protect our HOA

When we had a PM, she signed all the checks as the bills were sent to her. We received an accounting every month. That worked fine.

Under self-management, all our bills are sent to a PO Box and collected by the S/T who then writes and signs all the checks. Our ByLaws state we should have 2 sigs on checks over $1K, but the BOD has waived that because it was too much of a hassle.

If you have a PM because your BOD doesn't want to be bothered, having him/her sign shouldn't be an issue. If you want quicker reports (though 6 weeks seems reasonable), just ask for quicker reports or for copies of your monthly bank statements.

Barbara,

IMO, the HOA bank accounts should always be in the name of the HOA and at least one board member should be a signatory on all accounts. If the BOD feels it's necessary for the PM to sign the checks some controls should be placed, i.e. sign up to a certain amount, sign all regular monthly payments, etc. A statement showing all checks written each month should be presented to the BOD along with the monthly financial statement and report. Having said that, my preference would be for the board Treas or Pres to sign the checks. Requiring 2 signatures, to me, is fruitless as most banks disregard that requirement.

Mary,

I agree, most banks disregard the two check requirement but requiring two sigs is, I feel, more of a protection for the HOA. If your rules require two sigs for a check over $X,000.00, this provides a safety feature for the HOA as if only one sig appears on a check over the $X,000.00 and there is a problem with the expenditure it puts the signer in violation of HOA rules.

If I had to pick which position to have vacate between Treasurer and Secretary I'd rather not have the Secretary filled.

In your case someone should be doing both.

If you have an honest PM then none of this is a problem. The issue is can anyone be sure everyone is 100% honest with your property's money. Not me.

While there are many systems you could set up and might work I will share ours.

We require two signatures one from the PM and the President and Treasurer can co-sign.

All checks are written out by the PM's office. Then a copy of the invoice for that check along with the check is mailed out to our Treasurer who verifies the payment co-signs the check and then mails it out.

NO check can be issued or mailed without one of the Board members co-signing.

As President I along with the Treasurer have on-line access to all of our accounts to verify checks, deposits, and any other activity in the accounts.

Can any system be made fool-proof? I would guess not. But as Board members we cannot turn the entire operation over to any PM and HOPE it works out. In my opinion that is NOT performing our job or duty to the property owners.

Hope for the best but keep an eye open just on case......

Anne:

In our case our accounts were opened by the members of the Board not the PM.

We have accounts in 3 banks as of today a total of 6 accounts.

Plus some of our reserves are held in the highest paying CDs.

The bank reps. deal with us not the PM and when we did change PMs under less than desirable terms the Treasurer changed all our accounts and removed the PM from any standing with our banking.

The members of the Board should play a major role in the banking of the property both in collections, investing, and payments.

Anne,

If there is a change in property managers, the treasurer should go to the bank and have the signatory card updated. A new card would have to be filled out by the new P.M.