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I have just been elected to my Co Op Board this past November and hold the position of Treasurer. The Managing Agent handles all of our finances, pays the bills, issues checks, etc. Every Month all board members get a Monthly report with checks issued, bills paid all debits and credits. I have basically been doing nothing; what should my role be and should the Managing Agent take care of all this business?
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I am the Treasurer of our building. I review the report and I look at the invoices being paid and ensure that there is a work order associated with them. If I find a charge that seems unreasonable, I question it.
I review the finances and compare our projected budget to actuals. I look for areas where we are over spending and to identify a potential problem area. Just because you have an "agent" payin' the bills does not mean that you sit back and don't do anything. It's your building and your money; not the agents.
We authorize the mgmt. co to pay recurring bills - utilities, union, mortgage, payroll. Everything else needs approval by board treasurer or president. In reviewing bills, some may need to be charged back to shareholders or the sponsor for repairs made that were not coop responsibility. I check for that, and also arrears on bills. Our mgmt. co. had failed to pay or correct numerous bills from supers union, they blamed it on staffing changes. If you're really diligent, make a spreadsheet of expected/recurring bills, and see that they are paid when due, and in a $ range similar to previous bills. Check for bills paid that were not yours, but another building. Some bills, (water/sewer, prop. taxes) incur penalties when paid late. This spreadsheet would also help in preparing budgets each year. I also watch for the scheduling and payments of permits, inspections, city/state record filings, etc.
Annual and 5 year elevator inspections, sprinkler and standpipe, oil tank and boiler inspections, local law work - parapet, energy usage (buildings over 50,000 sq feet), corporate registration with NY Dept of State, NYC HPD are some of them. City likes to fine you for missing/late filings/inspections.
What kind of reserve fund do you have? You can direct excess funds in operating account to go to the reserve fund. Reserve fund access should be limited to at least 2 signatures of board members, mgmt. should not have withdrawal access.
The annual budget is an important responsibility, mgmt should present a draft and board reviews and adjusts. This helps the board decide whether to do a maintenance increase to cover expenses. Also, you help determine how to handle the coop abatements and other tax credits and necessary assessments.
You have options as to whom prepares your 1098 forms each year, the accountant or the management co. can both do it. Annual fire safety and window guard notices can be done in house, by mgmt, or by third parties. Do you mail info regularly to owners/residents or slip them under doors, saving postage? If you have any mechanical type of knowledge, meet with contractors yourself to obtain estimates for projects. Get at least two estimates for anything not urgent.
How deeply you want to get involved and how much time you have, there's lots you can do.
How does one get all the pertinent info when I am only supplied with a monthly report...once the invoices have been paid,,etc.. Also, is the a conflict if the Agent is the Sponsor?
In addition to the monthly management report prepared by the MA you should also receive photocopies of *all* invoices, *all* bank statements, and *all* check vouchers. That's the only way you can independently verify what's in the report. The report is just a summary of your monthly financial activity and not an audit or verification of it. If you don't receive copies of your invoices, check vouchers, and bank statements, ask for them, and then demand them if they are not forthcoming. Remember that this documentation all belong to you and not to the MA. Failure to provide you with this information could be an indication that something is not right.
I assume you have an independent accounting firm auditing your building. Talk to the accountant who is assigned to your building and ask her/his advice. The accountant for my building was extraordinarily helpful when I first became treasurer. If you don't have an independent auditor you could be in for problems later on.
As a last resort, talk to your co-op's attorney. Ask her/him if having the sponsor be the MA is a conflict. I think there are too many factors in something like this which prevent with a simple yes or no answer.
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the treasurer on our board reviews all that the managing agent does. checks the invoices, makes sure numbers look right, checks arrears, monitors account levels. our agent does what yours does. not sure what your question is - are you asking if there's a conflict if the agent is also the sponsor?
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