My first question! Signing of HOA checks..

I have found out that our board currently does not have 2 signers for all checks. It is directed by the treasurer and that the checks are made out by the PM. Is this common practice? Our ruling docs do not specify, and our PM suggest we get two signers to prevent issues like embezzlement or accidental payments of invoices.

That's pretty much our policy, too.

Anything over $700 gets 2 signatures.

We have one member pick up the mail and report all items, including a detailed accounting of the bank statement and then all the bills and statement are turned over to the treasurer.

But then, we really don't have a lot of monthly expenses that aren't already set up on automatic check payments.

We found that 2 sigs were only an internal audit thing anyway, because both the banks we used in the past said they don't even check to see if 2 sigs are on there.

It does seem from here and other HOA locally that is mostly the 2 sig thing. This is a new thing for our HOA and for whatever reason the only board member who seems resisstent to this process ( which is going to happen anyway) is the treasurer. I myself love the idea of sharing the work of the HOA, I'd gladly hand some of it over LOL

Our docs require 2 sigs for any check over $1K, but we generally ignore it because:

1. The only checks that large are for our landscaper, of which there are 8 per season, all in the same amount.
2. The Board can view our accounts on line, 24/7.
3. Two of the three of us have professional licenses that we aren't going to possibly endanger by swiping a few grand from the HOA.
4. The bank doesn't monitor sigs, probably doesn't care.
5. But most of all, it's just one of those small aggravations that we, being self-managed, we've agreed we can do without.

On the other hand, any checks written to a Board Member are executed by the other two of us.

Two signatures is always the recommended procedure. Also, the PM should never be the only signatory on the check. These are common practices to avoid fraud.

Depending upon the size of the community and whether or not the treasurer thoroughly reviews the f/s each month and looks at all the invoices being paid (if prepared by a PM), these requirements may be relaxed a bit. I served as Treasurer of a small self-managed assn and was the only signatory on the checks. My monthly financial statements were all-inclusive and the books were open for inspection at any time.