By Daniel Brannigan
Each board member plays an important role in the success of a community association. Most boards have four officers: president; vice president; secretary; and treasurer. What are the responsibilities of each board officer?
In simple terms, the president supervises association activities, the vice president provides the president with backup support, the treasurer oversees the finances, and the secretary maintains records. By working together, these individuals can build a solid foundation for association operations. Here are some more details about each board officer.
THE PRESIDENT
As a community leader, the president directs the activities of the association, chairs board and general membership meetings, and balances the needs and interests of the association members. The president may be asked to help negotiate contracts, sign contracts and other documents, and oversee their execution.
A president doesn’t necessarily have more power than other board members, but they may take responsibility for specific tasks as described below. They also should work to motivate other board members to participate and rely on other board members for guidance and advice.
Goal Setting
New association presidents often know what they would like to accomplish before their first day on the job. Working closely with the whole board and the community manager, a new president can define these goals.
Community Leadership
Presidents should foster the fiduciary duty of other board members, encouraging them to act in the best interests of the community as a whole and not in self-interest. Adopting a conflict of interest policy and adhering to it goes a long way to supporting this duty. The president and the board should operate with maximum transparency so all homeowners have access to agendas, minutes, and an opportunity to attend all meetings.
The board president leads the community by maintaining confidentiality about homeowners facing difficult situations and making sure homeowners have adequate information about community operations and governance. The president sets an example for working constructively with all members and homeowners.
Association Management
The board president typically is responsible for spearheading the association’s search for good community management. Communities may be self-managed, hire an off-site professional manager, hire an on-site professional manager, hire a management company, or use a combination of methods.
Meeting Prep
Well-organized meetings set the tone for all future board work. Board members come away from the meeting knowing they have performed their duties, and they are confident about how to proceed on future projects. The president typically chairs meetings.
THE VICE PRESIDENT
The board vice president plays an important role in association affairs, often substituting for the president in his or her absence. This person also presides over board meetings when the president is unavailable or steps aside due to a conflict of interest. Vice presidents commonly serve as the board’s liaison to key committees and may be assigned special projects. For example, the vice president may research and report on sensitive issues or unresolved committee issues. The vice president always should be briefed on association operations so that he or she is prepared if an emergency occurs.
THE TREASURER
The treasurer will prepare a draft budget, in most cases working with the manager or finance committee for review and approval by the association board.
In addition, the treasurer is responsible for financial reports, even if their preparation has been outsourced to an accountant. The treasurer usually presents an overview of association finances, budget, and investments at the annual meeting.
A few additional responsibilities may include:
- Monitoring association financial activities
- Overseeing the association budget
- Overseeing insurance policies and overall risk management
- Investing association assets
- Maintaining adequate reserves
- Coordinating year-end audit or review
- Serving as liaison to the finance committee, accountant, or financial staff
The treasurer and a second board member typically are signatories on all checks from the association.
THE SECRETARY
In addition to formatting, recording, and distributing meeting minutes, the association secretary must maintain correspondence and store and retrieve association documents.
The secretary is responsible for maintaining all records of the association and usually signs official association documents. Duties often include setting up, maintaining, and updating a filing system.
>>Learn more about the tools, strategies, and expert insights you need to be an impactful leader in your homeowners association, condominium, or housing cooperative in CAI’s Community Association Leadership: A Guide for Volunteers.
Reprinted with permission from Community Associations Institute.