No HOA funds access

Started by AnnieS4 • 13 replies • 1533 views

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AnnieS4 (Florida)
Posts: 29

Posted:

We have a new president who decided to make another BOD treasurer and secretary. however the new treasurer and secretary have knowledge of being in these positions. So now we have no access to hoa funds whatsoever. the other bods who had those positions do not want to assist in teaching the other bods. we have no credit cards or anyone to sign checks. what can we do?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Annie,

You need to:

1) collect the financial records (for the treasurer - checkbooks, lot ledgers, etc.)
2) Collect the Association Records (for the secretary - past minutes, contracts, etc.)
3) Write a memo to the Bank identifying who the new signatories are on the account
4) Take the memo along with all the Directors and change the signature card

This will allow you to write checks.

(See attached example of Bank Memo)

Hope this helps,

Tim

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TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By AnnieS4 on 08/01/2012 2:21 PM

We have a new president who decided to make another BOD treasurer and secretary

Question, Was this done by a Board vote?

I ask because typically the Appointment of Officers are done by a majority vote of the Board and not just assigned by one Director.

AnnieS4 (Florida)
Posts: 29

Posted:

the bank says we have to change this thru sunbiz, which we have to pay by cc, however president sherreded the cc with american express and closed that account. We can't write checks due to signees that were our secretary and treasuer wont sign, due to they were taken off positions. And yes, this was voted at a bod mtg, majority. however there was miscommunication btw president and bod. Bod thought they were going to train to do treasurer work and president thought they were knowledgable. Now we have hoa bills and payroll or more pay bills and we cant!!

NancyG3 (North Carolina)
Posts: 342

Posted:

Annie: This is unbelievable that prior officers will not sign off the bank account and give all records to the new officers. What position do you have on the new BOD? The President needs to go to the Bank and get new signature cards. Take them to the prior treasurer and the other people whose signatures on the account and tell them if they don't sign it he will see them in court. Then go to the prior Secretary and tell her the same thing. If you are not the President, let him handle this. Our Bank needed a letter from the Secretary on our HOA letterhead listing all the new officers. He needs to go to the Bank and discuss all this with them. Let us know how this problem was solved.

NancyG3 (North Carolina)
Posts: 342

Posted:

Annie: Sorry I just read: the bank says we have to change this thru sunbiz, which we have to pay by cc, however president sherreded the cc with american express and closed that account.

I'm not familiar with what sunbiz is. Please explain. If the cc account has been closed why can't the new Pres. open a new one?

AnnieS4 (Florida)
Posts: 29

Posted:

Our president became impatient and did not think this thru. He gave the positions to other bods before we can make changes of signees at bank. However we found a solution. We have petty cash and will get a prepaid cc to pay sunbiz, once we do that then we can go to bank with all documents and make changes!! I believe we all learn from this not to let him make hasty decisions, however it still leaves the other 2 bods who are now only bods at large and do not want to assist on bod

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By AnnieS4 on 08/01/2012 2:57 PM
the bank says we have to change this thru sunbiz,

Sounds like you need to close the account and go to a new bank.

KevinK7 (Florida)
Posts: 1,343

Posted:

Sunbiz (sunbiz.org) is the Florida Department of State Division of Corporations. This is the place where annual reports are filed, as well as other things such as Articles of Incorporation.

NancyG3 (North Carolina)
Posts: 342

Posted:

So once they give the State the new officers information the Bank will then give them excess to the account?

NancyG3 (North Carolina)
Posts: 342

Posted:

Kevin: Let me do this again. So once they give the Statea the new officers information the Bank will then give them access to the account? Typing to fast for brain.

KevinK7 (Florida)
Posts: 1,343

Posted:

I assume so. I'm not too experienced in that area. I guess it depends on how the financials are set up for the HOA. I always thought that someone can be authorized to access an account without being a board member/officer/etc, so maybe it is an issue because of the old members not signing off.

Any bankers out there on HOATalk?

AnnieS4 (Florida)
Posts: 29

Posted:

Well we finally straighten out the signers issue and who is finally suppose to be on the accounts. Am i correct to say president, vp, tresuer. Now im not sure if secretary are suppose to be however once we got this done, the president decided to take out the vice president completly and also not give access to file room or security cameras. Is this even justfiable? VP has done nothing except do right by community and make sure funds are used correctly. Can he restrict board members from this info?

TimB4 (Tennessee)
Posts: 21,059

Posted:

Annie,

I'm glad to hear you have gotten things somewhat straightened out.

My Association requires two signatures on every check. We have specified that the signatures can be any two directors (for convenience) but also identified the Treasurer and President as the primary signers. Therefore, we have all Directors on the banks signature card.

Every Director should have access to any record required for an issue. This includes financials (which are typically given in a report by the Treasurer).

As I stated earlier, no one person should be making decisions. Decisions are made by the entire Board of Directors. It may or may not be justifiable to restrict access. This should be discussed in the board meeting so the Board can make an informed decision when they vote on restricting access.

Tim

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