CHECKS AND BALANCES

By Darlys Walker

Published May 20, 2015

   

There is nothing that infuriates me more than CAM’s who steal. Without a doubt they should be put in jail and the key thrown away! Homeowners beware, over the years we have been engaged as the managing agent for associations who were transitioning from self-managed (either the Board performing the management duties or an LCAM working directly for the Board) and in EVERY case we found misappropriation of Association funds. You may be asking why? Or, how this happens? The answer to both is a simple, “Because there are not enough checks and balances” in place to immediately catch the would be thief. This may sound self-serving, but the best protection is to hire a highly ethical LCAM. But before you do that, ask what checks and balances are in place for the handling of all Association funds, ENSURE all employees are bonded and that the firm has adequate fidelity insurance in place!

 

Here are the protocols to follow to give you an idea of what to look for.

  • Who reviews invoices before payments are processed?

  • Who cuts the checks? Should be done by the CAM.

  • Who signs the checks? This should never be done by the Board or the Property Manger but by a Senior Management person such as a Regional Property Manager.

  • Who prepares bank rec’s? Should be CFO/CPA/Accounting department

  • How often should the Board review Financials/Bank statements with Senior Management? Should be monthly

  • Who generates Financial Statements? Should be CFO/CPA/Accounting department

  • Who reviews Financial Statements? Should be the Board/CFO/Senior Management or CAM

  • Does the Management Firm have a relationship with the bank so that calls are made immediately from the bank in regards to any suspicious activity?

  • What is the process for vetting vendors BEFORE they receive payment?

  • Review and ask questions. The more people looking over each other’s shoulders the less likely theft will occur.

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    Darlys Walker, Founder and CEO of Condominium Concepts Management, Inc. (CCM), is recognized for her straight talk, subject matter expertise, and valued insights regarding real  

    state management, leasing, and HOAs. Her company serves a diverse portfolio of properties, from 16-units up to 600 as well as large mixed-use developments.  

     

       From its beginnings in 2000, CCM has become a well-respected asset manager and now works with over 100 associations with 16,000 units served by over 300 employees. Darlys and her team deliver resources and responsiveness through six regional offices - in Orlando, Miami, Jacksonville, Charleston, Nashville and Atlanta.

      

       Darlys Walker is best known for her passion and precision, understanding that the only difference that matters in today's demanding marketplace is service delivery ... doing what is promised and what is right. She knows that every community serves two masters ... the property owner/developer and the resident/homeowner. "If we are not equally responsive to both, we are not doing our job," she states.  

     

       Her clients say it best: "Darlys really knows her stuff" ... "at the top of her profession and it shows in the caliber of her clients" ... "delivers quality resources that match up well with needs and expectations that are really rigorous."  

     

       She is a licensed Real Estate Broker in four states, holds an Associate's Degree in Marketing and has earned the Accredited Real Estate Manager designation from the Georgia Institute of Real Estate Management. Also she is one of few certified as a Lead-Based Paint Abatement & Removal Trainer in Georgia.

      

       Darlys Walker and her team have been selected to manage the condominium conversion process and day-to-day operations for many of the Southeast's most high-profile condominium communities including luxury high-rises, mid-rises and garden-style homes. Most recently she has been recognized as an expert in 're-versions' of communities from condominiums to leased homes, as well as repositioning projects. A visionary and a tireless perfectionist, Darlys demonstrates hands-on leadership, working individually with each client and staff associate to achieve defined business outcomes and satisfaction.  

      

      For more information about Darlys Walker and Condominium Concepts Management, Inc. please visit www.condominiumconcepts.com.

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