So, what’s the differences in the two approaches? One could argue there is some natural talent the professional


has that the amateur does not but I would argue it goes much further than that. The professional golfer takes a very disciplined approach to the tee-shot, having spent thousands of hours practicing and studying with their coach and caddy. In other words, they’ve prepared for the very moment when they need to perform. The amateur, by comparison, is simply looking to have some time to relax and perhaps spend time with friends. Maybe they even have a goal of improving their performance, but they are only going to devote a certain amount of time to the effort. It all comes down to who spends more time preparing and practicing for their best golf shot. Are we then able to find some application in these two approaches when looking at the role of a volunteer board member in a community association? I’ll do my best to draw the comparison while trying not to hit it out of bounds.


members are a special group. They volunteer for no compensation. They make incredibly important decisions, many times in areas of which they have little or no expertise, while relying on the advice of the professional managers or vendors who support them. A phrase I’ve seen often times in my life that seems to have application to a community association board member is “you can’t please everyone and you can’t make everyone like you.” The cynic might say it as, “you can’t please everyone so don’t bother trying.” My personal favorite is “you can’t please everyone, you’re not a Nutella jar.” The point being that as a community association board member, you’re going to be faced with decisions that are not going to please all the unit owners. But then again, your job as a board member isn’t to please everyone, it’s to be prepared to make the best decision based on the information available to you.


Community association board


So how does one become a board member that is prepared to make decisions? Well the simple answer is to be prepared (I know, “thank you Captain obvious”). Let’s go back to the two golfers described earlier. You have the choice of whether to arrive at your board meeting as one who has completed the “checklist” of items required to make the best decision or to be the amateur who is simply there because no one else wanted to be on the board. If you have taken on the commitment to sit on a board, it comes with the responsibility to be prepared. What follows is hardly an exhaustive list, but rather a few of the more important issues every board member should be prepared for when they show up for the meeting.


FINANCES


The financial health of a community association certainly qualifies to be considered among the top priorities for a board member. An association in poor financial health can


18 | COMMON INTEREST®


subject the board and unit owners to a myriad of serious issues, including deferred maintenance or an inability to pay the bills on a timely basis. It is critical for a board to prepare a balanced budget which addresses the important issues such as proper reserve funding and annual maintenance of the common elements. There needs to be an understanding as to how the board arrived at the unit owner assessment levels and to understand how it compares to other community associations in your immediate area. A community association with an unusually high monthly assessment runs the risk of having lower property values as potential buyers will make comparisons between your community association and that of any nearby properties. Over the years, I have seen everything from overfunded reserve balances to associations lacking any reserve funds at all and everything in between. It’s a much easier process to scale back a budget and adjust a reserve fund down to a more moderate level than it is to try and build a reserve fund by sharply increasing assessments. Being prepared for budget season is critical. Another issue that a prepared board member is cognizant of is the control and accountability for the association’s cash. I’ve had too many conversations with board members who didn’t hold the managing agent accountable for what dollars are spent and where they are going. A popular TV commercial asks “what’s in your wallet?” You should be prepared to answer that question or have it answered for you at every board meeting. Do you see the actual copies of checks that are written or are you relying on just a report? Are your annual financial statements being audited by an independent CPA? For some associations, this makes sense but perhaps you live in an association with a smaller number of units and an audit is not cost effective. That’s ok, conduct your own informal audit as a board and be certain you know where the money is going. It just takes some time and a person with an attention to detail to lead the effort. No board treasurer or property manager should ever be offended by the idea of a financial audit. It makes everyone more comfortable knowing the funds of the unit owners are being allocated and spent correctly.


VENDOR RELATIONSHIPS


Ask any professional golfer and they’ll tell you that having the right caddie can be the difference between an average performance and a tournament win. The caddie helps the golfer be prepared for each and every shot. The caddie knows exactly how far the ball is from the hole before every shot is taken. When the ball is on the green, they know which way it’s going to roll based on the undulation of the green. And just like a properly prepared caddie, the vendors that work with an association board are critical to its success. It may be a landscaper or wetlands contractor, a pool, roofing or siding contractor or perhaps a firm who repairs the elevator. Ignoring good advice from your advisors can send you into the sand trap of community association living. Are you getting multiple bids each year as your vendor contracts renew?


• Summer 2022 • A Publication of CAI-Illinois Chapter


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