A homeowners association without stable finances will almost always be unsuccessful. The treasurer is responsible for ensuring the community is financially sound. He or she handles the money of the community, from collecting dues to paying invoices.
The governing documents of an association outline a variety of financial procedures. Everything from how much dues can be collected to when the association’s books need to be audited is included, and it is up to the treasurer to make sure these guidelines are followed. In addition to collecting dues, paying invoices, and assisting the association’s CPA with audits, the treasurer will also review the community’s financial records for accuracy and create the yearly budget.
As homeowners associations are considered corporations, they are able to take out loans and other financial assistance. Though the treasurer will work to coordinate these, he or she does not have the authority to do so on their own. The Board must agree before entering into any agreement and give the treasurer permission.
Whether or not the treasurer has a knowledge of finance can impact how they perform their duties. While this knowledge is not necessary, it can be extremely helpful in cases where good business judgement is needed. Finances are often a major reason why a Board may choose to hire a management firm. Management firms take over most accounting duties, but the treasurer is ultimately responsible for insuring the association’s financial records are properly maintained.