1/30/2008
g "it's the "L" not the "EL"" r. says:
Agreed...
Things a Board of Directors can do.
1. An association, should have it's own operating account. Do not get talked into a commingled account to pay bills. With a promise that the excess will go into your reserve account.
**commingled account are not illegal. many management companies do this because it's easier, or they will tell you it saves you money, more assn. funds together lower to no service fees. This is not worth the savings.
2. The management company should be instructed to provide the board with a copy of the actual bank statement, this statement will be a month behind because of timing.
** do not accept a statement off the property managements software system only. It has to be the bank copy.
3. The board can also request copies of the bills on a monthly basis, so they can be matched up to the bank statements, you want to see that the right amounts are being paid.
** a management company may charge a fee for this since it is extra work, understandable. However, the bank statement should be free.
4. Put a cap on how much the management company can sign a check for, set this up with the bank. The amount should be reasonable. If it is a large building that gets gas bills of excess of 5K the cap should be about 6K, to allow for colder days. Anything in excess needs either the Board President or Treasurers signature.
**Their should be three signers of the board on the account. Pres, Tres, and Secy. If for any reason the board senses a problem it should be able to get to the money. Caveat, for the board to withdraw, transfer or do anything, TWO signatures needed. The signature cards, must be kept up to date, each election or if someone resigns or sells. I've seen boards put in all the moves to protect themselves and then have several people on the account that are long gone. An open door to disaster.
