Where Does a Co-op or Condo Treasurer Turn to for Advice?
April 29, 2015 — The treasurer of a co-op or condo board plays an important role in the financial health of the property: overseeing the budget, making sure the bills get paid in a timely manner, and finding ways to control costs and maximize income. Ordinary board members without extensive financial backgrounds may find the job daunting. Fear not, novice treasurers of the co-op and condo world: there are people who can help. Here's some advice on how to call for backup.
So where does the treasurer turn who wants to be hands-on but isn't sure where to start? One resource is the Council of New York Cooperatives & Condominiums, which offers training sessions and classes for board members, including an annual conference that includes dozens of workshops on subjects board members should know more about.
Another resource is your building's accountant. Certified public accountants prepare the annual financial statements that must be delivered to all co-op shareholders and file tax returns. They usually have multiple co-op clients and can offer advice on budgeting and payment of bills.
A finance committee can take some of the pressure off the treasurer, especially in a large building or one with complicated finances. But who should be on it?
There are different schools of thought on the idea of committees.
One approach advocates a committee composed of a subset of board members, because they are already accustomed to working together, already have access to the necessary financial information, and are already committed to working on behalf of the building. Additional input can always be sought from the building's accountant, managing agent, or even financial staff at the management company.
Another way of forming a committee is to look outside the existing board makeup for additional owners who are interested in contributing to the running of the building, especially those with financial or real estate backgrounds, budgeting experience, or knowledge of repair, maintenance, or capital improvement procedures and costs.
This type of committee would provide input and advice to the board on budgeting, potential income sources, cost containment, and contracts, without holding any decision-making power itself. Some of its members may well go on to serve on the board themselves in the future. However, boards must be careful about sharing confidential financial information with these non-board members; they can have knowledge of the building's expenses, but the treasurer's responsibilities, such as approving invoices, should not be delegated to committee members and information such as payroll and arrears records should not be available to them.
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