RickT3 (California)
Posts: 1
Posts: 1
Posted:
our former pres. stepped down from the board leaving the reserve's almost depleated what recourse do we have as to funds that we had that were paid by check to himself
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Started by RickT3 • 10 replies • 1215 views
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HaroldS (Arizona)
Posts: 906
Posts: 906
Posted:
Where were the rest of the board while this was going on? Harold
RobertR1 (South Carolina)
Posts: 5,164
Posts: 5,164
Posted:
I'm with Harold.
Please be more explicit.
A little detail won't hurt and also how you are approaching the problem as stated.
Please be more explicit.
A little detail won't hurt and also how you are approaching the problem as stated.
JoeW1 (New York)
Posts: 728
Posts: 728
Posted:
RickT3 - You may have a thief, if indeed your post is correct. If correct, criminal activity may have taken place. Association reserve funds are not to be used to line the pockets of officers and board members. If your former pres. is still signatory on the bank accounts, what's to prevent him/her from doing it again? Call the bank and get that changed immediately.
DonnaS (Tennessee)
Posts: 5,671
Posts: 5,671
Posted:
RickT3,
Boy, you had better get a lawer, a cop and your Board together if indeed someone stole your Reserves. Those are association funds and belong to all of your membership.
Why was not someone else watching the kitty? That is every Board members duty and especially the Treasurer. Give us more info so we can offer suggestions.
JimM7 (Florida)
Posts: 71
Posts: 71
Posted:
At first blush what you explain looks like embezzelment.
That is a felony.
The Treasurer could be complicit or derelict in his or her duty.
Call a special meeting , get the numbers and then contact your attorney.
The absconder of funds will not get far.
That is a felony.
The Treasurer could be complicit or derelict in his or her duty.
Call a special meeting , get the numbers and then contact your attorney.
The absconder of funds will not get far.
RogerB (Colorado)
Posts: 5,067
Posts: 5,067
Posted:
Rick, have a financial review. If there are unexplained discrepencies have a Hearing requesting the previous President to explain the discrepencies. If he can not consider an appropriate fine.
No one should ever be allowed to make a check out to themselves, sign the check, and endorse the check. Your HOA needs to set up policies and procedures to assure funds are properly dispersed. Financial reports need to be reviewed monthly to find and resolve questionable income and expenses.
No one should ever be allowed to make a check out to themselves, sign the check, and endorse the check. Your HOA needs to set up policies and procedures to assure funds are properly dispersed. Financial reports need to be reviewed monthly to find and resolve questionable income and expenses.
BradP (Kansas)
Posts: 2,640
Posts: 2,640
Posted:
Rick:
If he took association funds for his use, then I hope he likes pinstripes or an orange jumpsuit. Get the authorities involved.
If he took association funds for his use, then I hope he likes pinstripes or an orange jumpsuit. Get the authorities involved.
JosephW (Michigan)
Posts: 882
Posts: 882
Posted:
Get a full blown audit by a CPA, and if you suspect that criminal activity has occured, make it a forensic CPA, who looks for that type of activity. Before eveyone jump's the gun, often in very small associations, the board (or a board member) often pay for items out of their pocket and get re-imbursed. However, there should always be detailed receipts to cover those outlays. Start with the audit.
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RonaldW (South Carolina)
Posts: 901
Posts: 901
Posted:
Quote:
Posted By RogerB on 10/10/2007 7:54 AM
...............
No one should ever be allowed to make a check out to themselves, sign the check, and endorse the check. Your HOA needs to set up policies and procedures to assure funds are properly dispersed. ........
...............
No one should ever be allowed to make a check out to themselves, sign the check, and endorse the check. Your HOA needs to set up policies and procedures to assure funds are properly dispersed. ........
We have three people who are allowed to sign a check and two of these people must sign every check. Since we have no MC, we take care of many things ourselves and have occasionally had to co-sign our own reimbursement checks. We try to avoid it when possible. These checks are usually for $25.00 or less. Recipts are provided for all reimbursed expenses.
Ron
SC
SC
RonaldW (South Carolina)
Posts: 901
Posts: 901
Posted:
Quote:
Posted By RickT3 on 10/08/2007 7:07 PM
our former pres. stepped down from the board leaving the reserve's almost depleated what recourse do we have as to funds that we had that were paid by check to himself
our former pres. stepped down from the board leaving the reserve's almost depleated what recourse do we have as to funds that we had that were paid by check to himself
It's possible that there was no fraud, that these were legitimate expenses, so before you call the police, lawyers, accountants, etc., why not ask for the records, receipts, and an explanation?
Ron
SC
SC
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