Changing annual meeting date

Started by DorothyO • 6 replies • 1921 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

DorothyO (Washington)
Posts: 293

Posted:

Howdy. Our annual meeting is always in the first week of January, which is an absolute dismal time here in the Pacific Northwest. We would like to change it to a more inviting season, perhaps September, when we have our annual neighborhood soiree' in our park, when we get way more attendance. How would that work with the budget and terms of service for Board officers and committee members? Can we adopt our fiscal year from September to September? Thank ye kindly.

LarryB13 (Arizona)
Posts: 4,099

Posted:

I do not know what it would take under your bylaws but my association changed its fiscal year from starting in January to starting in July. It only took a vote of the board. We also changed our annual meeting date but only from Memorial Day weekend to the third Saturday in May. Again, by a vote of the board.

I do not know whether the fiscal year and your annual meeting need to be tied to each other. I was taught that a fiscal year should start and stop at the time of year when financial activity is at its low point. In our case our assessments are annual and due in January. Under the old scheme, this meant that early payments were being received in the fiscal year prior to the year they were paying for. With our income peaking around the first of the calendar year it is no longer an accounting hassle because our fiscal year starts and stops 6 months later.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Bruce would know more about the IRS issues associated with having to change a fiscal year.

You may or may not need to amend your governing documents to change the time frame of your meeting. Read them to be sure (Articles of Incorporation or Bylaws would be the likely documents).

My Association has the fiscal year in line with the calendar year. However, we hold our annual meeting and elections in October. The outgoing Board presents a proposed budget for the following year (Jan-Dec) at this meeting. The approval of the budget is in the hands of the new Board (who takes control of the Board after the election).

Therefore, you may not really need to change your fiscal year. You would just need to have your act together and have a budget for the following year ready earlier.

EricH8 (Virginia)
Posts: 116

Posted:

Someone in my HOA made the same proposal, but 22 months later, the annual meeting remains in January. Changing the meeting date changes the political balance of power, though few would admit that as their motive. Combining the meeting with a party in the park helps distract the owners from HOA business. That helps those that wish to preserve the status quo. The directors cannot extend their terms beyond what your HOA documents require, so maybe your directors would be willing to run for re-election half a year early?

NpS (Pennsylvania)
Posts: 4,216

Posted:

Our biggest cost variable was always snow removal which spans two calendar years. To improve year to year comparability, we moved the beginning of our fiscal year to April 1.

Our books are audited. So we had to do an additional short year audit (Jan to Mar) in the year of implementation. It cost a bit more for the extra audit that first year.

Our CC&Rs required the annual meeting be held on or about Nov 1 (60 days before year end). We now hold our annual meeting on or around Feb 1 (60 days before FYE). We did not amend our CC&Rs and we see no need to, since we are complying with the obvious original intent.

One side benefit is that we stopped getting recommendations from PMs about having work done in one calendar year and billed in the next.

September to September could have worked also, except that we didn't want our landscaping to straddle two calendar years either.

Sikubali jukumu. Read all posts at your own risk.

MicheleH2 (California)
Posts: 9

Posted:

Laws in each State are, of course, different. Where as, California specifically calls out laws regarding changes to the fiscal year, your State does not. If your governing documents call out a specific time of the year, then you must continue to operate under those guidelines until your governing documents are be revised. If not, I would suggest, of course, having the Board to create a new policy (as you alluded to) and have your legal department review it.

RogerB (Colorado)
Posts: 5,067

Posted:

Quote:

Posted By DorothyO on 09/04/2014 6:42 PM
Howdy. Our annual meeting is always in the first week of January, which is an absolute dismal time here in the Pacific Northwest. We would like to change it to a more inviting season, perhaps September, when we have our annual neighborhood soiree' in our park, when we get way more attendance. How would that work with the budget and terms of service for Board officers and committee members? Can we adopt our fiscal year from September to September? Thank ye kindly.

Simply amend the Bylaws. You do not have to change the fiscal year, budget, or term of service.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here