Set Proper Internal Controls to Safeguard Income and Disbursements
With a constant flow of money coming in and going out, some community associations take shortcuts with their cash management procedures. For example, they might have the same person who prepares the checks also doing the books. But without effective internal controls, you won't know if someone is embezzling from the association.
Effective controls and standard procedures for income and disbursements—that is, payments to vendors, employees, and others—are essential to the sound management of any business, including community associations.