Q: What are the board of directors’ responsibilities?
A: NAC 116 are the regulations that are established by the commission as authorized by the Legislature. NAC 116.405 pertains to the responsibilities of association boards.
■ To keep informed of the laws, regulations and developments to common-interest communities.
■ To comply with all applicable federal, state and local laws and regulations and the governing documents of the association.
■ To uniformly enforce the governing documents of the association. (Please note that this regulation has not been modified by the commission, as NRS 116.3102 subsections 3-4, does allow a board not to enforce action under certain circumstances).
■ To hold meetings with such frequency as to properly and efficiently address the affairs of the association.
■ To obtain when practicable at least three bids from reputable service providers who possess the proper licensing before purchasing any such service for use by the association.
■ To consult with appropriate professionals as necessary before making any major decisions affecting the association or the common elements.
■ To deposit all funds of the association for investment in government securities that are backed by the full faith and credit of the United States or in a financial institution whose accounts are insured by the Federal Deposit Insurance Corp., or the National Credit Union Share Insurance Fund, the Securities Investor Protection Corp. or a private insurer approved per NRS 678.755.
■ To maintain current, accurate and properly documented financial records.
■ To establish policies and procedures for the disclosure of potential conflicts of interest and the appropriate manner by which to resolve such conflicts.
■ To establish policies and procedures that are designed to provide reasonable assurances in the reliability of financial reporting, including, without limitation, proper maintenance of the accounting records, documentation of the authorization for receipts and disbursements, verification of the integrity of the data used in making business decisions, facilitation of fraud detection and prevention and compliance with applicable laws and regulations governing financial records.
■ To prepare interim and annual financial statements that will allow the division, the board, the unit owners and the accountant or auditor to determine whether the financial position of the association is fairly presented in accordance with the provisions of NAC 116. 451-461, inclusive. (these regulations pertain to the preparation, contents and distribution of the interim financial records, presentation and contents of the interim financial statement subject to audit or review, preparation, contents and availability of the audited financial statement, qualifications of the auditor, inclusion of additional funds in the financial statements and review of financial statements and qualification of the auditor.
■ To make financial records of the association available for inspection by the Division in accordance with the applicable laws and regulations of the state.
■ To cooperate with the Division in resolving complaints filed with the Division.
■ To adopt and fairly enforce the collection policies of the association.
Many of the responsibilities of the board are administrated by its management company, but boards have the ultimate responsibility of overseeing the companies’ work.
Barbara Holland, certified property manager, broker and supervisory certified association manager, is president and owner of H&L Realty and Management Co. Questions may be sent to the Association Q&A, P.O. Box 7440, Las Vegas, NV 89125. Fax is 702-385-3759, email is email@example.com.