I am the President of a small Pennsylvania Homeowners Association. We have a tax id. The Treasurer tells me that the Association has been paying taxes since it's inception some 7-9 years ago around 2001. He also tells me that we have practically no paper trail (except for some quarterly meeting minutes) and little in the way financial records. He keeps some financial data in a database (unreadable by anyone but him) on his personal computer. He doesn't have any records prior to his tenure as Treasurer. So we have no financial data prior to 2008.
I'm not worried about our tax situation.
I am worried that we lack proper financial documentation for times past. I know in the corporate world that are requirements to maintain documents for years.
Can anyone tell me (in general terms) what financial / document obligations a homeowners association has?
NicoleD | Former Moderator |
10/15/2010 - 12:22 pm
A prudent guideline for keeping records ranges anywhere from3 to 7 years. More specifically, the IRS considers recordkeeping bestpractices for certain types of documentation. You can read the details in this article:
I Keep Good Records But How Long Should I Keep Them For?
You may also want to encourage your treasurer, or another member of your board, to follow these suggested Bookkeeping Guidelines.
NicoleD | Former Moderator | 10/15/2010 - 12:22 pm
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