HOA Bank account access - Officers or Board Member

Started by GeorgeS21 • 9 replies • 1133 views

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GeorgeS21 (Florida)
Posts: 3,808

Posted:

Hi All,

This is an easy one ... I think :-)

I am Secretary on the Board of a voluntary HOA - further, I am a property owner, but don't live in this 189 single family home community in Florida.

Just found out one of our Board members - not an Officer - has access to the HOA bank account via check signature authority - has been this way for awhile. I was surprised by this, because in every other community I've lived - I have been on the Board in all of them - only Officers had access to the bank account.

Our Bylaws say:
- under each officer position - says that Pres, VP, and Secretary "... may also be required to countersign checks of the Association."
- under the Treasurer position, says, "The Treasurer and the President, Vice President, or Secretary will sign all checks of the Association."

I don't see how a non-Officer can have access ... I've been trying to focus the Board on the written rules for everything ... am I on solid ground, here?

Thanks, as always!

AugustinD
Posts: 5,144

Posted:

You're on solid ground. My only suggestion is to pick your battles.

DouglasK1 (Florida)
Posts: 2,046

Posted:

We have two bank accounts and designate two board members to be signees on each one. For the operating account the Treasurer and one other board member were signees. The board decided that the signees on the reserve account should be entirely different than the ones on the operating account, two other board members are signees for that account. Some are officers, some not.

Escaped former treasurer and director of a self managed association.

BenA2 (Texas)
Posts: 1,273

Posted:

I think it depends on if you ever require two signatures on checks. The bylaws state that one of the officers will sign all checks, so one of their signatures have to be on all checks. But it does not state that both signatures (if ever required) have to be officers. If you require two signatures for certain checks, e.g. for anything over a certain dollar amount, the second signature could be someone who is not an officer.

If the check requires only one signature, the non-officer could not sign it.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Thanks - to the end state - only one signature is required for our checking account.

I think Ben got to the end of the equation!

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Finding out now if we require two signatures - I don't think so.

More when I know.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

George

It may well be that this is the way they have done it. Are you assuming it is nefarious or just improper?

GeorgeS21 (Florida)
Posts: 3,808

Posted:

John,

Certainly not nefarious - just trying to let close Board into following their own Bylaws and CCRs ...most haven’t read them ...part of this is training.

We’re doing a bit better - biggest issue is overcoming the apathy.

GeorgeS21 (Florida)
Posts: 3,808

Posted:

Still looking for opinions on this ...

TimB4 (Tennessee)
Posts: 21,059

Posted:

We have all officers (who happen to also be Directors) as signatures on all accounts.
The treasurer controls the check book and online banking.
All payments are made by check.

Per our documents, two signatures are required. We specifically ordered checks with two signature lines.
Granted, the bank will accept and cash the check with only one signature.

A two signature requirement is an internal control that helps to minimize temptation.

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