hey yall! first time posting on here – so were a self managed hoa in fort worth tx and were trying to decide how many signatories should go on checks and withdrawals? three of us (board) think its best to have at least two but the others dont think its a good idea (like what if one of the signatories is out of town and theres an urgent withdrawal?) any advice would be helpful!
You can check your historical records to see how many withdrawals you average a year. That should give you an idea of how often you will need the treasurer (and perhaps another signatory) to sign checks. Based on personal experience, though, two signatories is a good internal control. But if it’s not possible for your Board, maybe you could just check your accounts and reconcile everything more often.
In that case, I would push even harder for the two-signature requirement. Remember that most D&O policies doesn’t cover fraud. It might be more of a chore to hunt down the members needed for the two signatures but it’s definitely worth the trouble to keep your funds secure.