We’ve had these rules in place even before the CIRA/AICPA documents were published (I posted this a about two weeks ago elsewhere).

1. President does not sign checks, e.g. not authorized.
2. President does not sign contracts.
3. Building manager (either self managed as we are, or from a management firm) does not sign checks.
4. Building manager (either self managed as we are, or from a management firm) does not sign contracts.
5. No use of credit card to pay any routine bills whatsoever, except minor purchases, e.g.; less than $200 per month (as some online web sites will only accept cards or other automated payment service).
6. Every invoice paid by check.
7. Building manager must sign every invoice that is presented for payment.
8. With seven board members, four are authorized to sign checks.
9. All payable and salary checks, e.g.: all checks, must be signed by two board members.
10. Building manager can only made deposits and no withdrawals.
11. All payable checks are accompanied by the original invoice.
12. No cash transactions ever, e.g.: garage allows visitors parking, but resident is assessed the fee.
13. Board members can challenge any check and obtain an explanation.
14. Two accounts payable runs each month. These are for all invoices received by the 25th of the preceding month and the first is generated around the 8th.
15. Why the 8th? Our maintenance and assessment (yes, we have assessments every year and it is collected during ten of twelve months of the year) payments are due by the 10th. In this way our funds with the bank remain relatively constant.
16. The second run is towards the end of the month for any payments, we really need to make.
17. Original checks returned by the banks and bank statement are reviewed by the treasurer every month.
18. All board members receive a complete check register every month with all payees and amounts.
19. All board members and outside counsel receive a complete listing of arrears, simple and aged every month. Ours are minimal and have been minimal, about 1.5% of our monthly maintenance income.
20. All board members receive a cash flow report every month.
21. All board members receive a budget vs. actual comparison by month and year to date every month for all major line items and in some cases the details therein.
22. All board members receive a trial balance every month.
23. All board members and outside counsel receive a management report prepared by the building manager every Friday listing events (normal and unusual), letters, received, government activities, forecast of capital work and major repairs.
24. All our consumables must be purchased from a round robin of firms so that no one firm has a corner on all our purchases such that there is a lessened inclination for any kickbacks.
25. Our outside engineering firm monitors all major expenditures and certifies all work as complete, or partially complete as scheduled, before we make any payments.
26. Yes, all major capital expenditures are bid to firms identified by our engineering firm.
27. Our engineering firm levels all bids.
28. Our counsel reads and approves all contracts. Then, a board member signs the contract.
29. No board member ever goes to lunch or dinner on the co-op. If we go to dinner after a meeting, it is dutch treat.
30. No board member, building manager or superintendent ever takes a free lunch or dinner from a supplier.
31. No board member, building manager or superintendent ever takes a gift from a supplier.
32. No board member ever charges the co-op for personal stationery supplies used, PC software, printer ink, personal auto, telephone calls, etc.
33. No board member ever uses the postage stamp machine in the management office unless the board member reimburses the co-op.
34. And, unlike some co-op and coops, admittedly a small number, we do not forgive the monthly maintenance for an active board member, e.g.: the board member does not receive a free ride.
35. An outside elevator “consulting” firm inspects our elevator system quarterly and produces a written report.
36. Our maintenance staff rides every elevator every Thursday and reports by fax all noises (unusual ?) and minor malfunctions to our elevator service firm.
37. Every two years, our outside engineering firm updates our capital plant engineering assessment and we reforecast our capital reserve (cash) needs fifteen+ years out.
38. The building manager posts pictures on our office of every staff member and every member of the outside security firm assigned to our building.


Yes, these are our own rules. There are more, but you get the gist.

And, we have an accounting firm that specializes in co-op and condo audits. We had one of the national/international firms until four years ago, when we switched. The national firm, which we employed for a number of years, was a neophyte in co-op audits compared to the firm we now employ.