3 more embezzlements over weekend

Having a bookkeeper come in an reconciling the checkbook helps, too. We did that on a quarterly basis. The more "eyes" on the financial paperwork, the better.

You need the crime policy, not just the fidelity bond. In the embezzlement regarding the management company in Virginia, I was just told this weekend that about half the insurers didn't pay off, for various reasons. You need to have the insurance agent outline the exclusions or conditions under which a policy won't pay off and make sure you have those areas covered by your procedures.

Joe

JC3, I believe by "crime policy" it is also called theft insurance and previously was know as fidelity insurance. Some people have also referred to this insurance as "being bonded"; but it is not a bond.

This is a pet peeve of mine. If you have read our ad it states "Our money handling procedures remove possibilities for theft." I have posted the procedures several times which can be viewed by using the search button. I do caution those who think requiring 2 signatures helps prevent embezzlements. It is an extremely minor safeguard at best. Banks we do business with only require one signature and have no idea how many signatures the HOA requires.

RogerB said: "I do caution those who think requiring 2 signatures helps prevent embezzlements. It is an extremely minor safeguard at best. Banks we do business with only require one signature and have no idea how many signatures the HOA requires. "

I agree with this statement. While our board policy required 2 signatures, the 2 banks we used (at different times) paid no attention whatsoever to that requirement, even so far as stating to me once that they don't even look at the signatures. I said, "So you're telling me that someone could sign this 'Santa Claus' and it would not be compared against a signature card?" She said, "That's correct."

We had a treasurer signing and counter-signing some checks. He would sign the president's name (me), but spelled it wrong.

Fortunately, we caught this early and he only redirected about $200. He reimbursed us and resigned.

But it could have been worse.

We implemented a policy where one person would pick up the mail and open it and then send an email to the entire board listing each piece of mail and what was in it. For the banks statements, he would basically list each line item.

Only after his email went out would the mail then be delivered to the appropriate board member (president, treasurer, whatever).

Excellent point Joe. We encourage all Board members to be signers on all accounts. All signers can go to the banks websites to view unaltered bank records. Since all Board members with an email address are emailed the monthly financials they have one of the safeguards.