South El Monte Property Management
How to keep HOA funds secure?
When you want to keep your HOA funds in South El Monte secure, you have to consider all your funds- both reserve and operating. The HOAs in South El Monte need to make sure that their actual bank accounts are properly set up. They need to be set as a trust account according to the lease of different states. Discuss with your banker regarding your Association’s account and how to set it up.
While talking to your banker, inquire if there is a service where you can upload all your processed checks which you have given to the vendors. In this way, the bank knows what checks are given to the vendors.
Theft of money is a major concern of the HOAs and you need to ensure that your insurance agent includes a fidelity bond. It covers theft if a board member or a manager takes fund. It protects the Association from loss of funds.
A good practice for a board is monthly reconciliation for your bank accounts. Any good management company can do this for you. The reconciliation statement is printed from the accounting software. The balance of the statement should match the statement of the bank.
Allow the board members to have access to your bank accounts. By giving this access, you’re not opening the door for them to make transactions but they can see how reconciliation looks like. The members can see the expenses and make sure that they are accurate.