Who Signs Agreements and Checks in Your HOA ?

Our Association has the requirements of two signatures on the checks. Typically, the Treasurer and the President. We know that the Bank will cash the checks with only one signature, but this provides an internal control.

The Treasurer is the keeper of the checkbook and other financial files.

The President, per our governing documents, is to be the signature on all contracts.

We used to require two signers for checks, but our bank and others we've checked with say they will no longer require two signers. Now we just have the treasurer (me) sign all checks. We have two board members on the signature card for the checking account, so in theory the other could sign too, but I have the checkbook. We have some of our payments set up for auto debit (power, water, phone), and most others are made by online bill pay. I write and sign a manual check just a handful of times a year. At this point, I'm the only one who knows the password for the online account, but the other signatory could contact the bank and get it if needed.

We keep our reserve savings accounts at a different bank with to different board members on the account. I still get the statements to reconcile monthly. We don't have checkbooks for those accounts and they have little activity, maybe a deposit once a year and I don't think we've ever taken anything out of them.

I'd like to reply on this one. I've been on our board for a few years. The president who finally said he wanted off the board did 'everything' the other two of us I considered lackeys because he only had us there due to the By-Laws. He did things not allowed for the president to do such as writing all of the checks himself. He gave approval to people for things and never told us. Another owner would object and then we'd find out that he said 'go ahead and do that' without even telling us. He controlled all of the money in every way.

When I bought here, I asked to see the books. I did not necessarily mistrust him but after all, someone should be looking at the books and for the nine years this was in existence, no one did that. This guy is an accountant and the bookkeeping was a shame. There is check upon check made out to himself and signed by himself. He says he used his personal funds and then paid himself back. Later, us other two board members discovered that indeed he was paying himself for maintenance. Not allowed on our volunteer board.

I now finally have the checkbook etc. But it took nearly four months after he resigned to get that much from him. Not one single receipt was forked over either and that alone has caused us problems.

Ok, here's what I did instantly. I made a gmail account for all 3 board members. Every service or company any one of us works with is given that email address to respond to. The owners here have all been told that all questions and/or grumbles get reported via email to that email addy. We all have access and I also have those emails forwarded to each of our own personal emails. They are never deleted but fed to 'archive' for posterity. We all see what's going on and the replies accordingly.

We moved our banking accounts. I set things up online and gave the other two board members the necessary password & question answers to enter at any time to look things over. I hold the checkbook and am the only one that signs although all 3 have the right to do so.

I instantly made any constant invoices direct payments and I only write one check a month and then an oddball or two when an unusual job is done. Each of those companies sends an email at month beginning to state what the payment will be and when drawn. They see all of that via our email account and I have given each of them the necessary login information for those online accounts too.

If I write a letter of correction to any owner or a letter to a business. I never mail it until I email a draft to the other board members for either correction or a change they may want.

I saw what one individual person can or does do with rules and money handling without expected teamwork and it was not a good thing, period. I preached 'teamwork' to the two new members and made sure it would happen. We all have access to everything at all times and we all see what owners complain or chat about.

Having run a large company payroll dept. in my working days. I am a firm believer that lack of communication will surely make things awkward and eventually lead to disaster and possible enemies.

I am a retired old lady too, but just the opposite of your lady. Don't let her do that to you, please.

Darlene

Often, although I think it's improper, a Board will empower a MC or PM to perform all administrative tasks for the Association. I believe that this is mainly done due to burn out and apathy. Apathetic members won't volunteer to serve and those who are volunteering are getting burned out and will only continue to serve if tasks can be taken away from the job.


Volunteer to serve and, once elected, work to correct the issues you see.
Since you have served in all positions for other Associations, you know what works and what doesn't. Put that 20 years experience to work and start making the changes you see needed.

My only advice is don't try to do it all at once. Make changes slowly, over time.

Hi Thomas
Would you mind sharing:
How many units are in your HOA?
How many board members do your have?
How large is your annual budget?
Are you Singles? Townhouses? Condos?
Thanks.

It was made to the Board as the Board only has the authority to fill a vacancy as per DCC&R and By-laws.

There are 145 single family homes in the HOA. There are 3 separate communities with each having its own board and a separate Amenities Board. This is according to current Board member that serves on one community board and the Amenities Board in different capacities. There is only one set of governing documents and all fees are paid to the Amenities Board, which is the only incorporated entity. It is very confusing as these is only one Annual Meeting of the Amenities board. I have never seen any thing like it.

The annual Budget for the Amenities Board, which includes all communities is INCOME = 41,5K and EXPENSES = 35K.

Thomas

It is not uncommon for there to be multi-HOA's under the umbrella of one Master Association. What the Master Association often offers is amenities for all to share like pools, tennis courts, bike paths, etc. that each individual HOA may not have nor can afford to have on their own.

Each HOA may have a different cost structure (annual dues) such as their own amenities, desired level of service, etc. Typically each individual HOA will pay an amount to the Master based on whatever formula (square footage of the home is one example) but typically a portion of each HOA's dues stays within the individual HOA.

Hope his helps.

If you crunch the numbers as you did, the monthly dues should be around $25/month, which is what I was told when I closed on the property. The first bill I received for annual dues equated to $38/month. So this prompted me to take a close look at the finances and I found discrepancies that didn't make sense. The dues are low and not disputing anything related to what I am paying but rather the discrepancy in the accounting of dollars.

Thanks for your comments.