Poa Operation/Is this criminal?

Started by RobertH39 • 7 replies • 897 views

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RobertH39 (Florida)
Posts: 6

Posted:

Does the treasurer have the right to hold back $50,000 in operating funds and open a money market account on her own,with out a vote and other maintenance repairs are being ignored? Is this criminal,or what options does the membership have?

NpS (Pennsylvania)
Posts: 4,216

Posted:

If the Treasurer has the authority to choose between a bank account and a money market, then there's nothing wrong with it, and no matter what the circumstances, it's not criminal to move funds from one type of investment to another. The money market probably generates more interest income to the community, which should be seen as a good thing.

Money market funds are accessible at any time, so if money needs to be spent on on maintenance repairs, that money is available.

You might be confusing the role of the Board (which is to decide what to spend money on) and the role of the Treasurer (which is to protect/maximize the financial assets of the community.

Sikubali jukumu. Read all posts at your own risk.

GenoS (Florida)
Posts: 4,276

Posted:

Quote:

Posted By RobertH39 on 04/30/2019 8:55 AM
Does the treasurer have the right to hold back $50,000 in operating funds and open a money market account on her own,with out a vote and other maintenance repairs are being ignored? Is this criminal,or what options does the membership have?

You might want to lay off the "is this criminal?" sauce. There are no HOA or condo police in Florida and the Business Judgment Rule protects board members for almost everything they do and every decision they make if, in their judgment, they're acting in the best interests of the association. Only when someone actually steals money by writing a check to themself or their family will you ever see criminal charges levied, and only then occasionally.

Otherwise 99% of the time there is no "criminal" behavior going on and all disputes are "civil" due to the contractual nature of condo and homeowner associations. Not all actions that are unlawful are criminal.

FredS7 (Arizona)
Posts: 927

Posted:

...

> other maintenance repairs are being ignored?

And THIS means that the board has not authorized the treasurer to spend money on the repairs.

It WOULD be improper for the treasurer to spend money without authorization. Although even then it would not make sense to call the sheriff.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I don't see anything criminal here at all. Let's say that your HOA doesn't have a properly funded capital improvement fund. So putting the money into a money market account may help establish/build funds faster. A money market fund would make the money work for you in the long term. Especially if you have to plan for a major project like road or roof repairs.

You don't define "maintenance" items. That could be wide ranging and subject to opinion. You may think "That fence looks bad at clubhouse". Others may think "It's still standing and serving it's purpose". Plus some maintenance may not be HOA responsibility.

If your HOA has the 50K to put in a money market account then it is doing something right. Plus a HOA is typically not for profit. The money being put into a market account may help in other budget issues.

Former HOA President

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

The treasurer's job is to manage money. Which they are doing.

If maintenance repairs are being ignored you need to discuss those issues with that person.

JohnS111 (New York)
Posts: 228

Posted:

RobertH39, it's normal for board approval to be given to open a bank account. It's normal to have that kind of check so that one person can't do whatever she wants with the money.

So, is it criminal? No.

But is it poor practice and maybe a violation of the HOA's governing documents? Yes.

SueW6 (Michigan)
Posts: 814

Posted:

Look for the motion that directs the treasurer to move funds of that amount. Double check that the account is in the Association’s name.

Look for that fund to be listed on a monthly balance sheet showing all account balances and where they are located.

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