Healthy finances are critical to the sound operation of a community association. The association treasurer is responsible for maintaining the finances and ensuring financial strength, integrity and growth.
The most important responsibility the Treasurer has in the community is preparing the annual operating budget. The budget is a formal financial plan that determines the annual assessment. It can also be used as a tool to measure actual performance and activity.
Begin the budget process as early as possible. Some associations have developed two-, three- and five-year budgets to help with planning and developing data. The ultimate objective of this type of budgeting is to avoid surprise increases in expenses and special assessments.
The board should involve the community--through the budget committee and public hearings--in the budgeting process as much as possible.
The purpose of financial reports is to provide the financial information needed to:
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