Management Contracts

This is a fairly quick question....

For those here who have a MC, has your HOA turned over signature authority for all matters fiancial (draft, cut, and sign) checks to the MC...? I have been told (twice) that this is the "industry norm" because having the President or Treasurer as signatories, is too cumbersome. I am too old to have a "parent" put the HOA's money (birthdays, christmas, etc as if we were children) into an account that I cannot access, because I am eight years old and do not have proper ID (sorry for the sarcasm, but when I contacted the bank manager, while pleasant, she stated that even as President, I was not even allowed to view a balance statement).... Our MC has been "nipping" at decisions (Agenda, and other items that I have gotten solid advise from here), and is becoming quite a distraction.

Jadedone, attached is a copy of our basic Management Agreement. We absolutely will not be signers on accounts. We do have authority to transfer funds between MM and checking as needed. We verify expenses and prepare checks. Two Board member's signatures is cumbersome. Therefore we suggest only one signature. Only one signature is recognized by bank so it is not a safeguard when the HOA requires two. We suggest all Board members be signers and usually the Treasurer signs unless not available. Two signatures are often required by the Board when it is not a contractural expense or otherwise over a specified amount. As a Board member I would never allow MC employees to be signers on any account. Just give the MC a petty cash fund for minor expenses.

I have read too many times about theft by those who are signers on HOA accounts. We reconcile every account every month and thus would catch a problem with inappropriate withdrawals within a month. Also, we email copies of financial reports monthly to all Board members and financial institution documents quarterly. We believe financials need prompt careful monitoring with cross checking by everyone with a fiduciary responsibility. In addition we recommend a fidelity insurance. With there procedures there has never been a problem.

All, first let me apologize for the earlier sarcasm included in my post - it was the result of my frustration in garnering even the most basic levels of cooperation from our MC. I state this, to assure all that I GREATLY appreciate the comments and advise on this site - and posters should not have to read through other's frustrations.

On to the topic - yes, I have printed out the sample MC agreement, and will research the CAI bookstore resource as listed. From there (and with the help of the full board, and recommendations of an independent audit to be performed very soon), I will work to establish, and to either renogiatiate the contract with T's and C's which are more applicable to the boards needs, or recommend canceling. I do not want the "headache" of having to go through a developer to owner transition, and then an MC to MC transition, in this short span of time - it just seems too overbearing and requiring too much time of the board (not to mention this is a new sub-development, so each board member, and the general membership, are dealing with personal unit issues with their builders). I do not welcome that option - but understand if it becomes a necessity, then the board has a duty to act appropriately. I have also read (and re-read) some older posts concerning making sure membership is fully aware of what is going on. So I hope that in doing so, we can garner support from the community in supporting the decisions we are making as a board.

Again, THANKS to all that responded - with your advice and words - the light at the end of my padded walled tunnel gets brighter and brighter (or maybe its just the med's).

All, "things happen for a reason..." (this link is to an article on HOA's and $$$$$)

http://www.washingtonpost.com/wp-dyn/content/article/2007/04/13/AR2007041300935.html