💰 Treasurer & Co-Treasurer SOP

Operational guidelines for managing funds, subscriptions, and financial audits.

📜 Statutory Eligibility (Bylaws)

Must be a registered property owner (General Body Member) of MHOWA.
Must not have any pending maintenance dues or arrears.

⭐ Preferred Profile

Retired or semi-retired, with time to dedicate at least 3 to 10 hours per week.
Physically available within the community and easily reachable.
Has career expertise in finance, accounting, banking, or auditing.

✅ Do's

Issue official receipts for all incoming payments and maintain a daily Cash Book.
Deposit collections into the Association's Nationalised Bank account promptly.
Maintain the petty cash (imprest) strictly under ₹5,000.
Ensure all accounts over ₹10,000 are audited annually by a Chartered Accountant.
Ensure routine maintenance and infrastructure projects are accurately budgeted and validate Anacity invoices against maintenance work.

❌ Don'ts

Do not distribute any Association surplus funds or profits as bonuses to members.
Do not process payments over ₹5,000 without the co-signature of the President or Secretary.
Do not use general Association funds to subsidize Mayflower Heights (Apartment) exclusive maintenance.
Do not release final payments for infrastructure projects until completion is formally verified by the Admin Manager or relevant EC member.

❓ Role FAQ

Q: How does the Treasurer handle chronic maintenance defaulters?

A: Apply the standard late payment interest from July 1st. If arrears exceed 3 months, restrict voting/proxy rights. Seek EC approval before pursuing legal recovery.

Workflow Scenarios & SOPs for Treasurer & Co-Treasurer

Scenario 1: Annual Membership Fee Collection

The Treasurer is solely responsible for collecting the Annual Membership fee (Rs. 1,000) and Maintenance Charges, and applying late penalties.

Workflow Checklist:

Send reminders targeting the due date: 30th April.
Allow members to pay until the end of the Grace Period: 30th June.
If a member exceeds the grace period, apply a 10% penalty calculated retroactively from 30th April.
If arrears exceed 12 months, mark membership for automatic termination and suspend voting rights.
Issue receipts for all received funds immediately.

Fee Collection Flowchart

flowchart TD A[Financial Year Starts Apr 1] --> B[Fee Due Apr 30] B --> C{Paid by Apr 30?} C -->|Yes| D[Issue Receipt] C -->|No| E[Enter Grace Period until Jun 30] E --> F{Paid by Jun 30?} F -->|Yes| D F -->|No| G[Apply 10% Interest from Apr 30] G --> H{Arrears > 12 Months?} H -->|Yes| I[Suspend Voting Rights / Terminate] H -->|No| J[Continue Collection Efforts]

Scenario 2: Managing Petty Cash (Imprest)

For smooth day-to-day operations, the Treasurer maintains a petty cash float.

Workflow Checklist:

Maintain physical imprest (cash) up to a hard limit of Rs. 5,000.
Disburse funds for routine maintenance requests less than Rs. 5,000.
Collect physical vouchers/bills for every transaction.
Request cheque signatures (from President/Secretary) to replenish the float when it runs low.

Petty Cash Flowchart

flowchart LR A[Minor Repair Needed] --> B[Treasurer Checks Cash Available] B --> C{Cash > Bill?} C -->|Yes| D[Pay Cash & File Voucher] C -->|No| E[Draft Cheque to Replenish Float] E --> F[Joint Signature with President/Sec] F --> G[Cash Withdrawn from Bank] G --> D

Scenario 3: Monthly & Annual Financial Reporting

The Treasurer must keep the EC and General Body updated on all financial standing to ensure transparency.

Workflow Checklist:

Maintain all cash books, receipt books, and ledgers currently.
Prepare a Monthly Statement of Receipts & Expenditure. Produce books directly to the EC during the monthly/quarterly EC meeting.
Prior to the AGM, facilitate the Audit of Accounts. Since MHOWA income is presumed > Rs. 10,000, hire a Chartered Accountant.
Present the finalized Annual Accounts at the Annual General Body Meeting.

Scenario 4: Handling Chronic Maintenance Defaulters

The Treasurer manages actions against members who chronically default on maintenance payments, as resolved by the EC.

Workflow Checklist:

Identify members with severe, chronic arrears.
Ensure late payment penalties/interest are applied as prescribed by the General Body.
If arrears exceed 3 months, formally notify the member that their voting and proxy rights are suspended.
If arrears exceed 12 months, process the automatic termination of membership as per bylaws.
Avoid stopping essential life-services (like water/electricity) which may invite legal liability. Instead, initiate formal legal recovery if necessary.

Defaulter Action Flowchart

flowchart TD A[Identify Arrears] --> B[Apply Fines / Interest] B --> C{Arrears > 3 Months?} C -->|Yes| D[Suspend Voting & Proxy Rights] D --> E{Arrears > 12 Months?} E -->|Yes| F[Terminate Membership & Initiate Legal Recovery] C -->|No| G[Continue Routine Reminders]

Scenario 5: Capex & Opex Expenditure Processing

Processing payments for major capital/operational expenses like bore wells, STP repairs, and software app renewals.

Workflow Checklist:

Ensure prior EC approval exists for the specific expense (e.g., Anacity renewal, geologist fees, STP pump repair).
Verify invoices and ensure limits are strictly adhered to (e.g., approved up to 15k for STP pressure pump).
In cases of replacement, prefer new equipment over second-hand purchases as directed by EC.
Process payments via cheque/bank transfer with joint signatures.

Treasurer Absence & Bank Authorisation

Handling absences or resignations of the Treasurer/Co-Treasurer requires strict adherence to bank signatory resolutions to ensure operational continuity.

Workflow Checklist:

If the Treasurer or Co-Treasurer resigns, formal communication must be presented to the EC for acceptance.
In the prolonged absence or resignation of the Treasurer, the EC must pass an interim resolution authorizing alternative signatories.
As per the May 2026 resolution, the President and Secretary are authorized to operate the bank account jointly in the Treasurer's absence.
A certified copy of the EC resolution must be provided to the Association's bank to update the mandate immediately.
This interim arrangement must be placed before the forthcoming General Body Meeting for formal approval and amendment of the relevant byelaw.
Coordinate with other EC members to oversee daily treasury activities alongside the accountant during transition periods.