|
Chairperson: |
Director Lloyd O'Connell |
| Co- Chairperson: |
Director
Denise Roach |
|
Treasurer: |
Director Lloyd O'Connell |
|
Assist-Treasurer: |
Director Denise Roach |
|
Bookkeeper: |
Louella
Christopher |
| |
Barbara
Smith |
Any member who would like
to join and/or just sit in during one of our monthly meetings is welcomed to do
so.
The Finance Committee is an Executive Committee as that term is defined in
California Law and the Association’s Bylaws. As such, the Finance Committee
is delegated specific authority to take certain actions on behalf of the
HROA Board of Directors, which is summarized in this document for
reference. The Finance Committee’s purpose is to have the general
supervision of all Association finances. The Finance Committee shall
consist of: a Chairperson, a Co-Chairperson, (at least) three HROA
Committee Members, the HROA General Manager, the HROA Treasurer and
assistant Treasurer, if one is appointed. The Chairperson and the
Co-Chairperson must be HROA Board Members. All Finance Committee
Members must be in “good standing” and must be appointed by the HROA Board
of Directors except the HROA General Manager and HROA Treasurer which are
ex-officio members of the Finance Committee by the nature of their titles.
All appointed Finance Committee Members must sign the HROA Conflict of
Interest and Confidentiality Policy in order to serve on the Finance
Committee. The Bookkeeper shall attend all Finance Committee meetings, but
shall not be counted for purposes of determining if a quorum is present and
shall not be a voting member of the committee. A quorum for the
purpose of conducting business is determined at the beginning of each
meeting, by the presence of at least a majority of Finance Committee Members
which must include at least the Chairperson or Co-Chairperson. A HROA
Committee Member who misses (3) consecutive scheduled meetings will be
placed on an inactive status and not counted for purposes of determining if
a quorum is present. All meetings of the Finance Committee are open to the
HROA Members, except for when the Finance Committee convenes in Executive
Session to discuss issues related to: litigation in which the Association is
or may become a party; matters relating to the formation of contracts with
third parties; member discipline; or personnel matters that are financial in
nature. Members are to be provided an opportunity to speak on non-agenda
items at the beginning of each meeting. Members are also to be provided an
opportunity to speak during the business portion of each meeting on each
agenda item. The Chairperson shall control the meetings and shall determine
the time allowed for member comments. Meetings are to be conducted in
accordance with the Association’s Bylaws and Robert’s Rules of Order. The
Finance Committee shall select its own Secretary and keep permanent records
of its proceedings and reports including agendas and minutes of each
meeting. The Chairperson shall cause all Finance Committee Members to
be notified of any changes in the monthly meeting schedule or of any special
meetings needing to be called in a timely manner. If the Chairperson
cannot attend a meeting, he/she must contact the Co-Chairperson at least one
week in advance so that the Co-Chairperson can make arrangements to chair
the meeting in their absence. The Finance Committee, through its acting
Chairperson has the authority to set or change the time and date of its
meeting(s) when a conflicting schedule prevents them from attending, or when
the Co-Chairperson is also unavailable.
Finance Committee Responsibilities and Authority include:
1) The Finance Committee shall meet at least monthly. The regularly scheduled
monthly meeting date shall be at 9:00 A.M. on the second Tuesday of the month at
the HROA Office.
2) The Finance Committee shall approve the monthly Financial Statements, the
approval of which shall include all monthly reports required to be reviewed.
3) The Finance Committee shall on an annual basis assist the HROA Board of
Directors in adopting a final budget for the forthcoming Fiscal Year. This will
require the Finance Committee to compile all projected costs submitted by the
various departments and prepare a proposed budget for the Association
Operations, Reserves and New Capital prior to the beginning of each Fiscal
Year. In preparation of the proposed Operations budget, the Finance Committee
shall analyze the actual receipts and expenditures, under appropriate headings,
for the past two (2) years for comparison purposes in determining an appropriate
amount to be funded for each specified account by department. The proposed
budget in its final form shall then be submitted to the HROA Board of Directors
for its considered adoption. The proposed final budget shall be completed on or
before April 1st of each year or such other time designated by the
HROA Board of Directors.
4) The Finance Committee shall cause an annual, independent reserve study
review to be completed each year in conjunction with the proposed budget and in
conjunction with HROA Policy. At least once every three (3) years, the Finance
Committee shall advise the HROA Board of Directors to cause that a reasonably
competent and diligent visual inspection of the accessible areas of the major
components be conducted which HROA is obligated to repair, replace, restore, or
maintain as part of the study of the reserve account requirements over the life
of the study which is thirty (30) years.
5) The Finance Committee shall have the authority to re-invest certificates of
deposits as they mature following HROA Policy and provide quarterly summaries
for the HROA Board of Directors.
6) The Finance Committee shall approve, through it’s Chairperson or
Co-Chairperson, payment of all unbudgeted bills and accounts of the Association
in excess of One Thousand Dollars ($1,000.00) for any particular bill and
summarize for the HROA Board of Directors quarterly all expenditures requested
or incurred in excess of the adopted budget.
7) The Finance Committee shall oversee appropriate accounting procedures and
handling of cash transactions and deposits, and make recommended changes,
subject to approval of the HROA Board of Directors if policy changes are
recommended. The Finance Committee shall cause the conduction of any such
investigation into suspicious or fraudulent activity regarding the same and
report any findings to the HROA Board of Directors.
8) The Finance Committee shall cause an annual, independent audit to be made of
the books and accounts of the Association by a certified public accountant
selected by the HROA Board of Directors, which shall be completed before the
annual meeting of each year, or such other time as designated by the HROA Board
of Directors.
9) The Finance Committee shall have the general oversight for obtaining
competitive bids for goods and services and make recommendations to the HROA
Board of Directors regarding changes in policies or procedures regarding the
method of securing and processing the same. The Finance Committee shall review
all contracts in excess of $10,000 at least on a quarterly basis to evaluate the
fairness in said bidding process, to assure that appropriate licensing and
insurance requirements are met and to assure that HROA Policies are being
followed. The Finance Committee shall cause the conduction of any such
investigation regarding the same and report any findings to the HROA Board of
Directors.
10) The Finance Committee shall cause to be prepared all required monthly,
quarterly, semi-annual and annual reports to be submitted to the HROA Board of
Directors for their acknowledgment and acceptance and/or approval. The Finance
Committee shall prepare additional reports and recommendations thereon from time
to time, either on its own initiative or at the request of the HROA Board of
Directors.
11) The Finance Committee shall oversee the notification and collection
procedures of HROA in regards to all monies due.
12) The Finance Committee shall oversee the timely mailing of all required
financial information to the HROA Membership.
13) The Finance Committee shall oversee appropriate record retention policies
are adhered to in conjunction with all County, State and Federal Laws and HROA
Policies.
14) The Finance Committee shall cause all Association finances to be accessible
for viewing by HROA Members upon making a reasonable request for the same, and
shall help facilitate any HROA Member in obtaining financial information they
are requesting when asked to do so.
Finance Committee Reports:
The Finance Committee shall caused to be prepared at least all of the following
reports –
1) Balance Sheets (Monthly)
2) Revenue and Expense Statements (Monthly)
3) Trial Balances by Account (Monthly)
4) Certificates of Deposit Summaries (Monthly)
5) Accounts Receivable Reports (Monthly)
6) Escrow Fund Reconciliations (Monthly)
7) Deposits to Reserves Summaries (Quarterly)
8) Withdrawals from Reserves Summaries (Quarterly)
9) Fixed Asset/Capital Account Additions and Deletions (Quarterly)
10) Bank Reconciliations (Quarterly)
11) Unbudgeted Expenses (Quarterly)
Required Mailings:
1) Fiscal Year Budget -- 45-60 days before each Fiscal Year, by First-Class Mail
2) Fiscal Year Audit -- Within 120 days after the close of each Fiscal Year, by
First-Class Mail
3) Any change in Schedule of Fees, Schedule of Monetary Penalties, change in
procedures related to collections, or change in Assessment Rates (as needed, by
First-Class Mail)
References:
1) Heritage Ranch Owners’ Association Bylaws primarily Article I, Section
1-3; Article III, Section 1-5; Article VI, Section 1-4; Article IX, Section 1-2;
Article X, Section 1-3; Article XI, Section 1-6, 10; Article XII, Section 1-6;
Article XIII, Section 1-7; Article XIV, Section 1 and 5.
2) Heritage Ranch Owners’ Association Covenants, Conditions and Restrictions
(Master) primarily Article I, Section 23 and 27; Article III, Section 1-2, 4-6;
Article V, Section 1-8; Article VI, Section 1-7; Article VII, Section 1
3) Heritage Ranch Owners’ Association Policies and Procedures Manual
4) Heritage Ranch Owners’ Association General and Reserve Resolutions Manuals
5) The Davis-Stirling Common Interest Development Act (Civil Code §1350-1378)
primarily §1354-1365.5; 1366-1368
6) California Corporations Code primarily §5009-5016; 7212-7214; 7233; 7526;
8310-8322; 8333-8337
7) Internal Revenue Code primarily §528
8) Revenue and Tax Code primarily §2188.5; 23701-23701t
HROA ACQUISITION POLICY, Adopted April 11, 2008