KeithH7 (Florida)
Posts: 20
Posts: 20
Posted:
Is it legal to setup a committee to assist the Treasurer of an HOA board with accounting work; if it is what are the limitations within which the committee should operate?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Committee to assist the Treasurer of an HOA board
Started by KeithH7 • 9 replies • 1907 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
DavidW5 (North Carolina)
Posts: 565
Posts: 565
Posted:
I am the chairman of the finance committee for our HOA. We work closely with the Treasurer and the general manager. I am attaching our charter for your information.
📎 Attachments (1):
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
Do you have a property manager who takes care of some of the accounting functions, Keith? If not, is the board entirely responsible? Or does your HOA have an accountant?
We have a PM., and so our management company handles the accounting. Our treasurer chairs the Finance Committee. It reviews the monthly financials prepared by the M.C. to see that all is OK. It also makes recs to the board re: investments. It also reviews our insurance needs. Its main task is to formulate our annual budget.
Our bylaws state that the board approves all committees, charters, members, etc. along the lines that you see in the charter that David posted. Our HOA's committees, then, are "legal." If your bylaws/other governing docs are silent about committees, you may be able to draw from your state's Corporation Code. Committee serve at the pleasure of the board.
We have a PM., and so our management company handles the accounting. Our treasurer chairs the Finance Committee. It reviews the monthly financials prepared by the M.C. to see that all is OK. It also makes recs to the board re: investments. It also reviews our insurance needs. Its main task is to formulate our annual budget.
Our bylaws state that the board approves all committees, charters, members, etc. along the lines that you see in the charter that David posted. Our HOA's committees, then, are "legal." If your bylaws/other governing docs are silent about committees, you may be able to draw from your state's Corporation Code. Committee serve at the pleasure of the board.
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Keith
you can in theory set up a committee to do whatever you want. I would however, limit individual financial information that the committee can see.
you can in theory set up a committee to do whatever you want. I would however, limit individual financial information that the committee can see.
KeithH7 (Florida)
Posts: 20
Posts: 20
Posted:
Many thanks for your response guys, David; your attachment was most appreciated.
SteveM9 (Massachusetts)
Posts: 3,699
Posts: 3,699
Posted:
Quote:
I would however, limit individual financial information that the committee can see.
I would not set such limits. HOA should be completely transparent as far as finances go. If you encourage people to hide stuff, they will hide the wrong stuff and all hell will break loose.
KeithH7 (Florida)
Posts: 20
Posts: 20
Posted:
If the committee comprises of non-board members, limits should be established; certainly I would not want them to see the Accounts Receivable.
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Quote:
Posted By SteveM9 on 01/16/2012 5:46 PM
I would however, limit individual financial information that the committee can see.
I would not set such limits. HOA should be completely transparent as far as finances go. If you encourage people to hide stuff, they will hide the wrong stuff and all hell will break loose.
I would respectively disagree, it is no business of non board members as to the financial status of each individual homeowner. When I talked about limitation on some information that is what I was referring to.
DavidW5 (North Carolina)
Posts: 565
Posts: 565
Posted:
Quote:
Posted By BradP on 01/17/2012 7:22 AM
I would not set such limits. HOA should be completely transparent as far as finances go. If you encourage people to hide stuff, they will hide the wrong stuff and all hell will break loose.
I would respectively disagree, it is no business of non board members as to the financial status of each individual homeowner. When I talked about limitation on some information that is what I was referring to.
Posted By SteveM9 on 01/16/2012 5:46 PM
I would however, limit individual financial information that the committee can see.
I would not set such limits. HOA should be completely transparent as far as finances go. If you encourage people to hide stuff, they will hide the wrong stuff and all hell will break loose.
I would respectively disagree, it is no business of non board members as to the financial status of each individual homeowner. When I talked about limitation on some information that is what I was referring to.
I agree with Brad. Our finance committee receives only a report of total aged delinquencies. The report by individual homeowner is provide only to the board members and those details are discussed only in executive session.
CarolR11 (Colorado)
Posts: 2,563
Posts: 2,563
Posted:
I agree with both Brad and David. Our Finance Committee comprises 3 directors and 2 non-board members. They review the aggregate delinquencies, but only the Board in Executive Session reviews/handles the individual homeowner details.
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here