Role of Treasurer when PM handles banking

We have lived in and been directors and officers of associations in California and Texas. We own an association management company.

The funds handling processes you describe are those followed by the associations in which we have previously resided and the association in which we reside at the present time.

They are also the processes we use with our clients. I know there are potential holes in the processes which could lead to bad deeds.

In our view, the Treasurer is responsible for oversight of the financial operations of the Association. In practice, in our experience, there are few who understand this or are curious to learn what their responsibilities should be. Many think their role is to sign checks, they quickly learn most bills are paid electronically and there are at most 3 checks to sign each month. They are also surprised to learn double-signature checks are not a very effective deterrent to misuse of funds.

Being able to read and understand a Balance Sheet has some importance; not being able to is not a showstopper. Frankly, the Treasurer should be paying close attention to the monthly expenditures relative to the budget and just simply the absolute amounts of the expenditures themselves. They should also be scrutinizing the bank statements and past due accounts. Again, few do in our experience.

One of our major pet peeves is the Treasurers are so little involved they cannot effectively participate in the budget planning process. Of our clients only one President is sufficiently versed to participate effectively in budget planning. Reserves and Reserve Studies are first water mysteries to most Board members. When we raise the subject, the eyeballs glaze over, roll up, and click hard into the forehead. Next item on the agenda please.

Sorry to vent on an ugly, grey, overcast Sunday afternoon in north Texas with freezing precipitation coming our way, I guess it's time for a cup of tea and a left-over holiday cookie.

The "Treasurer" position is more or less a "figurehead position". We had an accountant who did our financials. However, in our case she was also owned a house in our HOA as well. Other HOA's have similar set ups with their MC handling the financials with the Treasurer just filing in the actual "Officer position". If anything I would have them deal with the MC if you want them to do something. Like they get the financial reports for the meetings etc. Otherwise, it's best to let the "professionals" handle it.

Make sure the managemnent company is not screwing over your membership with nickle and dime fees, over charing for closing docs, and making sure the water bill is not 2x what it was last year ( due to leaks) by looking at monthly statements. Also planning the annual budget. In real life though your treasure might be more interested in ARC guidelines and not do any of the above.

therefore find their strenghts and have them do that.

Who hires the professionals? Oh and the MC is not in charge nor owns the HOA.

cause in many states the "professionals" require no training, no licensing and no ethics leading to major problems like embezzlement.

https://condomadness.info/corruption-Kornerstone.html
many other google results as well as the above.

that's not its only meaning

worthy of or appropriate to a professional person; competent, skillful, or assured:
"their music is both memorable and professional" · "she's a wonderful actress to work with and, of course, very professional"

Zzzzzz, Zzzzz, Zzzzz

What is a professional job?
A professional job is a career that requires a specific amount of advanced training and education. These jobs often require some level of post-secondary education. Some examples of professional jobs include:

Doctor
Teacher
Lawyer
Artist
Author
Accountant
Scientist

A nonprofessional job is a career that an individual can start with little training or education. Often, these are entry-level positions that offer on-the-job training and allow professionals to develop skills to advance their career. Here are some examples of nonprofessional jobs:

Cashier
EMTs
Salesperson
Medical assistant
Electrician
Customer service representative

Appears we eat at the same fast food joint.

Thanks for the replies.

Our treasurer is required to chair a Finance Committee. It is supposed to review current financials, advise on investments, review and comment on the reserve specialist's draft report. sometime the FC has been very active and even bullying. Sometimes they've been pretty ignorant along with the treasurer, which is our current situation. There are 2 newer owners on it, though, who have useful backgrounds and I hope they catch on with little guidance.

The CA Business Judgement Rule, which is similar I think in most states, says Boards should rely on professional AND expert advice & opinions as part of their due diligence. So "advanced degrees" is not always required or useful for boards. Many PMs, for instance do not have 4-year college degrees or "advanced degrees." What matter is their education in their field, which can involve a bunch of courses AND their on-the job experience. Our best PM for 3+ years had no college degree, but had Community mgr. credentials, and experience managing high rises. Not only was she our "best" overall, her writing was more polished than several of our PMs.

Many bylaws give the board the right to delegate duties if they choose to. Hence the wording 'do the thing or cause the thing to be done'. Responsibility falls on the board regardless of who is actually performing the work.

It's no different from the board performing any managerial tasks (self management) or hiring someone else to do them..

Yes, I know.