Top Five Ways to Protect Association Assets

1.  Auditing the books yearly is one of the first steps to protecting against theft.  A full audit is a deterrent.  A summary audit is basically just a re-writing of the financials and is not a deterrent of any kind.  A full audit is not a forensic audit which is used when a full audit discovers that something is wrong.  Full audits protect against current threats and future threats. 

2.  Maintain an emergency fund.  Keeping an amount equal to the insurance deductible plus one half to one months of dues in an account named "Reserve Account Emergency and Insurance Deductible Fund" keeps the money separate and labeled for a specific purpose.  This safeguards against special assessments and prevents making insurance claims without ownership knowledge.  This will keep rates low and raise confidence in the financial health of the community. 

3.  Landscape lighting not only protects against trip and fall claims but also protects plants during freezing temperatures.  This is important since landscaping is also an association asset. 

4.  Write into all contracts that vendors are to provide the board with a country wide background check for all employees who work in the field and anyone who will work with association funds.  People who commit crimes aren't always prosecuted by the company when it is discovered.  Many of them just fire them to prevent it from coming public and escape liability.  When this happens the offender just moves out of state which is why a country wide background check is needed.  Also a Dunn & Bradstreet Report on the business its self tells you if the company is a legitimate business.  Websites can lie about years in business but a D&B does not.  Licenses and insurance documents can be forged so know who your doing business with and who they employee.  This includes management companies and managers even if they are contractors for the management company.  You never know who you are doing business with.  Criminals are charming, smooth, crafty, appear trustworthy, educated, smart people who you never would suspect.

5.  Supervise vendors on site.  Supervising entails more than making sure they are doing their work or doing it right.  It also is a means of making sure one doesn't wonder off.  Vests and other identifying clothing can be removed preventing owners from knowing that they work for a vendor.  So, uniforms aren't a fail safe if someone breaks into a home during the day.  When a group of people are working it is easy for one to slip away without anyone noticing.  If they are supervised it's not so easy. 

Thank you for visiting and reading my blog. 

Wishing you and yours a

Peaceful & Happy Holiday Season!