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RECORD MAINTENANCE FOR ASSOCIATIONS
April 1, 2006
One of the more important aspects of an Association's
responsibility is the administration and maintenance of
the Association records on behalf of the owners. The
Association's records can be classified as corporate,
financial and property (both common and individual unit or
lot).
The person usually in charge of records will be the
Secretary of the Association. However, in reality, the
record-keeping is the responsibility of all of the Board of
Directors. If the Association has hired someone other than
a Board member to file and keep the records, then there
should be at least one person from the Board of Directors
to oversee and monitor that the files are being properly
maintained.
The reason for the Association to maintain good records is
that it is usually required to, as stated in the
Association's By-laws, the state statutes require proper
and complete record-keeping and good business practice
always require this as well. The records of the
Association will show the Association's history and will be
able to identify the significant persons and events in the
Association's past.
The Association's records can be categorized as corporate,
financial and property. Records that would be considered
corporate would be the following: agendas, ballots,
committee reports, contracts, corporate annual reports,
documents, election materials, incoming correspondence,
legal correspondence, legal opinions, management reports,
minutes, notices, outgoing correspondence, owner
violations, resolutions, roster of owners/tenants and
voting certificates. These types of records should be kept
in a separate area and not commingled with the financial
and property records. These records are very important to
maintain properly, as in the case of a legal dispute, these
records will be needed to provide to attorneys for their
review and in many cases will be able to prove that the
Association was being run in a business-like manner and
that the Board members were not negligent in their duties.
Financial files would include: assessment calculations,
audit reports, budgets, cancelled checks, delinquency
reports, deposit slips, financial statements, general
ledgers, income statements, paid bills, and posting
reports. These records will need to be maintained properly,
for the following reasons: budget information, federal tax
reporting, historical data, mortgage lending information,
owner disputes, regular audits, state tax reporting and
workmen's compensation audits.
Property records should be divided into common area and
individual unit/lot files. Common area files would include
records of the following: contractor files, contracts,
engineering studies, facilities management reports,
inventory, management reports, maintenance programs,
personnel files, property inspection, reserve reports,
special projects, supplies, utility, vendor files and
warranties. These records will provide not only a history
of the building and grounds operations but will also be
used as a basis for future common area budgeting in both
the operating and reserve areas.
Unit/Lot records will show a history of that particular
unit/lot. Included in the file would be deeds,
applications, closing statement, owner correspondence,
owner violations, property inspections and any other
pertinent information concerning that unit/lot.
The Association may have in its possession additional
records which would also be included. Generally, the
records must be made available to the party who requests
the records within 10 days after receiving the written
request. All Associations will have per diem damages for
noncompliance. The Board of Directors is allowed to make
reasonable rules and regulations concerning the frequency,
time, location, notice and manner for inspection of
records. Overall, the Association records are the owners’
records and should be maintained in a business-like manner
for the common good and perpetuation of the community.
In addition to the above, Associations must maintain and
keep the following records from inception. There are minor
variations to the following. Please refer to Chapters 718,
719, 720 for exact record- keeping requirements.
1. A copy of the plans, permits, warranties by the
developer.
2. A copy of the recorded declaration and any amendments.
3. A copy of the recorded Bylaws and any amendments.
4. A certified copy of the Articles of Incorporation of
the Association and any amendments.
5. A copy of the current rules of the Association.
6. A minute book containing the minutes of all meetings of
the Association. Maintained for 7 years.
7. A current roster of all unit/lot owners and their
mailing addresses, voting certifications.
8. All current insurance policies of the Association
operated by the Association.
9. A current copy of any agreements, leases, or other
contracts to which the Association is a party to.
10. Any Bill of Sale or transfer of property owned by the
Association.
11. Accounting records for the Association. All
accounting records shall be maintained for a period of not
less than 7 years.
12. Ballots, sign-in sheets, voting proxies, and all other
papers relating to voting by unit owners, which shall be
maintained for a period of 1 year from the date of the
election, vote, or meeting to which the document relates.
13. All rental records, when the Association is acting as
agent for the rental of condominium units.
14. A copy of the current question and answer sheet.
(Chapter 718)
15. All other records of the Association not specifically
included in the foregoing which are related to the
operation of the Association.
Copyright 2007© Associated Property Management of the Palm Beaches, Inc.
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