A ssociation B ooks and Records Let the Sunshine In ! This course is approved by the National...

ASSOCIATION BOOKS AND RECORDS

Let the Sunshine In !This course is approved by the National Board of Certification for Community Association

Managers (NBC-CAM) to fulfill continuing education requirements for the CMCA® certification. www.nbccam.org.

Source of Authority

► Virginia Statutes► Governing

Documents/Condominium Instruments

► Case Law

Virginia Statutes

► Virginia Condominium Act (Section 55-79.74:1)

► Virginia Property Owners’ Association Act (Section 55-510)

► Virginia Nonstock Act (Sections 134.1-932, 933 and 934)

Association Books and Records

► Types► Financial Records► Administrative► Government

► Exceptions

Financial Records

► Assessment Accounts For Each Member

► Accurate, Itemized and Detailed Records of All Receipts and Expenditures

► Audits, Reviews, Accounting Statements and Financial Reports

► Copies of All Invoices Paid

Financial Records (continued)

► Copies of All Bank Statements► Copies of Tax Returns and

Correspondence with IRS and State Tax Authority

Administrative Records

► Accurate Roster of All Members and Current Mailing Addresses

► List of Names and Business Addresses of Current Directors and Officers (Nonstock Act)

► Separate Files for Every Member (correspondence, violation notices, copies of leases and approved architectural modification applications)

Administrative Records (continued)

► Salary Information of Association Employees• Property Owners’ Association

Act – Actual salary of six highest compensated association employees earning $75,000+ and aggregate salary information of all other association employees

• Condominium Act – Aggregate salary information of all association employees

Administrative Records (continued)

► Original of Contracts for Work to Be Performed; Request for Proposals and Bids for Work to Be Performed

► Copies of Current Insurance Policies

► Ballots, Sign-In Sheets, Proxies and All Other Voting Materials

Administrative Records (continued)

► Copies of Annual Registration or Annual Reports, If Applicable

► Employment Records for Association Employees

Government Records

► Recorded Copies of All Governing Documents or Condominium Instruments

► Copies of Plans, Permits, Warranties and Other Items Provided by Developer

► Copies of Proffers, If Applicable

Government Records(continued)

► Resolutions or Rules and Regulations Adopted by the Board of Directors

► Copies of Approved Meeting Minutes of the Board or Association Committees

Exceptions

► Personnel Records► Contracts, leases and other

commercial transactions to purchase or provide goods or services under negotiation

► Pending or probable litigation

Exceptions (continued)

► Matters Involving State or Local Administrative Proceedings Before Government Tribunal for Enforcement

► Communications with Association Legal Counsel Relating to Above Items or that Are Privileged

► Disclosure of Information in Violation of Law

Exceptions (continued)

► Meeting Minutes or Other Confidential Records of an Executive Session of Board of Directors

► Documentation, Correspondence or Management or Board Reports for Consideration of Board in Executive Session

► Individual Owner Files► Medical Records of Owners► Individual Financial

Information

Exceptions (continued)

Manner of Access

► Who► When► Where► How (and How Much)

Who

► Owner or Member► Owner’s Authorized Agent► Mortgagees► In Good Standing

When

► Upon Five Days Written Notice► On Working Days► Times Published – Announced

for General Knowledge

Where

► Association Principal Office► Management Office► Other Convenient Location

How - Prerequisites

► Written Requesto Five days written noticeo Specifying purposeo Specifying books and records

requested► Pay Costs*

Costs*Virginia Condominium Act and Virginia Property Owners’ Association Act now provide that:o Association may impose charge for

providing copies of books and records in accordance with a cost schedule adopted by the board;

o Charges may reflect reasonable costs of materials and labor, but cannot exceed actual costs

o Cost schedule must i) specify charge for materials and labor, ii) apply equally to all owners in good standing and iii) be provided to requesting owner at time request is made.

Books and Records – Tips

► Adopt a Policy on Access to Books and Records and a Cost Schedule

► Adopt a Policy on Record Retention

► Agree and Publish Procedures for How, When and Where Books and Records are Available

► Keep Good Records

ASSOCIATION BOOKS AND RECORDS

Let the Sunshine In !