Throughout 2020 and 2021, CAMS' collections department audited the accounts receivable (AR) balances of all associations they manage. During this process, it was discovered that several associations had unusually high balances. After seeing the results of these audits, boards saw how much money their associations were owed and by whom, thus giving them the fuel needed to pursue these delinquent
In 2020 and 2021, CAMS' collections team began auditing the AR balances of the 700+ associations managed by the company. In doing this, the collections manager saw some unusually high balances and trends among those accounts with the higher balances. Upon studying this information, she determined the sources of delinquencies and provided board members with some best practices for collecting the funds and avoiding this from occurring again in the future.
As the collections manager began her audit, she systematically went through every account and noted
trends that may have been contributing to high AR balances. After studying this information, she came up with some best practices for board members and community managers to avoid the AR balance climbing again.
After evaluating the reasons behind these high AR balances, the collections manager also noticed that many associations hadn't revisited their collections policies in several years. Further, some associations were discovered to have no collections policy in place at all.
An audit to this degree is an extra service provided outside of CAMS contract deliverables to assist the
When the collections manager finished going over the data and came up with some solutions, she was able to see some areas in which both board members and community managers could use some education and best practices to avoid a recurrence of this issue. However, she was also quite aware that not everyone is
To get this information out to those who needed it, she attended some board meetings as well as provided some essential education to community managers so they, in turn, could relay the information to their board members.
As it came time to educate board members and community managers, the collections manager came up with some best practices based on the audit results.
It can sometimes be difficult for board members to aggressively pursue delinquent accounts as those who
After being told the audit results, many of CAMS' associations saw a significant decrease in their AR balances and became financially healthy. Further, this process brought sections of the financial reports to board members' attention and showed them the importance of going over everything, not just the bank account balances.
At CAMS, we go above and beyond to provide our clients with excellent service. By performing this audit and revealing that many associations had these high balances and could work towards reducing them, CAMS was able to aid board members in reviewing the financial state of their associations and work towards updating policies and pursuing delinquent accounts to avoid this from occurring in the future.
Does your community have the Trusted Guidance it deserves? Reach out to CAMS at 888.789.2624 or visit our website to learn more.
View a webinar on collections here.