Re: Troop money
Joseph Alessi (JosephAlessi@COMPUSERVE.COM)
Wed, 10 Dec 1997 09:58:25 -0500
Dave Livingston wrote:
>> I've been reading about this and some people are putting trust
in the concept of two signatures on a check as being some type of
control. Might want to ask your banker about that. Banks do not
check signature cards on checks. In other words, you could have an
account that is set up with multiple signatures, have filled out
the signatue cards at the bank, write and sign a check with
Elmer Fudd and Daffy Duck and have the check clear your account
with no problem. <<
Banks today take a calculated business risk by not checking
the signatures. They are, however, legally required to only
cash checks that are signed by authorized parties.
What does this mean? Units should have two signatures on checks.
This gives you some protection, since you can recover the funds
from the bank if a check is cashed without the required signatures.
However, you are responsible for checking this each month when you
get your statement. You can't expect to come back a year later and
argue that the SM has been drawing funds for a year without =
authorization. Also, the bank would then have the right to pursue
legal remedies against the person(s) who cashed the checks. You
wouldn't be able to write a bogus check to yourself and then expect
the bank to make it good.
This points out the need for a good procedure to
audit the troop account on a regular basis, by someone who does not
have access to the account.
Joseph A. Alessi in Ozwin 2.14
District Advancement Chair, Lafayette District
ASM Troop 313
Advisor to the Treasurer, Unami Lodge
I used to be an Owl
Terry Howerton Sakima Group, Inc. SCOUTER Magazine Kansas City