How Well Does Your Board Work?

Evaluations work. A very effective practice for Board members is to evaluate the quality of their Board operations. Many times, Board members do not know what they do not know about their own Board. Board evaluations are mandatory in many for-profit industries. These Board members know it is critical to regularly conduct short, practical evaluations of their Board operations, and then act on the results of those evaluations during the year.

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How to Conduct Effective Meetings

I have been to many, many board meetings. For the most part, we accomplish what is on the agenda. This does not mean they were good meetings...

I stumbled upon a web-site in searching for resources for my visitors looking to improve their meetings. The Community Associations Network is an American website and although much of the information presented there does not work here in Ontario (legislative and legal differences), there is still a wealth of resources one can refer to. They have an educational video on how to hold effective board meetings. It is presented from the board’s point of view and management does not play a part. It is an excellent video that all boards should review. If there is a computer in the management office, I suggest they watch it as part of a meeting.

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To Borrow or Not To Borrow

It is not a best kept secret, there are Corporations who, for various reasons, find themselves in a financial pickle. When funds are required now, boards are faced with three options:

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Harmonization of PST and GST

Corporations should prepare their owners now for a minimum 5-7% increase in 2010.

The Federal Government intends to harmonize the GST and PST effective July 2010 (subject to Parliamentary approval). The governments position is that vendors and retailers will lower their current prices by an amount equal to the PST and then charge the GST. In a perfect world, this scenario would increase the cost of your purchases by approximately 5-6%.

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The Three P's of Property Management - People, People and People

I was speaking with a business associate a few weeks ago. His line of business is in no way related to property management. It is an extremely stressful career choice that only a few can manage successfully. He owns a trucking brokerage firm where split second decisions can be the result of major profits or substantial losses. Yet he shakes his head in admiration of us front line property managers. Why, you may ask?

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Protection against fraud

Protection of the Corporations funds should be first and foremost for both boards and management.  On the issue of protection against fraud one should also consider protection for the management company.  The management company is responsible for the maintenance, reconciliation and reporting of transactions in and out of the Corporations bank accounts.  They should also have the ability to control who can and cannot draw funds against the account.

There are corporations who require 2 board members signatures on any cheques issued.  A good start to monetary controls, but what protection does that offer the management company?

Proper financial controls should start with, at minimum, one signature from management and one from the Corporation.

Any additional thoughts?