Per our legal council the following is common:

1. Separate bank account(s)

2. Monies ear marked for specific purposes, as example water system. This is important not only for our own protection but actually required for tax purposed if the Association is to accumulate funds.

3. Board ( ALL members ) review bank statements, monthly/quarterly

4. Funds invested in short term government securities, NOT STOCKS

5. Two signatures required

6. Board periodically reports out to community status of reserve funds, semi annual or quarterly.

7. Community members reminded of their right to review finance date.

Additional protections.

1. Form finance committee of three to four non Board members to review bank statements and investments and     ADVISE the Board concerning compliance issues, if any. Also review use of funds to be consistent with their designated purpose and advise Board.

2. To protect funds from being used to defer dues increases change By Laws to restrict funds to be directed to respective reserve funds. For example, any tax saving must go to reserve funds. Put in 2/3 vote requirement.