Homeowner association (HOA) boards are comprised of various positions with important leadership and oversight roles. This article will discuss the role of the treasurer and the impact they have on the health and future growth of your community.
1. Your HOA treasurer prioritizes your association’s financial health
Fiduciary responsibility ranks high on the priority list for HOA boards. Financial health impacts virtually every decision made for your community, in both the short and long term. Your HOA treasurer plays a central role in ensuring association assets are secure and proper internal controls are in place. Their primary duties include a continuous review of financials, investing association’s funds, collection assessments, and reserve fund planning. Additionally, the treasurer is typically responsible for record retention.
2. Your financial steward
The financial health and stability of your association affects virtually all aspects of your community. It’s a big job and though many functions fall under the treasurer’s responsibility, it’s not up to them to complete those tasks personally. Rather, they oversee the diligent execution of these responsibilities by the appropriate vendors such as the association’s CPA. Together, they will work to determine how taxes are filed, when annual audits are completed, etc.
3. Your financial voice
HOA boards are a unique blend of volunteers from all walks of life, backgrounds, and experiences resulting in different priorities. A common thread is the overall well-being of the association, but specific motivations vary and range from compliance, safety, or quality of life. However, for your treasurer, the main priority is financial health. This person must always be the voice and steward for financial stability in your association. They serve as the liaison to the auditor, the community association manager or management company, the financing committee, the accountants and bookkeepers, the bankers, the reserve specialists, the investment advisors and more.
4. The financial educator
The board treasurer plays an important role in understanding reserve funds and the implications of properly managing these key assets. The treasurer often works closely with the community association management team in oversight and reporting. In fact, it is common for the treasurer to be the only one who truly understands that these funds are set aside for future capital expenditures, not alternate operating funds or contingencies. Additionally, the treasurer educates the board members and makes recommendations as to the proper use of these funds as well as the overall financial health of the association.
5. Beyond the big picture, the treasurer focuses on brass tacks
Make no mistake: The treasurer is integral to the overall financial health of the association. However, there are details of financial management they must take charge of including insurance maintenance, record keeping, collections, delinquencies and investments. If your association is professionally managed, your treasurer has the support and resources available to ensure all of the details are carefully thought through.
It is fundamental that all HOA board members have an understanding of the roles and responsibilities of the treasurer. For more insight on the roles and responsibilities of all board members, please contact FirstService Residential.