A Guide on the HOA Board Treasurer Role
The primary purpose of a homeowner’s association (HOA) is to protect and increase the value of properties within its community and enforce its governing documents. An HOA board of directors’ acts as spokespersons and figureheads for the community to advance this purpose. The board can establish and enforce rules and regulations within the community and are responsible for maintaining shared spaces and community standards.
One of the vital positions in an HOA community is the board treasurer. The board treasurer manages the HOA’s finances and oversees all financial transactions, both going in and out of the community.
Duties of the HOA Board Treasurer
The treasurer’s actual day-to-day duties will vary based on your specific HOA, its bylaws, community size, and whether or not your HOA employs a management company. These are some of the duties that most board treasurers typically perform:
- Approve invoices
- Prepare and oversee the HOA annual budget
- Review all financial records for accuracy
- Perform or confirm audits and resource reserves
- Invest HOA funds, when necessary and appropriate
- Oversee management company financial records for accuracy and bylaw accordance
The HOA Budget
The board treasurer position can be very time-consuming. This is because there is not only a fair amount of day-to-day oversight (especially for a larger community with no property management company), but there are also major yearly projects, such as the HOA annual budget. The board treasurer’s primary responsibility is to prepare the annual budget, including reviewing financial statements and contracts, checking reserves, and contacting utility companies.
Becoming an HOA Board Treasurer
If you want to be elected to the board treasurer position, you should be active in your HOA community and ready to commit your time and energy to the role. Strong ethics, sound business judgment, and a solid accounting background are all good and necessary qualities one must exhibit to fulfill a board treasurer role.
AR Management can help boards with property, fiduciary, and decision management. If your HOA is looking for assistance, contact us today.