The board members of your community association serve many important leadership functions. In this article, we’ll delve into the role of treasurer and the impact they have on the health and future growth of your community.
Read on and learn more about how essential the treasurer is to the future of your association.
1. Your treasurer has a voice.
Boards are made up of different people, all with different priorities. Maybe it’s safety. Maybe it’s quality of life. Maybe it’s compliance. But for your treasurer, the main priority is financial health. This person must always be the voice for financial stability in your association. As such, he or she will function as the liaison to the auditor, the manager or management company, the financing committee, the accountants and bookkeepers, the bankers, the reserve specialists, the investment advisors and more.
2. Your treasurer is looking at your association’s long-term financial health.
Though your treasurer may serve a variety of functions, his or her primary duties will include: the development and ongoing review of the annual operating budget; overseeing the association’s reserve funding plan; investment of the association’s funds and collection of assessments. The treasurer must also ensure that assets are secure and proper internal controls are in place. Records retention also falls within the treasurer’s purview.
3. The treasurer is an educator.
Board members and association members may not have a clear understanding of the role that reserve funds play in the future of the community. Sometimes, treasurers are the only members who truly understand that these funds are set aside for future capital expenditures, not alternate operating funds or contingencies. It’s up to the treasurer to educate the board and membership as to the proper use of these funds and apply them appropriately.
4. Beyond the big picture, the treasurer focuses on brass tacks.
Make no mistake: the treasurer is integral to the ongoing financial health of the association. At the same time, it’s his or her duty to take charge of the finer points of financial management, including record keeping, insurance maintenance, investments, collections and delinquencies.
5. Your treasurer is a manager, not a doer.
Just keep in mind that, though many functions fall under the treasurer’s purview, it’s not up to him or her to complete those tasks personally. Instead, they will oversee the diligent execution of these responsibilities by the appropriate vendors, such as the association’s CPA, and together they will work to determine how taxes are filed, when annual audits are completed, etc.
It is essential that all board members are congruent in their understanding of the roles and responsibilities of the treasurer. For more insight on the roles and responsibilities of all board members, you can contact FirstService Residential.