in making a decision, the court will generally not consider the board negligent in its fiduciary duty. - correct answer ✅TRUE Which of the following community association committees typically are assigned responsibilities related to elections, nominations, and architectural standards? a. standing committees b. professional committees
Questions rated A
b. Identifies what needs to be done during the year. c. Assigns maintenance tasks. d. Is a punch-list of maintenance needs. - correct answer ✅c. Assigns maintenance tasks. - The purpose of the work order is to capture needed work to be done and assign the work to the appropriate party/parties. What "duty" do the Board members and the manager have to the members? a. Accountability b. Loyalty c. Service d. Conduct - correct answer ✅b. Loyalty - The Board Members and Manager have the Fiduciary "Duty" of Loyalty to the owners. TRUE OR FALSE: It's generally a good idea to schedule a performance evaluation meetings with an employee in a public place. - correct answer ✅FALSE Employment contracts need NOT include: a. Legal sources b. Interests
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c. Termination d. Notice - correct answer ✅b. Interests - Is not a relevant component of an employment contract. TRUE OR FALSE: A community association employee who supervises other staff members is automatically classified as salaried (or exempt). - correct answer ✅TRUE Which of the following federal laws regulate working conditions, specialized training, safety equipment, the posting of warnings related to products and work site conditions, and the reporting of accidents? a. Fair Labor Standards Act b. Occupational Safety and Health Act c. Federal Insurance Contributions Act d. Child labor laws - correct answer ✅b. Occupational Safety and Health Act TRUE OR FALSE: An agenda is more than an announcement of the order of business for a meeting; it is a meeting management tool. - correct answer ✅TRUE
Questions rated A
A significant decline in the amount of investments is most likely the result of: a. Failure to invest association funds properly. b. Seasonal timing of expenses. c. Expenditures out of reserve funds. d. Failure to collect delinquent assessments. - correct answer ✅c. Expenditures out of reserve funds - The reserve funds are set aside, usually in investments such as money market accounts and certificates of deposits, for the purpose of funding the repair or replacement of major, capital components. Therefore the appropriate use of these funds will result in a decline in the amount of investments. The purpose of a personnel manual or employee handbook is: a. Provide a format for job evaluations. b. Define individual job descriptions. c. Detail the programs the company offers. d. Explain employee rights and responsibilities. - correct answer ✅d. Explain employee rights and responsibilities. Preparing a bid request includes which of the following? a. Verifying references.
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b. Identifying potential contractors. c. Recommending a contractor to the board. d. Verifying contractors insurance. - correct answer ✅b. Identifying potential contractors. Alternative dispute resolution includes which of the following methods? a. Mediation b. Subrogation c. Litigation d. Indemnification - correct answer ✅a. Mediation MATCH THE COMMITTEE TYPES
- Usually include elections, nominations, and architectural standards. Required by the governing documents.
- Established by the Board to meet some on-going need of the community.
- Task forces that meet some specific need and are then dissolved. Established by the Board. a. Standing
Questions rated A
Which type of maintenance should be managed with a routine maintenance contract? a. Replacing dead shrubs b. Painting building hallways c. Cutting the grass d. Cleaning sewer lines. - correct answer ✅c. Cutting the grass Liability claims should be sent to the insurer: a. Requesting a public adjuster be assigned. b. Without admitting negligence. c. By the Insurance Trustee. d. Within 72 hours of the incident. - correct answer ✅b. Without admitting negligence. A component of building ordinance insurance coverage includes: a. Glass damage b. Extra demolition c. Water damage d. Power failure - correct answer ✅b. Extra demolition
Questions rated A
A community association is within its legal rights to dismiss an employee without cause or progressive discipline for which of the following reasons? a. substance abuse on the job b. inadequate work performance c. insubordination d. sexual harassment - correct answer ✅a. substance abuse on the job Each of the following legal sources specify management authority and responsibilities for community associations EXCEPT: a. survey data b. state statues c. community association governing documents d. court decisions - correct answer ✅a. survey data Directors and officers liability insurance is designed to cover claims resulting from: a. Theft of funds by an association board member. b. Wrongful acts of employees of the association. c. Bodily injury of directors and officers. d. Damage to board owned property. - correct answer ✅b. Wrongful acts of employees of the association.
Questions rated A
Helps avoid theft. Learning Tested: Ability to define understanding of fiduciary. . In the hierarchy of a community association's governing documents, which of the following is the highest authority? a. Bylaws b. Articles of Incorporation c. Declaration d. Mortgage lender requirements - correct answer ✅c. Declaration Hierarchy:
- Recorded deed or map
- Declaration or Master Deed
- Articles of Incorporation
- Bylaws
- Rules and Regulations TRUE OR FALSE:
Questions rated A
A board of directors can legally conduct the business of the association without a quorum. - correct answer ✅FALSE Management conducts its tasks for the day to day operation of the association in accordance with the: a. Minutes b. Contract c. Board President's instructions d. Resolutions - correct answer ✅b. Contract
- The general process by which the control and responsibilities of the governing board of an association are transferred from the developer to the persons who bought unit/lots in the association is called.
- The date upon which owners gain control of their association. a. audit b. turnover c. restoration d. transition - correct answer ✅1. d. transition
- b. turnover
