Identifying Risk Areas is a big part of ensuring fraud is caught. Make sure that you look at:
There is always a risk that something is happening that shouldn't be so make sure you take steps to reduce the risk of fraud. If it is only you in your management company:
As you expand your practice, you can take the above steps and start sharing the responsibility internally
The single greatest opportunity to reduce the risk of fraud is to make sure that no one employee has excessive rights over your association clients. You need to be able to prove that work done by one employee is overseen by another. Limiting access within your software is an absolute must and documenting your users rights and responsibilities can go a long way to prove to your clients that you are taking all appropriate steps to reduce the risk of fraud and the loss of their money. Your accounting team is an integral part of the fraud prevention and detection system as all transactions ultimately go through the accounting system and end up in the financial statements. Take the time to document your processes or consider engaging another firm like C.O.R.E. to manage and document how transactions are processed to reduce the risk of fraud.
C.O.R.E. Services can help you grow your management practice
CORE can help you grow by providing full accounting and financial management to support you and your association clients. We provide the vital check and balance to ensure that association financial information is always accurate and that vital systems are in place to detect and prevent fraud. Let us help you and your clients safeguard assets by becoming a part of your strategic team today. Contact us today to learn more!
We have provided some files which you can use or share to help your associations with their audits and accounting. We have also included some example BPMN files for you to use in documenting your various approval processes.
workflow on addressing overbudget expenses (png)Download
workflow on the budget creation and approval process (png)Download
PDF of presentation on Internal controls (pdf)Download
PDF of presentation on Doug's book, Trade HOA stress for success (pdf)Download
PDF of presentation on HOA Financial statement analysis (pdf)Download
Small association checklist for internal reviews (xlsx)Download