Page 28 - NY Cooperator October Expo 2019
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28 THE COOPERATOR —  OCTOBER 2019   COOPERATOR.COM  24/7 ACCESS  Life can be unpredictable. You can count on us to be there for you, ensuring things   happen promptly and efficiently, always with the objective of getting your life and   business back to normal as quickly as possible. Our goal is to have your insurance   information available at your fingertips.  MACKOUL RISK SOLUTIONS   |   WWW.MACKOUL.COM   |   (866) MACKOUL   |   INFO@MACKOUL.COM  CLIENT PORTAL  Use our client portal to view your policies, request insurance cards, report a claim, pay   a bill or print a certificate.  MOBILE APP  Our app allows you to report a claim while on site, access your client portal, chat with   our staff or pay a bill, on the go!  TO EVERYTHING YOU NEED  WEBINARS  Free online and customized classes for new & experienced board members.  Providing a Full Range of   Architectural & Engineering Services  In-house professional   expertise in:  Exterior Restoration &       Historic Preservation  Construction Inspection  Alteration Review  Architectural Design  Engineering:  n  Mechanica  l   n  Electrical  n  Plumbing  n  Structural  Energy Audits  Forensic Investigation  Façade Safety Inspection       Program Reporting  Green Design –       LEED Professionals  Client satisfaction    assured by the active   daily involvement of    the firm’s principals  www.lawlessmangione.com  info@lawlessmangione.com  914.423.8844  BUDGET & FINANCE  With the stock market chugging along   and the Great Recession of the late 'aughts   in the rearview, the question might occur   to some fi nancially-savvy board members:   Are our building's cash reserve assets   performing at their best? Could they be   better? Should our funds be invested in   the most conservative manner possible,   or should our association or corporation   jump onto the stock market bonanza band-  wagon?  According to the professionals   who spoke to   Th  e Cooperator   on the topic   of reserve investments, the answer to that   last question is a resounding No.  What’s Required?  According to Mark Hakim, an attorney  Condo Queens, an accounting fi rm located   and Director of the Cooperative and Con-  dominium Department for Manhattan-  based law fi rm Chaves and Perlowitz, “Ex-  cept in the case of a conversion, there are no  right away.”  While the standard accounting   legal requirements with respect to reserve  defi nition of 'liquid' is anything invested for   funds, though there has been discussion in  less than 90 days, Sackstein believes that’s   the past about legislatively requiring one.  not liquid enough for condo and co-op   Note that a reserve fund must be estab-  lished pursuant to the Reserve Fund Law  bination of liquid instruments,” she says,   for conversions and that a working capital  “typically, \\\[condos and co-ops use\\\] money   fund, which may be established by a spon-  sor or board, is not a reserve fund.”  “Th  e board of a condominium or coop-  erative is charged with the responsibility for  out penalties for early withdrawal.”  investment decisions,” Hakim explains. “Of-  ten a board will rely upon a managing agent  near cash equivalents depends on an array   and/or the building’s accountant to deter-  mine where and how to invest.  Usually, a   building tries to stay with safe investments;   bonds, treasury bills or money market ac-  counts are the customary investment vehi-  cles. However, as the amount of a building’s   reserves increases into the millions, boards   may engage institutional fi nancial advisors   to assist with their investment plan.”  Liquidity First  Th  e most important consideration for   co-op and condominium boards when   contemplating investment of their reserve   funds is liquidity. According to Karen Sack-  stein, an accountant and a partner at Th  e   in Fair Lawn, New Jersey that specializes   in condominium associations, “Liquidity   is defi ned simply as money you can access   situations.  “Reserve funds will have a com-  market accounts and/or short-term cer-  tifi cates of deposit (no more than 30 days).    Th  ese instruments can all be accessed with-  How much should be kept in cash or   Protecting Your   Reserve Funds  Prudent Investing Is Key  BY A J SIDRANSKY  See us at Booth 225  See us at Booth 410


































































































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