As these stories show, no association is completely immune from being a victim of fraud. “However, there are a number of ways your board can make it less likely,” says Drew Ahrensdorf, vice president at FirstService Financial.
In the first of our two-part series, we describe 12 precautions your board can – and absolutely should – take to help protect your association.
Your reserves and your operating funds should always be kept in separate accounts as well. Choose accounts that guarantee the safety of your funds while maximizing your return
If you are partnering with a property management company, the company will prepare your financials statements for you and provide them to your board every month. Ahrensdorf warns that even if you do work with a management company, your job isn’t over once you receive your statements. “It may seem obvious, but many boards don’t bother to read their financials,” he explains. “Having engaged board members who are actively reviewing them monthly is important.”