As condominium ownership increases in popularity – among everyone from the single, upwardly mobile and newlywed to the empty nesters and elderly – so will the incidence of condominium association funds theft.  These funds, dues paid by owners to maintain common areas, are entrusted to boards of directors or management companies hired by boards.  Theft ranges from a manager falsifying books and using fictitious invoices to allowing board members to charge their personal utility bills to the association’s accounts.  And it’s more common than you think.

        Unit owners owe it to themselves to get involved and hold association boards accountable for the funds they have been entrusted with.  Ask your condominium board the following questions:

	Is fund disbursement controlled by an invoice system that tracks the purpose of each check?  (NOTE:  Blank checks or checks made out to “cash” should not be allowed.)
	Are receipts required for expenditures?
	Is the treasurer the only person with the authority to sign checks and access unused checks?
	Is access to reserve accounts limited to the board of directors, with two signatures required for disbursement?
	Is the condominium account audited annually by an independent CPA?
	Do the condominium owners receive a yearly financial statement?
	Does the board of directors and/or the condominium association run background checks on all persons with access to association funds?
	If the association employs a management company, does the company carry insurance that covers its employees’ dishonest acts?
	Does the association carry Directors and Officers (D&O) insurance and fidelity bonds to cover the treasurer, other board members, and employees with access to the funds?

        If the answer to any of these questions is no, bring it to the attention of your fellow owners and make sure the board corrects any problem.  After all it is your money and your home.  It is your responsibility to review association fund procedures and make sure they are sound.  If you would like advice or have further questions, contact our office.