The crucial role of the Treasurer in a Co-operative Housing Society

July 25, 2019

The Minister of Co-operation,

Govt. of Maharashtra,

Mantralaya,

Mumbai.

cc: Mr. Satish Marathe, Director, Reserve Bank of India

cc: The DDR, Mumbai & Thane Dist.

Dear Sir,

In the recent spate of amendments, the state govt. has introduced a separate chapter on cooperative housing society, which is indeed a laudable step and the govt deserves to be congratulated for this initiative.

We would like to point out here that in this chapter, it is absolutely necessary to elaborate in detail the responsibilities of the Treasurer of the CHS.

It is an important position, but office bearers of CHS's treat it like dirt and assign the position to any tom, dick and harry - thereby lowering the importance of the post and consequently the society suffers due to a non-competent person being in the pot.

Here, we are suggesting certain measures to define the job responsibilities of the Treasurer.

While examining the Model bye laws 2014 applicable in housing cooperative societies in Maharashtra we have found some goof-ups especially in the roles of Treasurer and Secretary.

A.   Treasurer

Bye-Law No 126(a) created the post of an office bearer namely the Treasurer. The mockery of this post is that functions entrusted to the Secretary are continued to be the same and no responsibility has been shifted to the Treasurer.

In order to reduce the overlap of the Secretary and allocate appropriate responsibilities to the Treasurer, it is suggested that following responsibilities are expressly assigned to the Treasurer by amending the concerned bye law suitably and also listing out immediately after the list of functions and responsibilities of Secretary.

1 To compute rates of contribution to various funds and make a presentation to the Committee for vetting before asking approval of the general body meeting.  13

2 To prepare annual plan of utilization of funds and make a presentation to the Committee for vetting before asking approval of the general body meeting.  14

3 To prepare investment proposals of the surplus funds and make a presentation to the Committee showing estimated income.15

4 To facilitate inspection of accounts by members.25

5  To verify the dues from members resigning membership and inform the Secretary accordingly.  29-32

6 To organize acquisition of the shares and interest of the member in the capital/property of the society and pay him the value thereof as provided under the bye-law No. 68.    33,38,57

7 To compute the Premium payable by transferor                40(e)(vii)

8 To approve the amount spent by the society on repairs to be recoverable from the member concerned.  50( c )

9 To prepare and issue demand notices for payment of the society’s charges. 70

10 To bring cases of defaults in payment of the society’s charges to the notice of the Committee. 71

11 To compute parking charges  and make a presentation to the Committee for vetting before asking approval of the general body meeting [Bye-Law No 83/84] 83, 84

12 To prepare the statement of accounts in form ‘N’ prescribed under Rule 62(1) of the Rules, showing the Income And Expenditure during the preceding cooperative year and the Balance Sheet as at the close of the preceding co-operative year. 95(b)  146(a)

13 To prepare Audit Rectification to the extent it relates to finances of the Society.   95(d)

14  To prepare an Annual Budget for the next Financial Year for consideration of the managing committee 95(e)

15 To ensure that banking account is opened and operated upon in compliance of Bye-Laws 113

16 To report to the managing committee if any of its member has defaulted in payment of Society dues 117(b)

17  To maintain account books and records pertaining to the Society‘s finances.  141, 143

18  To ensure that daily cash on hand does not cross ceiling of Rupees 5000/-      144

19  To ensure that payments exceeding  Rupees 1500/- are made by Account Payee Cheque.    145

 20  To prepare financial statements of a cooperative year before May 15 of the next cooperative year. 146(a)

 21  To recommend to the managing committee appropriation of Surplus. 148

 22  To produce account of the society before Auditors. 152

 23 To prepare the audit rectification reports in the respect of audit memos received from the Statutory and Internal Auditors.   153

 24 To report to the managing committee if repair costs were to exceed the ceiling fixed for the managing committee      157(b)

 25  To recommend to the managing committee to get the approval of members in the general body meeting, from time to time the limit up to which requirement of calling for tenders is waived.  157(c)

 26 To open the tenders in the meeting of the Committee, and prepare draft of Committee’s report along with the draft of the terms and conditions, in consultation with the Architect of the Society to place the same before the meeting of the General Body for its decision. 157(i)

Trust that in the forthcoming new amendments you will implement these suggestions for the benefit of all.

Regards,

Dayanand J. Nene

[Political Activist and Analyst]

Bharatiya Janata Party

Consumer Protection Service Council

Alert Citizens Forum of India