Monthly and Annual Condo Treasurer’s Report Inclusions

S.Z. from New Haven County writes:

Dear Mister Condo,

Exactly what should be included in monthly and annual Treasurer’s Report to board members?

Mister Condo replies:

S.Z, that’s a great question! There are no legal requirements that I am aware of that dictate what should be included but my experience has been that the most successful communities have great fiscal management and a Treasurer who openly shares the information regarding the association’s finances.

Board members need as much information as is reasonably possible to make the best decisions for their communities. Treasurer’s Reports are critical to the fiscal success of the association. First off, financial statements from the previous meeting and, where applicable, year to date should be included. This may include a Treasurer’s Report, a Profit and Loss (P&L) statement, and current bank statements. Much of the work performed by the Board is managing the association’s assets, chief of which is money.  The Board members should be provided the supporting documentation behind any summary financial reports created. Seeing the supporting source material (i.e. invoices, cancelled checks) will help the Board ask the right questions to be sure Association policies are being followed and funds are being spent as approved. However, it is unusual for every Board member to get copies of every check or invoice. Discussions on cash flow, common fees, assessments, loans and other financial considerations requires Board members to be fully informed of the association’s finances. Updates on pending litigation should also be included so as to keep Board members informed of the association’s legal standing and potential liability in court cases.

I answered a similar question this past April if you care to take a look – http://caict.org/askmistercondo/required-monthly-reports-from-the-condo-board-treasurer/ All the Best!