Resolution Adopting a Financial Management Policy

Transcription

1 Reslutin Adpting a Financial Management Plicy Reslutin N A Reslutin Adpting a Financial Management Plicy WHEREAS: gd financial management is necessary fr the success f Rivercliff Estates Hmewner Assciatin. WHEREAS: sund accunting practices and plicies are necessary fr ensuring the integrity f financial recrds and Assciatin funds. WHEREAS: the Assciatin is subject t ORS sectin (5) requiring annual financial review. THEREFORE, be it reslved that the Bard f Directrs f Rivercliff Estates Hmewners Assciatin Hereby adpt its Financial Management Plicy dated this 2 nd Day f Nvember, Diane Falln, President ATTEST: Ann Masunaga, Secretary 1

2 FINANCIAL MANAGEMENT POLICY OBJECTIVES The bjectives f this financial management plicy are t: Prvide fr pen and transparent financial management practices. Ensure that all financial systems, functins, and cntrls meet generally accepted accunting principles. T preserve capital thrugh prudent banking and cash management activities. Achieve the mst prductive use f cash, minimize perating csts, and t cntrl receipts and disbursements. Maintain gd wrking relatinships with financial institutins. Prvide clear and cncise budget, expense, and financial infrmatin t all hmewners n a regular basis. Make financial infrmatin available t all hmewners n their request. Make certain that all hmewners pay dues accrding the share assigned in the Declaratin t their respective units. Ensure that Capital Maintenance Reserve Funds are accumulated and accunted fr separately accrding t the bard-apprved Capital Maintenance & Reserve Plan. BANKING SERVICES Banking services shall be slicited at least every five years n a cmpetitive basis, and banks submitting prpsals must meet the fllwing minimum criteria: 1. Be insured by the Federal Depsit Insurance Crpratin 2. Prvide n-line banking services. 3. Disclsure f all service charges and fees. 4. Prvide an assigned Persnal Banker. RECEIPT OF MONTHLY DUES The treasurer will prepare and mnitr an accunts receivable age schedule t ascertain amunts due the HOA. Mnthly Dues are due and payable n the first f each mnth. Delinquencies will be assessed $50 fr each 30 days f delinquency. A lien will be recrded against the unit wner s prperty when the mnthly dues are tw mnths delinquent. 2

3 ACCOUNTS PAYABLE The treasurer will maintain a system t age accunts payable. Invices will be analyzed and paid t take advantage f any discunts available. All bligatins paid by the HOA will be reviewed prir t payment t ensure prper dcumentatin is attached and that all requirements are met BUDGET FORECASTING Each fiscal year, the treasurer will prepare an annual peratinal fund budget fr the HOA fr apprval by the bard f directrs n r befre the Nvember bard meeting. The Chart f Accunts shall be in sufficient detail t recncile individual expenditures in the Budget. Cntingency Budgets shall be recrded separately within their respective Budget Accunts. Capital Maintenance Budget shall be included and shwn in a separate sectin f the Budget as it is detailed in the Capital Maintenance Plan. On r befre the last day f each mnth the budget statement will be adjusted t reflect the current mnth s actual cash flw and revise the remaining estimated cash flw schedule. Capital Maintenance Reserves shall be accunted fr separately in the apprved Budget. Capital Maintenance hmewner dues receipts shall be accunted fr separately frm Operatinal Maintenance dues receipts and recnciled t their separate line item budgets. Capital Maintenance expenditures shall be accunted fr separately frm Operatinal Maintenance expenditures and recnciled t their individual line item budgets. Detailed Annual Budgets shall be distributed individually t all hmewners within ten (10) days f apprval. ORS requires: 1. The bard f directrs at least annually shall adpt a budget fr the assciatin f unit wners. 2. The budget shall include mneys required t be allcated t the reserve accunt under ORS Within 30 days after adpting the annual budget fr the assciatin, the bard f directrs shall prvide a summary f the budget t all wners. 4. If the bard f directrs fails t adpt an annual budget, the last adpted budget shall cntinue in effect. INTERNAL CONTROLS Duties shall be assigned t individuals in such a manner that n ne individual can cntrl all phases f cllecting cash, recrding cash, and prcessing transactins in a way that permits errrs r missins t g undetected. Depsits shall be reviewed by a persn ther than the depsitr f the funds t make sure that funds are placed in the prper HOA accunts. 3

4 All accunting cmputer recrds shall be kept in a lcatin deemed secure by the bard. Mre than ne persn shuld be trained n the system. Accunting recrds shall be backed-up n a regular basis and the backup stred in a separate secure lcatin. The mnthly recnciliatin f HOA accunts shall be dne by the bkkeeper and treasurer and jintly signed. The bks shall be reviewed regularly by the bard f directrs. A prcedure shall be develped fr writing ff bad debt. The plicy shall specify persn(s) respnsible fr writing ff the bad debt and their title. Authrizatin t write ff bad debt must be granted by a majrity vte f the bard f directrs and recrded in the meeting minutes. PURCHASING All purchases exceeding $2,000 shall require a minimum f three (3) cmpetitive bids r prpsals, and shall be reviewed and selected by a majrity vte f the bard f directrs, and recrded by the bard secretary in the minutes. All purchases ver $100 shall be authrized by a majrity vte f the bard f directrs and recrded by the bard Secretary in the minutes. Fr all purchases $100 r less, the HOA president shall authrize the purchase by signature and be recrded by the bard treasurer in the purchase rder lg. Emergency purchases in excess f $100, requiring immediate authrizatin, befre a regular scheduled bard meeting, shall require apprval f a majrity f bard member via digital r written dcument. The authrizing dcuments shall be included in the minutes f the next scheduled bard meeting. All HOA purchases shall be made using a purchase rder in a frm apprved by the bard. Receipts shall be verified by the treasurer fr accuracy and cmpleteness and s marked prir t paying an invice. Prcedures shall be develped fr checking receipts, packing slips r cntracts t determine that merchandise r services have been received as stated befre payment. All invices shall be marked Paid in Full with the date and amunt f the check nted. Petty cash funds require full dcumentatin, including the purpse f the expenditure and wh received the petty cash funds. AUTHORIZED PERSONNEL/SECURITY The HOA president r treasurer is authrized t pen depsit accunts as required. Three bard member signatures shall be n file at the bank as authrized check signers. All checks shall require tw manual signatures. The HOA treasurer is respnsible fr maintaining a current signature card with the bank. Checkbks and any held petty cash shall be in a secure lcked cabinet at all times. N checks shall be signed in advance. Cash transactins shall require at least tw directrs t ensure that cash is prperly recrded and depsited. 4

5 AUDITS/REVIEWS When an activity ccurs that des nt cnfrm t this plicy, the bkkeeper and treasurer shall immediately ntify the bard in writing. When a petitin signed by a majrity f unit wners (51% f assigned percentages) is received by the bard f directrs requesting an independent review f all financial recrds, it shall be rdered immediately. In accrdance with ORS sectin (5) Subject t sectin 26, chapter 803, Oregn Laws 2003, the assciatin f unit wners f a cndminium that has annual assessments exceeding $75,000 shall cause the financial statement required under subsectin (4) f this sectin t be reviewed within 180 days after the end f the fiscal year by an independent certified public accuntant licensed in the State f Oregn in accrdance with the Statements n Standards fr Accunting and Review Services issued by the American Institute f Certified Public Accuntants. Annually a financial review shall be cnducted. 5