The Bookkeeping Act

Understanding The Bookkeeping Act

The Bookkeeping Act is a crucial piece of legislation that outlines the financial record-keeping standards for Homeowner Associations (HOAs). It mandates the methods and practices of keeping financial records, ensuring that HOAs operate in a manner that is transparent, accountable, and in line with state and federal financial regulations.

The Act encompasses a broad range of financial activities, including the collection and allocation of dues, the management of reserves, and the funding of major repairs and improvements. It also sets forth requirements for annual audits and financial reports, which are to be made accessible to all HOA members.

The Bookkeeping Act helps protect homeowners by ensuring that their financial contributions are being managed responsibly and effectively. It also allows them to keep track of how their HOA is managing its funds, fostering trust and confidence in the association’s leadership.

Non-compliance with the Bookkeeping Act can result in severe fines and penalties for the HOA, as well as legal repercussions for individual board members. Therefore, it is crucial for every HOA to understand and adhere to the requirements of the Act.