The HOA Treasurer Role in Arizona

What does an HOA treasurer do?

The treasurer is the board’s financial watchdog. In a professionally managed association, the manager handles billing, payables, receivables and reconciliations; the treasurer’s job is oversight. That means asking good questions, spotting trends early and helping the board make informed decisions. Typical duties:

• Review monthly financial statements and bank reconciliations.
• Compare actual spending to the budget and explain major variances.
• Monitor the delinquency report and the collections policy.
• Lead preparation of the annual budget with the manager.
• Track reserve balances against the reserve study.
• Coordinate the annual audit, review or compilation.
• Report to the board and owners on the association’s financial health.

The treasurer’s monthly review checklist

1. Balance sheet: Do the operating and reserve cash balances match the bank statements? Are reserve funds kept separate?
2. Bank reconciliations: Are they complete, and are there any old uncleared items?
3. Income statement: Which line items are more than 10% over or under budget, and why? Water and electric costs from SRP or APS often spike in summer, so compare to the same month last year.
4. Accounts receivable aging: How many owners are 30, 60 and 90+ days delinquent? Is the collections process being followed consistently?
5. Payables: Do invoices match approved contracts and work orders?
6. Reserve activity: Were reserve funds spent only on reserve components?

Bring questions to the meeting rather than resolving them privately, so the full board benefits. Our internal controls guide explains dual signatures and other safeguards.

Annual duties: budget, reserves and the audit

Each year the treasurer helps the board adopt a realistic budget, typically 60 to 90 days before the fiscal year begins. Start from actual costs, include inflation for landscaping and utilities, and fund reserves according to the reserve study. See the HOA budget guide and reserve study guide.

Arizona’s Planned Communities Act requires an annual financial audit, review or compilation, unless the community documents provide otherwise, under A.R.S. § 33-1810, and the result must be made available to members. If an increase is needed, remember the statutory limits on raising regular assessments; our assessment increase limits page explains them.

This is general information, not legal advice; your governing documents and an Arizona HOA attorney control.

Red flags every treasurer should watch

• Reserve balance falling while the reserve study calls for growth.
• Delinquencies climbing for several months in a row.
• Repeated “miscellaneous” charges or vendors you do not recognize.
• Late or missing bank reconciliations.
• Operating cash borrowed from reserves without a board resolution and repayment plan.

Questions to ask your manager each month

You do not need to audit every transaction. Instead, ask focused questions that reveal how the money is really moving:

• Which three expense categories varied most from budget this month, and why?
• Were any invoices paid without a matching contract or approved work order?
• How much was transferred to reserves, and does it match the budgeted contribution?
• Which accounts moved to the next delinquency stage, and what action is scheduled under the collections policy?
• Are any reserve projects coming due that are not yet scheduled?
• Are our deposits within federally insured limits or otherwise protected?

Keep a running log of answers. Over a year, it becomes a valuable picture of your association’s financial patterns, and it makes budget season far easier. The collections policy guide explains how a written policy keeps delinquency handling fair and consistent.

Reporting to owners clearly

Owners want to know two things: is the money safe, and are dues being spent wisely? At each open meeting, give a short summary rather than reading numbers line by line. For example: operating cash, reserve cash, year-to-date results against budget, the delinquency rate, and any major variances with a one-sentence explanation. At the annual meeting, explain how the reserve plan protects owners from surprise special assessments. Plain-language reporting builds trust and makes future assessment conversations much easier. If an increase is coming, coordinate with the president on messaging using the raising HOA assessments guide.

Working with the reserve study

The reserve study lists every major component the association must eventually repair or replace, such as roofs, asphalt, pool plaster and equipment, perimeter walls, gates and painting, along with estimated costs and remaining useful life. The treasurer’s job is to make sure the budget’s reserve contribution follows the study’s funding plan and that the study is updated regularly. Arizona’s sun and heat shorten the life of many components, so compare the study’s assumptions to what you actually see on site visits and ask your manager to flag items aging faster than expected.

How Transcend supports treasurers

Transcend’s accounting team handles AR/AP, billing, bank reconciliations and monthly, quarterly and annual financial reports, plus tax and governmental reporting and Arizona Corporation Commission annual filings. Treasurers can pull statements and approve invoices in the Board Portal, and Bruno, our AI concierge, can send financials on request. Predictive Insights helps analyze budgets and accounting trends, while your Board Liaison and accountants answer the hard questions. Learn more about our HOA accounting and financial reporting.

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