New Secretary/Treasurer

Started by TeenieR • 11 replies • 1811 views

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TeenieR (Virginia)
Posts: 4

Posted:

I am new the position of Secretary/Treasurer and I am trying to gain an understanding of my duties. I asked the PM via email(with a CC to the Condo board Pres)to provide me the following documents:

1. Current approved budget for Condo and HOA.
2. Current financial statement.
3. Delinquency list and status.
4. A/P history for current year and previous year.
6. Paid invoices
7. Open invoices
8. Bank statements - operating and reserve
9. Bank reconciliations - operating and reserve
10. Any payroll reports
11. All audits and tax returns.

The request was sent on March 30th with no response, I followed up on April 9th, still no response. I finally spoke to the PM today and was told my request will be an Agenda item for our next board meeting. Aren't I entitled to review these documents in order to perform my duties?

JohnK3 (Pennsylvania)
Posts: 967

Posted:

T,

You have every right to those docs or for that matter, any others having to do with your HOA. If your PM is dictating to you what is going to be a BOD meeting agenda item (perhaps as a stalling tactic), that's a separate problem which also should be sorted out - something simple like "You don't set our agenda, hon. We do." If your BOD fellows don't agree, that's a third problem.

TeenieR (Virginia)
Posts: 4

Posted:

John,

Thanks for the response. My first thought was stalling tactic. I asked why this was being set to the Agenda and was told because most of the items are included with the Audit. We have not had an Audit completed in a number of years at least since 2003. The explaination for not completing the audit was due to lack of funds.

BTW the PM sets the Agenda every month. She decides what goes on the agenda and what does not; There have been homeowners request items to the agenda that have not made it there. My fellow board members just show up and we have absolutely no discussions between sessions. In fact one has voiced the opinion that he had ample time to review our annual budget over the weekend and did not need to discuss the budget, he was ready to vote.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

T,

Questions.

How large is your HOA?
What are the the dues per unit per year?
What are dues spent on?
Specifically, how much is the PM paid annually?

MaryA1 (Arizona)
Posts: 7,043

Posted:

Teenie,

I agree that you do have a right to these documents, whether you get copies or just the originals to view. But, I must ask, what is the procedure the board has adopted regarding the treasurers duties? Does the PM pay the bills? Has he been instructed to provide copies of the invoices to the Treasurer before paying the bill? IMO, asking to see the paid invoices and the A/P history for 2 yrs may portray the image that you are "looking" for something. If you do think there has been some mismanagement in the past I would advise that you go slow on researching this. The fact that the PM won't give you these docs until it's discussed at the board meeting tells me the PM is performing the Treas. duties w/o any supervision from the BOD. Otherwise he would understand why you should have copies of these docs. I believe you may be wise to have a little talk with Pres and find out what the procedure has been in the past and let him/her know that as the new Treas you wish to have more "hands-on" regarding financial duties. At this point I would only ask for current information: this year's budget, the last f/s, current delinquency list; copies of unpaid invoices, and last mo's bank stmt and reconciliation. Orient yourself about what's going on at the present and leave the past for later. Why haven't you asked for copies of board meeting minutes for this year?

SusanW1 (Michigan)
Posts: 5,202

Posted:

1. Current approved budget for Condo and HOA.
2. Current financial statement.
3. Delinquency list and status.

IMHO, ALL members should be provided the above reports.

The following are a part of the bookkeeper's records and the treasurer should be watching the procedures, but not necessarily be involved with day to day activity of taking care of them:
4. A/P history for current year and previous year.
6. Paid invoices
7. Open invoices
8. Bank statements - operating and reserve
9. Bank reconciliations - operating and reserve
10. Any payroll reports

#11 - audit reports and tax returns and all other legal documents (bylaws, CCRs, Articles, etc.)These should be in a permanent file book under the care of the secretary, along with the minutes of the meetings, and Annual minutes of the meeting, with end of year financial reports.

As treasurer, you just have to make sure things get done, you don't do them yourself. The monthly financial report should tell you all the info you need.

You and the PM should be a team, not in competition with each other's job.

TeenieR (Virginia)
Posts: 4

Posted:

I want to thank you all for your responses. If you have read any of the post by GraceH in Virginia I am one of the 5 that are really supporting the effort to correct the wrongs in our Association. However, I don’t have any support from the other board members, but I do have the support of a few homeowners along with GraceH.

To answer John’s questions: We currently have 270 condos and 183 townhomes. All units pay the HOA fee of $70 per month and Condos pay an additional $123 per month. Not exactly sure what the dues are spent on because it is not reflected when you look at the property. The PM exactly salary is not stated in her contract, and when you look at the budge it is not clear because the line item includes salary along with office staff. In addition, the Association pays for full premium for her health care which is family coverage along with the staff’s health care coverage.

Mary: In the past the PM has been granted full authority to handle all of the business for the Association and from what I have witnessed there has been no accountability. The other board members do not ask questions, they wait for an explanation from the PM and vote. As I stated earlier some do not feel there is a need to discuss. I expect during the next board meeting my exact duties will be discussed. I am prepared to speak up in regards to the duties listed in the By-laws. I will take your advice and cut-back and request only the current information. I currently have all the minutes for this year’s meeting.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Virginia - ask for an ITEMIZED budget report or finanical report at every board meeting. Your PM should be providing that kind of report monthly.

Each category is separated out and you can see ALL the parts of each category, and then the total. Your board MUST insist on this, so you can explain to the Members.

At our Annual Meeting when the end-of-year Financial Report is given, the totals for all categories are given along with the itemized, then EACH committee person gets up and explains what his/her committee has been doing (administrative, beach, roads, commuity center, etc. etc.) and they explain all the expenses of the past year. The President fills in for any category not covered by a committee.

MaryA1 (Arizona)
Posts: 7,043

Posted:

Teenie,

Now that you've come clean on your association with Grace, I can understand exactly where you're coming from. All I can say is, tread lightly; brighter days are ahead (we all hope!). The fact that you are a board member should make it somewhat easier for Grace and her gang to get proof for all the reasons for recalling the board members. Goog luck!

JohnM3 (Florida)
Posts: 288

Posted:

Dear Teenie: Slow down take a chill pill. What you are doing is starting a fight that you will loose. I am the last surviving Board member of the original board that turned over from Lennar our developer of 21 years ago.

First off does your board use a Property Management Company or just a Property Manger?

2. To get all these docs is a silly thing in my opinion because the only thing you are responsible for is from the day you joined the Board forward.

3. By FLORIDA LAW you had to be mailed a copy of the Budget. What did you do with your copy?

4. Make sure your Board is using TOPS Software demand that it be used. Give me a call and I will be glad to teach you by useing the TOPS System in a computer you can be the smartest laziest Treasurer you have ever met it is self checking. It is impossible to play games with and you can put people in Jail with it if you catch them doing bad things.

5. demand each Board Member get a packet for every meeting containing xerox copies of every check written against The HOA check book, and with 1 copy of the entire income / Expense statement for the last day of the month that the meeting covers.

6. Instantly get online access to your bank that has your accounts in it. Do that first Then demand TOPS be used. Then stay quiet for 2 months to digest the data. Get a friend you can blind trust with your life to elp you.

7. Demand the Board appoint a Treasurer Comm. You be the Chairman and get at least 1-2 people who are po'd at what is happening with your board on the comm with you.

8. Get a HOA or Condo web site going they cost us 110 a month if we had our own computer person then its only 20 bucks a month to register the site then add BOD access to all the tops reports as well as a address and telephone and email setup BOD access only. You can add e-docs galore for arch Review of mods to a unit and on to parking violations, owners violation history it is like opening pandoras box it is so sweet........

Everything I have just told you took me 18 months to get it set in motion. So remember you don't want enemies yet so go easy don't ask for the stars on day 1 start with the word star then add a few new things each month till you get the entire package.

Being the new treas on the board is a frightening affair so don't set the world on fire or you will not get what you want just kicked off the board. I do not know your ccrs so I cannot say positively what your duties are but the way I act is if money is involved so am I. That makes you an automatic member of every comm in the hoa especially if spending money is involved so be prepared for the extra work. You can email me direct if you wish I have been the treas now for the past 12 years an every year the MC attempts to back door me with a early budget but I had a friend make me a excel worksheet that i change my figures in every month to keep it current and by just taking the numbers from the expense statements from TOPS alone I do the entire budget with line items for upgrades.
email me at the email address that the web site has include your telephone number and time of day best to call you I got unlimited long distance from ATT got kds and friends all over america

Happy Easter

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

You assume everything you asked for actually exists? LOL You may be in for a big surprise.

When I took over as Treasurer of my HOA, the paperwork was horrible. Many of dues were not even recorded in a notebook I was handed. I had to manually go through photocopies of checks to see who paid and came up with a bunch of people who missed a month and didn't even know it (well thats what they said) I basically said check with your bank and see if you cut a check that month you can show me, if not you owe it. Everyone cut a check, it was pretty easy. But getting the paperwork organized was a challenge. There was minimal. The last person just paid the bills as they came in (sometimes on time) and thats about it.

So, you think they are stalling? They might have nothing for you and are trying to figure out if they want someone "easier" who will just do what the last treasurer did which was basically nothing.

Good luck

FrankH1 (Florida)
Posts: 14

Posted:

We're an HOA and we just had a complete turnover of the board. I'm the new president. The 1st board after turn over on May 19, 2008 lasted 10 months and accomplished basicly nothing. The first act of the new board was to replace the property manager company that was a holdover from the developer.The old PM was using Quick Books and the new PM is using TOPS. We are also using Smart Street software. The BOD, consisting of 3 directors, would like to get educated in both of these software programs. What would you suggest?
Frank

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