Date: Third Thursday of each month
Time: 9:00 AM
Place: HROA Office Conference Room
Note: See monthly calendar for any changes
Any member who would like to join and/or just sit in during one of our monthly meetings is welcomed to do so.
About the Finance Committee
The Finance Committee is an Executive Committee as this term is defined within California Civil Code 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, a minimum of three (3) HROA Committee Members, the HROA General Manager, the HROA Treasurer and the assistant Treasurer, if one is appointed. The Chairperson and the Co-Chairperson must be HROA Board Members. The Finance Committee shall select its own Secretary and keep permanent records of its proceedings and reports including agendas and minutes of each meeting.
All Finance Committee Members must be members 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 Finance Manager 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 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:
- The Finance Committee shall meet at least monthly. The regularly scheduled monthly meeting date shall be at 9:00 am on the second Friday of each month at the HROA Member Services Office.
- The Finance Committee shall review all monthly Financial Statements, the approval of which shall include all monthly reports required to be reviewed.
- 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.
- 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.
- The Finance Committee shall review, 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.
- The Finance Committee shall oversee appropriate accounting procedures and handling of cash transactions and deposits, 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.
- 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.
- The Finance Committee ensures that 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.
The Finance Committee regularly reviews the following reports –
- Balance Sheets (Monthly)
- Revenue and Expense Statements (Monthly)
- Trial Balances by Account (Monthly)
- Certificates of Deposit Summaries (Monthly)
- Accounts Receivable Reports (Monthly)
- Escrow Fund Reconciliations (Monthly)
- Deposits to Reserves Summaries (Quarterly)
- Withdrawals from Reserves Summaries (Quarterly)
- Fixed Asset/Capital Account Additions and Deletions (Quarterly)
- Bank Reconciliations (Quarterly)
- Unbudgeted Expenses (Quarterly)