Manegement Company or Bookeeper

We are finding it nearly impossible to fill our Treasurer position within our community. At present, my husband does it but cannot find the time to continue nor deal with the outright nastiness of our residents. We have to send invoices to residents four times a year plus enter all information into a computer system. We are a development of 76 single family homes. Our bylaws state we must do this 4 times a year even though we only collect $100.00 per quarter. At present, our neighborhood is very divided and we lack any enthusiasm. In your opinion, for a small assoc. like ours, what is our best route? I will be sending more questions in the future because we have a lot of issues but I figure I would start with one problem a a time!

Sounds like a good system, but remember, banks dont check signatures. You HOA may require 3 signatures, but the bank only needs 1 and they will process it. They dont care.

Our bank did check signatures. We had to go down to the bank and physically fill out the paperwork. We had ONLY 3 officers who could sign checks. President/Vice/Secretary. The Bookkeeper counted as our "Treasurer". The bank had rejected a few checks over the years for NOT having enough signatures. It is well worth having such a system in place to account for every check coming in and out of the HOA.

We had a business account and not an individual. The checks also had to be issued ONLY through the bookkeepers office. I couldn't go to our bank and get a check. The bookkeepers office had the check ledger (expensive) in which the checks came from. They wrote the checks and signed them. I would either go pick them up to sign or sign them at the office.

The other signee was notorious for ripping off the HOA and this helped prevent them from getting their greedy hands on the funds until he got out of office. Sometimes a race to the office to beat him LOL!!!

I've worked with alot of non-profit organizations where two signatures are required, as this is one of the best ways to prevent sticky fingers in the pie. If your account is set up to require two signatures and the checks have two signature lines, if the bank lets a check through with one signature they could potentially be liable.

Smart idea Tim. Many HOA's make the mistake of allowing one of their members to "skip paying dues" in exchange for their services. This isn't a good idea. It's best to compensate the member enough money to PAY their dues.

Allowing a member to skip their dues can effect the HOA's checks and balance. Plus it complicates the HOA's ability to lien/foreclose on the member if the need was to arise. There are plenty of disgruntle ex-HOA volunteers/contractors out there who will refuse to pay their dues AFTER losing their "Free lunch"....

Hi Roger … here is a quick search of the uniform commercial code regarding unauthorized signature, and it appears to also pertain to banking facilities.

TITLE 4 UNIFORM COMMERCIAL CODE

4-1-201. General definitions.

(4) "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, and trust company.

4-3-403. Unauthorized signature.

(b) If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
Unfortunately nothing is 100% effective, but it is a method to reduce underhanded activities. I will check with the bank next time I go in to verify legality of only one signature on a check.

SiobhanB,
You know, most Bylaws gives the Board authority to establish rules, resolutions and regulations to help them fulfill their obligations in managing the association, without vote or approval by the members, as long as the rule does not alter the intent of Bylaw (or CC&R). If the intent is to collect the dues, and reducing your collection to semi-annually instead of quarterly would still get the job done, why don't you just make a Resolution to do it that way? If it cuts the workload in half, it may be incentive enough for someone, even your husband, to take on the job as Treasurer.

Also, with Tim's solution of the independent contractor, and the way that is set up, semi-annually would also reduce your costs if you decide to go that route.

As for apathy? This year, when our Treasurer of four years announced she was stepping down, we sent out three notices for volunteers, with absolutely zero response. So, all three of us, me, the VP and the retiring Treasurer just started reaching out individually to our neighbors we thought would step up. Plus, I bribed them with homemade soup and bread! We did get a new Treasurer from the 'hood, for which we were relieved. As it was, this new Treasurer was immediately leaving town for three weeks, right when our dues were being collected and deposited. I had the outgoing Treasurer teach me what had to be done, so I could serve as Acting Treasurer. We went to the bank, had me put on the account as another signee. Now we have three people who know what the Treasurer does. Which can never compete with the almighty god of apathy, but does help us breathe easier.