HOAleader.com - Tip of the Week - February 22, 2019
Published: Fri, 02/22/19
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Is This HOAleader.com Reader Right in Disputing Our Recent Fraud-Prevention Advice?
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We address a reader's response to a recent HOAleader.com article in this week's tip.
In response to our article reporting that one of our community association experts encountered alleged property manager fraud at several of her client associations, a reader takes issue with one part of our expert's advice.
In the article, Jane F. Bolin, the founding member and managing partner of PeytonBolin, a Florida-based law firm focused on community association law, said one way for boards to protect against fraud is to require that they see original bank statements, not financial summaries provided by a treasurer or manager.
Our reader is flummoxed: "This entire scenario is unbelievable from the standpoint of the board failing to utilize modern technology. You recommend that boards have bank statements mailed to them. Really? In 2018?
"The board should be logging in to online banking daily, or if not daily, at least a few times per week to catch stuff like this immediately. They should be downloading their bank statements themselves on the 2nd of every month, not receiving them in the mail...unbelievable."
Our reader raises an important point: Should you as a board member be checking bank accounts online daily? Weekly? If so, how many of the members of your board should have access to your association's online accounts?
First, it's true that seeing original bank statements is a good way to prevent theft. But Bob Kmiecik, a partner at Kaman & Cusimano LLC, which represents associations throughout Ohio, notes that you shouldn't assume that process can't be impeded by a crafty thief.
Kmiecik says his experience in Ohio is that both managers and board members have stolen money from associations, though far more often, it's been an in-house bookkeeper or board member who's been the thief.
"We had one situation years ago where someone was ostensibly sending original bank statements to the board," he explains. "But she was doctoring them on her computer to make them look like original statements. So if boards are going to get original statements, I agree with your expert that those statements should come directly from the bank."
Yikes. Duly noted.
Now, onto the idea that board members should be logging into their condo or HOA's bank accounts daily. That's a bridge too far for our experts.
Find out why in our new article:
https://www.hoaleader.com/members/3866.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Should Your Condo or HOA Board Members Be Logging into Association Bank Accounts Daily?
In response to our article reporting that one of our community association experts encountered alleged property manager fraud at several of her client associations, a reader takes issue with one part of our expert's advice.
Click here to read full article:
https://www.hoaleader.com/members/Should-Your-Condo-or-HOA-Board-Members-Be-Logging-into-Association-Bank-Accounts-Daily.cfm
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Sweet! A New Way for Condos and HOAs to Make More Money (or Not)
In this week's tip, we find out whether new fees we're seeing are a new get-rich-quick plan for condos and HOAs--and whether you're even allowed to charge them in the first place.
Click here to read full article:
https://www.hoaleader.com/members/Sweet-New-Way-for-Condos-HOAs-Make-More-Money-or-Not.cfm
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It's Time to Begin Charging Condo/HOA a Capital Contribution or New-Owner Fee (or Not)
We've been seeing this new type of HOA fee batted about online. It's got various names, such as a "new-owner fee," "a working contribution fee," or a "capital contribution fee."
Click here to read full article:
https://www.hoaleader.com/members/Its-Time-Begin-Charging-CondoHOA-Capital-Contribution-or-NewOwner-Fee-or-Not.cfm
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Does Your Condo/HOA Need to Begin Preparing for an Economic Slowdown?
In this week's tip, we ask you to think back to what could be a painful time for many of you. What was the state of your condo or HOA about 10 years ago, when the U.S. economy imploded, sending foreclosures skyrocketing? Odds are, your association wrote off a lot of bad debt then, meaning your leaders decided they had no shot at recovering fees the condo or HOA was due.
Click here to read full article:
https://www.hoaleader.com/public/Does-Your-CondoHOA-Need-Begin-Preparing-for-Economic-Slowdown.cfm
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Special Report Download
Board Member's Guide to Managing the Most Challenging People Issues at Your HOA or Condo
Surely you've heard this mantra spoken by HOA insiders: The biggest challenges boards face are "the 3 Ps," which stand for Parking, Pets, and People.
Here, our editorial team has tapped into the expertise of legal and management experts nationwide to provide you with information on best practices for handling the most difficult people challenges in your community.
Members can download the report now:
https://www.hoaleader.com/public/Board-Members-Guide-Managing-Most-Challenging-People-Issues-at-Your-HOA-or-Condo.cfm
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https://www.hoaleader.com/details.cfm
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