Board Member Roles and Responsibilities

From our Bylaws:

The officers or the Association shall be a President, a Vice President, a Secretary, and a Treasurer all of whom shall be elected by the Board of Directors, and such assistant officers as the Board of Directors shall, from time to time, elect. Such officers need not be Directors. The offices of President and Treasurer may be held by the same person, and the offices of Vice President and Secretary or Assistant Secretary may be held by the same person.

Serving on the board of directors of a neighborhood association is a big job. And, serving also as an officer usually means more work. To help the officers of the board work more effectively, each officer needs to understand their respective roles and responsibilities and how they relate to the other officers, the other directors, and members of the association.

The three key officer positions in the association are President, Secretary, and Treasurer. While most associations will have a Vice President to service in the President's absence and may appoint Assistant Secretaries or Treasurers to help out, the key officers usually fill the most demanding roles. In an effort to help volunteer directors filling those positions, the following recap of key duties for each officer is provided.

President

From our Bylaws:

The President shall be the chief executive officer of the Association. The President shall preside at all meetings of the Association and of the Board of Directors. The President shall have all of the general powers and duties which are usually vested in the office of president of an association, including, but not limited to, the power to appoint committees from among the Members from time to time as the President may in its discretion decide is appropriate to assist in the conduct of the affairs of the Association or as may be established by the Board or by the Members of the Association at any annual or special meetings.

As the chief elected officer of the corporation, the homeowner association president serves as the CEO of the association. As such, a president's actions as a leader and not a dictator, sets the stage on the association's performance. The President should always work not only to protect the assets of the association, but also to enhance the quality of the life within the community.

Some of the key duties of the President include:

Understanding the Role and Authority of the Position.

The president must have a basic understanding of the laws affecting homeowner associations, the governing documents of the association and any related documents such as contracts, agreements, and insurance policies. By being familiar with these items, the president will know the organizational structure, specific duties of the presidency, requirements of the association, and the authority by which to act.

Knowing the Association's Budget and Financial Condition.

The president, just like all other board members, must exercise a fiduciary duty to protect the association. Fiduciaries must always execute their duties and make decisions in good faith and in the best interests of the entire community. As the CEO, the president must fully understand all items in the budget and know the financial condition of the corporation.

Preparing for and Conducting Effective Meetings.

The president is the presiding officer at all meetings and is responsible for conducting all association meetings. This means that the president must come prepared, know the items on the agenda, follow the agenda, and keep control throughout the meeting.

Being a Great Communicator.

The president must constantly communicate with everyone regarding the community. That includes other board members, association members, management staff, professionals such as the association attorney, accountant or engineer and other members of the greater community. The president should use every opportunity — newsletters, notices, letters, meetings, telephone conversations, email, web sites and personal conversations — to help everyone better understand the goals of the association.

Developing Goals and Priorities.

A good president will help define the association goals to serve as targets to direct the leadership's efforts. And once those goals are put in place, the president must ensure everyone works to reach their achievement.

Developing Others Within the Community.

The president should always be searching for other community members to help out, whether that is a volunteer worker, committee member or board member. It is always in the association's best interest to recruit and train members who want to serve the community. The president must attempt to identify people with good leadership skills to join in helping the association's leadership.

Working with the Manager.

To help avoid miscommunication, the president serves as the designated liaison between the board and the manager. The president and the manager should understand and agree to the specific expectations of the manager. It is difficult to hold someone accountable for expectations that they do not know exist. And, these expectations should be used to evaluate the manager's performance.

Vice-President

From our Bylaws:

The Vice President shall have all of the powers and authority and perform all of the functions and duties of the President in the absence of the President or his inability for any reason to exercise such powers and functions or perform such duties. The Vice President shall also perform any duties as directed by the President.

Secretary

From our Bylaws:

The Secretary shall keep all of the minutes of the meetings of the Board of Directors and the minutes of all meetings of the Association, shall have charge of such books and papers as the Board of Directors may direct, and shall, in general, perform all of the duties incident to the office of Secretary and as provided in the Declaration and these Bylaws. The Secretary shall compile and keep up to date at the principal office of the Association a complete list of Members and their last known addresses as shown on the records of the Association. Such list shall be open to inspection by Members and other persons lawfully entitled to inspect the same at reasonable times during regular business hours.

As has been stated time and again, the association is a business. And like all businesses, it must record and preserve its history and maintain its records. As the Chief Information Officer, it is the association secretary who is assigned this responsibility.

Some of the key duties of the Secretary include:

Being Responsible for Accurate Minutes of all Meetings.

The secretary is responsible for all minutes of the corporation. The secretary is responsible for accurate minutes to be taken, transcribed, and distributed to the board members. In addition, the secretary must ensure that all approved minutes are appropriately filed in the permanent records of the association. In many cases, some of these duties may be delegated to the manager, management staff or other paid professionals. However, the secretary is still responsible for ensuring that accurate minutes of all meetings are maintained.

Being Responsible for Giving Notices and Accepting Proxies.

The secretary is responsible for sending all notices to board members and to association members as required by law and / or the governing documents of the association. This icludes notices of board meetings and annual membership meetings. Additionally, at the time of the annual membership meeting, it is the secretary who is to receive and verify any proxies returned by the members. Just like being responsible for the minutes, some duties of the secretary may be assigned to paid professionals. However, the secretary remains responsible for their action to ensure notices are properly given and proxies correctly recorded.

Acting as the Official Custodian of All Records and Files.

The secretary of the corporation is responsible for the maintenance of all records and files of the association. That includes not only meeting notices and minutes, but also the governing documents, tax returns, contracts, insurance policies, warranties, legal files, and correspondence. And just one more reminder: if these duties of the secretary are assigned to the manager, management staff or other paid professional, the secretary remains responsible for their appropriate and correct filing and storage.

Assistant Secretary

From our Bylaws:

The Assistant Secretary if any, shall have all of the powers and authority to perform all of the functions and duties of the Secretary in the absence of the Secretary or in the event of the Secretary' s inability for any reason to exercise such powers and functions or to perform such duties, and also to perform any duties as directed by the Secretary.

Treasurer

From our Bylaws:

The Treasurer shall have responsibility for Association funds and shall be responsible for keeping full and accurate accounts of all receipts and disbursements in books belonging to the Association. The Treasurer shall be responsible for the deposit of all monies and other valuable effects in the name and to the credit of the Association in, such depositaries as may from time to time be designated by the Board of Directors.

The treasurer is the financial voice of the association and serves as the Chief Financial Officer of the corporation. It might seem that being treasurer is a difficult and technically challenging postition; however, the association's accountant and manager can lend a great deal of assistance to helping a board member fulfill the treasurer's duties.

Some of the key duties of the Treasurer include:

Understanding the Association's Financial Condition.

The treasurer must be intimately familiar with the association's financial condition and be able to explain it to other directors, and association members as well. That includes knowing that funds are being invested in accordance with adopted board policy, that appropriate action is being taken on all delinquent member accounts, and that the association liabilities are being paid timely.

Reviewing Association Financial Statements.

The treasurer needs to carefully review the financial statements prepared by the management company and obtain answers to any questions. At the board meetings, the treasurer should make a brief presentation about any significant items in the financial statement and, with the help of the manage, answer questions from the other directors. The treasurer, with the aid of the auditor if necessary, should report on the financial condition of the association at the annual membership meeting.

Overseeing the Budget Process.

One of the most important roles of the treasurer is overseeing the preparation of the annual budget. While some tasks may be delegated to a committee or to the manager, the treasurer remains the responsible person for ensuring everyone completes their assigned tasks and that the proposed budget is presented to the board of directors in a timely manner.

Ensuring an Adequate Replacement Reserve Program.

As part of the role as CFO, the treasurer is responsible to making sure the replacement reserves are adequate to meeting the future needs of the community. With the assistance of an appropriate engineering study, the amount of funds for future major expenditures can be determined. The treasurer must present this information to the board as part of the budgeting process and include the needed amounts in the proposed budget.

Protecting Association Assets.

The treasurer is responsible for safeguarding the assets of the association. To do so, the treasurer will need to work directly with the association's insurance agent to determine the types and amount of appropriate coverage needed by the association. In addition, the treasurer should review all internal controls with the association's auditor and manager to ensure the highest level of protection against fraud or embezzelment.

Working with the Association's Accountant.

The treasurer is the liason between the board of directors and its accounting firm or CPA. The treasurer is responsible for monitoring the progress of the audit report, meeting with the auditor to understand the report as well as reviewing and understanding the association's tax returns.