Multiple Signatures on Checks
Minnesota law generally requires multiple signatures on checks written by cities, towns, and counties. A law change enacted during the 2015 legislative session now requires relief associations to follow this practice.
In addition to being required by statute, multiple signatures are part of a relief association’s system of internal controls. When more than one person signs a check, each person is verifying that the relief association’s board of trustees has approved the check for payment.
Minnesota law requires special fund disbursements paid by check to be signed by the relief association treasurer and by at least one other trustee who is designated as a signer by the board of trustees.
Electronic or wire funds transfers are also permitted if internal control policies and procedures are established and approved by the board of trustees. The policies and procedures must provide for authentication of the electronic disbursements by the relief association treasurer and at least one other trustee.
The OSA’s Sample Bylaw Guides include language referencing these new statutory requirements (see the bylaw Article entitled “Funds.”) The Guides are provided in both MS Word and PDF versions.
Published last in the April 2017 Pension Newsletter