Treasurer Duties

My questionis,does a Treasurer of a Homeowners Association need board approval for the deposit of monies for a cd. Or can thay work indipendently and not get board approvial for the bank,rate, time and etc. To me, it seems things like this should have board approval before action is taken. Also how many board members must sign this cd papers. We have a treasurer that thinks the board is not needed for financial decisions. Our management company states the treasuretr is right. I find this hard to beliver. Looking forward to your response.

Hi James:

I would recommend that your board pass a resolution on the investment of funds...and then, after the treasurer does his due dilligence on availble investments that fit the criteria, that he make a motion at a board meeting to invest, and that the motion be approved by the board.

The bank may have requirements, but at the minimum, the secretary should sign (a secretary's signature verifies that it is official with the association) as well as the treasurer; possibly the president or the whole board; at least two signatures, one of which should be the secretary.

J. Patrick Moore, CMCA