Many condominium or homeowners association boards like the ease and convenience of credit or debit cards. Employees often use credit cards to purchase materials and supplies for association use. Gas stations won’t fill those association owned vehicles without payment – you cannot ask for them to bill the association. There are always problems with petty cash accounting and how much is enough or too much?
HOA Leader recently contacted me for a story regarding this issue. The article, 5 Tips to Limit HOA Credit and Debit Card Risks, includes an example of employee misuse of association credit. The association was reportedly responsible for $150,000 or more in credit card debt. As a result it had to obtain a short term loan and reduce expenses for lawn care and maintenance.
Is your community protected? Do you have financial controls in place to minimize any exposure to loss or theft?