Fiduciary

What is a fiduciary?

A fiduciary is someone who’s legally or ethically required to act in another party’s best interests. In HOAs, this usually means board members or managers have a duty to handle the association’s funds and decisions responsibly and fairly. For instance, they need to budget carefully, avoid any shady conflicts of interest, and make sure all financial actions benefit the whole community—not just a select few. It’s about trust, really. Homeowners rely on fiduciaries to protect the HOA’s financial health and to act honestly. Being a fiduciary isn’t just about rules; it’s about doing what’s right for everyone involved.

Why is a fiduciary important to HOA accounting?

A fiduciary is one of the most important roles in HOA accounting because they’re the ones who make sure the money is being used responsibly. Homeowners pay their dues expecting those funds to go toward maintaining the community, not to just disappear or be spent on something random. A fiduciary takes care of the financial plan, ensures everything is transparent, and avoids anything that could be seen as unethical. They’re kind of like the HOA’s financial conscience. They also keep detailed records and share updates with homeowners so everyone knows what’s happening. Without a fiduciary, it’d be easy for things to slip through the cracks—like bills getting missed or funds being mismanaged. They’re the glue holding the community’s finances together.

How can you use “fiduciary” in a sentence?

Our HOA treasurer, as the fiduciary, ensures that all community funds are managed responsibly and transparently.