35 Ways To BULLETPROOF Your Condo Association

shutterstock_181462556Over the past few weeks, we’ve discussed what ALL board members and officers of community associations in America should read: the 35-point bulletproof list of financial procedures detailed in “Escaping Condo Jail“, and consider it a survival manual. Divided into four segments:

 

  • Inheriting Old Books
  • Guarding and Vigilance
  • Cyberbanking Procedures
  • Efficiency Maximization and Return

Let’s pull it all together, here is the complete 35-point checklist to BULLETPROOF your building association.

 

Inheriting Old Books

  1. Open new accountsshutterstock_233684602
  2. Update bank signature cards.
  3. Obtain a transition statement.
  4. Destroy all old checks.
  5. Keep new checks locked.
  6. Report any theft to police.

 

Guarding and Vigilance

  1. Keep board officers’ deeds and state-issued IDs on file.shutterstock_152788151
  2. Perform credit and background checks on employees.
  3. Have monthly bank statements sent to two different people.
  4. Require fidelity insurance and bond money handlers.
  5. Require that different people write checks and reconcile books.
  6. Require board members to review bank statements within 10 days.
  7. Never allow the management company to access reserve accounts.
  8. Never rely on computer-generated reports instead of bank statements.
  9. Require budgets to conform to GAAP.
  10. Require use of established financial software.
  11. Require two signatures minimum on each checks, with amounts over $2,500 requiring three signatures.
  12. Never allow credit or debit cards.
  13. Require invoices before paying bills.
  14. Use safety checks with watermarks and warning bands.
  15. For sizable accounts, use an automated fraud detection tool.
  16. Perform periodic audits on a schedule.
  17. Do not let accounts exceed FDIC limits.

 

Cyberbanking Procedures

  1. Have a procedures manual for Internet banking protocol.shutterstock_152775479
  2. Have a dedicated computer for financial transactions.
  3. Run up-to-date operating systems and antivirus protection.
  4. Ensure financial websites are secure- look for an s after http.
  5. Require two separate authorizations to process banking transactions.
  6. Change passwords on a regularly scheduled basis.
  7. Always exit the bank’s website completely.
  8. Consider Positive Pay with a $1,000 limit.
  9. Check electronic transactions every day.
  10. Use extreme caution with mobile devices for banking.

 

Efficiency Maximization and Return

  1. Collect assessments using ACH payments.
  2. Invest association monies wisely.

 

Using this checklist as a guide will ensure your condo association’s health and your own peace of mind! Share your stories with us! Email us @ info@associationevaluation.com or follow us on Facebook!

 

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