The members of your condominium board carry out many important leadership functions. In this article, we will highlight the role of treasurer and the impact this person has on the health and future growth of your community.
The treasurer’s contribution is essential to the success of your association.
The treasurer is the interpreter of the corporation’s finances.
Boards are made up of diverse people, all with different abilities and priorities. Safety, quality of life, compliance and maintenance are a few examples on which board members tend to focus. For the treasurer, however, the main priority is the financial health of the condominium. The treasurer must always speak for the financial stability of the community. In this role the treasurer functions as the liaison with the management company and the manager, the accountants, the auditor, the bankers, the investment advisors, the reserve planner, and more.
The treasurer looks at the association’s long-term financial picture.
The treasurer may serve several functions, but the key duties will include:
- the development and ongoing review of the annual operating budget;
- overseeing the corporation’s reserve fund plan and expenditures;
- working with investment advisors to determine the best vehicles for the safety and return on investment of the corporation’s funds;
- directing the collection of arrears.
If the condominium corporation employs the services of a professional management company, the treasurer is supported by that team
and the job is considerably less onerous. A good management company ensures that assets are secure and proper internal controls are in place.
The treasurer educates.
Especially when they are new to the board, some board members may not have a clear understanding of the role that the reserve fund plays in the future of the community. The treasurer needs to protect these funds that are set aside for future capital expenditures and not allow them to be used as a supplement to the operating fund or as a contingency fund. It’s up to the treasurer to educate the board and membership as to the proper use of these funds and apply them appropriately.
The treasurer focuses on the details.
There is no doubt the treasurer is fundamental to maintaining the financial well-being of the condominium. It’s his or her duty to take charge of the specifics of financial management, interpret the monthly financial statements delivered by the management company and report to the board.
The treasurer manages
It is important to understand that though many functions fall under the treasurer’s area of responsibility, it’s not up to him or her to personally complete those tasks. Rather, the treasurer oversees the conscientious completion of these duties by the appropriate vendors, such as the management company, the corporation’s auditor and insurance and investment advisors. Together they work to determine the annual budget, prepare the annual audits, and much more.
It is vital that all board members understand the role and responsibilities of the treasurer and work together as a team. To learn more about the roles and responsibilities of all board members
, contact FirstService Residential.