Internal Controls Checklist
(These are the minimum standards we recommend for associations)

□ Board meeting minutes approval will consist of:

• Opening/closing of bank accounts
• All reserve expenditures
• Major contracts

□ Board receives financial statements, at least quarterly, consisting of:

• Balance sheet
• Income statement comparison to budget

□ Board reviews all bank statements and reconciliations at least quarterly (including certificates of deposit)

• Operating accounts
• All reserve accounts

□ The Board has a signatory policy on cash accounts in compliance with their governing documents and State law. If the Board does not sign checks, other controls are in place to ensure approval and proper payment of expenses.

□ The Board must approve all bad debt write offs or adjustments to A/R balances over $__________    (depends on Association.)

□ All related party transactions/conflicts of interest are disclosed to the Board and, where appropriate, to the membership.

□ The Board has a policy to determine what contracts need to go out to bid.

□ The Association accepts no cash, or has very specific controls with regards to cash acceptance.

Approved by Board of Directors

_________________________________________Association
Date ____________________________
By _____________________________________
Title ___________________________________