Proposed By-Law Change

The board is proposing a bylaw change that will be voted on at the May General Membership meeting. Please find the proposed change below to review before next month’s meeting. Everyone is encouraged to attend the meeting and the Zoom link will be posted when it is available. 

The May General Membership meeting will be May 12th at 7:30pm

CURRENT

ARTICLE IV

ASSOCIATION:  BOOKS, RECORDS AND PAPERS

Section 1          
The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Members.

Section 2          
The Board of Directors shall see that the books and financial reports of the Association are audited within ninety (90) days after a) a change in the Office of the Treasurer or b) the annual regular meeting of Members, whichever occurs first.  Further the audit shall be performed in a manner consistent with the provisions of the laws of the State of Illinois and standard accounting practices.

PROPOSED

ARTICLE IV

ASSOCIATION:  BOOKS, RECORDS AND PAPERS

Section 1          
The books, records and papers of the Association shall at all times, during reasonable business hours, be subject to inspection by any Member(s).

Section 2          
The Board of Directors shall see that the books and financial reports of the Association are examined and reviewed within ninety (90) days after a change in the Office of the Treasurer.  Further the Examination will be a specified agreed upon procedure and detailed in an engagement letter prior to the engagement.

This examination will be a specific agreed upon procedure performed by an independent third party such as an accounting firm. The procedure is meant to confirm that there has not been mismanagement of homeowner association funds.

This procedure will include the following:

-Confirm the bank statements and confirm that they are reconciled and agreed to the presented financial reports.

-Confirm all checks over $150 and confirm payee per cancelled check/bank agrees with the payee per the financial statements that are presented to the board.

-Confirm all checks over $500 are properly authorized.

-Roll forward the bank balance with the deposits per all sources and reviewed expenditures.

-Perform analytical to ensure cash receipts from paid properties is reasonable to the supporting records(Quick Books)-The properties marked as paid and their respective annual dues agrees to the cash receipts.  

-Confirm that the internally prepared financial statements agree to the annual change in balance per the appropriate bank statements.