Treasurer versus finance comm

I am lookinf for an explanation of the different responsiblities
of the trasurer and the finance comm. Is the comm. subject to
the treasurer? Or is the comm. independent of the tresurer, reporting directly to the board

I suggest searching HOA Talk for posts on "treasurer" and "finance committee" Do the same on the internet but include "owners association" OR "community association" etc. to narrow the search.

The dictionary definition of treasurer is "an officer entrusted with the receipt, care, and disbursement of funds". Often in owners associations, the bylaws include other duties for the treasurer such as chief accountant, responsibility for the accounting system, etc. which a volunteer board member is not qualified to perform. Then members wonder why things aren't managed very well.

A finance committee covers broader areas such as forecasts relating to the operating plan and interfaces with both operations and long-range planning with regard to the financial aspects. Of course, the treasury functions are part of the duties of the finance committee.

Generally, the HOA documents state the membership and responsibilities of the BOD and its officers. The Treasurer is an officer of the board but not necessarily a voting member. The tresurer may or may not have the authority to collect and/or disburse funds.

In our association the treasurer is a board officer but not a voting member. Her primary role is to evaluate financial documents, including the independent audit report and comment/advise the BOD, accordingly. She is a voting member of the Finance committee, but not the Chair. One of our BOD members is a finance committee voting member. Collection and disbursement of funds has been delegated to a management company, which the Finance committee reviews regularly.

I have taken a public position that no BOD member or officer should be a voting member of any committee that influences the expenditure of funds; advisory members OK. It seems to me there is a potential conflict of interest if a BOD member or officer votes on a matter in committee and then must vote or advise on the BOD, particularly, if they were in the minority in the committee vote.

Also, this arrangement ensures a wider dispersion of advise/consent and authority among residents.

Tom

Alex,

The Treasurer is an operational person and a watchdog who reports on the financial condition of the organization and the validity of financial statements, usually produced by an accounting department. The treasurer has a fiduciary responsibilty to do ensure all is legal and correct, according to state and federal law. The Finance Committee is a policy making body, which establishes the financial policy associated with all financial matters.

In our HOA the Finance committee develops budgets, establishes policy and makes recommendations to the Board re the use and investment of funds.

Government entities and corporations tend to operate this way also. Why does a corporate chairman have a board of directors; why does that board have an audit committee, a finance committee, a personnel committee, investment committee, etc, etc. The committees set policy and direction to be implemented by the operating people in the respective organizations within the corporation or government. In corporations treasurers usually handle all matters with outside financial institutions, which may or may not include investments.

Hope this helps.

Tom