If you’ve been elected the treasurer of your homeowner association, then you need to be aware of all of the responsibilities that fall on that position. In this post, we’ll discuss what the role of homeowner association treasurer requires of you and provide some tips on how to do the job effectively.
The first thing you should do is take a look at the bylaws of your homeowner association. That document usually sets forth the responsibilities of the treasurer, and it may have expectations of the position that are unique to your particular organization. It is important that you know not only the legal requirements of your position but the expectations that the rest of the organization will have on you as well. If you are unclear of any of the requirements laid out for you in the associations governing documents, be sure to ask the president, a member of the board, or the past treasurer for clarification. Legal counsel can also help you determine your responsibilities.
In addition to any duties outlined by your association’s bylaws, Minnesota state law places some legal requirements on you. These requirements are laid out in Minnesota state statute 317A.305. Those requirements are as follows:
- Keep accurate financial records.
- Deposit all money, checks, and drafts paid to the association into the association’s accounts.
- Endorse deposit notes, checks, and drafts received by the association as ordered by the association’s board and create the proper vouchers for the deposit.
- Disperse fund and issues drafts and checks on behalf of the association as ordered by the association’s board.
- If requested, provide the president of the association or its board with an accounting of the transactions that you have recorded and the status of the financial health of the organization.
- Perform other duties laid out by the association board.
When keeping records you want to be as accurate as possible. Enter data as soon as it becomes available to you and always double-check the numbers that you enter into your accounting software and any math you do if you are not using accounting software. Accounting for a homeowner association requires much stricter record keeping than you may use with your own finances. Be sure to keep as meticulous an accounting of the expenses and income of the association as possible.
There are few things you can do to make sure that your transition into your new role is as smooth as possible. First, if they are around and you are on good terms, be sure to talk to the previous treasurer about the role. They will undoubtedly have unique insights into the particulars of your specific association and be able to provide clarification on any issues that you may be unclear on. While you should consider this person to be a valuable source of knowledge, do not be afraid to use your own judgment. You were elected for a reason, and if things can be improved over the past way of doing things, you should be willing to take that step.
Treat the association’s money as though it were that of your own business. Do not treat it as your personal finances which may be more lax than is legally required of a business entity. If there is something you are unsure of and you would not make assumptions over in your own business, then do not do so for the association’s funds. Be sure to seek whatever counsel is necessary to keep an accurate and legally binding accounting of the funds that you have been entrusted with.
If you have any questions about the requirements placed on you in your new role, please feel free to contact us today!