Maine Alliance for Road Associations
We have just become a statutory road association after being an adhoc association for over 4 years. The adhoc association opened a checking account to deposit member assessments and to provide a means to make check payments to the snowplow contractor and pay other expenses.
Now that we are a statutory road association, the treasurer collects and disburses funds, and maintains the road association checking account keeping a spreadsheet of income and payment transactions. How many signatures should be on bank signature card of the checking account? Presently there are three: the treasurer, the president, and a non-board member of the association. Should the checks be double signed by the treasurer and the president? The type of checking account we have permits cash withdrawals by any of the three on the signature card without the use of a check.
Sounds like you are off to a great start. Our Statutory Association has two signatures on our checking account, the Treasurer and the President/Road Commissioner. Personally, I think two signatures (access to the account) makes sense for checks and balances to the finances and access in case one or the other is unavailable. No need for double signatures, much too complicated. I would not advise permission for cash withdrawal because of difficulties in accurate record keeping although you may have special needs for which I am unaware.
Thank you for your response to my question regarding signatories on the RA checking account. Our treasurer needs to maintain accurate checks and balances. Access to the account should be restricted, and any withdrawals made using a treasurer- issued check.
The Maine Alliance for Road Associations