New Board Member, Need Advice..

Started by AdamJ1 • 4 replies • 1268 views

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AdamJ1 (Mich)
Posts: 2

Posted:

Hello,

Recently we were appointed new board members. We are a condominium building with 20 units which are all owned by the tenants. I believe we are designated as a COA not a HOA - I am trying to figure out all of the details of the by-laws.

Long story short - we are looking for legal advice. The old "leader" of the board wanted to install new windows to the common areas (for 3 windows). A notice was placed as to the suggestion to install the new windows. As far as I am aware most people voted no on the notice - myself included.

Now, looking over the online bank statements.. There were about 7 checks written to the company to install the windows. Totalling over $15k. These checks were spread out over a span of a few months. Now, this is were the suspicion comes in - we have estimated these kind of windows to cost no more than a few thousand dollars to purchase and install, no were near what these checks add up to.

How would we go about in figuring out if fraud was involved?

Thank you

AdamJ1 (Mich)
Posts: 2

Posted:

Also we are having trouble locating all of the invoices for all of this supposed work that was done..

TimB4 (Tennessee)
Posts: 21,062

Posted:

Adam,

For legal advice, consult an attorney.

For a laypersons option, I'd start by contacting the companies that the checks were written to and ask for copies of invoices that you don't have along with a copy of any contract you don't have. Simply tell them that the CPA needs it for their audit.

Once you have those items, you can look deeper if needed (like was the work done, etc.)

CyrstalB (Maryland)
Posts: 457

Posted:

Begin by not assuming that "fraud" has happened based on what you have seen because you will not get your answers easily. We are all programmed to think the worst of all situations these days. Tim's suggestion to call the company that installed them will be of big help. BUT not if your thinking fraud and go into your discussions with guns a'blazing.

What did your previous board member say when you asked him directly?

When you say you all estimated, does that mean you did the figuring your that you had several companies come out and estimate it for you?

They may have just wanted your input on replacing said windows because typically the board doesn't need a vote of membership to replace or repair a common area item, unless that is specifically spelled out in your documents.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Adam

Typically owners do not get to vote on such replacements, only the BOD. You may have been asked for your input but I doubt you all voted on it.

If you have questions ask to see the quote/invoice/bill, etc. from either the BOD records or the supplier.

My initial blush is all will be in order with the issue being you simply did not agree with what was done.

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