should checks have two signatories?

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  • #371339
    emilyb847
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    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!

    #371340
    bluebeard1
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    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.

    #371341
    markolaska
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    I would go with a two-signature requirement. It’s standard for most HOAs, I believe.

    #371342
    emilyb847
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    i also want to add that one of the members whos against the two signatory thing is like REALLY STRONGLY against it. dont wanna accuse them of any ill intent but its just a bit suspicious to me idk

    #371343
    markolaska
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    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.

    #371344
    claireh10
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    Ah was just about to ask this same exaxt question!!! What a coicnidence

    #371428
    emilyb847
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    just to update yall here – we went ahead with the two signatories and so far so good. the memebr who was strongly against it came around eventually ha!

    #371840
    musman69
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    We have two signatures for anything over $300.

    #371886
    emilyb847
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    That sounds like a good standard. We’re thinking of doing the same since it seems tedious to get two signatures all the time even for just $20.

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