All funds received by an association are deposited into the association’s operating account. A portion of those funds are then transferred into the association’s reserve account according to the association’s reserve funding plan.
Included within the board’s financial review requirements is the review of information pertaining to the association’s operating account (i.e., review bank account statements, review current reconciliation of the operating account, etc.). (Civ. Code § 5500; See also “Financial Review Requirements.”)
Manager Deposits & Control of Account
Civil Code Section 5380 contains several requirements governing how funds received by a managing agent on behalf of an association must be deposited into certain bank accounts. (See “Deposit of Association Funds by Manager.”)