MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Is it common for an HOA Manager to also be a member of the board? Ours is the treasurer as well as the HOA manager and to me that seems to be a conflict of interest.
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HOA Manager
Started by MelissaJ5 • 20 replies • 613 views
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MarkW18
Posts: 1,290
Posts: 1,290
Posted:
Not common, but maybe not against HOA rules. There are instances where officers need not be directors. In order to vote on any issue, the general rule is you must be a director. In some cases, directors need not be owners. You probably have documents that are old and need to be updated.
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Thank you for replying!
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
You'd have to check your documents to see if it's allowed, but personally, I'm concerned about conflict of interest. Being treasurer AND HOA manager isn't a good idea either, in my opinion, but I'd worry about the misappropriation of money. Plus both positions can be pretty demanding by themselves, so if the manager is being paid, he/she should leave the treasurer spot alone and someone else on the board should take over.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
An auditor would probably squawk about the treasurer (the "supervisor") being the same person who actually moves the money and writes checks. It bypasses the sorts of controls you want to have in financial systems. Leaving the money aside, you have the same issue overall with a manager (the board member) essentially supervising himself as the employee (the PM).
So maybe not prohibited by law, but not a good idea either.
So maybe not prohibited by law, but not a good idea either.
MarkM19 (Texas)
Posts: 1,459
Posts: 1,459
Posted:
Melissa,
So your HOA is obviously fairly small. Curious about your Community. Is it Single Family Homes or Condos? How many units in your HOA?
The first thing that comes to mind for me is most CC&Rs say that Board members are not to receive any compensation for services. If she/he is acting as Property Manager I am assuming that is a paid position. It also does seem to be a conflict of interest to wear 2 hats.
So your HOA is obviously fairly small. Curious about your Community. Is it Single Family Homes or Condos? How many units in your HOA?
The first thing that comes to mind for me is most CC&Rs say that Board members are not to receive any compensation for services. If she/he is acting as Property Manager I am assuming that is a paid position. It also does seem to be a conflict of interest to wear 2 hats.
MarkW18
Posts: 1,290
Posts: 1,290
Posted:
Bylaws states two different categories, one is Director, the other is Officer. They have different sections of the Bylaws devoted to them. The Board of Directors consist of Directors, not Officers. Bylaws will states Directors cannot receive compensation. Only Directors may vote, not Officers. There are Bylaws that state Directors need not be Owners or Members. Soe will say only the President need be a Director.
The only the governing docs tha crazier they get.
The only the governing docs tha crazier they get.
BenA2 (Texas)
Posts: 1,273
Posts: 1,273
Posted:
I think there could be a conflict of interest but not necessarily. It depends on their specific duties.
In general, the treasurer and manager both have a duty to do what is in the best interest of the association. Obviously, they would have to recuse themself from anything that benefits him/herself.
In general, the treasurer and manager both have a duty to do what is in the best interest of the association. Obviously, they would have to recuse themself from anything that benefits him/herself.
MarkM19 (Texas)
Posts: 1,459
Posts: 1,459
Posted:
Ben,
While you are correct it does cut the number of eyes that are checking on the other set of eyes.
While you are correct it does cut the number of eyes that are checking on the other set of eyes.
MarkW18
Posts: 1,290
Posts: 1,290
Posted:
Quote:
Posted By MarkM19 on 04/22/2020 8:57 AM
Ben,
While you are correct it does cut the number of eyes that are checking on the other set of eyes.
Ben,
While you are correct it does cut the number of eyes that are checking on the other set of eyes.
Just takes one set of eyes.
ChadH3 (Alabama)
Posts: 50
Posts: 50
Posted:
Quote:
Posted By MarkM19 on 04/22/2020 5:36 AM
Melissa,
So your HOA is obviously fairly small. Curious about your Community. Is it Single Family Homes or Condos? How many units in your HOA?
The first thing that comes to mind for me is most CC&Rs say that Board members are not to receive any compensation for services. If she/he is acting as Property Manager I am assuming that is a paid position. It also does seem to be a conflict of interest to wear 2 hats.
Melissa,
So your HOA is obviously fairly small. Curious about your Community. Is it Single Family Homes or Condos? How many units in your HOA?
The first thing that comes to mind for me is most CC&Rs say that Board members are not to receive any compensation for services. If she/he is acting as Property Manager I am assuming that is a paid position. It also does seem to be a conflict of interest to wear 2 hats.
For what it's worth, our Bylaws state Directors shall not be compensated but does give the Board authority to compensate Officers.
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Had a zoom meeting with the board yesterday and was told the office manager needed to be the treasurer since she was signing checks. I thought that was the most ridiculous reason they could've come up with. She was also writing checks that required 2 signatures but didn't bother. She would just buy what she wanted. Either way, she resigned Friday so hopefully they will not combine the two going forward since this was brought to light. Thank you for your replies! It was very helpful!
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Did she resign as office mgr., treasurer, or both?
SheliaH (Indiana)
Posts: 6,964
Posts: 6,964
Posted:
Ponder Kerry's question carefully. In my opinion, these functions should be separate, so you may have to convince your colleagues that there needs a better way to get both jobs done and not put the association funds at risk for mismanagement and embezzlement. If they don't believe you, Google HOA embezzlement, pull off a few articles and show them to the board.
If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Here's an interesting story about A Very Nice Woman.
JohnT38 (South Carolina)
Posts: 1,631
Posts: 1,631
Posted:
Quote:
Posted By GenoS on 04/28/2020 2:39 PM
Here's an interesting story about A Very Nice Woman.
Here's an interesting story about A Very Nice Woman.
Love the lawyer's response!
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
I think both but am not sure. She was not well-liked so I'm thinking her resignation was not planned.
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Quote:
Posted By KerryL1 on 04/28/2020 1:53 PM
Did she resign as office mgr., treasurer, or both?
Did she resign as office mgr., treasurer, or both?
I think both but am not sure. She was not well-liked so I'm thinking her resignation was not planned.
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Quote:
Posted By SheliaH on 04/28/2020 2:06 PM
Ponder Kerry's question carefully. In my opinion, these functions should be separate, so you may have to convince your colleagues that there needs a better way to get both jobs done and not put the association funds at risk for mismanagement and embezzlement. If they don't believe you, Google HOA embezzlement, pull off a few articles and show them to the board.
Ponder Kerry's question carefully. In my opinion, these functions should be separate, so you may have to convince your colleagues that there needs a better way to get both jobs done and not put the association funds at risk for mismanagement and embezzlement. If they don't believe you, Google HOA embezzlement, pull off a few articles and show them to the board.
Great idea! Thank you!
MelissaJ5 (Texas)
Posts: 34
Posts: 34
Posted:
Quote:
Posted By GenoS on 04/28/2020 2:39 PM
Here's an interesting story about A Very Nice Woman.
Here's an interesting story about A Very Nice Woman.
Wow that was the 2nd TIME she was charged. Crazy!
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Quote:
Posted By MelissaJ5 on 04/29/2020 12:01 PM
Wow that was the 2nd TIME she was charged. Crazy!
Wow that was the 2nd TIME she was charged. Crazy!
She was flying under the radar, that's for sure.
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