association

Started by MichaelJ8 • 8 replies • 1299 views

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MichaelJ8 (Illinois)
Posts: 113

Posted:

The builder and his 2 partners are building the condos. They are the association and there are no meetings, no nothing. There are 13 families at this time and nobody really cares. The builder asked me if I would collect and deposit the monthly fees and pay the bills. I said yes (kind of wish I hadn’t). All income is from the dues and all bills are for the upkeep of the yards plus garbage service. Last year I gave the builder the total income plus the list of venders and there costs and he took it to a accountant for the taxes. He signed the tax form I guess because I never saw it. I will not sign it. This year I am taking the figures myself to the accountant but I will not sign the tax form. Does anyone see where I could be in trouble down the road? My wife says I worry to much . Thanks for letting me sound off

TimB4 (Tennessee)
Posts: 21,061

Posted:

Michael,

If you are not a member of the Board, you may not sign any tax forms as you are not the governing body of the Association.

Are you being paid for your services?

Is there D&O insurance for the Association?

Tim

MichaelJ8 (Illinois)
Posts: 113

Posted:

I am not being paid. There is insurance on the association that protects the officers, weather that would include me, i am not sure. The insurance agent said i would be but you know how that goes. Why did you ask that question?

TimB4 (Tennessee)
Posts: 21,061

Posted:

I'm trying to determine if you are in a position of providing bookkeeper services or if you are the effectively the treasurer.

Usually D&O insurance protects any board members, officers and employees. Remember that typically an officer doesn't have to be a member of the Board. However, as an officer of the Association (if you are the identified treasurer) you would be allowed to sign various documents on behalf of the Association unless your governing documents state otherwise.

Tim

MichaelJ8 (Illinois)
Posts: 113

Posted:

Thanks for your replies, Tim.
I am not sure what i am. The developers were so busy that they did not have the time to collect the monthly fees and pay the monthly bills. They asked me if i would do it, I said ok. So they put my name on the checking account. I am not an account nor am i paid anything. I just thought i would help them out.
I just do not want any legal problems. Thanks again for your insight.

SusanW1 (Michigan)
Posts: 5,202

Posted:

You are unpaid office staff.

Don't sign ANY legal paperwork for those guys.

Hand everything over to the accountant.

MichaelJ8 (Illinois)
Posts: 113

Posted:

Susan,
I can provide the accountant with the bills and the copies of the checks that paid them.
I can provide the association deposits by using the bank statements that show deposits made.
That is all i have. I hope it is enough. Wish i had not volunteed. Thanks again for everones
help. You have no idea how much it is appreciated.

TimB4 (Tennessee)
Posts: 21,061

Posted:

I agree with Susan.

It sounds like your a volunteer providing bookkeeping services (collecting checks/paying bills).

You would be covered under the D&O insurance - so no liability unless you knowingly break laws. However, by just keeping the checkbook and paying bills, it's hared to break laws.

As Susan suggested don't sign anything. This is mainly because you are not a member of the Board and are not legally allowed to sign anything on behalf of the corporation (except the issuing of checks).

Tim

MichaelJ8 (Illinois)
Posts: 113

Posted:

Tim and Susan, Thank you so much. Your replies have really been a great help. I am taking the paper woprk to the accountant Monday, If she says it looks ok great but if not i will consider no longer doing it. Thanks again for your help

mike

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