1. Let the staff and your employees know that there is a field of fraud and that you are just out for it.
2. Hire the right people. Do background checks for all employees. It is your right to do so in the setting. To disclose to the applicant, you will take is a background check. In today's world would be if you do not perform a background check, you will probably be considered negligent.
3. He creates a Policy and Procedures on how your office handles the financesand make sure that everyone reads and understands this policy.
4. In the spot checks and balances in your system. The best and most efficient way to do this is to separate tasks. For example, a person must pay to the bank reconciliation and other accounts, another to prepare the deposits and other financial and loss account and balance sheet.
5. Make sure that all expenses incurred by a person approved by that authority. Do not let accountants, clerks, or to approve a signControls. Let the object manager to sign all checks.
6. Avoid cash handling. Cash can simply disappear. Take a check, or credit card. No matter how unpleasant it is to take no cash!
7. Conduct audits and assessments by an outside independent CPA of the books, records and a review of your procedures. Your CPA will lead you on this issue.
8. Forcing holidays. People who do not want to go on vacation to have somethat they want to hide or not let you feel great. Make sure that they take vacation, because that would be the time that problems are discovered.
9. Be on the lookout for fake deposit accounts, false invoices and non-existent employees with direct. I'm sorry to say that this is happening. Beware of credit card activity or new credit cards opened in the name of the association.
10. In accordance to bring all your bank statements each month that you will receive a financialStatement each month. Another good idea is to arrange with your bank statements come to the treasurer of the association, and the accountants have (see above # 4 - checks and balances).
Follow these 10 tips and ideas with what your CPA and suggests it may be fairly sure that your community association will be a victim of fraud in the future.
