Why can't Mgmt co. sign the checks ?

Why can't you deligate the authority to sign checks to the Mgmt company instead of directors doing it. Both our association and the Mgmt company Co, maintain a Fidelity Bond coverage so it would be prudent and efficient thing to do.
How do your associations handle signing the checks.??

NancyM2

Nancy, our management agreements state spcifically that we will not sign checks; but give us the authority to transfer funds between checking and money market accouts to maximized interest income in the operating account. Just this week there were two articles on the home page of this site on HOA theft in the Denver area. It may add up to over $250,000 of unrecoverable funds (beyond insurance coverage).

Our Board does not sign checks. The management company handles the banking and bill paying for our association.
We keep close tabs on it and get monthly financial statements outlining income, what was spent, reserves, etc.

Tim I could not agree more.

As Board members we are trusted with the handling of the funds paid by the property owners. As you asked, would you allow someone else access to your personal accounts with the ability to move money and write checks on them without oversight? Then this should be the minimum amount of care given to association funds.

Just becuase you have insurance doesn't mean you act in a reckless or negligent manner planning for insurance coverage when some problem is found. If you have car insurance does that then allow you to then drive recklessly?

As Roger pointed out there are limits to insurance coverage so in some cases there might be a loss to the property. A loss that could have been prevented.

Our management company writes all our checks. We require two signatures. One from the MC and one of any of three Baord members. When the checks are written EVERY check is mailed out to the Treasurer with a copy of the invoice or bill and then after verifying the check to be paid mailed out by our Treasurer. No checks go out directly from the MC.

All three Board members along with the MC have online access to the accounts.

In my mind to do less is not doing your job as a Board member. The more eyes you have on the situation the better your chances of finding any problem.