The treasurer is the financial voice of the board of directors and the association. The roll of the association treasurer can be narrow in focus and is crucial to the smooth operation of any association. Whereas the association president is charged with leading the association, the treasurer is charged with ensuring the financial wellbeing of the association.

An Overview of the Treasurer’s Role 

Duties of the Treasurer 

Annual Budget 

Annual Meeting Role 

Outside CPA Firm 

Delinquencies 

Association Investments

 An Overview of the Treasurer’s Role: 

The treasurer’s responsibilities are usually specifically spelled out in your individual association’s bylaws. Generally, the treasurer has the overall responsibility for the association’s funds and securities and is responsible for keeping full and accurate financial records. This does not necessarily mean the treasurer physically has to perform accounting tasks, but just ensure they are being done.

Duties of the Treasurer: 

The primary duties of the treasurer are reviewing the financials and taking the lead on the annual budget. Other duties can include signing promissory notes of the association, signing letters of engagement for reviews or audits of the financials by a third party public accountant. The treasurer is usually responsibly for giving the financial report at the association’s annual meeting. The treasurer makes sure that the federal and state tax returns are filed in a timely manner. The treasurer should recommend a reserve study by an engineering firm be made on a regular basis.

Annual Budget: 

The treasurer should take the lead on the association’s annual budget. The treasurer does not necessarily compile the actual budget, but should work closely with the association’s property manager and supporting accounting staff to ensure the budget is reasonable and ready to present to the entire board of directors for further review and approval. If there is a budget committee formed, the treasurer is usually the chairperson of the committee. At any membership budget ratification meeting, the treasurer will take the lead along with the association president in presenting the budget to the membership.

Annual Meeting Role: 

The treasurer’s role at the annual meeting is generally limited to a brief financial report. This financial report should be an overview of the financial condition of the association. Typical reports would be the level of funds in operating and reserve accounts as of the year-end. Delinquencies, if they are at a level that affects the operation of the association, can be mentioned in overall amounts; but individual membership delinquencies cannot be discussed. If delinquencies are discussed, the treasurer should be prepared to discuss how the delinquencies are being brought to resolution. If the association is taking on additional indebtedness or issues that could affect the overall financial wellbeing of the association, this should be mentioned during this report.

Outside CPA Firm: 

The treasurer should take an active role in the search for, and selection of, an independent CPA firm to prepare state and federal income tax returns and the review or audit of the financials. The treasurer is the board’s liaison to the association’s independent auditor.

Delinquencies: 

The treasurer is charged with monitoring the collection of delinquent accounts. The treasurer should ensure that the association’s management company and attorney are pursuing delinquent accounts efficiently and within the collection guidelines prescribed by the board of directors.

Association Investments: 

The treasurer must ensure funds are invested to maximize the yield to the association and are invested in approved investment vehicles. The governing documents of the association usually specify how funds are to be invested. They are almost always limited to operating accounts, money market accounts and certificates of deposits in federally insured financial institutions. Under no circumstances can association funds be invested in the stock market or any investment vehicle that is not federally insured. Federal insurance is limited to $100,000 per financial institution. WDMI 

William Douglas Management, Inc. Copyright 2017 (c) 

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