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  • Writer's pictureJerry Ipsen, CFE, MBA

Warning Signs of HOA Fraud

Are you having problems or suspect wrongdoing in your HOA? McGowan Program Administrators points out some red flags and telltale signs of fraud:

- Errors in accounting—often resulting from allowing a single individual handling all bookkeeping duties

- Sudden, unexplained increases in member dues

- Drops in HOA revenue

- Financial statements that don’t match

- Checks written to board members instead of the HOA

- Checks written to fishy companies or non-existent vendors

- Checks written to “CASH”

- A lack of oversight in HOA board operations

- A surge in vendor pricing

When fraud or suspicious activity is suspected by the management team of your HOA, please remember Jerry of Ipsen Due Diligence is available to run background checks as well as audit your HOA for conflicts of interest or the misappropriation of funds.

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