The Homeowner Association Self-Assessment Checklist by Richard Thompson Every organization has strong and weak points and a homeowner association is no exception. Below is a list of 46 items that will help evaluate yours. Each item should be marked as either Yes, No or NA (not applicable). 1. The Board of Directors has clear, concise, written goals: _____ 2. The roles of each Board office and the directors is defined in writing:_____ 3. The management company's duties is defined by written contract: _____ 4. Board members receive regular training to improve association business:_____ 5. New board members receive an orientation about the governing documents, policies and critical issues: _____ 6. Each board member has a copy of an operations manual with basic need-to-know information: _____ 7. The Board has the directors required by the governing documents: _____ 8. Board avoids all conflicts of interest (no self dealing, nepotism, etc.):_____ 9. Governing documents conform to state statute and include:
a. How and when notices for board meetings are made: _____
b. How board members are elected, appointed and removed: _____
c. What director terms limits are: _____
d. Quorum requirement for business decisions: _____
10. There is a written procedure for handling emergencies: _____ 11. Board members serve without compensation: _____ 12. There is a written calendar of events and meetings: _____ 13. Board meeting attendance is mandatory for all directors unless excused by the President: _____ 14. Meetings have written agendas and supporting information provided to directors in advance: _____ 15. Board Meetings are open to all owners and held in a visitor friendly location: _____ 16. Meeting minutes are recorded and promptly distributed to all owners: _____ 17. Timely monthly financial reports are prepared, reviewed by the Board and made available to owners: _____ 18. Physical assets are properly maintained: _____ 19. The association has all necessary insurance coverages:
a. Directors & Officers Liability: _____
b. General Liability: _____
c. General Hazard Insurance with Guaranteed Replacement Cost: _____
d. Employee Dishonesty: _____
e. Building Ordinance & Law: _____
f. Earthquake: _____
20. Fraud prevention methods are in places to guard against embezzlement:_____
a. Bank reconciliations are reviewed and approved by the board of directors: _____
b. All reserve account checks require two signatures: _____
c. Checks are issued only with properly approved invoice or check request:_____
d. No checks are made payable to "Cash": _____
e. No checks are presigned: _____
21. There is a written delinquency collection policy: _____ 22. All delinquencies are pursued in a timely manner: _____ 23. All filings are current:
a. Annual Registration: _____
b. Articles of Incorporation: _____
c. IRS tax filings and reports: _____
24. The association has a professionally performed reserve analysis and a long range plan for funding repairs and replacement: _____ 25. The Board conducts an annual operating and reserve budget review and formally adopts a new budget each year:_____ 26. The Board adopts an Annual Management Plan that prioritizes goals and sets timetables: _____ 27. All rules are relevant: _____ 28. Rules and policies are written: _____ 29. Rules are enforced uniformly: _____ 30. There is a violation appeal process: _____ 31. The association sends out regular and informative newsletters: _____ How did you score? If you answered "Yes" to: 41-46 questions: EXCELLENT Still room for improvement? 36-40 Questions: VERY GOOD You're close, but roll up your sleeves and close the gap. 31-35 Questions: GOOD You've got serious work to do. 30 or less Questions: DANGER Your association is likely suffering from deferred maintenance, sliding property values, excessive delinquencies and internal conflict. If so, competent management and legal advisors are urgently needed before the patient bleeds to death. The Board is responsible for the largest asset most people own...all together usually millions of dollars in assets. This reality demands serious reflection and planning to properly manage. The first step is to focus on your weak points and enact a plan of attack. For many management tools, go to http://www.regenesis.net and share the good news! Thanks to Lauren Bush for the article concept. | 
