Final answer:
Depositing condo corporation's funds involves reviewing governing documents, authorizing the condo manager in writing, documenting transactions, using a dedicated account for the funds, and performing regular audits.
Step-by-step explanation:
The proper procedure for depositing condo corporation's funds into an account held by the condo manager typically involves several key steps to ensure that the funds are handled correctly and transparently. Before proceeding, it is essential to note that the process should follow both legal requirements and the corporation's governance documents.
Steps for Depositing Condominium Corporation Funds:
Review the condo corporation's governing documents and state laws for any specific requirements related to fund handling.
The condo board should authorize the condo manager, in writing, to handle the funds, specifying the account details and conditions.
Document all transactions meticulously, ensuring that receipts, invoices, or memos accompany all deposits for clear, traceable records.
Ensure that the account in which the funds are being deposited is a trust or separate account, solely dedicated to the condo corporation's finances.
Perform regular audits or financial reviews by an independent party to maintain transparency and accountability.
Throughout the process, maintaining a clear and transparent record is crucial to prevent mismanagement or fraud. Furthermore, these funds should never be comingled with the personal funds of the manager or any other individual.