Getting Started
The First 90 Days as HOA Treasurer
You just became HOA treasurer. Here is exactly what you need to understand, verify, and establish in your first three months to protect yourself and your community.
Congratulations on becoming treasurer. Or perhaps condolences. Either way, you now have fiduciary responsibility for your community's finances.
This guide covers exactly what you need to do in your first 90 days.
Week 1: Understand What You Inherited
Before you can manage the finances, you need to understand the current state.
Get Access - Bank account online access (all accounts: operating, reserve, money market) - Accounting software login - Management company portal (if applicable) - Previous financial statements (at least 12 months) - Current year budget - Most recent audit or review
Verify the Basics - Does the bank balance match the books? (If not, that is your first problem) - Are all accounts accounted for? (Check for dormant or forgotten accounts) - Who has signing authority? (Update as needed for your role) - What are the signature thresholds? (Two signatures above what amount?)
Do not assume anything is correct. Verify.
Week 2-4: Learn the Money Flow
Understand Income - How do assessments get charged? (Automatic or manual?) - How do owners pay? (Check, ACH, credit card, lockbox?) - How do payments get recorded? (Automatic import or manual entry?) - What is the collection process for delinquent owners?
Understand Expenses - How are invoices approved? - Who can authorize payments? - What are the check signing policies? - How are credit cards managed?
Understand Reserves - Where is the reserve fund held? - What is the current percent funded? - When was the last reserve study? - How are reserve expenditures approved?
Document what you learn. You will need to explain this to future board members.
Learn about continuous bank reconciliation
Month 2: Verify Controls
Now that you understand the flow, verify that controls are working.
Bank Reconciliation - Is it done monthly? By whom? - How quickly after month-end? - Who reviews the reconciliation? - What happens when items do not match?
Segregation of Duties - Does the person who records payments also deposit them? (They should not) - Does the person who approves invoices also sign checks? (Problematic) - Does anyone have solo access to move money? (Red flag)
Reserve Protection - Can operating expenses be paid from reserve accounts? - What documentation is required for reserve draws? - Is reserve spending tracked by component?
If controls are weak, this is your opportunity to strengthen them.
Internal controls are not bureaucracy. They are protection against real risks that treasurers face.
Risk 1: Embezzlement
HOA embezzlement is distressingly common. It typically follows a pattern: - Trusted person with sole access - Small amounts at first - Growing over time - Discovered only when the person leaves
Controls that prevent this: - Dual signatures above threshold - Bank statements sent to board members directly - Segregation of recording and custody - Regular review by someone not involved in operations
Risk 2: Honest Mistakes
Not every problem is fraud. Honest mistakes cause most financial issues: - Posting to wrong account - Missing an invoice - Double payment - Incorrect assessment calculation
Controls that catch these: - Regular reconciliation - Variance reporting - Approval workflows - Exception dashboards
Risk 3: Board Liability
As a board member, you have fiduciary duty. You can be personally liable if: - You knew about problems and did nothing - You failed to implement reasonable controls - You delegated without oversight
Controls document that you exercised appropriate care.
Month 3: Establish Your Rhythm
By month three, establish the ongoing practices you will maintain.
Monthly - Review bank reconciliations - Review financial statements - Review delinquency report - Review variance to budget
Quarterly - Present financial report to board - Review reserve fund status - Assess cash flow projections
Annually - Coordinate audit or review - Participate in budget development - Review insurance policies - Update signature cards if needed
Red Flags to Watch For
Over time, watch for these warning signs:
- Bank reconciliation consistently late or missing
- Unexplained variances to budget
- Delinquencies growing without action
- Invoices from unfamiliar vendors
- Checks to individuals rather than businesses
- Transactions just below approval thresholds
- Missing documentation for large purchases
- Resistance to providing information
Any of these warrants investigation.
What to Ask Your Management Company
If you have a management company, ask:
- How do we access real-time financials? (Not just monthly reports)
- Who reconciles the bank accounts and when?
- What is your delinquency collection process?
- How are our reserve funds protected?
- Can we see the audit trail for any transaction?
Good management companies welcome these questions. Resistance is a warning sign.
Protecting Yourself
Document everything. When you ask questions, send email so there is a record. When you raise concerns, note them in meeting minutes. When controls are weak, propose improvements in writing.
If the board ignores your concerns, you may need to consider whether to continue serving.
Fiduciary duty is real. Protecting yourself means protecting your community.
See how CommunityPay gives treasurers real-time visibility into cash position, reconciliation status, and reserve health.
How CommunityPay Enforces This
- Real-time dashboard shows cash position and receivables
- Bank reconciliation status visible at any time
- Reserve fund tracking separate from operating
- Delinquency reports with aging and owner detail
CommunityPay · HOA Accounting Platform