What does a Treasurer do?

The treasurer is responsible for the financial well-being of the association. While a management company may take care of the day-to-day handling of the money, it is the treasurer who oversees those activities.

In our association, the management company prints and distributes coupon books to the homeowners, receives payments from the homeowners, makes deposits to the association's bank account, receives bills and invoices from vendors and contractors, performs accounting services, prepares checks for the treasurer to sign, and sends the checks to pay the bills after the treasurer has signed them. The management company prepares monthly financial reports for the board which show every financial transaction that occurred the previous month, including receipts from every homeowner and bills that have been paid. These financial reports are sent to the treasurer prior to each monthly board meeting. The property manager (representative from the management company) attends each monthy board meeting and presents the checks and copies of the bills/invoices to the treasurer for his signature.

The treasurer prepares the annual budget to present to the board for adoption prior to each annual meeting of the homeowners. At the annual meeting the treasurer explains the budget to the homeowners and answers any questions. Prior to each monthly board meeting the treasurer reviews the financial reports that have been received from the management company. At the meeting, any questions or concerns the treasurer has regarding the financial reports and/or bills/invoices are discussed. The treasurer will then recommend to the board those bills to be paid or held for payment pending additional clarification. After approval from the board, the treasurer signs the checks for those bills to be paid and returns them to the property manager to be mailed.

Hope this gives you some idea of the difference between the treasurer's activities/responsibilities and those of the management company. You might say the management company performs the association's financial activities under the supervision of the treasurer.

The PM is the person designated by the MC to take care of the day-to-day business of the association. This relieves the board members from have to "be on call" to handle daily questions and problems from homeowners.

Our PM conducts periodic "walk-throughs", sometimes accompanied by one or more board members, to note common area elements that may need attending to, such as distressed lawns, trees, shrubs, and also noting any violations. The PM checks up on the work done by vendors and contractors. When a homeowner has a question, concern, or complaint, the homeowner calls the PM; not a board member. The PM also has the authority to order emergency services. When violation notices have to be sent, it is the PM that sends them. In this manner, the PM becomes the "bad guy" rather than a board member and a neighbor.

The PM (or an assistant) is always available during business hours, with emergency numbers available 24/7, whereas board members may not be.