Bank Signers of HOA

Started by HanhN1 • 11 replies • 1478 views

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HanhN1 (California)
Posts: 64

Posted:

I need your opinion and suggestion. My Asssociaton did let the owner of property management company and her daughter to be signers instead of property manager.

What do you think? Thanks in advance.

RogerB (Colorado)
Posts: 5,067

Posted:

Hanh, I think it is a bad idea to let anyone except a Board member be a signer on any financial account. Is there a special need to allow the owner of the MC or her daughter to be a signer? Make sure you have theft insurance.

HanhN1 (California)
Posts: 64

Posted:

Thanks Roger. There is no special need. I and homeowners are so shocked when we found out. We did ask them to have their names removed, and let the current manager to be a signer. We also have five board members. Moreover, the customer service person who works for the PM is also the owner of the cleaning vendor for my Association.

SusanW1 (Michigan)
Posts: 5,202

Posted:

You can have 50 signers on an account - no big deal!

It's the END result that matters.

A Finance Committee goes thru the accounts on an on-going basis and someone other than the treasurer balances the checkbooks at least quarterly. Every check can be verified at that time and compared to vouchers or statements.

Unless your bylaws prohibit relatives of paid staff from also working for the HOA, then that is permissable, too.

PatR (Florida)
Posts: 139

Posted:

This comes from experience....Our last PM "forgot" to remove the last BOD from the bank records, when the President and I (Treasurer) went to the bank, to close some accounts, we were told we were not signers. We we BOD members for a year! My head almost exploded....

Also, be very sure to check the forms the bank gives you. Some banks have an "association dept". These docs have a clause to allow the PM to do business, without being a signer. We struck this clause, and the PM accused us of not "trusting" him....

And the beat goes on.....

JC3
Posts: 290

Posted:

My board can't see the wisdom in all board members being signers, and no one at the management company. They are not interested in setting up any cross checks. Even with all the thefts nationwide, they refuse.

PatR (Florida)
Posts: 139

Posted:

Who is signing the checks???

JC3
Posts: 290

Posted:

Management.

PatR (Florida)
Posts: 139

Posted:

oy! Where is the BOD on all this?

PatrickH (California)
Posts: 204

Posted:

Hahn and JC,

In my opinion, signing the checks in one of the primary responsibilities of the Board.

In my HOA, all five Boards are on the signature cards at our bank and the checks require two signatures to be valid. Our PM, who isn't on the signature cards, holds the checkbook and receives all the invoices. They print out the checks, attach the invoices and bring them to the Board meetings. Each Board member takes a few checks and invoices, makes sure they are correct, then sign it. They pass their stack to someone else on the Board who also reviews it and signs.

Takes ten minutes max, but it's one of the most important things done at every Board meeting.

PatR (Florida)
Posts: 139

Posted:

JC, where are you located....Someone in your area may have a better idea of location regs. Although, this may be an "internal" process, it is a slippery slope, to say the least!

HanhN1 (California)
Posts: 64

Posted:

Thanks Patrick. I totally agree with your opinion. This is the best way to handle and manage fund of Association. Thank you.

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