I find myself so angry

On the other hand it sounds like you need a board of directors that don't rubber stamp everything the the MC does.

Well, the mgmt company reports to the client. The client is the president. So if they want to keep the contract, they do what the presidents says.

Sounds to me like you need a new president, not mgmt company. The mgmt company is simply doing what they are told.

Our "MC" was just did our accounting. They processed the checks. We had a 2 signature system on each check written. 1 the Accountant (MC) and then 2 board members (account approved) had to sign EACH check. They wrote out checks for the regular bills like electric, insurance, and contractors. However, if we had a decision/expense the board had to have had it in the meeting notes it was voted/approved. The MC then asked us if it was approved and noted. (They aren't members of the HOA technically). They then wrote out the check and we went through the 2 signatures system.

We also then discussed it in the Expense reports at each meeting. That way everyone saw why the check was written and see it noted. Sometimes special conditions existed like emergencies or natural disasters. Those situations were sometime dealt with just the board members due to time restraints/needs. However, they were always announced openly and not hidden.

So it's time to change the culture of your HOA. This was NOT the way it was done before I took over. So it's up to you and your new owners to get on board on changing things.

yes,, we just took over the board,, i'm talking about how the previous board operated. what Melissa said would have been perfect... if the mc had verified with the board that the payment was approved.. however, in this case.. the president was actively trying to circumvent the checks and balances. the previous board didn't know the money had been paid out until it was gone. everyone was asleep at the wheel. or literally not paying attention..

It won't go on like this anymore.. however,, I know the MC knew that things were right.. and I personally as well as other owners contacted him and told him so.. he simply rebuffed us...
Now he is claiming that he wasn't required to make sure there was board approval.

well this is bs.. because a year earlier,, this very same thing happened.. and hbe refused to release a payment until he had unanimous board approval in an email. then,, it turns out,, he got board members responses,, but it wasn't unanimous, but he released the payment anyway, because he didn't bother to verify that unanimous consent was given.

The new board president is much more non confrontational than I am. However.. in this case. after all this money and fraud was happening,, I can't just put it all behind me.. I want those that knew or should have known .,that the previous board was violating their legal authority , not following the policies and procedures and internal controls , etc. , I want to fire them! I know that maybe right now, right after the transition when a new board took over, is not the right time.. But I do not want to let this slide..

yes this mc does a professional good job.. if nothing is out of the ordinary, they do fine.. however.. we need vendors that know how to handle out of the ordinary situations.. who know how to protect the hoa.. and not just cowtow to the board.

Might I suggest you go to board meetings to ensure everything is done right. And if its not, speak up. Its not going to happen by itself.

First part of your post;
"The owner only does things that are in his best interest."

WHOM are you talking about?

Do you have a turnover from the original owner/Builder?

Where is your treasurer during all this? That is the person who directs the MC to pay bills that are not within a budger or that outside of the budget.

If all they're doing is bookkeeping and financial reporting I think you're expecting too much. We have a "management company" but all they do is our books, accounting, financial reports, accts payable, accts receivable, and like that. Routine stuff. Expecting them to make judgment calls or to render advice on what's proper or not is way out of scope.

Compared to us, you've got a bargain. We pay $680 a month for 100 homes (some duplexes, some stand-alone). They routinely tack on other "copies, supplies and postage" charges that brings the total closer to $850 a month. We're going to have an actual bona fide full-service management company after the 1st of the year and we'll be transferring the bookkeeping over to them, too.

Wow - I am surprised at the cost ... I would think 100 homes plus or minus would be easy to maintain data on with volunteer board and officers .... I am talking about single family houses - not experience with condos.

Yes when one is willing to step forward and do the work and therein is the problem.

Our simple 189 single family home neighborhood with almost no amenities has a treasurer who puts in about 2-3 hours a week - maybe less - and, this is doing multiple billings for our incredibly whacko governance structure - voluntary HOA membership, but mandatory covenants.

He uses Quickbooks.

He puts in more time when prepping for the Annual Meeting ...

I didn't include the time at the Board meetings.

Laska,

If you were to ask how many of the 189 actually paid dues - the answer is 115 - the other slugs are on our list to engage more fully.

Our treasurer is not overworked at all - he is about 75 yrs old and works full time, in addition to being the treasurer.

stevem9,,

I'm now on the board. I'm absolutely at every single meeting... the new board are all very much involved. the problem is, the previous board mostly didn't do anything they were supposed to. and anytime they were questioned, they spent their time making sure we(the owners who recognized the incompetence and wrongdoing) were blamed for problems and delays.. .. Only have almost 800,000 was wasted, with little of the actual necessary hoa work having been done did the other owners finally realize that we were right all along ..