Here are a few tips to help you put systems in place that will keep your Board on the same page when it comes to the financial health of your HOA:
- Distribute responsibilities to various board members based on each financial transaction. For example, one board member might be responsible for approving a financial transaction, while another may have the responsibility of actually recording them.
- Ensure your financial institution has signatures on file should a discrepancy be reported. This makes the research process much easier.
- Managers are a great tool to have in your system of “checks and balances”. They should be actively involved and aware of financial transactions and provided an “open door policy” to question any area as needed.
- It is a great idea to give managers the responsibility of locating reputable vendors, presenting them to your board and staying actively involved in the contract process.
- Select a manager that is certified by the California Association of Community Managers (CACM). Managers that hold the designation of Certified Community Association Manager (CCAM), like we do here at JLA, will have been trained to help establish guidelines that promote professionalism, ethical values and best business practices.
- Encourage your board and managers to work together on the selection process of a qualified accounting professional or CPA.
To learn more about the importance of having financial controls in place, contact us. We’re here to help!
If you would like a copy of our HOA Diagnostic which will help us understand how to manage your Homeowner’s Association please contact us at firstname.lastname@example.org or visit www.jlareg.com