Crime pays and crime in community, condominium and co-op associations can pay handsomely – hundreds of thousands of dollars, if not more. Board members must take steps to minimize the opportunity to steal. The ultimate responsibility for safekeeping an Association’s money lies with the board members; not a single board member, not the manager, the Attorney General, the County Prosecutor or even the Association’s auditor.
As a board member, ask yourself: “Who has check signing authority?”, “Who opens the bank statements?”, “Is there a credit card?”, “Who reviews the credit card statement?”, “When was the last time we reviewed our financial controls with the auditor?”, “What does our crime policy and related insurance cover?” etc.
Crime happens in community, condominium and co-op associations, there is no bulletproof solution but board members must do what they can to prevent it.