HOA Committee Charters

by Richard Thompson

Nottacare Condominium

Budget Committee Charter

I. Purpose

The primary functions of the Budget Committee are to assist the board of directors in fulfilling its financial oversight responsibilities with respect to budgeting, finance and accounting procedures. The Committee will encourage continuous improvement of and adherence to financial policies, procedures and practices.

The role of the Committee is oversight. It is not the duty of the Committee to conduct audits or to determine whether the financial statements are complete, accurate and in accordance with generally accepted accounting principles. These are the responsibilities of independent auditors.

II. Organization

The Budget Committee shall be comprised of three or more members of Nottacare Condominium as determined by the Board of Directors.

III. Term of Office

Committee Members shall serve for one year subject to renewal by mutual agreement of the member and the board.

IV. Meetings

The Budget Committee shall meet on a quarterly basis, or more frequently as circumstances require.

V. Responsibilities and Duties

To fulfill its responsibilities and duties, the Budget Committee shall:

Formulate a draft Operating and Reserves Budget each year and present it for approval by the board of directors by November 1st of each year. The budget shall based on a thorough review of the current year’s actual expenses, cost increases in contracts and utilities and future reserve needs.
Review financial reporting procedures and fraud controls annually and make recommendations to the board for improvement.
Review and advise the board on special assessment proposals.
Review and approve the annual tax return prior to submission.
Advise board when a CPA review, compilation or audit is indicated.