Online posting of financials?

Eric,

If the website is password sensitive, then absolutely post them. The H.Os are entitled to know. Plus the fact that it will save paper, that turns into cash for the HOA, and it saves a tree. I'm loving the idea.

Eric,

Great job with the website. That's what it is for, and everything that we as a Board can do to save the association money is an even greater feat. As long as the web site is limited to the membership, that should be sufficient to keep the financials more restricted to the members, not that having an outsider see it is hazardous. (I am a Master Gardener and every tree is precious in the long run)

One of our long-time sponsors the law firm of Hindman-Sanchez in CO wrote an article on this and recommends against posting financials on a public site.

See: Article Link

From the article:
"Create a portion of the site restricted to residents only, requiring a user name and a pass code for access. General information about the community and its amenities can be a useful marketing tool, but budget information, the minutes of board meetings, and the names and addresses of residents should not be available to the general public. (Prospective buyers typically will review budget information and board minutes, but it is better if that information comes directly from the seller rather than from the association, which, absent a state law to the contrary, does not typically have a business relationship with the buyer.)"

As far as user administration for 900 users: The sites we host under our Community123.com service use a simple but effective security approach: Owners create their own website accounts via a secure self-registration process. The board only has to give out a community registration code once to all owners and they use this to get their own accounts whenever they like. No extra work for the board.
See: Demo Registration Page

I will have to double check our bylaws, but one of our Board members indicated our financials were public record for anybody, not just our members.

I agree with Donna. The only folks on a regular basis who should have access is Membership. If a legal matter arose concerning financials, others might earn a look, but aside from that...

I'm especially interested in knowing what the staff gets paid; each and every position at our HOA bldg.

I thought this was a requirement in Colorado. See Colorado Revised Statute
38-33.3-209.4(1) and (2).

In any event, our annual financial report is posted on our website (see attachment)

Sixty years ago my grandmother told me, "Fools' names are like their faces, always seen in public places..."

No, the CO statute states the disclosure (which includes an annual income and expense report) must be made available to unit owners. Our annual disclosure was placed on the HOA website without password protection to enable title companies and realtors in the area free and easy access to the information the disclosure contains.

I understand your point about keeping financial information out of the public eye and I certainly wouldn't agree with leaving the HOA's financial shorts out on the sidewalk for inspection, but I don't see what harm can come of making public an HOA's annual I&E report or the other information required to be in the disclosure (i.e. current operating budget, reserves, amount of general and any special assessments, list of insurance policies with their policy limits).

The agent who needs the info eventually calls the HOA's office manager and says, "Hey I'm processing a sale of 123 4th street and I need this, and this, and that. Where can I get it?"

The office manager replies, "Oh, you can get everything you need if you go to the HOA's website and click on Annual Disclosure on the home page. If you can't find what you need there, give me a call back."

The office manager never gets the call back. Doesn't have to print and fax/mail copies of CCRs, financials, whatever, and the agent doesn't have to wait 2-3 days for the mail.

It's just a matter of convenience.

Donna:
I live in Baltimore County, Maryland and once our Board of Directors approve the minutes of the prior months meeting they are filed with the county depository. (THE FINANCIAL STATEMENTS, AS WELL AS ALL OTHER BUSINESS TRANSACTIONS ARE INCLUDED IN THE MINUTES, AND ARE THEREFORE PUBLIC DOCUMENTS) Unfortunately the only thing which cannot be named are the homeowners who are stealing the services from those of us who pay our assesement fees.
We have over $20,000 being owed by these deadbeats.

Jim

Online posting of financials is a delicate matter. While most companies do not open their financial books to the public (they do to stockholders) a lot of inner details are public in that they must file with their State of Incorporation. Remember folks, most HOA's are non-profit organizations and that leads to a whole area that is different. Check with your local State and their regulations.

I also want to point out that their should be a code of ethics in place for a lot of these BOD's who seem to have gone renegade. People are people no matter where they live. They have their own set of unique problems and difficulties. Our covenant states that the HOA is formed not only to conduct the business at hand but to allow for the common good of each homeowner. In others words we want to make everyone better. Not just be a burden on the.

You are correct. The invoices for attorney services are not privileged. Though many a HOA board will get their attorney to say otherwise.

No, I think you're right. I also think you should start a new thread. The one you posted in is over 10 years old.