I cannot find anywhere in our bylaws or the Davis-Stirling Act that
requires the board to approve the association's unaudited monthly
financial statements. Is the board required to approve monthly
: You can't find it because it's not there. Under the Davis-Stirling Act boards have a duty to review
the association's finances. There is nothing in the Act about approving unaudited monthly financials.
Although boards could approve monthly financial statements, doing so
carries some risk. As was pointed out in last week's newsletter by
William Erlanger, CPA, interim financials are a work in progress and the
board could be approving inaccurate numbers.
Industry practice is to have minutes reflect that "A monthly financial
report was submitted to the Board." or "The Treasurer's report was
given." or "An interim financial statement was received
by the Board along with the Treasurer's report." When the Treasurer's report is given,
no action is required by the board, i.e., there is no need to make a
motion. (Robert's Rules
, 11th ed., p. 473, 477, 479.) The
same is true for committee reports. The board does
not approve a committee's report, it "receives" it. Moreover, committee
reports (and interim financials) are not made part of the minutes unless
there is an important reason to do so. (Robert's Rules, 11th ed., p.
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