Can the HOA directly to the Bank.....

Our new treasurer requested a copy of our bank statements and canceled checks from our management company a few months ago and basically had been getting the run around from the management co and the President of our HOA who also was the previous treasure. I am the VP of the HOA and not very knowledgeable on actually what we can or can not do. However it seems perfectly legit to be able to see our own bank statements and canceled checks. Long story short, I became suspicious a while ago and took an opportunity to elect a new treasure. My question is , what would it take to go to our bank request our bank statements going around our President and management co? This is in Maryland.

I agree with Larry, and will add that it is best if the board acts as a whole rather than individual members each going their separate way. Ideally the board should direct the MC to provide the records to the treasurer (or the entire board) rather than just the treasurer making that request.

Mark,

To restate and paraphrase what others have said:

When new Officers are elected, a memo should be delivered (vs. mailed) to the bank identifying the new Officers.
Often the memo is signed by someone who is already on the account.
Once this is done, new signature cards are established with the account.
It's best that everyone (or as many as possible) who is to be on the new card go at the same time.

If your name is not on the card/account you will likely not get anything from the bank except what is mailed to the Association.

Now, some management companies (and I don't agree with it but others have no issue with it) will hold the money within an account they establish at the bank. When this happens, it's not the Associations account, it is the MC account and the treasurer will only be able to get the documents through the MC (one of the reasons I don't agree with doing accounts this way).

Hope this helps.

Tim

What do you hope to find out seeing bank statements and cancelled checks?

Your management company can run a Register Report in a matter of minutes. This lists the check, number, amount and lists the payee and account the funds came out of. (Assuming they use an computer accounting program)

But the request to see the bank statements and cancelled checks baffles me.

Thanks for all the advise. All the board members are on board with getting the bank statements. The only two that were not thrilled were the President/treasure and the MC. I spoke to the Attorney General for Maryland and we were perfectly in our rights to request the bank statements. Things have been to relaxed for the past few years and some of us were a little worried that money was being spent without getting approval. We are trying to get back to having a treasure and quarterly financial reports attached to bank statements. As of today the President and MC have agreed to make the statements available. That being said we don't have them in hand yet so we have to see how it plays out.

I agree with Tim and I do not agree with holding HOA money within a Management Company account. The reason being is if you ever decide to change or fire your Management Company ... this makes it more difficult to transfer money. I would recommend the HOA having their own separate accounts.

Mark,

If the spending spree was for personal items, then that is a crime.

If the spending spree was for Association items, then that would likely be a civil action of exceeding authority vs. a criminal action (as Association money was used for the Association).

Agree ... In my opinion Tim hit the nail on the head. While we are not attorney's most of us have been around the block and seen over many years certain circumstances.

Being authorized by the Board and authorized by the bank are two different things.

If an individual is on the banks signature card, they have access to the money and may request additional services/conveniences from the bank.

Has anyone actually read the agreement with the bank?

Here is a small example:

When you complete our account opening documents (as an example, you sign our signature card), request an account, or keep your account open, you acknowledge that you have reviewed and understand the terms of this Agreement and you agree to be governed by these terms. You understand that these terms, as we may change or supplement them periodically, are a binding contract between you and us for your deposit account and your deposit relationship. Our deposit relationship with you is that of debtor and creditor.

This Agreement and the deposit relationship do not create a fiduciary, quasi-fiduciary or special relationship between us. We owe you
only a duty of ordinary care. Our internal policies and procedures are solely for our own purposes and do not impose on us a higher standard of care than otherwise would apply by law without such policies or procedures.

Later in the document [emphasis added]:

If the account owner is a corporation, unincorporated associa tion, limited liability company, limited liability partnership, fiduciary, partnership, sole proprietorship or other entity holding an account in any capacity other than an individual capacity, each person signing the signature card or completing other account opening requirements represents and agrees that they:

• are fully authorized to execute all documents or otherwise complete our requirements in their stated capacity;
• have furnished all documents or other information necessary to demonstrate that authority; and
• will furnish other documents and complete other requirements as we may request from time to time.

We may refuse to recognize any resolution affecting the account that is not on our form or that
appears to us to be incomplete or improperly executed.

Bypass the MC.
Contract the vendor directly and ask for copies of invoices. location of the work (should be on the invoice) and when the work was accomplished.