Get 1 year of free community web site hosting from Community123.com!
Tuesday, April 13, 2021











HOATalk is a free service of Community123.com:

Easy to use website tools to help your board
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Who Signs the Checks
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
PasqualeG
(Maryland)

Posts:5


01/22/2009 3:06 PM  
We are a professionally managed HOA. The management company has routinely paid all of our bills with Board of Director approval. The new Board has directed the management company that a member of the Board must sign all checks before they are sent out. They have even asked that the name of the treasurer be preprinted on the checks. I am wondering how other HOA's deal with signing of checks. Does the property manager alone sign them or does a Board member also sign them?

Thanks.
RogerB
(Colorado)

Posts:5067


01/22/2009 4:56 PM  
Pasquale, I would never allow the MC to have a signer on any financial account. Nor would I put the name of the Treasurer on the checks. The Board determines who are signers on the financial accounts. I recommend a minimum of three including the Treasurer and the President. And for checks which are not routine or are over a Board specified amount I recommend two signatures be required even though our banks require only one.
KirkW1
(Texas)

Posts:1665


01/22/2009 6:07 PM  
In our case there are people with the management company who sign the checks. Those individuals are bonded to protect us. We also receive a copy of all bank statements each month. Overall, I feel more comfortable with this arrangement then I would having BOD members sign the checks.

As a note, as long as there is a signature on the check it will go through and be paid initially. There is absolutely no routine checking of a signature on a check today. The only time it is looked at is if you claim the signature is not valid. Further, while you can probably get checks printed that state two signatures are required you will have a hard time getting banks to actually require two signatures.

As for having the treasurer's name printed on the checks, that just seems to be a waste of time and money. What happens when the treasurer changes next year?
MicheleD
(Kentucky)

Posts:4491


01/22/2009 6:20 PM  
Posted By KirkW1 on 01/22/2009 6:07 PM
In our case there are people with the management company who sign the checks. Those individuals are bonded to protect us. We also receive a copy of all bank statements each month. Overall, I feel more comfortable with this arrangement then I would having BOD members sign the checks.




Exactly. On of our past treasurer's wrote at least 2 checks out to himself, and signed them. He resigned so we did not have to pursue ugliness.



Posted By KirkW1 on 01/22/2009 6:07 PM
As a note, as long as there is a signature on the check it will go through and be paid initially. There is absolutely no routine checking of a signature on a check today. The only time it is looked at is if you claim the signature is not valid. Further, while you can probably get checks printed that state two signatures are required you will have a hard time getting banks to actually require two signatures.




I can back this up, too. In the course of determining how the checks got through, since at that time we did have two signature lines on them, the bank informed us that Santa Claus could sign the check, on one line only, and it still would go through for that very reason. There is no routine checking of signatures on checks today.


Posted By KirkW1 on 01/22/2009 6:07 PM
As for having the treasurer's name printed on the checks, that just seems to be a waste of time and money. What happens when the treasurer changes next year?




Again, this is a very good point, as well.
JosephW
(Michigan)

Posts:882


01/22/2009 6:50 PM  
Please make sure the bond names your association as additional named insured or that you have your own bond. Often, management companies take out bonds on their employees, but that just protects the management company owner from employees stealing, it does not necessarily mean that you would be covered.

Joe

Joseph West
Official HOATalk.com Sponsor
Community Associations Network, LLC
www.CommunityAssociations.net

*See legal notice below (end of page) or go to www.hoatalk.com/legal
MaryA1


Posts:0


01/23/2009 6:07 AM  
I, personally, feel a board member, preferably the treasurer, should sign all checks. However, I know that in some circumstances this may not be feasible. The PM should never be the only signatory on the bank account and an accounting of all checks written should be provided in the board packet each month. Regarding the treasurer's name on the checks: IMO, this is not a good idea. As Kirk says, what happens when the treasurer changes? All those checks need to be destroyed and new ones printed and the numbering system will also change. (It's so easier to track checks when the numbers are consecutive.)
JohnM3
(Florida)

Posts:288


01/25/2009 8:33 AM  
In my community our ccrs at the states insistence put a statement in our docs under the president and the treasurers job requirements
The President or Vice President in the case of the Presidents refusal to sign checks ( in 5 years 24 times ) must sign and the treasurer must co-sign every check we have $500 dollars that is for emergency useage from the MC that is kept in a metal box at the MC office

The MC company has CHECK REQUESTS that the PM has to make out for the accouts payable dept to make out for BOD signatures. All checks are xeroxed an a copy placed in every BOD members monthly package, as well as xerox copies of every check recieved by the mc for the HOA.We use a lockbox at our Bank and I have along with the MC PM and accounting dept have online access to the Bank accounts balances 24-7 so I can work on the financials at my time not others times.

We use a company from Chapel Hill that makes our monthly statements prints them mails them and the data is transmitted to them in a confidentail computer message ( 20 years experience zero defects )

We have direct pay on the 28 electric bills, the 1 telephone bill. The balance are paid by check. I keep all the vendors checks in my possesion to make sure they are paid within 24 hours of a BOD meeting that keeps great vendors happy.

We use a company in Broward Counth called LIENCO that we send our non-payers to after 2 months missed payments they add 1500 dollars on to the amount and the owner does not refuse to pay twice we have learned the hard way.

Since we are in a HOA we have no access to public mailboxes we have nests so all BOD homes have mailboxes thats how we deliver docs and checks for signature they go to me first for cross checking then to the Pres and if she refuses to sign they then go to the VP and we press on. It may seem like a bit much but in the 21 years we have existed we have had only 1 case of theft and that was repaid by the insurance company

Have a great day everyone
KirkW1
(Texas)

Posts:1665


01/25/2009 8:40 AM  
As a note, our PM does not have direct access to our accounts. Access to our funds is through the management company's accounting department. It is much like any other business in that respect. People who deal with the money are people who do that for a living.
MaryA1


Posts:0


01/25/2009 11:54 AM  
Kirk,

I believe it may have to do with the size of the mgmt, but many do have an accounting dept and the PM does not write the checks or make the deposits.
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Who Signs the Checks



Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement