Unless the governing documents impose more stringent standards, the board must review, on a monthly basis, six items: a current reconciliation of the operating accounts (a); a current reconciliation of the reserve accounts (b); the current year's actual operating revenues and expenses against budget (c); the latest financial-institution account statements for the operating and reserve accounts (d); an income and expense statement for the operating and reserve accounts (e); and the check register, monthly general ledger, and delinquent assessment receivable reports (f). Monthly since AB 2912 (Stats. 2018, ch. 396, §3), effective January 1, 2019; the section read quarterly before that.
Statutory Text
Verified Oct 19, 2026 · CA_PUBLIC_LAW
Civil Code section 5500 Unless the governing documents impose more stringent standards, the board shall do all of the following: (a) Review, on a monthly basis, a current reconciliation of the association’s operating accounts. (b) Review, on a monthly basis, a current reconciliation of the association’s reserve accounts. (c) Review, on a monthly basis, the current year’s actual operating revenues and expenses compared to the current year’s budget. (d) Review, on a monthly basis, the latest account statements prepared by the financial institutions where the association has its operating and reserve accounts. (e) Review, on a monthly basis, an income and expense statement for the association’s operating and reserve accounts. (f) Review, on a monthly basis, the check register, monthly general ledger, and delinquent assessment receivable reports. Source: Section 5500 , (updated Jan. 1, 2019; accessed Oct. 12, 2026).
Assessment
Ref
Requirement
(f)
Every month the board has to look at the check register, the general ledger, and the report of which owners are behind on assessments.
Financial
Ref
Requirement
(a)
Every month the board has to look at a bank reconciliation of the operating account — the books tied to the bank statement.
(b)
Every month the board has to look at a bank reconciliation of the reserve accounts, separately from operating.
(c)
Every month the board has to compare what the association actually took in and spent this year against the budget.
(d)
Every month the board has to look at the actual bank statements for the operating and reserve accounts, not only the manager's summary.
(e)
Every month the board has to review an income and expense statement covering both the operating and reserve accounts.
Legal references last verified July 4, 2026.
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