Duties of a new HOA treasurer

The treasurer is the custodian of the funds, securities and financial records of the association. When the association has a manager or management company that actually handles the funds on a daily basis, the treasurer's duties will include overseeing the appropriate people to insure that the financial records and reports are properly kept and maintained. Unless the by-laws otherwise specify, the treasurer is responsible for coordinating the development of the proposed annual budget and for preparing and giving the annual financial report on the financial status of the association.

The treasurer does not have the authority to bind the association or the board of directors in dealings with third parties unless the board has provided express authority for the treasurer to do so. As with the association's secretary, the treasurer does not have to perform the day-to-day record keeping functions of the association when this responsibility is transferred to a management company, but the treasurer will ultimately be responsible for insuring that the financial records of the association have been maintained properly in accordance with sound accounting practices.

I may just have to go and talk with other HOA's as stated. I'm a detail numbers person, but I need to learn bookkeeping. I love to analyze numbers and I know I can do this but I want it done right and want exact procedures. Is that the only way that you would suggest to go about learning? or Is there a web site that you would recommend?

If your HOA hires a managing agent one of their duties is usually to handle the accounting and your job will be to monitor them. Otherwise here are some duties:
1) develop the annual budget;
2) have a financial review done yearly;
3) have a long range reserve plan developed and upgrade every three years;
4) prepare invoices and bill owners on a periodic basis as determined by your association;
5) receive and book payments;
6) deposit payments in a checking account;
7) prepare checks for paying the bills;
8) have checks signed and mail to vendors;
9) prepare monthly financial reports which may include - balance sheet, income statement, check register, cash flow, or any others wanted by the Board;
10) provide a monthly report and a report at each Board meeting;
11) prepare, mail, and receive payments for delinquent accounts;
12) prepare account ledgers for attornies handling liens and court filings on delinquent accounts;
13) provide status reports for home sales.

These may be some of the Treasurer's responsibilities.

The Treasurer has the most time consuming job of any Board member; that is why even small HOAs hire someone knowledgable in accounting to do this job. This job is a whole lot more than just "working with numbers" and is a hugh responsibility.

Good luck

Many of our community members do not respond well to dues. They are quite surprised that our expenses provided by the developer are as high as they are. With that said, I highly doubt that a manager is even in the question. The developer provided us with a number that we would have to meet. We are short with our dues income and he strongly suggested a raise in dues. We did in hopes that once we get started, we will have a better grasp on things and will be able to come back down some. Many of our homeowners are unhappy about the raise in dues. We are cutting out as much as we can and that is why I would have to assume we are doing this on our own.

As of right now we do not have any money. The board members are elected, but we did not sign the papers yet.

The turn over papers.

O.k.... The developer had ownership/control of the development for the past 10 years. They now are wanting to turn it over to the homeowners. We had a meeting with him this saturday and elected board members (our first board members ever). He also wanted us to vote on an In the past we answered to him. Now it will be the board. We never had control of the money before or were involved in knowing exact numbers on expense or if any at all. This is all new to us. He wanted us to raise dues since they covered all expenses above what was brought in from homeowners in the past and now it will be solely up to us.

Some of the homeowners, not understanding the expenses we have, think it is too much. I am the treasurer and I am particular about my work no matter what it may be. I know I can do this, but I need direction. I want it set up right. Our President is up on things and learning fast. We are basically learning through people and sites such as this. Bits and pieces. Does this explain it any better? I really value any help or input.

Deborah:
Community Associations Institute (CAI) has a book store on its web site with pamphlets on a Treasurer's duties as well as on Transition from Developer to Homeowners. You'd be wise to get them and have the whole board read them.
Jeanne

Thank you for all the great info. If you think of anything else, please feel free to add. We will take any input you are willing to give. Thanks again.