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Fraud Is On The Rise & Your Accounts Could Be At Risk!
So Just Where Is That Reserve Account?
Occasionally an Association changes its management company. Their operating accounts may change but frequently the reserves are left behind. Have you reached out to the bank to change the mailing address? Are you getting statements for review?
Who Are The Signers On The Reserve Accounts?
Signers should be updated annually with the new Board. We highly encourage as a routine part of the annual meeting and Board elections to note in the annual meeting minutes who are or will be the authorized signers on the reserve accounts.
The minutes should specify which board members to delete as signers and who to add. Authorized signers should be documented even if there are no changes. Send this to your banker annually and be sure that the treasurer of 10 years ago who long since moved is no longer a signer on the account.
Do Board Members & The Management Company Have Access To On-Line Banking?
If so, know who has access and what fraud prevention tools are in place to protect the possibility of hacking. On-line banking, mobile banking, etc. is all to make your life easier but strong policies need to be in place to prevent unauthorized access.
Adopt Best Practices!
Reach out to your banker and put in place best practices to protect your funds.
By Columbia Bank
Chapter Happenings Sponsor, November 2022
Written By: Jill Jones, Senior Vice President, HOA Loan Officer
Columbia Bank is your local HOA lender — Working in your community, for your community.
Visit us online: www.columbiabank.com
Call: (425) 691-5025