Controls protect group cash

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In response to the May 3 article “New PTA account questioned”:

It never ceases to amaze me how organizations fail to institute proper internal controls. In this case, an authorized bank account was set up and then controlled by one person.

Simple but effective controls include: 1) an operating board or committee evidenced by written bylaws or operating agreements; 2) only this board may authorize a new account; 3) a written and approved board action required for the new account; 4) the president and board chairman always are included as authorized signers; 5) checks require two signatures when the amount exceeds a board-determined amount.

The problem is solved before the rogue action happens. End of story for unauthorized accounts.

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soapy_725
43757
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soapy_725 05/08/13 - 07:29 am
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Amen.
Unpublished

Weak minds seize on the fact that many do not want to be involved and are glad to place their name beside the "R". Responsible for the work. It is just too much trouble to get two signatures. "Lives are at risk, people die" if checks have to be co-signed for the HOA.

And don't forget the annual reports to residents with accounts receivable and accounts payable. Those reports showed a continuing and growing surplus of funds. Another red flag folks. Mismanagement.

allhans
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allhans 05/08/13 - 10:29 am
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It's true that guidelines

It's true that guidelines should be in place to prevent thse occurrences...but what on earth has happened, is there NO honest people. Can we trust no one?
Look at the school situation, who would have thought some teachers would purposely cheat their students?

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