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Subject: treasurer's report?
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Author Messages
MissyS
(Florida)

Posts:73


01/09/2008 4:36 PM  
When presenting a treasurer’s report what would you recommend? Our previous treasurer simply read the profit & loss statement. As the new treasurer I feel it is important to keep the membership apprised of the delinquent assessments by including in the report the total amount in the rears along with the total number of units (I would not list names or unit #s), # of units with demand letters, liens and foreclosurers. Also report the checking account balance and checks written for the month and last monies in the reserve account. Is this over kill and should I do as the last treasurer and only read the profit and lose statement? After giving the report is the report given to the Secretary? I’d love to hear what other treasurers include in their reports.
Thanks
MicheleD
(Kentucky)

Posts:4491


01/09/2008 7:49 PM  
I include the following:

Total of all receipts for period.

Total for all expenses for the period.

Current Bank Balance.

Total assessments collected to date.

Total assessments outstanding.

Number of liens filed and the amount $$ that totals.

Total amount due from all liens.

Number of liens satisfied and released and the amount $$ that totals.


I also provide a pie chart that shows the expense allocations. (which budget accounts)


This report grew as an evolution from the questions that were always asked at the meetings. This is the information they wanted to know, so this is what they get.
SusanW1
(Michigan)

Posts:5202


01/09/2008 8:15 PM  
I think the Board needs to see a year-to-date Revenue/Expenses compared to the budgeted amounts for each budget line item.

Balance sheet also showing all all other funds i.e. Reserve, Emergency, etc.

_______________________________

All the other stuff (check ledger, etc.) can be gone over by the Finance Committee at their meetings.
MissyS
(Florida)

Posts:73


01/10/2008 3:07 AM  
Sounds like you have an active membership. We have difficulty just getting people to serve on the board. At this time we do not have a finance committee, but I’d love to see one formed in the future.
MissyS
(Florida)

Posts:73


01/10/2008 3:26 AM  
MichaelDe, our membership’s questions regarding outstanding assessments has gone unanswered, and is the reason I want to give a more in-depth report. Your report is exactly what I was looking for…. thanks. By the way do you turn in your report to the Sec?
SusanW1
(Michigan)

Posts:5202


01/10/2008 8:31 AM  
Monthly Treasurer's reports to the Board are simply "accepted for audit." (that's the wording that should be in the minutes) No motion, no "approval", since the Board really has no way of having the knowledege to approve.

After an audit or audit review, the General Membership does approve the finanacial report by a motion and vote at its annual meeting.
DonN
(Michigan)

Posts:357


01/10/2008 9:30 AM  
MissyS

I favor more formality than indicated in the various replies. First, the treasurer should ensure that accounting conforms to general accepted accounting principles (GAAP). For owners associations, the controlling accounting standard is the AICPA Audit and Accounting Guide for Common Interest Realty Associations.

The monthly financial reports should be the usual and customary financial statements: statement of financial position (balance sheet), statement of activities (profit and loss), and statement of cash flows. If fund accounting is used (highly recommended), the reserves and other restricted funds will be included with both balances and activities shown. Most of the items described by MicheleD are line items in one or more of the financial statements. The statements would normally shown for current month and year to date, with comparisons to budget and prior year.

Other indicators, tailored to the specifics of the association, are often very helpful. Graphical presentations of information are also very helpful. Without the formality described above, there is a tendency for unfavorable information to not be reported.

As SusanW1 states, the report is received by the Secretary and filed. A motion is not required. My view is that the general membership should never be asked to approve a report — even an audit — since they lack the knowledge and expertise to evaluate the correctness of the report. The auditor certifies the correctness subject to stated limitations.


Don Nordeen
Governance of Property Owners Associations
PradnyaK1
(New Jersey)

Posts:17


01/10/2008 1:55 PM  
DonN: I did not understand your statement. "My view is that the general membership should never be asked to approve a report — even an audit — since they lack the knowledge and expertise to evaluate the correctness of the report. The auditor certifies the correctness subject to stated limitations. "

I read general membership as other home owners (which are not member of the board). Is it true that they are not even allowed to do an audit ??
SusanW1
(Michigan)

Posts:5202


01/10/2008 2:01 PM  
Prad - the audit that is used to certify the Treasurer's report and is presented at the annual meeting is performed by a CPA or a Bookeeper, or a group doing an audit review.

You have used the word "audit" to mean "going over the financial transactions" in another post or "looking over the books or ledger."

A good "audit of the transaction" may start from the checkbook (the expenditure), then work backwards to the bidding process, signed contracts, insurance/worker's comp requirements, and then to the motion that established the work in the first place.
DonN
(Michigan)

Posts:357


01/10/2008 7:07 PM  
PradnyaK1: An audit or a review published by the auditing firm is a technical report with specific content and knowledge to be applied in creating the report. The CPA (auditing firm) should certify the report, not the members.

If such a report is presented at a members' meeting, it should merely be filed by the Secretary. Members do not have the knowledge and expertise to certify the correctness of the report.

On the other hand, members may wish to direct the association to conduct annual audits, or whatever the members wish, by approving an amendment to the bylaws, or by approving a motion at a members' meeting. The audit/review requirements are specified in the state laws for some states.

Don Nordeen
Governance of Property Owners Associations
JeniferH1
(Alabama)

Posts:3


01/13/2020 3:00 PM  
Does anyone have a template that they could share with me? Will be doing my first report and have been searching for a template or excel sheet that I could plug in #'s easily. Any help would be appreciated. Thank you.
GenoS
(Florida)

Posts:3916


01/13/2020 3:10 PM  
Best to start a new thread with your question, JeniferH1.

This thread is 12 years old.
TimB4
(Virginia)

Posts:16847


01/13/2020 3:10 PM  
Don,

I believe your signature block would be violating the rules of this site:

Welcome to HOATalk.com!

This is a positive place for community association leaders to share ideas and learn. This forum is for community association Boards, Committees, Volunteers & HOA Professionals to discuss topics concerning their association duties.

Topics from individual homeowners, who are not acting as association volunteers, may be addressed if the person has come here to learn in a positive way.

We have only a few other rules:

(1) Post any relevant topic you like, but please keep it clean, helpful, positive and friendly.

(2) No Selling: No solicitation, advertising, or selling of any kind is allowed here, except for occasional announcements from official site sponsors.

(3) No Mention of Community/Company/Person Names: In order to fairly enforce (2) and prevent liability, we do not allow the mentioning of any community name, company name or product. Please also do not post the full name of any person.
TimB4
(Virginia)

Posts:16847


01/13/2020 3:22 PM  
Missy,

I support you on providing the numbers.
However, it should also show history.

When I was treasurer, my reports to the membership included the following:

As of the first of the month the Association had the following delinquent accounts:
YEAR Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
30 days – 5
60 days – 1
90 days – 0
120 days – 0
>120 days – 0
In Collections - 1
Payment Plan - 0


Unfortunately, formatting doesn't hold up. I hope you can see what I was doing.

For annual meetings, I would include the current year and previous year.
SheliaH
(Indiana)

Posts:3343


01/14/2020 6:01 AM  
Our monthly report is part of our management report, so all the board members had a copy. As treasurer, I'd prepare a summary of the numbers and pass that around, but speak about various highlights. We treated delinquencies the way you do and our report also included notes from the attorney or property manager regarding decisions the board needed to make, such as file a lien or make an appearance in bankruptcy court, so I would mention those accounts (numbers only) review the note and then we'd take a vote.
GeorgeS21
(Florida)

Posts:2890


01/14/2020 6:37 AM  
Missy posted 12 years ago.
HansE
(California)

Posts:9


01/14/2020 8:25 AM  
I suggest a simple budget vs actuals report on a regular basis. I would also do a yearly review of the reserve account.

I would NOT at anytime discuss delinquency in per unit detail. A general we were owed $100 this month and only received $90 would be fine. Calling out individual units can get tense and create massive resentment between units.
GeorgeS21
(Florida)

Posts:2890


01/14/2020 9:30 AM  
12 year old post
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