Co-op & Condo Fraud: The Management Report

Being vigilant toward a management company revolves around one very critical tool: the monthly management report. This becomes the key information transfer tool that allows the board to keep track of what the management company is doing, and helps to deter fraud.

The management report must show:

  • the employee list (including what each employee’s job is what s/he is being paid, and any holiday/vacation/overtime pay)
  • the monthly bank statement (including every check issued from that account, as well as the invoice attached to each check)
  • the monthly statement for any investment accounts
  • copies of original documents of any other task the management company is doing for you on a monthly basis

Bank reconciliations must be done before the annual audit can be completed.

Don’t assume that just because you’re paying a management company, everything is being taken care of as it should. Be on top of things.


About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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