bank statements

Started by BenA • 3 replies • 1744 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

BenA (California)
Posts: 1

Posted:

I am an owner of one unit in the complex. I am not a board member. As a concerned owner who suspects fraud within the HOA, do I have the legal right to ask for monthly bank statement copies to be sent to me? In addition it seems like the president is co-mingling HOA funds with his side management company. Is this legal?
Thanks in advance...

RogerB (Colorado)
Posts: 5,067

Posted:

Ben,
Tthe President should not also control the HOAs management company. If he does, it rasies conflict of interest concerns and therefore he should resign from the Board.

HOA funds should always be in a separate account. In fact there should be a minimum of two HOA accounts for operating funds and reserve funds.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

do I have the legal right to ask for monthly bank statement copies to be sent to me?

You have the legal right to ask, ask anything you want. (wink) But they dont have to do it. I wouldnt send my bank statements to you, although I wouldn't mind it you wanted to view them.

Quote:

In addition it seems like the president is co-mingling HOA funds with his side management company. Is this legal?

Its not illegal, but highly irregular unless its a large management company. If its a small mgmt company and you are the only client, I would be very concerned. If he cant track a separate bank account, chances are he has no idea what he is doing.

SusanW1 (Michigan)
Posts: 5,202

Posted:

The end of the year financial statement should tell you everything. As a member, you should get one anyway.

Then request a copy of the expanded version, where all activity (checks) are listed under each category.

Then comb thru the minutes to see motions that OK the expenditure, or contracts or budgeted amounts. All large expenditures should have back up verification like this.

Bank statements are not going to tell you anything.

Expect to pay for time and printing costs.

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here