Bookkeeper a must?

Started by KrystaT • 7 replies • 1337 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

KrystaT (Florida)
Posts: 58

Posted:

Hi, I'm a new BOD president. After some fighting with another board member, our bookkeeper resigned. We are a small/med community with 70 houses, so I thought it wouldn't be too hard to manage ourselves, but the resigned bookkeeper said no, BOD's are not allowed to keep the books. Honestly that confuses me since we are allowed to sign the checks and pay the bills, why not keep an account of reports ourselves?

I checked with my FL 720 statutes and didn't see anything saying you can't keep your own accounts, and it doesn't say you can't in our covenants.

Could anyone answer me as to whether I missed something, or is she mistaken?

Any help appreciated!

CharlesM2 (Massachusetts)
Posts: 16

Posted:

Hi. Congratulations on being a volunteer and the President of your association.

There is nothing wrong with a board member keeping the books as long as they aren't compensated for the service. The compensation is widely considered a conflict of interest.

I am the Treasurer of a HOA in Mass and I am also the bookkeeper. Unless FL has something specific in the regulations pertaining to this, I don't see any problems with the BOD maintaining the books.

Self-managed HOAs are just that, they:
- are the property management
- are the bookkeepers
- are the party planners

Of course, some of these functions can be outsourced and many HOAs do outsource the property management and bookkeeping. Our HOA is self-managed and we do 99% of the work, all as volunteers.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Krystal,

Why did one Board member get in a fight with her? No single Board member has the right to get that bad with an association employee to cause this to happen.
The Bookkeeper was just blowing smoke. Any association can manage themselves, manage their books and manage every aspect of running their association by themselves. With only 70 houses, this should be a simple task. We have very good Statutes telling you what you are required to report and what to do. There is no law that says that you cannot manage yourselves.
Do you have a Treasurer on your Board? I am assuming that you do not have a Property manager, therefore your Treasurer could easily handle this task.
According to your Budget, how much is your annual operating Budget? You will have to make sure that you have any and all contracts and paperwork from her

KrystaT (Florida)
Posts: 58

Posted:

Hi, thanks for the answer. We have always been under a management co., until about 6 months ago. All our dues went to pay for the management and none of the money went back into our community. The last pres. didn't renew our contract with the CAM but did NOTHING to help the situation, and actually got us in deep trouble with 2 state dept. because of his negligence. Not surprised to say, he didn't tell anyone about this trouble not even other board members as I was the secretary for a couple months.

So now I'm the new pres. w/ a TON of problems dumped in my lap trying to sort it all out. I've talked to neighbors, and everyone is VERY frustrated, they pay every year and we have nothing to show for it.

I'm so glad I found this website! It's a little overwhelming to think you're trying your best, and could still get sued for not knowing about something.

DonnaS (Tennessee)
Posts: 5,671

Posted:

Krystal,
No you won't get sued. I hope that you have Board Liability insurance. Do you have a copy of Florida Statutes 720? I hope so otherwise go to Google and key in Fl. Statues 720. Click on the first listing and VOILA!!. Print that out and you will not get yourself in trouble if you follow it for the important things. It is simply written.
I am not suprised that all of your money went to the M.C., with only 70 houses, there is not much resource for funding. Do your homework and do not get overwhelmed with this because it AIN'T THAT TOUGH

SusanW1 (Michigan)
Posts: 5,202

Posted:

We are not a condo association, but we have 250 homes. Our treasurer IS compensated, at the going rate per hour, for all the many, many hours of work she puts in for billing, posting, following up on deadbeats, keeping several accounts up to date, etc. etc. Its' a line item in an approved budget.

You paid your bookkeeper, how do you suppose you are going to get someone to do all that work for free?

KrystaT (Florida)
Posts: 58

Posted:

Ok, next question...What reports do I really need? The bookkeeper made 7 different reports monthly. Do I have to make those, or is that fluff? The s.s. 720 says records kept in standard accounting practices, and since we're a HOA with lss than 100,000 (way less)it says cash receipts and expenditures is the only finacial reports we need. Which to me sounds basic. Are the other reports required?

If so, what reports are needed?

SusanW1 (Michigan)
Posts: 5,202

Posted:

Unless you have some special state statutes, the Board can direct you as to what they want to see on a monthly basis. Usually it is a Revenue / Expenses (year to date, compared with the approved budget)and a Balance Sheet showing all accounts. There may be more discussion on delinquencies.

You could have a three member Finance Committee - treasurer, one board member and one general member - who can go over the check ledger, if needed, and discuss delinquencies procedures and all the details & chose an auditor or review committee.

Treasurer reports are not "approved or accepted" at regular board meetings, but instead the president just says, "report filed for audit.'

You can also google "Board treasurer reports"

🎯 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