Our law firm suggests that boards have the following accounting and financial controls in place to prevent embezzlement and fraud in their association: 1. Keep association records up to date; 2. Assign control of all reserve funds to the entire board; 3. Monthly financial reports should be prepared and made available for board review (include in the monthly report, a [...]
by Beth Mulcahy, Esq. Our association board is considering hiring a company to prepare a reserve study but we aren’t really sure what a reserve study is. Can you define a reserve study for us? How much do reserve studies cost? A reserve study is a budgeting guide that provides a comprehensive plan that shows an association how much is reasonable to [...]
By Beth Mulcahy, Esq. It’s that time of the year again… Fiscal year 2015 has ended for most of our association clients and boards are now considering the next requirements with regard to the association’s 2015 financial books and records. Many boards have contacted our office asking if an association is required to have an audit done by a CPA [...]
Board members often tell Mulcahy Law Firm, P.C. that collecting delinquent assessments is one of the most difficult duties they have to oversee. This blog will provide a few quick tips to help boards more effectively collect delinquent assessments. First, the board must take prompt action on delinquent accounts if the board wants to have a low delinquency rate. If [...]
It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any organization that believes it is immune from the fraudulent use of funds is destined to become a victim. Mulcahy Law [...]
By Beth Mulcahy, Esq. An association may charge a “disclosure fee” to compensate the association for the costs incurred in the preparation of a disclosure statement furnished by the association pursuant to A.R.S. Section 33-1806 (planned community)/33-1260 (condo). Requirements for a Disclosure Statement A brief summary of the requirements for a disclosure statement pursuant to these sections follows: For planned [...]
by Beth Mulcahy, Esq. Our association board is considering hiring a company to prepare a reserve study but we aren’t really sure what a reserve study is. Can you define a reserve study for us? How much do reserve studies cost? A reserve study is a budgeting guide that provides a comprehensive plan that shows an association how much is reasonable to [...]
by Beth Mulcahy, Esq. Tax time is looming for all Arizonans and this is a commonly presented question for our firm at this time of the year… Yes, an association is required to file state and federal taxes on or before March 15, 2015 for fiscal year 2014. Our law firm suggests that an association consult with a qualified C.P.A. [...]
By: Beth Mulcahy, Esq. Our firm often receives questions regarding reserve funds. The most commonly asked questions are the following: how much should we have in our reserve fund and is a certain percentage appropriate? The answer depends on the amenities your association has and the quality of the items being replaced or the type of maintenance necessary to keep [...]
It has happened; there are funds missing from the checking account. Figures do not line up and you cannot get in touch with anyone. The board always sees a financial statement at each board meeting, so what went wrong? Any organization that believes it is immune from the fraudulent use of funds is destined to become a victim. Mulcahy Law [...]
