| 1. Let the employees and your staff know that | | | | matter how inconvenient it is do not take cash! |
| there is a Fraud Policy and that you are watching | | | | 7. Conduct audit and reviews by an outside |
| out for it. | | | | independent CPA of the books, records and also |
| 2. Hire the right employees. Do background | | | | include an audit of your procedures. Your CPA will |
| checks on all employees. It is your right to do this | | | | guide you on this. |
| when hiring. Just disclose to the applicant that you | | | | 8. Enforce vacations. People who do not want to |
| will be performing a background check. In this day | | | | take vacations may have something that they |
| and age, if you did not perform a background | | | | want to hide or do not feel comfortable leaving. |
| check, you would probably be considered | | | | Make sure that they take vacations, as this would |
| negligent. | | | | be the time that problems will be discovered. |
| 3. Put into place a Policy and Procedures of how | | | | 9. Be on the lookout for phony invoices, improper |
| your office handles finances and make sure that | | | | billing and non-existent employees with direct |
| everyone reads and understands this policy. | | | | deposit. I am sorry to say that this happens. |
| 4. Put into place Checks and Balances in your | | | | Beware of credit card activity or new credit |
| system. The best and efficient way to do this is | | | | cards being opened up in the association name. |
| segregate duties. For example, have one person | | | | 10. Reconcile all of your bank statements every |
| to bank reconciliation, another pay bills, another | | | | month and insist that you receive a financial |
| make deposits and another prepare the financial | | | | statement every month. Another good idea is to |
| statement and balance sheet. | | | | arrange with your bank to have bank statements |
| 5. Make sure that all expenditures are approved | | | | come to the Treasurer of the Association, as well |
| by an individual with that authority. Do not allow | | | | as to the bookkeeper (see #4 above - Checks |
| any bookkeepers, clerks to approve of or sign | | | | & Balances). |
| any checks. Do not allow your Property Manager | | | | Follow these 10 tips and ideas, along with what |
| to sign any checks. | | | | your CPA suggests and you can be fairly |
| 6. Do handle any cash. Cash can easily disappear. | | | | confident that your Community Association will |
| Take a check, money order or credit card. No | | | | not be a victim of fraud in the future. |