Resolution #2: Organize your financials
As a board member, you're responsible for maintaining the financial health of the community.
A critical duty, keeping your association financially sound means that it has adequate funds for
day-to-day expenses and future projects and repairs.
One of the best ways to understand and organize your HOA's finances is by completing an audit.
An annual audit will help evaluate the financial health of the organization and confirm you're
complying with all the necessary requirements. A typical audit checklist includes reviews of:
• HOA financial statements
• IRS tax returns
• Yearly budgets
• Board meeting minutes
• Bank statements
• Invoices paid
• Insurance policies and coverage
• Payroll
• Contracts with vendors
• Reserve studies
• All other financial documents
Work with the association's treasurer to review all financial records and ensure they're in
compliance with the American Institute of Certified Public Accountants' Generally Accepted
Accounting Principles (GAAP). You may also want to consider working with a third-party
accountant or HOA management company to keep your financials in order. With a clear picture
of the community's financial status, you can move forward in achieving your goals and plan for
improvements and upgrades.
