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Minnesota law has generally required multiple signatures on checks written by cities, towns, counties, or volunteer fire relief associations. In addition to being required by statute, multiple signatures are part of an entity’s internal controls. When more than one person signs a check, each person is verifying that the governing body has approved the check for payment.

Checks should never be pre-signed. Signing checks prior to approval by the governing body defeats this statutorily-mandated safeguard.

In addition, signature cards on file with the bank should be updated regularly so only those individuals currently authorized to sign checks are named. Banks need to be made aware that the entity’s checks should not be negotiated without all of the required signatures.

Date this Avoiding Pitfall was most recently published: 06/15/2018

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