What Do HOA Treasurer Duties Look Like?

The board of directors in an HOA is a pretty complex group with varying duties. Sure, when homeowners association fees and their use are brought up, people look to the treasurer, but what else does such a person do?

HOA treasurer responsibilities are more widespread than you can imagine, and it also takes a specific set of attributes to make someone a good treasurer. Today, we'll look at all of that, which is especially important to those who may be considering the role in their own board.

What Does an HOA Board Treasurer Do?

Put simply, this person is the financial manager of the HOA. If you were to hire a management company to oversee the association's financial position, that company would become your financial manager. However, when you do it in-house, it's the treasure that this responsibility falls on.

This will include managing financial and accounting records, addressing concerning spending, dealing with taxation, etc.

The Most Important Tasks the Treasurer Must Make Sure Are Done Well

Contract Review

The HOA board will engage in various contracts with different entities and the treasurer must ensure that these are carefully reviewed. Are the services still required? Are the said entities adequately providing the service that is being paid for? Is the financial health of the homeowners association still in a place where it can afford the service?

Ascertaining Utilities

Utility costs must be periodically be factored in as they will account for a substantial part of the association's spend. Apart from ensuring that the bills are taken care of, forecasting is also essential. To this end, the treasure will reach out to the companies to find out which direction prices are expected to go in.

Reviewing Financial Records

This will usually see the treasurer working collaboratively with other members of the board. The idea is to determine where there may have been any excesses or losses, with the relevant adjustments being made.

Reserve Studies

The association's finances for emergency needs and other set expenses will come from the reserve, which must be managed adequately. Therefore, the treasurer must have a look at any recent reserve study to ensure that the association has the funding it will need stored away for whatever expenses are forecasted.

Record Keeping

Note that this is not a broad statement as certain records about meetings and other elements will be taken care of by the secretary. However, financial records fall under the umbrella of the treasurer.

Not only should these records be maintained well, but they are also expected to be secured adequately.

Investments

An HOA board will have a series of values that its investment initiatives are expected to align with. The treasurer must ensure that any such initiatives are fair and on-principal. That being said, the kinds of investments that an HOA will typically go for are on the safer side of the fence since the money is not their own, but that of the association.

Budgeting

Preparing the annual budget is another of the crucial elements. Every HOA board member has a vested interest in the numbers here. It's not something that the treasurer will have to do alone, as there will usually be an HOA manager or CPA involved in the process to ensure that the association's financial needs, values, and preferences are a part of the considerations.

Auditing

Meeting the requirements for an audit is not an easy task, but it's one the treasurer must ensure is handled adequately. Passing these financial inspections is non-negotiable as failing to do so can present some serious concerns for the association.

Taxation

Though HOAs fall under the non-profit sector, they are still required to pay taxes. The treasurer is responsible for ensuring that this is taken care of. Of course, the person may not have the ability and knowledge to navigate the forms and processes.

However, being responsible for the function means knowing when to lean on support resources such as the expertise of a CPA.

Insurance

Community homeowners association insurance is a necessity and that speaks to the different types of insurance that may be necessary for the HOA. These can include casualty, worker's compensation, fidelity, and more. This is another area where external assistance may be necessary, which is acceptable once the expected result is achieved.

HOA Dues and Assessments

These are the bread and butter of covering the association's expenses. Therefore, the treasurer will be the one to manage delinquent accounts and ensure that HOA dues are collected. This will include informing the board of any challenges.

Reporting

Financial reports are essential to ensure that the entire board can understand what the financial outlook of the HOA looks like. It is meant to detail the different income and expenses that the association incurs.

The treasurer doesn't have to be the one to compile the report, but the person should ensure that it is completed on time.

Qualities That Make a Good HOA Treasurer

Familiarity with the Governing Documents of the Homeowners Association

The association's governing documents will dictate a lot of the way financial tasks are handled meaning a good HOA treasurer will need to have an intimate knowledge of the provisions that have been made.

For example, when are dues meant to be collected? When is auditing supposed to happen? What provisions need to be considered as these tasks are being handled?

Detail Oriented

No one needs to tell you that there are a lot of numbers floating around as a treasurer. It stands to reason then that this is someone who needs to be very concerned with the small details as well as the larger ones.

Transparency

Such a role is a sensitive one for obvious reasons, which means that there is a high level of trust placed in whoever has the responsibilities outlined. Therefore, this must be a person who acts ethically and can be above board in everything that is done.

Passion for the Community Association

The reward in a non-profit organization is not monetary. Additionally, this is a pretty difficult role. It stands to reason then that the selected individual needs to have a genuine passion for the community and the work to be done.

Great Delegation Skills

As you've gathered, the treasurer doesn't carry out all the tasks and will lean on fellow board members, external vendors, etc. It's essential to know when to delegate and who to call in.

Excellent Collaboration with other Board Members

Apart from delegation, there's the matter of collaboration. You need a treasure who is a good communicator and can thrive well in a team-based environment while working towards a common goal.

Don't Forget About HOA Software

The treasurer has a lot to do but so does the rest of the board. Reduce the feeling of being overwhelmed with DoorLoop's HOA management solution, which offers:

1. A free per-property or per-community website complete with a tenant portal
2. Automatic payments of HOA dues, rent, maintenance, amenities, etc.
3. A full complement of accounting features complete with shareable AR/AP reports
4. Bank account and QuickBooks integration
5. Unlimited management users
6. Communication via email, phone, tenant portal, and text
7. Management of ARC and maintenance requests.

The Bottom Line

As a whole, the association has a lot to deal with. Carrying out maintenance duties, setting the boundaries of responsibilities, and making considerations for HOA board member certification for HOA, condo, co-op, etc. The treasurer is one of the essential puzzle pieces and must embody the characteristics above.

Also, don't forget to schedule a free demo of our HOA management software to see what it can do for you!