There is a great danger in ignoring such safeguards. Mr. Zucker cited the example of a condo on the Upper East Side had entrusted its managing agent with paying bills, and had not bothered to check which bills were being paid. The building is now negotiating a settlement. According to Mr. Zucker, the most common problems can be avoided if the board watches all the details. For example, many buildings get into trouble because no one looks at the mail.
Trouble can also arise with basic invoice approvals.
But all repair bills should be approved by the board member in charge of the project before being signed by the treasurer. The board should review all bills over a predetermined dollar amount, he warns. This would at least limit the amount of damage that can be done. Your board can set this dollar amount at any level. Make sure the limit is clearly stated in the operational manual.