RichardP13 (California)
Posts: 3,868
Posts: 3,868
Posted:
I received the newsletter from www.davis-stirling.com this morning. at the end is a link.A
I generally do research before posting and did after reading the newsletter in regards to a new bill being proposed about association finances in California HOA's.
Here is the the text and the recommendation from an attorney.
on common sense protection of their finances.
AB 2912, introduced by Assembly Member Jacqui Irwin, requires simple measures to protect association finances. It will:
• require fidelity bond insurance in an amount equal to or exceeding current reserves, plus three months of assessments; No Problem
• require a monthly review of financial statements rather than quarterly; and
• prohibit electronic transfers of funds without board approval.The bill is to be amended to state that transfers, not electronic transfers of $10,000.00 or 5% of total reserve and operating funds, whichever is lower
Boards are not required to meet monthly to review financials. They can designate a board member or board members to review the financials monthly and ratify them at their next meeting. the amendment specifically states that the treasurer and one other Board member, not just anyone. It actually requires two, one being the treasurer.
https://www.davis-stirling.com/Newsletters/2018-Newsletters/Call-the-Governor
I generally do research before posting and did after reading the newsletter in regards to a new bill being proposed about association finances in California HOA's.
Here is the the text and the recommendation from an attorney.
on common sense protection of their finances.
AB 2912, introduced by Assembly Member Jacqui Irwin, requires simple measures to protect association finances. It will:
• require fidelity bond insurance in an amount equal to or exceeding current reserves, plus three months of assessments; No Problem
• require a monthly review of financial statements rather than quarterly; and
• prohibit electronic transfers of funds without board approval.The bill is to be amended to state that transfers, not electronic transfers of $10,000.00 or 5% of total reserve and operating funds, whichever is lower
Boards are not required to meet monthly to review financials. They can designate a board member or board members to review the financials monthly and ratify them at their next meeting. the amendment specifically states that the treasurer and one other Board member, not just anyone. It actually requires two, one being the treasurer.
https://www.davis-stirling.com/Newsletters/2018-Newsletters/Call-the-Governor