Questionable behavior?

Started by JerryV • 10 replies • 2087 views

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JerryV (Florida)
Posts: 45

Posted:

Our Board president has been bringing a resident to the association PM to go over HOA financials, without our Treasurer's knowledge. It seems this resident, who was our association treasurer several years ago, feels that our current treasurer is not doing a good job. I'm getting the feeling that he is trying to exert his influence not necessarily for the good of the community, but because he likes to think of himself as a "mover and shaker" and a behind the scenes manipulator, which he did quite often before he was on the Board. It is my feeling that if our pres questions our treasurer's ability to handle the job, he should confront the treas instead of doing things behind his back. I understand any resident has a right to full access of financials, but this seems sneaky to me. BTW,it is well known that the snooping resident does not like our treas on a personal basis.

Any thoughts / comments are appreciated.

RW1 (Texas)
Posts: 149

Posted:

Nothing illeagal based on your info. so far. However, some financial info. is reserved for current officers and directors.

Sounds more like "coffee talk". (rumors)

Personalities aside, past BOD members have a sort of "institutional knowledge" that can be very valuable to the corporation.

TamaraW (Ohio)
Posts: 193

Posted:

I would say.....questionable. Although many people can offer many things to the community in many different ways, I think going over someones head or stepping out behind their backs is a real good way to diminish volunteers from your community. If this is disrespectfully done, it should stop.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Jerry,

Doesn't your P.M. prepare the financial statements? That is the usual procedure when an assn has a P.M. Actually, the treasurer is just a figure-head and doesn't really do any of the financial accounting, except to review the P.M.'s F/S and give a report at the board meeting.

On the other hand, if the treasurer is really doing all the bookkeeping and preparing the F/S, I still don't see how the F/S could be reviewed w/o her being involved. Only the treas. would have the supporting documents, i.e., the books, the check register, paid invoices, etc. Without this info, a review of the f/s cannot be accomplished.

Please explain.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Jerry,

If this is being done without your Treasurers knowledge, how are you made aware of it?

The financials are open to all of the membership and every Board member should know what and where expenses and monies are being used. If you have monthly Board meetings, the Treasurers report should be part of a regular agenda.

What does the President feel is not a good job? Definitely, the President should bring this up to the current Treasurer and he should just plain ask his questions. Behind backs is not a way to handle the responsibility of being a President of your HOA.

Then there is all of the personality issues and the not trusting thing going. That my friend is poison to an association and it must be put to rest. Working together is the only solution. I wonder how the treasurer feels when he thinks no one feels that he is able to do his job. If he indeed is not working in the best interest of the association, then get rid of him, or ask him to resign.

JerryV (Florida)
Posts: 45

Posted:

Quote:

Posted By MaryA1 on 09/30/2008 12:38 PM
Jerry,

Doesn't your P.M. prepare the financial statements? That is the usual procedure when an assn has a P.M. Actually, the treasurer is just a figure-head and doesn't really do any of the financial accounting, except to review the P.M.'s F/S and give a report at the board meeting.

On the other hand, if the treasurer is really doing all the bookkeeping and preparing the F/S, I still don't see how the F/S could be reviewed w/o her being involved. Only the treas. would have the supporting documents, i.e., the books, the check register, paid invoices, etc. Without this info, a review of the f/s cannot be accomplished.

Please explain.

Our PM prepares the F/S, but I suspect that the resident is going over them BEFORE the treas gets them. Treas hands out the F/S at monthly board mtg, but resident never attends the meetings.

JerryV (Florida)
Posts: 45

Posted:

Quote:

Posted By DonnaS on 09/30/2008 12:43 PM

Jerry,

If this is being done without your Treasurers knowledge, how are you made aware of it?

The financials are open to all of the membership and every Board member should know what and where expenses and monies are being used. If you have monthly Board meetings, the Treasurers report should be part of a regular agenda.

What does the President feel is not a good job? Definitely, the President should bring this up to the current Treasurer and he should just plain ask his questions. Behind backs is not a way to handle the responsibility of being a President of your HOA.

Then there is all of the personality issues and the not trusting thing going. That my friend is poison to an association and it must be put to rest. Working together is the only solution. I wonder how the treasurer feels when he thinks no one feels that he is able to do his job. If he indeed is not working in the best interest of the association, then get rid of him, or ask him to resign.

I was told by the Pres. Treas gives a report at every meeting as part of the agenda.Let me add that the Pres doesn't suspect any wrongdoing on treas part, just things like coding expenses to the wrong accts sometimes. I will speak to the pres and see if this can't be straightened out w/o all the sneaking around...it is so divisive.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Jerry,
Excellent idea to address this. With the Treasurer making an error "like coding expenses to the wrong accts--sometimes"- leads me to believe that either he does not know how to post expenses, he is careless or needs new glasses. Every association has a know it all and the former Treasurer must feel that he needs to keep his fingers involved. Divisive? You got that right so you are doing the noble thing by addressing this. Now days, people go into defense mode long before they look at alternatives to solving a problem.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Too bad you don't have a Finance Committee. Issues like this would have been caught and discussed at that time. The more eyes on all the transactions, the better.

Is there a chart of accounts?

Are you saying the Treasurer is posting the payments to the wrong accounts?

JerryV (Florida)
Posts: 45

Posted:

There is a chart of accounts, so I think it's just carelessness on treas part. He already wears glasses, maybe needs a new prescription! Thanks to all for your input. I really appreciate it!

MaryA1 (Arizona)
Posts: 7,043

Posted:

Quote:

Posted By JerryV on 09/30/2008 2:01 PM
There is a chart of accounts, so I think it's just carelessness on treas part. He already wears glasses, maybe needs a new prescription! Thanks to all for your input. I really appreciate it!

Jerry,

This is a very common bookkeeping error and one that is not always attributed to incompetence on the part of the bookkeeper.

But, I'm still a bit confused. Are we to understand that the PM prepares the F/S but the Treas. codes and posts the entries? If so, then why doesn't the PM make the necessary corrections on the postings that are done incorrectly? Who ever prepares the F/S has the onus on them for accuracy! Sounds to me like a witch hunt against the treasurer.

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