The HOA Treasurer's Monthly Review: 10 Things to Check in Your Financial Statements

Volunteer treasurers carry real fiduciary responsibility, usually without a finance background or much time. The monthly package from the management company can run dozens of pages. These ten checks take under an hour and catch most of what matters.

The ten checks

1. Bank reconciliations for every operating and reserve account, completed and dated, with no old reconciling items.

2. Reserve balances match the reserve fund schedule, and no reserve funds were used for operating expenses without board approval.

3. Interfund balances between operating and reserve funds are explained and repaid on schedule.

4. Delinquency report by owner and aging bucket, with collection actions noted for accounts past your policy threshold.

5. Prepaid assessments from owners are recorded as a liability.

6. Budget vs. actual for each expense category, with an explanation for any significant variance.

7. Year-to-date trend. Will the association finish the year within budget? If not, what is the plan?

8. Accounts payable list for unusual vendors, duplicate payments or invoices without approval.

9. Insurance and contracts. Renewals and major contract payments are where expected.

10. Cash position. Enough operating cash to cover the next 60–90 days of expenses.

Controls worth confirming once a year

Two signatures or approvals above a dollar threshold, board access to view all bank accounts directly, a fidelity bond or crime coverage, and a clear rule on who can open accounts or move reserve funds. In Florida, Chapter 720 also prohibits the use of association debit cards; confirm your current practices with your manager.

Common questions

What does an HOA treasurer do each month?

Review the financial statements, reconciliations, delinquencies and variances, and report findings to the board.

What are red flags in HOA financials?

Missing reconciliations, reserves used for operations, rising delinquencies and unexplained vendors.